A system dynamics approach to study the long-term interaction of the natural gas market and electricity market comprising high penetration of renewable energy resources

Esmaeili, Mohammad; Shafie‐khah, Miadreza; Catalão, João P.S.

doi:10.1016/j.ijepes.2022.108021

Cited by 12 publications

(3 citation statements)

References 35 publications

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“…In accordance with early warning in the natural gas supply sector of Latvia that was announced on 9 March 2022, the natural gas deliveries from Klaipeda LNG and via GIPL are regarded as prioritising gas flows by the Latvian natural gas transmission system operator (hereinafter -TSO) Conexus Baltic Grid [19]. However, before finishing enhancement of the Latvia-Lithuania interconnection (ELLI project) in 2024, current interconnection capacities and operating pressures are limited between Lithuania and Latvia (known as the bottleneck effect), therefore making it challenging to provide absolutely sufficient natural gas supplies to Latvia, Estonia and Finland from the Lithuanian and Polish side [20], [21].…”

Section: Main Aspects Of Analysis Of the Baltic Natural Gas Supply Risksmentioning

confidence: 99%

Study on Potential Role and Benefits of Liquified Natural Gas Import Terminal in Latvia

Ansone

Jansons

Bode

et al. 2022

Latvian Journal of Physics and Technical Sciences

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Natural gas is relatively clean energy source, which emits less greenhouse gases (hereinafter – GHG), compared to other fossil fuels, such as hard and brown coal, and therefore it may be the most feasible resource to ensure smooth energy transition towards Europe’s climate neutrality by 2050. Traditional natural gas can be easily transported and used in liquefied (hereinafter – LNG) or compressed form. As for biomethane, in future it also can be used in liquefied (hereinafter – bioLNG) and compressed form, as well as transported by means of the current natural gas infrastructure. It can also significantly enhance regional and national energy security and independence, which has been challenging for the European Union (hereinafter – EU) over at least several decades. Issue on energy independence, security of supply, alternative natural gas sources has been in a hotspot of the Baltic energy policy makers as well. Now, considering Russia’s invasion in Ukraine, since late February 2022, a problem of the EU natural gas dependency on the Russian Federation has escalated again and with force never before experienced. The European natural gas prices also hit records, as the natural gas prices in the Netherlands Title Transfer Facility reached 345 euros per megawatt-hour (hereinafter – EUR/MWh) in March 2022. Therefore, LNG import terminal is the only viable option to reduce national dependency of the so-called pipe gas which in some cases, due to the insufficient interconnections, may be delivered from very limited number of sources. The European policy makers and relevant institutions are currently working towards radical EU natural gas supply diversification, where LNG deliveries coming from outside of Russia will certainly take a central stage. In case of Latvia, the potential benefits of the LNG terminal development in Skulte were evaluated in order to reduce energy independence of the Russian natural gas deliveries in the Baltic region and to introduce new ways and sources of the natural gas flows to the Baltics. LNG terminal in Skulte could ensure significant capital investment cost reduction comparing to other projects proposed for Latvia in different periods, due to already existing natural gas transmission infrastructure and the relative closeness to the Incukalns underground gas storage (hereinafter – UGS). Various aspects, such as technical, political and economic ones, were analysed to assure that Skulte LNG terminal would be a real asset not only to customers of Latvia, but also to those of the whole Baltic region, where in future it would be possible to use biomethane for efficient utilisation of existing and developing natural gas infrastructure.

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Section: Main Aspects Of Analysis Of the Baltic Natural Gas Supply Risksmentioning

confidence: 99%

Study on Potential Role and Benefits of Liquified Natural Gas Import Terminal in Latvia

Ansone

Jansons

Bode

et al. 2022

Latvian Journal of Physics and Technical Sciences

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“…Through the analysis of electricity spot market transactions, the electricity market is commercialized by means of peak regulation and frequency modulation and optimization of energy storage configuration. the new power system operation mechanism with high permeability of new energy is solved [3] . Some researchers have studied the flexibility, efficiency and transparency of electricity spot market transactions.…”

Section: Introductionmentioning

confidence: 99%

Trading Method of Electricity Spot Market Under High Penetration Ratio of New Energy

Ling,

Cai,

Zhou

et al. 2023

Advances in Economics, Business and Management Research

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In this paper, the spot trading of electric power with high penetration ratio of new energy is taken as the research object, and all parties involved in the spot trading of electric power are investigated to form an electric energy trading chain. The decentralized blockchain technology is adopted to establish a trading model of the spot market of electric power, store the trading information of all parties involved, solve the model by using the strategy learning method, and analyze the market electric energy trading volume and the benefits of all parties. The research results show that the spot market transactions of electricity include energy suppliers, energy sellers and buyers, energy reserves and load aggregators. The spot trading chain of electric energy is built by using the platform of Ethereum blockchain, and the spot market of electric energy is simulated by strategy learning method. It is concluded that the installed capacity and clearing capacity of wind power suppliers are the largest, the maintenance cost is lower, the market income is the highest, but the maintenance cost far exceeds that of all energy suppliers; Using the spot trading method of electric energy trading chain to improve the income of each trading subject, the quotation of market subjects is more flexible and more in line with the relationship between supply and demand, and the clearing price of the market is basically positively correlated with the relationship between supply and demand; The credit value of each power trading entity is quantified as the default coefficient. When the default coefficient of each trading entity is larger, its income will gradually decrease, and the default of energy suppliers has the greatest impact on its income.

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“…Considering uncertainty of wind power production, the environmental conditions, and electricity prices, a novel bidding strategy for a wind farm coupled with an energy storage system is formulated under a day-ahead energy market environment [10]. To analyze the effect of renewable energy resources (RESs) penetration, a systematic dynamic approach is used for wind power generation taking part in the gas and electricity market [11]. To minimize the net cost of energy usage by the buildings considering flexible loads and other energy resources such as PV and battery storage systems, a price responsive operational model is developed with the help of a linearized economic model predictive controller [12].…”

Section: Introductionmentioning

confidence: 99%

Optimal Bidding Strategy for Social Welfare Maximization in Wind Farm Integrated Deregulated Power System Using Artificial Gorilla Troops Optimizer Algorithm

et al. 2022

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PoolCo electricity trading is one of the most capable bidding practices for executing a centralized energy market model. In the PoolCo market model, each seller and buyer submit their bid price and bid quantity to the independent market operator, which they are ready to sell and buy from the market respectively. The market operator regulates the equilibrium market price and volume by considering the acquiesced bid price and bid quantity to settle the market. To maximize the social welfare of market participants, the optimal bidding strategy of a wind farm integrated system is represented as a centralized power market model. Initially, the bid price and bid quantity for consumers and suppliers have been calculated using the Monte-Carlo simulation (MCS) approach. Secondly, a wind farm is incorporated into the system with the help of locational marginal price (LMP). The market operator determines market clearing price (MCP) and market clearing volume (MCV) based on the submitted bid price and bid quantity of suppliers and buyers in order to find the eligible buyers and suppliers. After obtaining MCP and MCV, the market operator reschedules the supplier's bid quantity with the help of an artificial gorilla troops optimizer (AGTO) algorithm to maximize social welfare by pleasing the system constraints. The AGTO algorithm is used here for the first time to solve the market-clearing power simulation (MCPS) problem with the integration of wind farm. To show the feasibility and effectiveness of the proposed bidding strategy, modified IEEE 14-bus and modified IEEE 30-bus test systems are used here along with a wind farm of 5 MW and 30 MW rated capacity, respectively. Results obtained by using the AGTO algorithm have been compared with those obtained by other optimization algorithms like honey badger algorithm (HBA), artificial bee colony (ABC), particle swarm optimizer (PSO), and slime mould optimizer (SMO) algorithms. INDEX TERMSWind farm, locational marginal price, Monte-Carlo simulation, artificial gorilla troops optimizer algorithm, slime mould optimizer algorithms.

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A system dynamics approach to study the long-term interaction of the natural gas market and electricity market comprising high penetration of renewable energy resources

Cited by 12 publications

References 35 publications

Study on Potential Role and Benefits of Liquified Natural Gas Import Terminal in Latvia

Study on Potential Role and Benefits of Liquified Natural Gas Import Terminal in Latvia

Trading Method of Electricity Spot Market Under High Penetration Ratio of New Energy

Optimal Bidding Strategy for Social Welfare Maximization in Wind Farm Integrated Deregulated Power System Using Artificial Gorilla Troops Optimizer Algorithm

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