Risk hedging for gas power generation considering power-to-gas energy storage in three different electricity markets

Lai, Shuying; Qiu, Jing; Tao, Yuechuan; Zhao, Junhua

doi:10.1016/j.apenergy.2021.116822

Cited by 13 publications

(4 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…When considering these two systems simultaneously, there are many emerging difficulties, e.g., increased system complexity and risk, market timeline mismatch, overall system reliability evaluation, etc. [82,83].…”

Section: ) Interconnectionmentioning

confidence: 99%

Challenges and Pathways of Low-Carbon Oriented Energy Transition and Power System Planning Strategy: a Review

Qiu,

Zhao,

Wen

et al. 2023

IEEE Trans. Netw. Sci. Eng.

View full text Add to dashboard Cite

This paper provides an overview of the challenges and pathways involved in achieving a low-carbon-oriented energy transition roadmap and power system planning strategy. The transition towards low-carbon energy sources is crucial in mitigating the global climate change crisis. However, this transition presents several technical, economic, and political challenges. The paper emphasizes the importance of an integrated approach to power system planning that considers the entire energy system (including both physical and information systems and market mechanisms) and not just individual technologies. To achieve this goal, the paper discusses various pathways toward low-carbon energy transition, including the integration of renewable energy sources into current energy systems, energy efficiency measures, and market-based and regulatory strategies encompassing the implementation of regulations, standards, and policies. Furthermore, the paper underscores the need for a comprehensive and coordinated approach to energy planning, taking into account the socio-economic and political dimensions of the transition process. In addition, the paper reviews the methodologies used in modeling low-carbon-oriented power system planning, including both model-based methods and advanced machine learning-assisted solutions. Overall, the paper concludes that achieving a low-carbon-oriented energy transition roadmap and power system planning strategy requires a multi-dimensional approach that considers technical, economic, political, and social factors.

show abstract

Section: ) Interconnectionmentioning

confidence: 99%

Challenges and Pathways of Low-Carbon Oriented Energy Transition and Power System Planning Strategy: a Review

Qiu,

Zhao,

Wen

et al. 2023

IEEE Trans. Netw. Sci. Eng.

View full text Add to dashboard Cite

show abstract

“…Except for the P2G device, the battery storage device is also modelled: (20) where P store,Bat (t ) is the stored electricity; P 𝛿,bat (t ) is the extra amount of electricity that will be sold in the spot market due to the limitation of the battery device; R sp,Bat (t ) and C sp,Bat (t ) are the revenue and generation cost of the gas generator which can be referred to in [22]; C oper,Bat is the operational costs of using the battery storage device. The operation cost of the battery can be described as [23]:…”

Section: The Batterymentioning

confidence: 99%

“…In Equation (15), the capital recovery factor has been used to discount the initial investment costs of the P2G to annual costs denoted as the CF , which can be referred to in [20]. The CF is the cost component to calculate the annual return

{r_{sp,P2G}}(T)

of the gas generator by using the short put option with the P2G devices, which can be referred to in Equation (14).…”

Section: Models For the Short Put Optionmentioning

confidence: 99%

Option‐based portfolio risk hedging strategy for gas generator based on mean‐variance utility model

Lai

Qiu

Tao

2021

Energy Conversion and Econom

Self Cite

View full text Add to dashboard Cite

Natural gas generators are promising devices for reducing greenhouse gas emissions. However, gas generators encounter difficulties in the bid-to-sell process based on a relatively high levelised cost of energy for power generation. Therefore, a novel risk hedging strategy is developed based on the mean-variance portfolio theory to reduce the operational risks of gas generators and enhance their profits. Three types of options are utilised and combined to form a portfolio of financial hedges: the short put option, long put option, and short call option. Two types of energy storage devices are used to facilitate the risk hedging process, namely power-to-gas and battery devices. Simulation results demonstrate that the proposed risk hedging model can ensure higher profits for gas generators with reduced risk compared to the traditional risk hedging model and a model using only one type of option. Additionally, the varied risk preferences of gas generators lead to varied portfolio combinations. The more risk averse a gas generator, the more likely the long-put option will be utilised. In contrast, the less risk averse a gas generator, the more likely that short calls will be utilised.This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

show abstract

“…This study considers market analysis to investigate the influence of wind power and PHEVs in the future smart grid. However, the centralized distribution units and generation companies (GENCOs) have generated a free market environment [7]. In this unease, integrated windfarm and plug-in hybrid electric vehicles system (IWPHEVS) can be advantageous for both sides.…”

mentioning

confidence: 99%

A hybrid robust-stochastic framework for strategic scheduling of integrated wind farm and plug-in hybrid electric vehicle fleets

et al. 2021

View full text Add to dashboard Cite

Risk hedging for gas power generation considering power-to-gas energy storage in three different electricity markets

Cited by 13 publications

References 32 publications

Challenges and Pathways of Low-Carbon Oriented Energy Transition and Power System Planning Strategy: a Review

Challenges and Pathways of Low-Carbon Oriented Energy Transition and Power System Planning Strategy: a Review

Option‐based portfolio risk hedging strategy for gas generator based on mean‐variance utility model

A hybrid robust-stochastic framework for strategic scheduling of integrated wind farm and plug-in hybrid electric vehicle fleets

Contact Info

Product

Resources

About