Power, Control, and Data Processing Systems

Power, Control, and Data Processing Systems

Integrated Energy Management with P2G and CAES for Price Arbitrage and Renewable Utilization in Smart Grids

Document Type : Original Research

Authors
Phd of student
10.30511/pcdp.2025.2074998.1052
Abstract
Electric vehicles and hydrogen and gas storage systems, provide significant flexibility for energy management in the smart grid. This paper extends the integrated management framework of renewable energy resources, demand response programs, and water systems by incorporating two advanced electricity storage technologies: Power-to-Gas (P2G) and Compressed Air Energy Storage (CAES). Unlike conventional applications, in this work both units are modeled solely as electrical storage layers to enhance flexibility and enable price arbitrage under fixed, Time-of-Use (TOU), and real-time pricing schemes. Surplus renewable generation can be stored either as synthetic gas in the P2G system or as compressed air in the CAES unit, both of which are later converted back into electricity during high-price periods. The proposed extended model improves operational efficiency without introducing additional heat or gas loads. Simulation results show that integrating P2G and CAES reduces total operational cost by 4.5%, increases renewable utilization by 10%, and enhances the ability to shift consumption away from expensive hours.
Keywords

Subjects


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Volume 3, Issue 1
Winter 2026
Pages 54-66

  • Receive Date 17 October 2025
  • Revise Date 20 December 2025
  • Accept Date 25 December 2025
  • First Publish Date 25 December 2025
  • Publish Date 01 March 2026