A view to the future of natural gas and electricity: An integrated modeling approach
Wesley J. Cole,
Kenneth B. Medlock and
Energy Economics, 2016, vol. 60, issue C, 486-496
This paper demonstrates the value of integrating two highly spatially resolved models: the Rice World Gas Trade Model (RWGTM) of the natural gas sector and the Regional Energy Deployment System (ReEDS) model of the U.S. electricity sector. The RWGTM passes electricity-sector natural gas prices to the ReEDS model, while the ReEDS model returns electricity-sector natural gas demand to the RWGTM. The two models successfully converge to a solution under reference scenario conditions. We present electricity-sector and natural gas sector evolution using the integrated models for this reference scenario. This paper demonstrates that the integrated models produced similar national-level results as when running in a stand-alone form, but that regional and state-level results can vary considerably. As we highlight, these regional differences have potentially significant implications for electric sector planners especially in the wake of substantive policy changes for the sector (e.g., the Clean Power Plan).
Keywords: Natural gas markets; Electricity markets; Market integration; Capacity expansion modeling (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:60:y:2016:i:c:p:486-496
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