Impacts of Natural Gas Pipeline Congestion on the Integrated Gas–Electricity Market in Peru

Richard Navarro, Hugo Rojas, Jaime E. Luyo, Jose L. Silva and Yuri P. Molina ()
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Richard Navarro: Faculty of Mechanical Engineering, National University of Engineering, Lima 15333, Peru
Hugo Rojas: Faculty of Mechanical Engineering, National University of Engineering, Lima 15333, Peru
Jaime E. Luyo: Faculty of Mechanical Engineering, National University of Engineering, Lima 15333, Peru
Jose L. Silva: Department of Electrical Engineering, Federal University of Paraíba, João Pessoa 58051-900, Paraíba, Brazil
Yuri P. Molina: Department of Electrical Engineering, Federal University of Paraíba, João Pessoa 58051-900, Paraíba, Brazil

Energies, 2024, vol. 17, issue 18, 1-22

Abstract: This paper investigates the impact of natural gas pipeline congestion on the integrated gas–electricity market in Peru, focusing on short-term market dynamics. By simulating congestion by reducing the primary natural gas pipeline’s capacity, the study reveals significant patterns in production costs and load flows within the electrical network. The research highlights the critical interdependencies between natural gas and electricity systems, emphasizing how constraints in one network can directly affect the other. The findings underscore the importance of coordinated management of these interconnected systems to optimize economic dispatch and ensure the reliability of both gas and electricity grids. The study also proposes strategic public policy interventions to mitigate the financial and physical impacts of pipeline congestion, contributing to more efficient and resilient energy market operations.

Keywords: economic dispatch; electricity grid; gas grid; natural gas; thermal power stations; optimization (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: 2024
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