Integration of Joint Power-Heat Flexibility of Oil Refinery Industries to Uncertain Energy Markets

Abstract

This paper proposes a novel approach to optimize the main energy consumptions of heavy oil refining industries (ORI) in response to electricity price uncertainties. The whole industrial sub-processes of the ORI are modeled mathematically to investigate the joint power-heat flexibility potentials of the industry. To model the refinery processes, an input/output flow-based model is proposed for five main refining units. Moreover, the role of storage tanks capacity in the power system flexibility is investigated. To hedge against the electricity price uncertainty, an uncertain bound for the wholesale electricity price is addressed. To optimize the industrial processes, a dual robust mixed-integer quadratic program (R-MIQP) is adopted; therefore, the ORI’s operational strategies are determined under the worst-case realization of the electricity price uncertainty. Finally, the suggested approach is implemented in the south-west sector of the Iran Energy Market that suffers from a lack of electricity in hot days of summer. The simulation results confirm that the proposed framework ensures industrial demand flexibility to the external grids when a power shortage occurs. The approach not only provides demand flexibility to the power system, but also minimizes the operation cost of the industries.