A joint clearing market for coupled electricity and gas system considering bilateral energy contracts

Abstract

In recent years, with the progress of new energy conversion technology, especially an increasing number of gas turbine units applied to the market, the connection between the natural gas system and the electric system has become increasingly close. Initially the gas and electricity markets operated relatively independently. Therefore, it is necessary to establish the coupling architecture of natural gas market and electricity market to meet the energy demand of users. This paper attempts to propose a power and gas coupling system based on clearing market structure. Firstly, the difference between natural gas–electricity coupling market and joint settlement market is discussed. The combined market considered in this paper is somewhat different from the associated electricity market and natural gas market. The calculations are easier and the results more reliable than those of the traditional linked gas markets and electric power market. Then, a mathematical model of joint clearing market is established based on bilateral energy contracts. Then, the piecewise linearization approximation (PLA) algorithm is proposed to solve the nonlinear problem. The locational piecewise price (LMEP) and locational marginal gas price (LMGP) are identified respectively, and the bilateral contracts are processed. The solution proposed in this paper guarantees strong duality and clear meaning of dual variables, making PLA easy to apply and solve market clearing problems based on dual variables or Lagrange multiplier pricing, as well as easy to deal with bilateral contract problems. Finally, the proposed joint clearing market is verified by an improved 3-electric bus and 6-gas node system.