An improved cross-carrier MED model for integrated electricity and natural gas systems: Economics, transparency, and privacy

The cross-carrier multilateral economic dispatch (MED) are promising in the aspect of addressing the increasing demand for consumer choice, greater trading flexibility and data privacy. This paper aims to resolve the existed issues in modeling the MED problem for integrated electricity and gas systems, such as insufficient energy allocation, unspecified price orientation, potential trading data disclosure and opaque payment calculation. The modeling improvements are progressively enhanced from MED models I through III mainly by removing loss allocation policies, simplifying variables and rearranging coupling variables among subsystems. The price links between the original and adjusted models, as well as price links between the centralized and decentralized models are analyzed to achieve equivalent transaction prices. In view of the decentralized implementation, sharing and payment information is kept to be consistent to ensure the transparent payment calculation between every pair of subsystems, enhancing payment security. Privacy performance is improved in two aspects: Trading data unavailable to the third party and minimum information set shared among subsystems. Numerical results show that the performances of the new MED models improve social welfare (SW), trading data privacy and solving time. The new P2P transaction prices are demonstrated to be beneficial to dispatched suppliers with product differentiation advantages in market orientation.