A New Commerce Operation Model for Integrated Energy System Containing the Utilization of Bio-Natural Gas

Abstract

To promote the collaborative development of the bio-natural gas (BNG) industry and the integrated energy system (IES), this paper proposes a new commerce operation model considering the gas price adjustment mechanism for the IES with the utilization of bio-natural gas. The bi-level optimization model is used to simulate the clearing process within the open energy market framework, and the uncertainties of variable renewable energy output are modeled with a set of scenarios through the stochastic programming approach. In the upper-level model, the energy management center adjusts the bio-natural gas price rationally to minimize the expected total operating cost and release the price signal to the lower-level model; the lower-level model simulates the sub-markets clearing process to formulate detailed operation schemes. The bi-level model is transformed into a mathematical programming problem with equilibrium constraints (MPEC) through the Karush–Kuhn–Tucher (KKT) condition of the lower-level model, and the nonlinear model is converted into a mixed-integer linear programming problem and solved. The numerical results verified the effectiveness of the proposed model.