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A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas

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  • Guoliang Zhang

    (China-EU Institute for Clean and Renewable Energy, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China
    State Key Laboratory of Advanced Electromagnetic Engineering and Technology, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China)

  • Suhua Lou

    (State Key Laboratory of Advanced Electromagnetic Engineering and Technology, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China)

  • Yaowu Wu

    (State Key Laboratory of Advanced Electromagnetic Engineering and Technology, Huazhong University of Science and Technology, No. 1037, Luoyu Road, Wuhan 430074, China)

  • Yang Wu

    (Power Dispatch and Control Center of China Southern Power Grid, Guangzhou 510623, China)

  • Xiangfeng Wen

    (Power Dispatch and Control Center of China Southern Power Grid, Guangzhou 510623, China)

Abstract

To promote the collaborative development of the bio-natural gas (BNG) industry and the integrated energy system (IES), this paper proposes a new commerce operation model considering the gas price adjustment mechanism for the IES with the utilization of bio-natural gas. The bi-level optimization model is used to simulate the clearing process within the open energy market framework, and the uncertainties of variable renewable energy output are modeled with a set of scenarios through the stochastic programming approach. In the upper-level model, the energy management center adjusts the bio-natural gas price rationally to minimize the expected total operating cost and release the price signal to the lower-level model; the lower-level model simulates the sub-markets clearing process to formulate detailed operation schemes. The bi-level model is transformed into a mathematical programming problem with equilibrium constraints (MPEC) through the Karush–Kuhn–Tucher (KKT) condition of the lower-level model, and the nonlinear model is converted into a mixed-integer linear programming problem and solved. The numerical results verified the effectiveness of the proposed model.

Suggested Citation

  • Guoliang Zhang & Suhua Lou & Yaowu Wu & Yang Wu & Xiangfeng Wen, 2020. "A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas," Energies, MDPI, vol. 13(24), pages 1-13, December.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:24:p:6607-:d:462093
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    References listed on IDEAS

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