Bi-level Low-Carbon Optimal Dispatch Model for P2G Plant Within Power and Natural Gas Markets

Abstract

The power-to-gas (P2G) plant plays a significant role in improving the renewable penetration and hydrogen utilization. This paper proposes a bi-level low-carbon optimal dispatch model for the P2G plant within the power and natural gas markets. The upper-level model presents the optimal dispatch strategy of the P2G plant with a multi-operation-state model of methane reactor (MR) and a multi-mode model of hydrogen storage (HS). The lower level aims at maximizing social benefits, considering the operational constraints of power and natural gas networks and market clearing. In addition, carbon trading is further considered in both levels to characterize the function of the P2G plant in the low-carbon economy. In the model solution, the optimal condition of the lower-level model can be expressed by Karush-Kuhn-Tucker (KKT) conditions, and then the bi-level optimization model is transformed into a mathematical program with equilibrium constraints (MPEC). A case study is performed to show the effectiveness of this model.