Nash Bargaining-based Cooperative Operation Strategy of Integrated Heat and Electricity System with AA-CAES

Advanced adiabatic compressed air energy storage (AA-CAES), with its dual capability for electricity-heat cogeneration and energy storage, offers significant potential as an energy hub for integrated electricity and heat systems (IEHS). While synergies in the electricity-heat market are known to enhance economic efficiency, it is hard to achieve cooperative operation due to the inherent differences among participants of IEHS and the absence of an incentive-compatible mechanism. To address this challenge, this paper proposes a Nash bargaining-based cooperative operation strategy for IEHS with AA-CAES. First, a cooperative alliance framework based on the Nash bargaining is proposed to optimize energy trading. Second, to overcome computational complexity, the non-convex, nonlinear Nash bargaining problem is decomposed into a two-stage optimization approach. In the first stage, a joint planning model maximizes the total profit of the alliance, determining the optimal energy interaction for each participant. In the second stage, a subsequent model ensures fair profit distribution by optimizing pricing and benefit-sharing mechanisms. Subsequently, a distributed solution strategy based on the self-adaptive alternating direction method of multipliers is utilized to preserve operator privacy and improve computational efficiency. Finally, case studies demonstrate that within the electricity-heat co-supply mode, the daily profit of AA-CAES can improve by approximately 4137.45 CNY. Meanwhile, through the proposed cooperative strategy, participants in the IEHS can obtain greater profits, which validates the effectiveness of this strategy.