IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v123y2017icp693-709.html
   My bibliography  Save this article

Optimal energy pricing for integrated natural gas and electric power network with considerations for techno-economic constraints

Author

Listed:
  • Amirnekooei, K.
  • Ardehali, M.M.
  • Sadri, A.

Abstract

Natural gas (NG) and electricity are delivered to end users through separate NG and power networks, however, the intrinsic characteristics and interdependency of these energy carriers affect their pricing. The objective of this study is to determine and analyze the optimal locational marginal prices for NG (GLMP) and electricity (ELMP) in an integrated natural gas and electric power network (IGPN), based on interior point algorithm for optimization subject to various techno-economic constraints. Results from scenario-based analyses of an IGPN show that (a) GLMP in each NG network (GN) node is dependent on NG cost in the nodes feeding a particular node, (b) ELMP is concurrently a function of generation cost as well as IGPN contingency status such as NG pipeline outage, power line outage, reduction in NG and electricity flows (c) the distance between gas-fired power plant (GFPP) and GN affects power generation and ELMP, and (d) efficiency improvement for GFPP can decrease total energy generation cost and ELMP.

Suggested Citation

  • Amirnekooei, K. & Ardehali, M.M. & Sadri, A., 2017. "Optimal energy pricing for integrated natural gas and electric power network with considerations for techno-economic constraints," Energy, Elsevier, vol. 123(C), pages 693-709.
    • Handle: RePEc:eee:energy:v:123:y:2017:i:c:p:693-709
    DOI: 10.1016/j.energy.2017.01.145
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217301500
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.01.145?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. 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.
    2. Amirnekooei, K. & Ardehali, M.M. & Sadri, A., 2012. "Integrated resource planning for Iran: Development of reference energy system, forecast, and long-term energy-environment plan," Energy, Elsevier, vol. 46(1), pages 374-385.
    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. Devine, Mel T. & Russo, Marianna, 2019. "Liquefied natural gas and gas storage valuation: Lessons from the integrated Irish and UK markets," Applied Energy, Elsevier, vol. 238(C), pages 1389-1406.
    2. Chi, Lixun & Su, Huai & Zio, Enrico & Zhang, Jinjun & Li, Xueyi & Zhang, Li & Fan, Lin & Zhou, Jing & Bai, Hua, 2020. "Integrated Deterministic and Probabilistic Safety Analysis of Integrated Energy Systems with bi-directional conversion," Energy, Elsevier, vol. 212(C).
    3. Odetayo, Babatunde & MacCormack, John & Rosehart, W.D. & Zareipour, Hamidreza, 2018. "A real option assessment of flexibilities in the integrated planning of natural gas distribution network and distributed natural gas-fired power generations," Energy, Elsevier, vol. 143(C), pages 257-272.
    4. Yadegari, Saeed & Abdi, Hamdi & Nikkhah, Saman, 2020. "Risk-averse multi-objective optimal combined heat and power planning considering voltage security constraints," Energy, Elsevier, vol. 212(C).
    5. Devine, Mel & Russo, Marianna, 2018. "LNG and gas storage optimisation and valuation: lessons from the integrated Irish and UK markets," Papers WP606, Economic and Social Research Institute (ESRI).
    6. Dokic, Svjetlana B. & Rajakovic, Nikola Lj., 2019. "Security modelling of integrated gas and electrical power systems by analyzing critical situations and potentials for performance optimization," Energy, Elsevier, vol. 184(C), pages 141-150.
    7. Anna Bohdan & Sabina Klosa & Urszula Romaniuk, 2023. "Fluctuations of Natural Gas Prices for Households in the 2017–2022 Period—Polish Case Study," Energies, MDPI, vol. 16(4), pages 1-19, February.
    8. Huan Chen & Lixin Tian & Minggang Wang & Zaili Zhen, 2017. "Analysis of the Dynamic Evolutionary Behavior of American Heating Oil Spot and Futures Price Fluctuation Networks," Sustainability, MDPI, vol. 9(4), pages 1-29, April.
    9. Bao, Shiyuan & Yang, Zhifang & Guo, Lin & Yu, Juan & Dai, Wei, 2020. "One-segment linearization modeling of electricity-gas system optimization," Energy, Elsevier, vol. 197(C).
    10. Aldarajee, Ammar H.M. & Hosseinian, Seyed H. & Vahidi, Behrooz, 2020. "A secure tri-level planner-disaster-risk-averse replanner model for enhancing the resilience of energy systems," Energy, Elsevier, vol. 204(C).
    11. Uribe, Jorge M. & Mosquera-López, Stephania & Arenas, Oscar J., 2022. "Assessing the relationship between electricity and natural gas prices in European markets in times of distress," Energy Policy, Elsevier, vol. 166(C).
    12. He, Chuan & Wu, Lei & Liu, Tianqi & Wei, Wei & Wang, Cheng, 2018. "Co-optimization scheduling of interdependent power and gas systems with electricity and gas uncertainties," Energy, Elsevier, vol. 159(C), pages 1003-1015.
    13. Hosseini, Seyed Hamid Reza & Allahham, Adib & Walker, Sara Louise & Taylor, Phil, 2020. "Optimal planning and operation of multi-vector energy networks: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    14. Bao, Shiyuan & Yang, Zhifang & Yu, Juan, 2021. "Decomposition and analysis of marginal prices in multi-energy systems," Energy, Elsevier, vol. 221(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. Chi, Lixun & Su, Huai & Zio, Enrico & Zhang, Jinjun & Li, Xueyi & Zhang, Li & Fan, Lin & Zhou, Jing & Bai, Hua, 2020. "Integrated Deterministic and Probabilistic Safety Analysis of Integrated Energy Systems with bi-directional conversion," Energy, Elsevier, vol. 212(C).
    2. Fabio Massaro & Maria Luisa Di Silvestre & Marco Ferraro & Francesco Montana & Eleonora Riva Sanseverino & Salvatore Ruffino, 2024. "Energy Hub Model for the Massive Adoption of Hydrogen in Power Systems," Energies, MDPI, vol. 17(17), pages 1-31, September.
    3. Perwez, Usama & Sohail, Ahmed & Hassan, Syed Fahad & Zia, Usman, 2015. "The long-term forecast of Pakistan's electricity supply and demand: An application of long range energy alternatives planning," Energy, Elsevier, vol. 93(P2), pages 2423-2435.
    4. Xu, Xiao & Hu, Weihao & Cao, Di & Liu, Wen & Huang, Qi & Hu, Yanting & Chen, Zhe, 2021. "Enhanced design of an offgrid PV-battery-methanation hybrid energy system for power/gas supply," Renewable Energy, Elsevier, vol. 167(C), pages 440-456.
    5. Wang, Lixiao & Jing, Z.X. & Zheng, J.H. & Wu, Q.H. & Wei, Feng, 2018. "Decentralized optimization of coordinated electrical and thermal generations in hierarchical integrated energy systems considering competitive individuals," Energy, Elsevier, vol. 158(C), pages 607-622.
    6. Vincenzo Bianco & Annalisa Marchitto & Federico Scarpa & Luca A. Tagliafico, 2020. "Forecasting Energy Consumption in the EU Residential Sector," IJERPH, MDPI, vol. 17(7), pages 1-15, March.
    7. Pambour, Kwabena Addo & Cakir Erdener, Burcin & Bolado-Lavin, Ricardo & Dijkema, Gerard P.J., 2017. "SAInt – A novel quasi-dynamic model for assessing security of supply in coupled gas and electricity transmission networks," Applied Energy, Elsevier, vol. 203(C), pages 829-857.
    8. Kale, Rajesh V. & Pohekar, Sanjay D., 2014. "Electricity demand and supply scenarios for Maharashtra (India) for 2030: An application of long range energy alternatives planning," Energy Policy, Elsevier, vol. 72(C), pages 1-13.
    9. Chun Wei & Xiangzhi Xu & Youbing Zhang & Xiangshan Li, 2019. "A Survey on Optimal Control and Operation of Integrated Energy Systems," Complexity, Hindawi, vol. 2019, pages 1-14, December.
    10. 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.
    11. Najafi, G. & Ghobadian, B. & Mamat, R. & Yusaf, T. & Azmi, W.H., 2015. "Solar energy in Iran: Current state and outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 931-942.
    12. Qu, Kaiping & Shi, Shouyuan & Yu, Tao & Wang, Wenrui, 2019. "A convex decentralized optimization for environmental-economic power and gas system considering diversified emission control," Applied Energy, Elsevier, vol. 240(C), pages 630-645.
    13. Nana Geng & Yong Zhang & Yixiang Sun & Yunjian Jiang & Dandan Chen, 2015. "Forecasting China’s Annual Biofuel Production Using an Improved Grey Model," Energies, MDPI, vol. 8(10), pages 1-20, October.
    14. Danko Vidović & Elis Sutlović & Matislav Majstrović, 2021. "A Unique Electrical Model for the Steady-State Analysis of a Multi-Energy System," Energies, MDPI, vol. 14(18), pages 1-23, September.
    15. Wu, Chenyu & Gu, Wei & Xu, Yinliang & Jiang, Ping & Lu, Shuai & Zhao, Bo, 2018. "Bi-level optimization model for integrated energy system considering the thermal comfort of heat customers," Applied Energy, Elsevier, vol. 232(C), pages 607-616.
    16. Zheng, Yanan & Hu, Zhaoguang & Wang, Jianhui & Wen, Quan, 2014. "IRSP (integrated resource strategic planning) with interconnected smart grids in integrating renewable energy and implementing DSM (demand side management) in China," Energy, Elsevier, vol. 76(C), pages 863-874.
    17. Mirjat, Nayyar Hussain & Uqaili, Mohammad Aslam & Harijan, Khanji & Valasai, Gordhan Das & Shaikh, Faheemullah & Waris, M., 2017. "A review of energy and power planning and policies of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 110-127.
    18. Bao, Zhejing & Chen, Dawei & Wu, Lei & Guo, Xiaogang, 2019. "Optimal inter- and intra-hour scheduling of islanded integrated-energy system considering linepack of gas pipelines," Energy, Elsevier, vol. 171(C), pages 326-340.
    19. Ardakani, F.J. & Ardehali, M.M., 2014. "Long-term electrical energy consumption forecasting for developing and developed economies based on different optimized models and historical data types," Energy, Elsevier, vol. 65(C), pages 452-461.
    20. He, Liangce & Lu, Zhigang & Zhang, Jiangfeng & Geng, Lijun & Zhao, Hao & Li, Xueping, 2018. "Low-carbon economic dispatch for electricity and natural gas systems considering carbon capture systems and power-to-gas," Applied Energy, Elsevier, vol. 224(C), pages 357-370.

    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:123:y:2017:i:c:p:693-709. 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.