A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas

Guoliang Zhang, Suhua Lou, Yaowu Wu, Yang Wu and Xiangfeng Wen
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Guoliang Zhang: China-EU Institute for Clean and Renewable Energy, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China
Suhua Lou: State Key Laboratory of Advanced Electromagnetic Engineering and Technology, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China
Yaowu Wu: State Key Laboratory of Advanced Electromagnetic Engineering and Technology, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China
Yang Wu: Power Dispatch and Control Center of China Southern Power Grid, Guangzhou 510623, China
Xiangfeng Wen: Power Dispatch and Control Center of China Southern Power Grid, Guangzhou 510623, China

Energies, 2020, vol. 13, issue 24, 1-13

Abstract: To promote the collaborative development of the bio-natural gas (BNG) industry and the integrated energy system (IES), this paper proposes a new commerce operation model considering the gas price adjustment mechanism for the IES with the utilization of bio-natural gas. The bi-level optimization model is used to simulate the clearing process within the open energy market framework, and the uncertainties of variable renewable energy output are modeled with a set of scenarios through the stochastic programming approach. In the upper-level model, the energy management center adjusts the bio-natural gas price rationally to minimize the expected total operating cost and release the price signal to the lower-level model; the lower-level model simulates the sub-markets clearing process to formulate detailed operation schemes. The bi-level model is transformed into a mathematical programming problem with equilibrium constraints (MPEC) through the Karush–Kuhn–Tucher (KKT) condition of the lower-level model, and the nonlinear model is converted into a mixed-integer linear programming problem and solved. The numerical results verified the effectiveness of the proposed model.

Keywords: integrated energy system; distributed renewable energy sources; bio-natural gas; open energy markets; bi-level optimization model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
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