Dynamic behavior of multi-carrier energy market in view of investment incentives

Valinejad, Jaber; Marzband, Mousa; Xu, Yijun; Uppal, Hasan; Al-Sumaiti, Ameena Saad; Barforoshi, Taghi

doi:10.1007/s00202-019-00834-5

Cited by 7 publications

(4 citation statements)

References 51 publications

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“…Energy Only, Capacity Payment, Firm Contract, and hybrid (including Capacity Payment and Firm Contract) markets are investigated in this section. The detailed discussion regarding concept of capacity payment and firm contracts from an economic point of view is provided in [7,49].…”

Section: Inputs Of Investment Incentives For Cp and Fcmentioning

confidence: 99%

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Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO2 Emissions

et al. 2019

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According to the European Union Emissions Trading Scheme, energy system planners are encouraged to consider the effects of greenhouse gases such as CO 2 in their short-term and long-term planning. A decrease in the carbon emissions produced by the power plant will result in a tax decrease. In view of this, the Dynamic carbon-constrained Equilibrium programming equilibrium constraints (DCC-EPEC) Framework is suggested to explore the effects of distinct market models on generation development planning (GEP) on electricity markets over a multi-period horizon. The investment incentives included in our model are the firm contract and capacity payment. The investment issue, which is regarded as a set of dominant producers in the oligopolistic market, is developed as an EPEC optimization problem to reduce carbon emissions. In the suggested DCC-EPEC model, the sum of the carbon emission tax and true social welfare are assumed as the objective function. Investment decisions and the strategic behavior of producers are included at the first level so as to maximize the overall profit of the investor over the scheduling period. The second-level issue is market-clearing, which is resolved by an independent system operator (ISO) to maximize social welfare. A real power network, as a case study, is provided to assess the suggested carbon-constrained EPEC framework. Simulations indicate that firm contracts and capacity payments can initiate the capacity expansion of different technologies to improve the long-term stability of the electricity market.

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Section: Inputs Of Investment Incentives For Cp and Fcmentioning

confidence: 99%

“…Ref. [49] models a multi-carrier energy market by considering investment incentives. In this framework, the strategic producer can invest in transmission lines, generation units, Combined Heat and Power (CHP), and gas furnace.…”

Section: Introductionmentioning

confidence: 99%

Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO2 Emissions

et al. 2019

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“…I N recent years, there have been significant efforts to improve the technical and economic performance of smart grids, with the presence of different players making decisions in these grids [1], [2]. Such a small-scale grid inside the market environment permits energy exchange among distributed energy resources (DERs) and home-microgrids (H-MGs) through a pool market [3], [4]. In this market, the importance of the demand response (DR) in the energy management of microgrids is clear.…”

Section: Introductionmentioning

confidence: 99%

Coalition Formation of Microgrids with Distributed Energy Resources and Energy Storage in Energy Market

Valinejad

Marzband

Korkali

et al. 2020

Journal of Modern Power Systems and Clean Energy

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Power grids include entities such as home-microgrids (H-MGs), consumers, and retailers, each of which has a unique and sometimes contradictory objective compared with others while exchanging electricity and heat with other H-MGs. Therefore, there is the need for a smart structure to handle the new situation. This paper proposes a bilevel hierarchical structure for designing and planning distributed energy resources (DERs) and energy storage in H-MGs by considering the demand response (DR). In general, the upper-level structure is based on H-MG generation competition to maximize their individual and/or group income in the process of forming a coalition with other H-MGs. The upper-level problem is decomposed into a set of low-level market clearing problems. Both electricity and heat markets are simultaneously modeled in this paper. DERs, including wind turbines (WTs), combined heat and power (CHP) systems, electric boilers (EBs), electric heat pumps (EHPs), and electric energy storage systems, participate in the electricity markets. In addition, CHP systems, gas boilers (GBs), EBs, EHPs, solar thermal panels, and thermal energy storage systems participate in the heat market. Results show that the formation of a coalition among H-MGs present in one grid will not only have a significant effect on programming and regulating the value of the power generated by the generation resources, but also impact the demand consumption and behavior of consumers participating in the DR program with a cheaper market clearing price.

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“…Existing substantial literatures use different techniques to explore the planning and operation of power systems from different aspects [20]. The impact of market mechanism and financial incentives on TG expansion planning are studied in [21]. Different from the existing research, this paper focuses on the coordinated planning of RES and ESS under the framework of RPS.…”

Section: Introduction a Background And Motivationmentioning

confidence: 99%

Joint Planning and Operation for Renewable- Storage Under Different Financial Incentives and Market Mechanisms

et al. 2020

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In this paper, a novel joint planning framework is proposed to coordinate the investment and operation of renewable energy sources and energy storage systems (ESS) in energy and ancillary services markets. Based on this framework, coordinated planning and operation model under centralized and deregulated market mechanism is studied, and multiple factors such as siting and sizing of wind turbine and ESS, the efficiency of ESS, transmission lines constraints are considered. For the centralized market mechanism, the coordinated model aiming at maximizing social welfare is established, which is a tractable single-level optimization problem. For the deregulated market mechanism, the coordinated model aiming at maximizing investment profits is established, which is an intractable bi-level optimization problem as the locational marginal price in the objective function. The bi-level optimization problem is reformulated into a mathematical problem with equilibrium constraints by Karush-Kuhn-Tucker conditions. The big-M method and strong dual theory are used to deal with the nonlinearity in constraints and objective functions, and the problem is transformed into a mixed-integer linear programming, which can be solved by commercial software. Furthermore, the impact of production tax credit and investment tax credit financial incentive policies on investment behavior has been studied, and the evaluation indexes of electrical information and economy have been established. The proposed approach has been implemented on the IEEE 6-bus and the IEEE 30-bus test systems, and results justify the efficiency of the model proposed. INDEX TERMS Investment and operation, market mechanism, mathematical problem with equilibrium constraints, Karush-Kuhn-Tucker conditions, financial incentive. NOMENCLATURE SETS AND INDICES The associate editor coordinating the review of this manuscript and approving it for publication was Pierluigi Siano .

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Dynamic behavior of multi-carrier energy market in view of investment incentives

Abstract: Taghi (2019) Dynamic behavior of multi-carrier energy market in view of investment incentives. Electrical Engineering.

Cited by 7 publications

References 51 publications

Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO2 Emissions

Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO2 Emissions

Coalition Formation of Microgrids with Distributed Energy Resources and Energy Storage in Energy Market

Joint Planning and Operation for Renewable- Storage Under Different Financial Incentives and Market Mechanisms

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