IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v354y2024ipbs0306261923014289.html

A cross-carrier multilateral trading model for integrated electricity and natural gas systems

Author

Listed:
  • Niu, Man
  • Gao, Ciwei
  • Muñoz-Delgado, Gregorio
  • Contreras, Javier

Abstract

Multi-carrier systems have become an important research topic in view of electricity and gas systems synergies. We present a new model for the cross-carrier multilateral economic dispatch (MED) problem to account for transmission losses and network constraints in the integrated electricity and gas systems. To associate multilateral trades more effectively with the losses occurring in the network, the loss allocation ratio between suppliers and consumers involved in multilateral trades is introduced in the loss allocation policy. Two sets of reciprocity constraints are presented to ensure the equilibrium between production and consumption, both physically and economically. The price decomposition involved in multilateral trades is developed based on cross-carrier MED with product differentiation (PD). Combined with characteristics of price decomposition, an effective payment to keep less trading information access by the network operator in the decentralized market is presented. Numerical results show that when all losses are allocated to consumers, the MED model without PD performs similarly to a pool-based market model. It is also demonstrated that the inclusion of agents' preferences in the MED model can improve total social welfare.

Suggested Citation

  • Niu, Man & Gao, Ciwei & Muñoz-Delgado, Gregorio & Contreras, Javier, 2024. "A cross-carrier multilateral trading model for integrated electricity and natural gas systems," Applied Energy, Elsevier, vol. 354(PB).
    • Handle: RePEc:eee:appene:v:354:y:2024:i:pb:s0306261923014289
    DOI: 10.1016/j.apenergy.2023.122064
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261923014289
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2023.122064?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. repec:aen:journl:2000v21-03-a01 is not listed on IDEAS
    2. Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niu, Man & Gao, Ciwei & Diaz-Cachinero, Pablo & Muñoz-Delgado, Gregorio & Contreras, Javier, 2025. "An improved cross-carrier MED model for integrated electricity and natural gas systems: Economics, transparency, and privacy," Applied Energy, Elsevier, vol. 402(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. C. K. Woo & K. H. Cao & H. Qi & J. Zarnikau & R. Li, 2024. "Price responsiveness of solar and wind capacity demands," Post-Print hal-04597188, HAL.
    2. Brown, David P. & Eckert, Andrew & Olmstead, Derek E.H., 2022. "Procurement auctions for regulated retail service contracts in restructured electricity markets," Energy Economics, Elsevier, vol. 116(C).
    3. Duarte Kazacos Winter & Rahul Khatri & Michael Schmidt, 2021. "Decentralized Prosumer-Centric P2P Electricity Market Coordination with Grid Security," Energies, MDPI, vol. 14(15), pages 1-17, August.
    4. Fridgen, Gilbert & Keller, Robert & Körner, Marc-Fabian & Schöpf, Michael, 2020. "A holistic view on sector coupling," Energy Policy, Elsevier, vol. 147(C).
    5. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    6. Fridgen, Gilbert & Kahlen, Micha & Ketter, Wolfgang & Rieger, Alexander & Thimmel, Markus, 2018. "One rate does not fit all: An empirical analysis of electricity tariffs for residential microgrids," Applied Energy, Elsevier, vol. 210(C), pages 800-814.
    7. Cao, K.H. & Qi, H.S. & Tsai, C.H. & Woo, C.K. & Zarnikau, J., 2021. "Energy trading efficiency in the US Midcontinent electricity markets," Applied Energy, Elsevier, vol. 302(C).
    8. Woo, C.K. & Liu, Y. & Zarnikau, J. & Shiu, A. & Luo, X. & Kahrl, F., 2018. "Price elasticities of retail energy demands in the United States: New evidence from a panel of monthly data for 2001–2016," Applied Energy, Elsevier, vol. 222(C), pages 460-474.
    9. Pihnastyi, Oleh & Khodusov, Valery, 2020. "Development of the controlling speed algorithm of the conveyor belt based on TOU-tariffs," MPRA Paper 104681, University Library of Munich, Germany, revised 12 Nov 2020.
    10. Brown, D.P. & Tsai, C.H. & Woo, C.K. & Zarnikau, J. & Zhu, S., 2020. "Residential electricity pricing in Texas's competitive retail market," Energy Economics, Elsevier, vol. 92(C).
    11. Sun, Bing & Yu, Yixin & Qin, Chao, 2017. "Should China focus on the distributed development of wind and solar photovoltaic power generation? A comparative study," Applied Energy, Elsevier, vol. 185(P1), pages 421-439.
    12. Erik Heilmann & Nikolai Klempp & Heike Wetzel, 2020. "Market design of regional flexibility markets: A classification metric for flexibility products and its application to German prototypical flexibility markets," MAGKS Papers on Economics 202002, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    13. Woo, C.K. & Chen, Y. & Olson, A. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Electricity price behavior and carbon trading: New evidence from California," Applied Energy, Elsevier, vol. 204(C), pages 531-543.
    14. Devine, Mel T. & Bertsch, Valentin, 2018. "Examining the benefits of load shedding strategies using a rolling-horizon stochastic mixed complementarity equilibrium model," European Journal of Operational Research, Elsevier, vol. 267(2), pages 643-658.
    15. Tobias Widmer & Paul Karaenke & Vijayan Sugumaran, 2021. "Two‐sided service markets: Effects of quality differentiation on market efficiency," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(3), pages 588-604, April.
    16. Guo, Bowei & Weeks, Melvyn, 2022. "Dynamic tariffs, demand response, and regulation in retail electricity markets," Energy Economics, Elsevier, vol. 106(C).
    17. Bertsch, Valentin & Harold, Jason & Fell, Harrison, 2019. "Consumer preferences for end-use specific curtailable electricity contracts on household appliances during peak load hours," Papers WP632, Economic and Social Research Institute (ESRI).
    18. Haupt, Leon & Schöpf, Michael & Wederhake, Lars & Weibelzahl, Martin, 2020. "The influence of electric vehicle charging strategies on the sizing of electrical energy storage systems in charging hub microgrids," Applied Energy, Elsevier, vol. 273(C).
    19. Ströhle, Philipp & Flath, Christoph M., 2016. "Local matching of flexible load in smart grids," European Journal of Operational Research, Elsevier, vol. 253(3), pages 811-824.
    20. Chi-Keung Woo & Jay Zarnikau & Asher Tishler & Kang Hua Cao, 2022. "Insuring a Small Retail Electric Provider’s Procurement Cost Risk in Texas," Energies, MDPI, vol. 16(1), pages 1-12, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:354:y:2024:i:pb:s0306261923014289. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.