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Modeling Optimal Economic Dispatch and System Effects in Natural Gas Networks

Author

Listed:
  • Kjetil T. Midthun
  • Mette Bjorndal
  • Asgeir Tomasgard

Abstract

In this paper we present a modeling framework for analyzing natural gas markets, taking into account the specific technological issues of gas transportation. We model the optimal dispatch of supply and demand in natural gas networks, with different objective functions, i.e., maximization of flow, and different economic surpluses. The models take into account the physical structure of the transportation networks, and examine the implications it has for economic analysis. More specifically, pressure constraints create system effects, and thus, changes in one part of the system may require significant changes elsewhere. The proposed network flow model for natural gas takes into account pressure drops and system effects when representing network flows. Pressure drops and pipeline flows are modeled by the Weymouth equation. A linearization of the Weymouth equation makes economic analyses computationally feasible even for large networks. However, in this paper, the importance of combining economics with a model for pressure drops and system effects is illustrated by small numerical examples.

Suggested Citation

  • Kjetil T. Midthun & Mette Bjorndal & Asgeir Tomasgard, 2009. "Modeling Optimal Economic Dispatch and System Effects in Natural Gas Networks," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 155-180.
  • Handle: RePEc:aen:journl:2009v30-04-a06
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    Citations

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    Cited by:

    1. Thapalia, Biju K. & Crainic, Teodor Gabriel & Kaut, Michal & Wallace, Stein W., 2012. "Single-commodity network design with random edge capacities," European Journal of Operational Research, Elsevier, vol. 220(2), pages 394-403.
    2. Franziska Holz & Philipp M. Richter & Ruud Egging, 2013. "The Role of Natural Gas in a Low-Carbon Europe: Infrastructure and Regional Supply Security in the Global Gas Model," Discussion Papers of DIW Berlin 1273, DIW Berlin, German Institute for Economic Research.
    3. Foster, John & Wagner, Liam & Liebman, Ariel, 2015. "Modelling the Electricity and Natural Gas Sectors for the Future Grid: Developing Co-Optimisation Platforms for Market Redesign," MPRA Paper 70114, University Library of Munich, Germany.
    4. Shabanpour-Haghighi, Amin & Seifi, Ali Reza, 2016. "Effects of district heating networks on optimal energy flow of multi-carrier systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 379-387.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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