Pricing for integrated electricity and gas systems based on long-run incremental cost

Yan, Xiaohe; Yang, Xinhe; Wang, Hantao; Gu, Chenghong; Li, Furong

doi:10.1109/pesgm.2017.8274069

Cited by 2 publications

(2 citation statements)

References 4 publications

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“…Transmission charging statement in [25] includes capacity charges, interconnection point capacity charges commodity charges and other charges. Gas distribution network (GDN) charges, also known as Local Distribution Zone (LDZ) charges, are levied by GDN operators to recover their regulated allowed revenue determined through the price control [26,27]. GDN charges are paid by the gas shipped on behalf of customers.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal CHP Planning in Integrated Energy Systems Considering Network Charges

Wang

Zhang

et al. 2020

IEEE Systems Journal

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This paper proposes a novel optimal planning model for combined heat and power (CHP) in multiple energy systems of natural gas and electricity to benefit both networks by deferring investment for network owners and reducing use-of-system (UoS) charge for network users. The new planning model considers the technical constraints of both electricity and natural gas systems. A two-stage planning approach is proposed to determine the optimal site and size of CHPs. In the first stage, a long-run incremental cost (LRIC) matrix is designed to reflect CHP locational impact on both natural gas and electxaricity network investment, used as a criterion to choose the optimal location. In the second stage, CHP size is determined by solving an integrated optimal model with the objective to minimize total incremental network investment costs. The proposed method is resolved by the interior-point method and implemented on a practically integrated electricity and natural gas systems. Two case studies are conducted to test the performance for single and multiple CHPs cases. This work can enable costefficient CHP planning to benefit integrated natural gas and electricity networks and network users in terms of reduced network investment cost and consequently reduced UoS charges.

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Section: Literature Reviewmentioning

confidence: 99%

Optimal CHP Planning in Integrated Energy Systems Considering Network Charges

Wang

Zhang

et al. 2020

IEEE Systems Journal

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“…The electricity price was relatively lower than gas price. References [26], [27] analyzed interrelation between gas and electricity, and further proposed a natural gas power generation pricing method coupled with gas price. Reference [28] pointed out that the prices of natural gas fired generation should be determined according to the categories of different regions' practices and project characteristics [28].…”

Section: Introductionmentioning

confidence: 99%

Pricing Mechanism for Natural Gas Distributed Generation Based on Classified Benchmark Price

Wang

Zhou²,

et al. 2019

IEEE Access

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Natural gas distributed generation (NGDG) has been widely concerned, promoted, and applied all over the world because it has advantages such as high comprehensive energy efficiency, environmental protection, sustainable and stable power supply, and so on. It also has become an important part of the energy strategy in China. Unfortunately, most NGDG projects on production in China do not operate very well due to several reasons such as high investment and operation cost, long load cultivation period, and so on. Thus it is quite urgent to design one pricing mechanism suitable for NGDG to meet the need in the transition stage before fully power marketization and rationalize and standardize the feed-in tariff of NGDG. This paper proposes a one-part tariff mechanism for NGDG based on classified benchmark price, which solves the problem that most NGDG projects have to refer to the benchmark tariff of local coal power plants due to the absence of NGDG pricing benchmark. Meanwhile, according to the characteristics of energy projects and regions, the mechanism establishes a two-dimensional classification scheme for NGDG, sets up the benchmark data and the method to determine the values, and then put forward the benchmark tariff of NGDG. It also changes the ''one plant one price'' approach in some areas. Finally, using the tariff mechanism and operating period price model, we calculate the benchmark tariff of all kinds of NGDG in several typical regions. The results can be referenced for research and NGDG tariff mechanism establishment in various countries.INDEX TERMS Natural gas, distributed energy resource, one-part, pricing mechanism, benchmark price.The associate editor coordinating the review of this manuscript and approving it for publication was Salvatore Favuzza.

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Pricing for integrated electricity and gas systems based on long-run incremental cost

Cited by 2 publications

References 4 publications

Optimal CHP Planning in Integrated Energy Systems Considering Network Charges

Optimal CHP Planning in Integrated Energy Systems Considering Network Charges

Pricing Mechanism for Natural Gas Distributed Generation Based on Classified Benchmark Price

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