Integrated risk and multi-objective optimization of energy systems

•Developing risk aware energy planning model considering storages as energy traders.•Providing optimal risk strategy for each storage.•Robust, simple, and verifiable framework for understanding and measuring risk scenarios for energy systems.

This paper presents a risk aware energy planning model with storages as decision makers. The amount of energy bought from generators, stored in storages, and sold to users is set by storages. The paper also provides the optimal risk strategy for each storage considering energy cost, environmental impact, and failure rate as social welfare functions. A robust, simple, and verifiable framework for understanding and measuring risk scenarios for energy systems is introduced. Multiple-objective approach for integrating risk with social welfare functions is also discussed. Application of presented framework in energy industry is discussed by examples.