Abstract
To promote the collaborative development of the bio-natural gas (BNG) industry and the integrated energy system (IES), this paper proposes a new commerce operation model considering the gas price adjustment mechanism for the IES with the utilization of bio-natural gas. The bi-level optimization model is used to simulate the clearing process within the open energy market framework, and the uncertainties of variable renewable energy output are modeled with a set of scenarios through the stochastic programming approach. In the upper-level model, the energy management center adjusts the bio-natural gas price rationally to minimize the expected total operating cost and release the price signal to the lower-level model; the lower-level model simulates the sub-markets clearing process to formulate detailed operation schemes. The bi-level model is transformed into a mathematical programming problem with equilibrium constraints (MPEC) through the Karush–Kuhn–Tucher (KKT) condition of the lower-level model, and the nonlinear model is converted into a mixed-integer linear programming problem and solved. The numerical results verified the effectiveness of the proposed model.
Highlights
Combining the distributed renewable energy sources (DRES) with other distributed controllable energy supply equipment to form an integrated energy system (IES) is becoming an ideal choice to achieve the smooth transition from the traditional power supply structure to a sustainable energy system [1,2]
A simulation study for a specified integrated energy system was carried out, which consists of two coal-fired combined heat and power (CHP) units with 8 MW and 11 MW installed capacity, three micro-gas turbines fueled by bio-natural gas with an installed capacity of 9 MW, 8 MW, and 7 MW, respectively, one bio-natural gas-fired boiler and one electric boiler
Frequent adjustment of the bio-natural gas (BNG) price can release more price signals in the real-time balancing market, which will provide more flexibility resources in the IES for alleviating the energy supply and demand imbalance caused by the deviation between the actual output of DRES and the day-ahead forecast value
Summary
Combining the distributed renewable energy sources (DRES) with other distributed controllable energy supply equipment to form an integrated energy system (IES) is becoming an ideal choice to achieve the smooth transition from the traditional power supply structure to a sustainable energy system [1,2]. Reference [16] has established a biomass-based poly-generation system of generating power, heating, cooling, and methanol, where the solid biomass converts into fuel gas through a gasification block This integrated energy system’s optimization strategy has been developed in the paper and treated as a deterministic MINLP model. Most of these models in the above works have considered the energy storage equipment, displaying biogas’ flexibility and dispatchability indistinctly These studies only focus on technical detail optimization, not give any new insights for the utilization pattern of biogas under the market liberation environment. The above works illustrate the importance of biogas in electricity markets as flexible and dispatchable sources All of these works mentioned that upgrading the biogas to bio-natural gas and coupling it with other energy sectors could be a more efficient and economical way for biogas utilization. The gas price adjustment mechanism has been applied in this model to minimize the total operation cost, which can stimulate the market players by price signals, optimizing the operation scheme of an IES
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