Innovative Market Schemes for Integrated Multi-energy Systems

Abstract

Multi-carrier energy systems create opportunities to decrease CO2 emissions, and improve the performance of energy systems by combining the benefits from different energy carriers. Currently, electricity, gas and heat systems are however economically decoupled in time by separate markets with different time frames and very different characteristics. This paper proposes five innovative multi-carrier market schemes which can better reflect the interactions between the different energy carriers, which eventually can lead to higher overall social welfare. The schemes range from a single carrier energy market scheme with separate, sequential day-ahead markets for different energy carriers to a unified multi-carrier energy market scheme with one unique multi-carrier market. Other schemes with single and/or multi-carrier markets at local and/or global level are also proposed. A qualitative evaluation of the five multi-carrier market schemes is given based on three indicators: economic efficiency, confidentiality level and resemblance to the current EU energy market designs.

Designing day-ahead multi-carrier markets for flexibility: Models and clearing algorithms

“…A market-based integration of different energy carriers is challenging due to the existence of technical (e.g. temporal) and economic dependencies between the underlying physical systems of different carriers [23], [35]. A key missing component here is a market-based coordination mechanism that is specifically designed to incorporate these dependencies, and as such can help integrating renewable energy sources and more efficient energy use, thus meeting the climate goals.…”

Flexibility provision through enhanced synergies between electricity, gas and heat systems: a comparative analysis of market and regulatory frameworks in seven case study countries

“…The provision of services by MES to the power system raises the need for a certain level of coupling or, at least, coordination between power, gas, and heat market designs and regulatory schemes. For this purpose, Kessels et al [9] propose five innovative multi-carriers market schemes with different levels of integration. An inter-disciplinary approach -technical, economic, and social -is presented in [5] as the key underlying challenge in MES research.…”

“…As pointed out in [9], the electricity, gas, and heat markets currently remain decoupled, independent from one another and largely dissimilar. The provision of services by MES to the power system raises the need for a certain level of coupling or, at least, coordination between power, gas, and heat market designs and regulatory schemes.…”

“…For this purpose, Kessels et al . [9] propose five innovative multi‐carriers market schemes with different levels of integration. An inter‐disciplinary approach – technical, economic, and social – is presented in [5] as the key underlying challenge in MES research.…”

“…The results of these phases are out of the scope of the present paper and will be the subjects of separate publications (e.g. technical characteristics of case studies [27, 28], evaluations of future market designs for MES to procure flexibility [9, 29], multi‐energy market simulator [30] etc. ).…”