Nodal prices in an integrated energy system

Abstract

This paper presents a multiperiod generalised network flow model used to analyse the economic interdependencies of integrated energy systems comprising the electric network and the various fuel supply and delivery systems in a medium term operational time frame. By using a network flow programming model, one can take advantage of much faster solution procedures than standard linear programming techniques; an issue of importance considering the dimensionality of such integrated systems. The nodal prices that are obtained as a byproduct of the optimisation algorithm provide a way to analyse the economic interdependencies between the various fuel networks and the electric network. A numerical example is presented to highlight the benefits of the methodology and illustrate how nodal prices in the electric network are influenced by the dynamics of the various fuel networks.

Investments in a Combined Energy Network Model: Substitution Between Natural Gas and Electricity?

“…Unsihuay et al, 2007), formulations of integrated markets using the network simplex method (e.g. Gil et al, 2003;Quelhas et al, 2006), including the dynamic aspects of natural gas velocity via quasi dynamic linear modeling (Damavandi et al, 2011), and deriving a single model representation (e.g An et al, 2003, applying primal-dual interior-point methods).…”

Thermoeconomic Methodology for Analysis and Optimization of a Hybrid Solar Thermal Power Plant

“…Marginal costs have important information for design and operation optimization of energy systems (Hui 2000;Quelhas, Gil, and McCalley 2006). Marginal cost knowledge is predictive, beginning with a known value of the unit cost and if the system evolves according to specific conditions, it is possible to predict the final unit cost (Serra et al 1995).…”

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