Security-aware joint energy and flexibility trading in electricity-heat networks: A novel clearing and validation analysis

This paper introduces a new day-ahead peer-to-peer (P2P) trading mechanism for Integrated Electricity-Heat Networks (IEHNs), which enables agents to negotiate and trade heat and electricity. The mechanism also includes a flexibility service that utilizes rapid capacities from flexible resources, such as fast dispatchable agents, electrical and heat loads, and energy hubs. This service allows renewable energy participants to address unforeseen generation shortfalls or surpluses in real-time. To ensure that traded flexibilities can be delivered within real-time operational constraints, the proposed day-ahead operation model is enhanced with flexibility deployment scenarios. The IEHN operator, as a non-profit market participant, collaborates with other agents to ensure the secure operation of the IEHN. Additionally, a duality-based approach is employed to accurately determine the proportion of transactions and the operational constraints in energy losses of the IEHN. The proposed market clearing mechanism is tested in a 16-agent P2P market located on a 33-bus power distribution system coupled with a 10-node district heating system. Numerical results demonstrate the accuracy and efficiency of the proposed market mechanism in pricing, loss allocation, and the feasibility of flexibility transactions.