Multi-Period Equilibrium Analysis of Electricity and Natural Gas Markets with Wind Power Bidding

Abstract

When wind power producers (WPPs) bid in the day-ahead market, how to address the deviation between the bid output and the actual output is one of the important topics in the design of electricity markets with WPPs. Under the background of the Energy Internet, the complementarity between power system and natural gas system provides an alternative solution for mitigating the adverse effects of random fluctuations in renewable energy sources. First, a multi-energy trading framework is presented to tackle WPP's bid deviations. In the framework, the WPP is considered to bid in the day-ahead electricity market (DAEM). In order to compensate the bid deviations of WPP, power to gas (P2G) equipment, natural gas generating unit (NGGU) and gas storage devices can be used by the WPP when it has excess/deficit electricity, and the rest deviation can be compensated by the gas market (GM). Second, based on the trading framework, a multi-period joint game equilibrium model of the DAEM and GM is proposed. In this model, the Cournot bid form is applied by both WPP and conventional power producers in the DAEM and gas producers in the GM. Furthermore, a nonlinear complementary method is applied to solve the equilibrium model. Finally, the numerical examples show that the proposed multi-energy trading model can completely compensate the WPP's bid deviation in the DAEM, help to improve the market competitiveness of WPP and the accommodation of wind power, and also smooth the price fluctuations in the DAEM and GM.