IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v176y2019icp249-264.html
   My bibliography  Save this article

Game-theoretic planning for integrated energy system with independent participants considering ancillary services of power-to-gas stations

Author

Listed:
  • Zhang, Xian
  • Chan, K.W.
  • Wang, Huaizhi
  • Hu, Jiefeng
  • Zhou, Bin
  • Zhang, Yan
  • Qiu, Jing

Abstract

The emergence of power-to-gas stations (P2GSes) has provided opportunities to make an efficient use of surplus power generated from intermittent renewable energy, thus linking the natural gas and electricity networks as an integrated energy system. To build new P2GSes, new electricity feeders and natural gas pipelines should also be planned coordinately to support the operation of P2GSes. This paper presents a game-theoretic planning model for the integrated energy system (IES) consisting of the natural gas system, electricity system, and P2GSes. P2GSes are assumed to be independent participants in the IES in a deregulated market environment. The Nash bargaining theory is employed to formulate this cooperative planning model for the first time. In addition, the profitability potential of P2GSes to provide emission reduction and secondary reserve services is innovatively and thoroughly evaluated in the proposed planning model. The proposed Nash bargaining planning model considering ancillary service is then applied to the IES comprising a coupled 24-bus electricity and 20-bus natural gas system. Case studies validate its effectiveness and we have compared the proposed model with two typical planning models including the traditional centralized planning and sequential planning models. The simulation results show that the proposed planning model can achieve the most fair and Pareto-efficient payoff allocation for the three independent participants and also achieve a good IES system performance. It can be concluded that our model can not only help to promote the popularization of P2G technology, but also enhance the cooperation among the P2GSes, the electricity system and the natural gas system.

Suggested Citation

  • Zhang, Xian & Chan, K.W. & Wang, Huaizhi & Hu, Jiefeng & Zhou, Bin & Zhang, Yan & Qiu, Jing, 2019. "Game-theoretic planning for integrated energy system with independent participants considering ancillary services of power-to-gas stations," Energy, Elsevier, vol. 176(C), pages 249-264.
    • Handle: RePEc:eee:energy:v:176:y:2019:i:c:p:249-264
    DOI: 10.1016/j.energy.2019.03.154
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544219305742
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2019.03.154?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. Bailera, Manuel & Lisbona, Pilar & Romeo, Luis M. & Espatolero, Sergio, 2017. "Power to Gas projects review: Lab, pilot and demo plants for storing renewable energy and CO2," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 292-312.
    2. Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
    3. Guandalini, Giulio & Campanari, Stefano & Romano, Matteo C., 2015. "Power-to-gas plants and gas turbines for improved wind energy dispatchability: Energy and economic assessment," Applied Energy, Elsevier, vol. 147(C), pages 117-130.
    4. Eveloy, Valerie & Gebreegziabher, Tesfaldet, 2019. "Excess electricity and power-to-gas storage potential in the future renewable-based power generation sector in the United Arab Emirates," Energy, Elsevier, vol. 166(C), pages 426-450.
    5. Zoss, Toms & Dace, Elina & Blumberga, Dagnija, 2016. "Modeling a power-to-renewable methane system for an assessment of power grid balancing options in the Baltic States’ region," Applied Energy, Elsevier, vol. 170(C), pages 278-285.
    6. Mukherjee, Ushnik & Walker, Sean & Maroufmashat, Azadeh & Fowler, Michael & Elkamel, Ali, 2017. "Development of a pricing mechanism for valuing ancillary, transportation and environmental services offered by a power to gas energy system," Energy, Elsevier, vol. 128(C), pages 447-462.
    7. Bailera, Manuel & Lisbona, Pilar, 2018. "Energy storage in Spain: Forecasting electricity excess and assessment of power-to-gas potential up to 2050," Energy, Elsevier, vol. 143(C), pages 900-910.
    8. Roth, Alvin E & Rothblum, Uriel G, 1982. "Risk Aversion and Nash's Solution for Bargaining Games with Risky Outcomes," Econometrica, Econometric Society, vol. 50(3), pages 639-647, May.
    9. de Boer, Harmen Sytze & Grond, Lukas & Moll, Henk & Benders, René, 2014. "The application of power-to-gas, pumped hydro storage and compressed air energy storage in an electricity system at different wind power penetration levels," Energy, Elsevier, vol. 72(C), pages 360-370.
    10. Banez-Chicharro, Fernando & Olmos, Luis & Ramos, Andres & Latorre, Jesus M., 2017. "Estimating the benefits of transmission expansion projects: An Aumann-Shapley approach," Energy, Elsevier, vol. 118(C), pages 1044-1054.
    11. Odetayo, Babatunde & MacCormack, John & Rosehart, William D. & Zareipour, Hamidreza, 2017. "A sequential planning approach for Distributed generation and natural gas networks," Energy, Elsevier, vol. 127(C), pages 428-437.
    12. Ken Binmore, 1994. "Game Theory and the Social Contract, Volume 1: Playing Fair," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262023636, December.
    13. Chaudry, Modassar & Jenkins, Nick & Qadrdan, Meysam & Wu, Jianzhong, 2014. "Combined gas and electricity network expansion planning," Applied Energy, Elsevier, vol. 113(C), pages 1171-1187.
    14. Yu, Nanpeng & Tesfatsion, Leigh & Liu, Chen-Ching, 2012. "Financial Bilateral Contract Negotiation in Wholesale Electricity Markets Using Nash Bargaining Theory," ISU General Staff Papers 201201010800001470, Iowa State University, Department of Economics.
    15. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    16. Zeng, Qing & Fang, Jiakun & Li, Jinghua & Chen, Zhe, 2016. "Steady-state analysis of the integrated natural gas and electric power system with bi-directional energy conversion," Applied Energy, Elsevier, vol. 184(C), pages 1483-1492.
    17. Kaboli, S. Hr. Aghay & Selvaraj, J. & Rahim, N.A., 2016. "Long-term electric energy consumption forecasting via artificial cooperative search algorithm," Energy, Elsevier, vol. 115(P1), pages 857-871.
    18. Nunes, Juliana Barbosa & Mahmoudi, Nadali & Saha, Tapan Kumar & Chattopadhyay, Debabrata, 2018. "A stochastic integrated planning of electricity and natural gas networks for Queensland, Australia considering high renewable penetration," Energy, Elsevier, vol. 153(C), pages 539-553.
    19. Götz, Manuel & Lefebvre, Jonathan & Mörs, Friedemann & McDaniel Koch, Amy & Graf, Frank & Bajohr, Siegfried & Reimert, Rainer & Kolb, Thomas, 2016. "Renewable Power-to-Gas: A technological and economic review," Renewable Energy, Elsevier, vol. 85(C), pages 1371-1390.
    20. Hu, Yuan & Bie, Zhaohong & Ding, Tao & Lin, Yanling, 2016. "An NSGA-II based multi-objective optimization for combined gas and electricity network expansion planning," Applied Energy, Elsevier, vol. 167(C), pages 280-293.
    21. DE WOLF, Daniel & SMEERS, Yves, 2000. "The gas transmission problem solved by an extension of the simplex algorithm," LIDAM Reprints CORE 1489, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    22. Qiu, Jing & Zhao, Junhua & Yang, Hongming & Wang, Dongxiao & Dong, Zhao Yang, 2018. "Planning of solar photovoltaics, battery energy storage system and gas micro turbine for coupled micro energy grids," Applied Energy, Elsevier, vol. 219(C), pages 361-369.
    23. Kaboli, S. Hr. Aghay & Fallahpour, A. & Selvaraj, J. & Rahim, N.A., 2017. "Long-term electrical energy consumption formulating and forecasting via optimized gene expression programming," Energy, Elsevier, vol. 126(C), pages 144-164.
    24. Zeng, Qing & Zhang, Baohua & Fang, Jiakun & Chen, Zhe, 2017. "A bi-level programming for multistage co-expansion planning of the integrated gas and electricity system," Applied Energy, Elsevier, vol. 200(C), pages 192-203.
    25. Banez-Chicharro, Fernando & Olmos, Luis & Ramos, Andres & Latorre, Jesus M., 2017. "Beneficiaries of transmission expansion projects of an expansion plan: An Aumann-Shapley approach," Applied Energy, Elsevier, vol. 195(C), pages 382-401.
    26. Grueger, Fabian & Möhrke, Fabian & Robinius, Martin & Stolten, Detlef, 2017. "Early power to gas applications: Reducing wind farm forecast errors and providing secondary control reserve," Applied Energy, Elsevier, vol. 192(C), pages 551-562.
    27. Robinius, Martin & Raje, Tanmay & Nykamp, Stefan & Rott, Tobias & Müller, Martin & Grube, Thomas & Katzenbach, Burkhard & Küppers, Stefan & Stolten, Detlef, 2018. "Power-to-Gas: Electrolyzers as an alternative to network expansion – An example from a distribution system operator," Applied Energy, Elsevier, vol. 210(C), pages 182-197.
    28. Modiri-Delshad, Mostafa & Aghay Kaboli, S. Hr. & Taslimi-Renani, Ehsan & Rahim, Nasrudin Abd, 2016. "Backtracking search algorithm for solving economic dispatch problems with valve-point effects and multiple fuel options," Energy, Elsevier, vol. 116(P1), pages 637-649.
    29. Mazza, Andrea & Bompard, Ettore & Chicco, Gianfranco, 2018. "Applications of power to gas technologies in emerging electrical systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 92(C), pages 794-806.
    30. Lisbona, Pilar & Frate, Guido Francesco & Bailera, Manuel & Desideri, Umberto, 2018. "Power-to-Gas: Analysis of potential decarbonization of Spanish electrical system in long-term prospective," Energy, Elsevier, vol. 159(C), pages 656-668.
    31. Daniel De Wolf & Yves Smeers, 2000. "The Gas Transmission Problem Solved by an Extension of the Simplex Algorithm," Management Science, INFORMS, vol. 46(11), pages 1454-1465, November.
    32. Andoni, Merlinda & Robu, Valentin & Früh, Wolf-Gerrit & Flynn, David, 2017. "Game-theoretic modeling of curtailment rules and network investments with distributed generation," Applied Energy, Elsevier, vol. 201(C), pages 174-187.
    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. Oduro, Richard A. & Taylor, Peter G., 2023. "Future pathways for energy networks: A review of international experiences in high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    2. Jiang, Qian & Mu, Yunfei & Jia, Hongjie & Cao, Yan & Wang, Zibo & Wei, Wei & Hou, Kai & Yu, Xiaodan, 2022. "A Stackelberg Game-based planning approach for integrated community energy system considering multiple participants," Energy, Elsevier, vol. 258(C).
    3. Yamchi, Hamid Bakhshi & Safari, Amin & Guerrero, Josep M., 2021. "A multi-objective mixed integer linear programming model for integrated electricity-gas network expansion planning considering the impact of photovoltaic generation," Energy, Elsevier, vol. 222(C).
    4. Shiting Cui & Ruijin Zhu & Yao Gao, 2022. "Distributionally Robust Optimization of an Integrated Energy System Cluster Considering the Oxygen Supply Demand and Multi-Energy Sharing," Energies, MDPI, vol. 15(22), pages 1-24, November.
    5. Chen, Xiaoyuan & Jiang, Shan & Chen, Yu & Lei, Yi & Zhang, Donghui & Zhang, Mingshun & Gou, Huayu & Shen, Boyang, 2022. "A 10 MW class data center with ultra-dense high-efficiency energy distribution: Design and economic evaluation of superconducting DC busbar networks," Energy, Elsevier, vol. 250(C).
    6. Aviad Navon & Gefen Ben Yosef & Ram Machlev & Shmuel Shapira & Nilanjan Roy Chowdhury & Juri Belikov & Ariel Orda & Yoash Levron, 2020. "Applications of Game Theory to Design and Operation of Modern Power Systems: A Comprehensive Review," Energies, MDPI, vol. 13(15), pages 1-35, August.
    7. Lai, Shuying & Qiu, Jing & Tao, Yuechuan & Zhao, Junhua, 2021. "Risk hedging for gas power generation considering power-to-gas energy storage in three different electricity markets," Applied Energy, Elsevier, vol. 291(C).
    8. Budi, Rizki Firmansyah Setya & Sarjiya, & Hadi, Sasongko Pramono, 2021. "Multi-level game theory model for partially deregulated generation expansion planning," Energy, Elsevier, vol. 237(C).
    9. Wang, Can & Xie, Haipeng & Bie, Zhaohong & Li, Gengfeng & Yan, Chao, 2021. "Fast supply reliability evaluation of integrated power-gas system based on stochastic capacity network model and importance sampling," Reliability Engineering and System Safety, Elsevier, vol. 208(C).
    10. Masoud Khatibi & Abbas Rabiee & Amir Bagheri, 2023. "Integrated Electricity and Gas Systems Planning: New Opportunities, and a Detailed Assessment of Relevant Issues," Sustainability, MDPI, vol. 15(8), pages 1-32, April.
    11. Ding, Yihong & Tan, Qinliang & Shan, Zijing & Han, Jian & Zhang, Yimei, 2023. "A two-stage dispatching optimization strategy for hybrid renewable energy system with low-carbon and sustainability in ancillary service market," Renewable Energy, Elsevier, vol. 207(C), pages 647-659.
    12. Li, Bo & Li, Xu & Su, Qingyu, 2022. "A system and game strategy for the isolated island electric-gas deeply coupled energy network," Applied Energy, Elsevier, vol. 306(PA).
    13. Wang, Yunqi & Qiu, Jing & Tao, Yuechuan & Zhang, Xian & Wang, Guibin, 2020. "Low-carbon oriented optimal energy dispatch in coupled natural gas and electricity systems," Applied Energy, Elsevier, vol. 280(C).
    14. Li, Jiamei & Ai, Qian & Chen, Minyu, 2023. "Strategic behavior modeling and energy management for electric-thermal-carbon-natural gas integrated energy system considering ancillary service," Energy, Elsevier, vol. 278(C).
    15. Salehi, Javad & Namvar, Amin & Gazijahani, Farhad Samadi & Shafie-khah, Miadreza & Catalão, João P.S., 2022. "Effect of power-to-gas technology in energy hub optimal operation and gas network congestion reduction," Energy, Elsevier, vol. 240(C).

    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. Farrokhifar, Meisam & Nie, Yinghui & Pozo, David, 2020. "Energy systems planning: A survey on models for integrated power and natural gas networks coordination," Applied Energy, Elsevier, vol. 262(C).
    2. Masoud Khatibi & Abbas Rabiee & Amir Bagheri, 2023. "Integrated Electricity and Gas Systems Planning: New Opportunities, and a Detailed Assessment of Relevant Issues," Sustainability, MDPI, vol. 15(8), pages 1-32, April.
    3. Valerie Eveloy & Tesfaldet Gebreegziabher, 2018. "A Review of Projected Power-to-Gas Deployment Scenarios," Energies, MDPI, vol. 11(7), pages 1-52, July.
    4. Lewandowska-Bernat, Anna & Desideri, Umberto, 2018. "Opportunities of power-to-gas technology in different energy systems architectures," Applied Energy, Elsevier, vol. 228(C), pages 57-67.
    5. Dranka, Géremi Gilson & Ferreira, Paula & Vaz, A. Ismael F., 2021. "A review of co-optimization approaches for operational and planning problems in the energy sector," Applied Energy, Elsevier, vol. 304(C).
    6. Quarton, Christopher J. & Samsatli, Sheila, 2018. "Power-to-gas for injection into the gas grid: What can we learn from real-life projects, economic assessments and systems modelling?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 302-316.
    7. Frank, Elimar & Gorre, Jachin & Ruoss, Fabian & Friedl, Markus J., 2018. "Calculation and analysis of efficiencies and annual performances of Power-to-Gas systems," Applied Energy, Elsevier, vol. 218(C), pages 217-231.
    8. Paweł Pijarski & Piotr Kacejko, 2021. "Voltage Optimization in MV Network with Distributed Generation Using Power Consumption Control in Electrolysis Installations," Energies, MDPI, vol. 14(4), pages 1-21, February.
    9. Andrade, Carlos & Selosse, Sandrine & Maïzi, Nadia, 2022. "The role of power-to-gas in the integration of variable renewables," Applied Energy, Elsevier, vol. 313(C).
    10. Azadeh Maroufmashat & Michael Fowler, 2017. "Transition of Future Energy System Infrastructure; through Power-to-Gas Pathways," Energies, MDPI, vol. 10(8), pages 1-22, July.
    11. Uchman, Wojciech & Skorek-Osikowska, Anna & Jurczyk, Michał & Węcel, Daniel, 2020. "The analysis of dynamic operation of power-to-SNG system with hydrogen generator powered with renewable energy, hydrogen storage and methanation unit," Energy, Elsevier, vol. 213(C).
    12. Raheli, Enrica & Wu, Qiuwei & Zhang, Menglin & Wen, Changyun, 2021. "Optimal coordinated operation of integrated natural gas and electric power systems: A review of modeling and solution methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    13. Jonathan Shalev, 2002. "Loss Aversion and Bargaining," Theory and Decision, Springer, vol. 52(3), pages 201-232, May.
    14. Belderbos, Andreas & Valkaert, Thomas & Bruninx, Kenneth & Delarue, Erik & D’haeseleer, William, 2020. "Facilitating renewables and power-to-gas via integrated electrical power-gas system scheduling," Applied Energy, Elsevier, vol. 275(C).
    15. McDonagh, Shane & Deane, Paul & Rajendran, Karthik & Murphy, Jerry D., 2019. "Are electrofuels a sustainable transport fuel? Analysis of the effect of controls on carbon, curtailment, and cost of hydrogen," Applied Energy, Elsevier, vol. 247(C), pages 716-730.
    16. Blanco, Herib & Faaij, André, 2018. "A review at the role of storage in energy systems with a focus on Power to Gas and long-term storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1049-1086.
    17. Li, Yanxue & Gao, Weijun & Ruan, Yingjun, 2019. "Potential and sensitivity analysis of long-term hydrogen production in resolving surplus RES generation—a case study in Japan," Energy, Elsevier, vol. 171(C), pages 1164-1172.
    18. Eveloy, Valerie, 2019. "Hybridization of solid oxide electrolysis-based power-to-methane with oxyfuel combustion and carbon dioxide utilization for energy storage," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 550-571.
    19. Bucksteeg, Michael & Mikurda, Jennifer & Weber, Christoph, 2023. "Integration of power-to-gas into electricity markets during the ramp-up phase—Assessing the role of carbon pricing," Energy Economics, Elsevier, vol. 124(C).
    20. Gorre, Jachin & Ruoss, Fabian & Karjunen, Hannu & Schaffert, Johannes & Tynjälä, Tero, 2020. "Cost benefits of optimizing hydrogen storage and methanation capacities for Power-to-Gas plants in dynamic operation," Applied Energy, Elsevier, vol. 257(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:energy:v:176:y:2019:i:c:p:249-264. 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.journals.elsevier.com/energy .

    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.