Integrated operation of gas and power system through the P2P market mechanism

Abstract

AbstractPeer‐to‐peer (P2P) energy trading is a new technology for integrating distributed energy resources (DERs) into the power system. A P2P market allows direct energy trading between end‐users, enables local power and energy equilibrium and supports power grid operations. As a common DER, gas‐fired power plants are employed to deal with the intermittency of the power system due to their flexible characteristics. Therefore, the intermittency in the power system transmits to the gas system through the gas‐fired power plants, which makes the operation of these systems even more interdependent and cost‐effective. This paper proposes a market‐based two‐stage framework for the integrated operation of power and natural gas grids taking into account demand response and both network constraints. In the first stage (scheduling stage), the MINLP‐based optimisation approach is used for the optimal scheduling of two energy carriers considering AC power flow and gas hydraulic calculations for the next 24 h. Then, in the second stage, the continuous double auction (CDA)‐based P2P energy trading approach is used for enabling customers to trade energy with each other. To simulate human trader behaviour and maximises the benefits of customers, the authors considered the optimum bidding strategy through the zero intelligent plus trader model. The simulations executed on a 33‐bus power distribution grid and a 33‐node gas network indicate that the proposed framework can dramatically reduce the total operational cost and improve the performance of both networks. Using only the MINLP optimisation problem, first stage, the total operational cost of both networks is reduced by 15.58%, while the voltage profile at the end of the power grid is improved by about 7%. In the next stage, the total operating cost of both networks is further decreased by 29.31% via implementing the P2P energy trading mechanism.