Environmental aspects have been highlighted in architecting future energy systems where sustainable development plays a key role. Sustainable development in the energy sector has been defined as a potential solution for enhancing the energy system to meet the future energy requirements without interfering with the environment and energy provision. In this regard, studying the cross-impact of various energy vectors and releasing their inherent operational flexibility is main topic. Thecoordinationofvariousenergyvectorsundertheconceptofmulti-energysystem (MES)hasintroducednewsourcesofoperationalflexibilitytothesystemmanagers. MES considers both interactions among the energy carriers and the decision makers in an interdependent environment to increase the total efficiency of the system and reveal the hidden synergy among energy carriers. This thesis addresses a framework for modeling multi-energy players (MEP) that are coupled based on price signal in multi-energy system (MES) in a competitive environment. MEP is defined as an energy player who can consume or deliver more than one type of energy carriers. At first, the course of evolution for the energy system from today independent energy systems to a fully integrated MES is presented and the fractal structure is described for of MES architecture. Moreover, the operational behavior of plug-in electric vehicles’ parking lots and multi-energy demands’ external dependency are modeled in MES framework to enhance the operational flexibility of local energy systems (LES). In the fractal environment, there exist conflicts among MEPs’ decision making in a same layer and other layers. Realizing the inherent flexibility of MES is the main key for modeling the conflicts in this multi-layer structure. The conflict between two layers of players is modeled based on a bi-level approach. In this problem, the first level is the MEP level where the player maximizes its profit while satisfying LES energy exchange. The LES’s exchange energy price is the output of this level. In the lower level, the LESs schedule their energy balance, based on the upper level input price signal. The problem is transformed into a mathematical program with equilibrium constraint (MPEC) through duality theory. In the next step, high penetration of multi-energy players in the electricity market is modeled and their impacts on electricity market equilibrium are investigated. In such a model, MEP participates in the local energy and wholesale electricity markets simultaneously. MEP and the other players’ objectives in these two markets conflict with each other. Each of these conflicts is modeled based on bi-level programming. The bi-level problems are transformed into a single level mixed-integer linear problem by applying duality theory
