Enhancing target benefits of power system stakeholders: A columns and constraint generation-based power-to-gas linked economic dispatch

Abstract

Economic dispatch (ED) plays a crucial role in optimizing power plant output to minimize the cost of electricity production and ensure economic efficiency in complex power systems. However, with the growing emphasis on carbon neutrality policies and the increased use of renewable energy sources (RES), traditional ED models may lead to economic losses for independent power producers (IPP) and renewable energy providers (REP). To address this challenge, a new ED model is proposed in this study, which integrates power-to-gas (P2G) technology and takes into account the perspectives of all stakeholders, including independent system operator (ISO) IPP, and REP. The proposed approach is tested in the context of the cost based pool (CBP) market structure in S. Korea, where a mixed integer linear programming (MILP) problem is solved for each target benefit using columns and constraint generations (C&CG). By ensuring the target benefits of each stakeholder group, this improved ED model aims to encourage their participation in the power system and support economic efficiency. The simulation results of the P2G-linked ED proposed in this paper verify that as the capacity of the integrated P2G increases, there is an increase in the improvement rate of each target benefit for ISO, IPP, and REP.