IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v357y2024ics0306261923018329.html
   My bibliography  Save this article

Bi-level strategic bidding model of novel virtual power plant aggregating waste gasification in integrated electricity and hydrogen markets

Author

Listed:
  • Jia, Dongqing
  • Li, Xingmei
  • Gong, Xu
  • Lv, Xiaoyan
  • Shen, Zhong

Abstract

Aggregating a waste gasification unit with renewable energy sources (RES) into a virtual power plant (VPP) not only effectively reduces the negative impacts of renewable energy sources and improves the performance of VPP in the electricity market, but also participates in the hydrogen market by purifying the hydrogen in the syngas produced after gasification. A market bidding strategy that improves the profitability of the system is the basis for sustainable VPP. Based on this, this paper for the first time aggregates a waste gasification unit with RES into a VPP named WtE-VPP. Then, considering that the WtE-VPP system can generate both electricity and hydrogen and their outputs affect each other, this paper constructs a bi-level bidding strategy model for the combined electricity‑hydrogen market. The lower-level model aims to minimize the total social costs of the electricity and hydrogen markets, while the upper-level model aims to maximize the profits of WtE-VPP. Finally, the model is tested on an improved PJM 5-node grid with a 7-node hydrogen network, and the results show that the method is effective in reflecting strategic behaviors of WtE-VPP. Compared to participation in a single electricity market, the total benefits of WtE-VPP participation in both electricity and hydrogen markets increase by 39.18%.

Suggested Citation

  • Jia, Dongqing & Li, Xingmei & Gong, Xu & Lv, Xiaoyan & Shen, Zhong, 2024. "Bi-level strategic bidding model of novel virtual power plant aggregating waste gasification in integrated electricity and hydrogen markets," Applied Energy, Elsevier, vol. 357(C).
    • Handle: RePEc:eee:appene:v:357:y:2024:i:c:s0306261923018329
    DOI: 10.1016/j.apenergy.2023.122468
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261923018329
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2023.122468?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Hanif D. Sherali, 1984. "A Multiple Leader Stackelberg Model and Analysis," Operations Research, INFORMS, vol. 32(2), pages 390-404, April.
    2. Luo, Siyi & Zhou, Yangmin & Yi, Chuijie, 2012. "Syngas production by catalytic steam gasification of municipal solid waste in fixed-bed reactor," Energy, Elsevier, vol. 44(1), pages 391-395.
    3. Li, Xinyu & Mulder, Machiel, 2021. "Value of power-to-gas as a flexibility option in integrated electricity and hydrogen markets," Applied Energy, Elsevier, vol. 304(C).
    4. Chang, Yue & Jia, Yulong & Hong, Tan, 2023. "Comprehensive analysis and multi-objective optimization of an innovative power generation system using biomass gasification and LNG regasification processes," Energy, Elsevier, vol. 283(C).
    5. Coelho, António & Iria, José & Soares, Filipe, 2021. "Network-secure bidding optimization of aggregators of multi-energy systems in electricity, gas, and carbon markets," Applied Energy, Elsevier, vol. 301(C).
    6. Ismail, Mohamed M. & Dincer, Ibrahim, 2023. "A new renewable energy based integrated gasification system for hydrogen production from plastic wastes," Energy, Elsevier, vol. 270(C).
    7. Subramanian, Navaneethan & Madejski, Paweł, 2023. "Analysis of CO2 capture process from flue-gases in combined cycle gas turbine power plant using post-combustion capture technology," Energy, Elsevier, vol. 282(C).
    8. Choudhary, Tushar & Sanjay,, 2017. "Thermodynamic assessment of SOFC-ICGT hybrid cycle: Energy analysis and entropy generation minimization," Energy, Elsevier, vol. 134(C), pages 1013-1028.
    9. Kong, Xiangyu & Xiao, Jie & Wang, Chengshan & Cui, Kai & Jin, Qiang & Kong, Deqian, 2019. "Bi-level multi-time scale scheduling method based on bidding for multi-operator virtual power plant," Applied Energy, Elsevier, vol. 249(C), pages 178-189.
    10. Rezaei, Mahdi & Ghobadian, Barat & Samadi, Seyed Hashem & Karimi, Samira, 2018. "Electric power generation from municipal solid waste: A techno-economical assessment under different scenarios in Iran," Energy, Elsevier, vol. 152(C), pages 46-56.
    11. Zhang, Tianhan & Qiu, Weiqiang & Zhang, Zhi & Lin, Zhenzhi & Ding, Yi & Wang, Yiting & Wang, Lianfang & Yang, Li, 2023. "Optimal bidding strategy and profit allocation method for shared energy storage-assisted VPP in joint energy and regulation markets," Applied Energy, Elsevier, vol. 329(C).
    12. Wang, Yuting & Chen, Heng & Qiao, Shichao & Pan, Peiyuan & Xu, Gang & Dong, Yuehong & Jiang, Xue, 2023. "A novel methanol-electricity cogeneration system based on the integration of water electrolysis and plasma waste gasification," Energy, Elsevier, vol. 267(C).
    13. Wang, Yuwei & Song, Minghao & Jia, Mengyao & Li, Bingkang & Fei, Haoran & Zhang, Yiyue & Wang, Xuejie, 2023. "Multi-objective distributionally robust optimization for hydrogen-involved total renewable energy CCHP planning under source-load uncertainties," Applied Energy, Elsevier, vol. 342(C).
    14. Ju, Liwei & Liu, Li & Han, Yingzhu & Yang, Shenbo & Li, Gen & Lu, Xiaolong & Liu, Yi & Qiao, Huiting, 2023. "Robust Multi-objective optimal dispatching model for a novel island micro energy grid incorporating biomass waste energy conversion system, desalination and power-to-hydrogen devices," Applied Energy, Elsevier, vol. 343(C).
    15. Ju, Liwei & Tan, Qinliang & Lin, Hongyu & Mei, Shufang & Li, Nan & Lu, Yan & Wang, Yao, 2020. "A two-stage optimal coordinated scheduling strategy for micro energy grid integrating intermittent renewable energy sources considering multi-energy flexible conversion," Energy, Elsevier, vol. 196(C).
    16. Lopes, E.J. & Okamura, L.A. & Maruyama, S.A. & Yamamoto, C.I., 2018. "Evaluation of energy gain from the segregation of organic materials from municipal solid waste in gasification processes," Renewable Energy, Elsevier, vol. 116(PA), pages 623-629.
    Full references (including those not matched with items on IDEAS)

    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. Yuan, Yi & Ding, Tao & Chang, Xinyue & Jia, Wenhao & Xue, Yixun, 2024. "A distributed multi-objective optimization method for scheduling of integrated electricity and hydrogen systems," Applied Energy, Elsevier, vol. 355(C).
    2. Yan, Sizhe & Wang, Weiqing & Li, Xiaozhu & Zhao, Yi, 2022. "Research on a cross-regional robust trading strategy based on multiple market mechanisms," Energy, Elsevier, vol. 261(PB).
    3. Megy, Camille & Massol, Olivier, 2023. "Is Power-to-Gas always beneficial? The implications of ownership structure," Energy Economics, Elsevier, vol. 128(C).
    4. Patrik Šuhaj & Jakub Husár & Juma Haydary, 2020. "Gasification of RDF and Its Components with Tire Pyrolysis Char as Tar-Cracking Catalyst," Sustainability, MDPI, vol. 12(16), pages 1-14, August.
    5. Mansour-Saatloo, Amin & Pezhmani, Yasin & Mirzaei, Mohammad Amin & Mohammadi-Ivatloo, Behnam & Zare, Kazem & Marzband, Mousa & Anvari-Moghaddam, Amjad, 2021. "Robust decentralized optimization of Multi-Microgrids integrated with Power-to-X technologies," Applied Energy, Elsevier, vol. 304(C).
    6. Ludovic Julien & Olivier Musy & Aurélien Saïdi, 2011. "Do Followers Really Matter in Stackelberg Competition?," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 75, pages 11-27.
    7. Ludovic A. Julien, 2017. "Hierarchical Competition and Heterogeneous Behavior in Noncooperative Oligopoly Markets," Post-Print hal-01637298, HAL.
    8. Qiu, Hong & Zhu, Nan & Peng, Qiyuan, 2021. "Can a small fish become a big fish? Modeling leader-generating mergers in a Stackelberg market," Finance Research Letters, Elsevier, vol. 38(C).
    9. Xin Tang & Haibing Lu & Wei Huang & Shulin Liu, 2023. "Investment decisions and pricing strategies of crowdfunding players: In a two-sided crowdfunding market," Electronic Commerce Research, Springer, vol. 23(2), pages 1209-1240, June.
    10. Alizadeh, Reza & Gharizadeh Beiragh, Ramin & Soltanisehat, Leili & Soltanzadeh, Elham & Lund, Peter D., 2020. "Performance evaluation of complex electricity generation systems: A dynamic network-based data envelopment analysis approach," Energy Economics, Elsevier, vol. 91(C).
    11. Cui, Jingshi & Wu, Jiaman & Wu, Chenye & Moura, Scott, 2023. "Electric vehicles embedded virtual power plants dispatch mechanism design considering charging efficiencies," Applied Energy, Elsevier, vol. 352(C).
    12. Julien, Ludovic A., 2017. "On noncooperative oligopoly equilibrium in the multiple leader–follower game," European Journal of Operational Research, Elsevier, vol. 256(2), pages 650-662.
    13. Muthukumar, K. & Kasiraman, G., 2024. "Utilization of fuel energy from single-use Low-density polyethylene plastic waste on CI engine with hydrogen enrichment – An experimental study," Energy, Elsevier, vol. 289(C).
    14. Król, Danuta & Poskrobko, Sławomir, 2016. "High-methane gasification of fuels from waste – Experimental identification," Energy, Elsevier, vol. 116(P1), pages 592-600.
    15. Ju, Liwei & Yin, Zhe & Lu, Xiaolong & Yang, Shenbo & Li, Peng & Rao, Rao & Tan, Zhongfu, 2022. "A Tri-dimensional Equilibrium-based stochastic optimal dispatching model for a novel virtual power plant incorporating carbon Capture, Power-to-Gas and electric vehicle aggregator," Applied Energy, Elsevier, vol. 324(C).
    16. Victor DeMiguel & Huifu Xu, 2009. "A Stochastic Multiple-Leader Stackelberg Model: Analysis, Computation, and Application," Operations Research, INFORMS, vol. 57(5), pages 1220-1235, October.
    17. Pashchenko, Dmitry & Mustafin, Ravil & Karpilov, Igor, 2022. "Ammonia-fired chemically recuperated gas turbine: Thermodynamic analysis of cycle and recuperation system," Energy, Elsevier, vol. 252(C).
    18. Attila Tasnádi, 2010. "Quantity-setting games with a dominant firm," Journal of Economics, Springer, vol. 99(3), pages 251-266, April.
    19. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2023. "Trade credit financing for supply chain coordination under financial challenges: a multi-leader–follower game approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-39, December.
    20. Zeynali, Saeed & Nasiri, Nima & Ravadanegh, Sajad Najafi & Marzband, Mousa, 2022. "A three-level framework for strategic participation of aggregated electric vehicle-owning households in local electricity and thermal energy markets," Applied Energy, Elsevier, vol. 324(C).

    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:357:y:2024:i:c:s0306261923018329. 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.