Publications

Skip Navigation Links.

Search for publications:


Limit search to the fields


ECN publication
Title:
Discussion Paper: Short-Term Price and Volume Interactions in an Integrated Gas- & Electricity Market Framework
 
Author(s):
 
Published by: Publication date:
ECN Policy Studies 22-12-2015
 
ECN report number: Document type:
ECN-E--15-073 ECN publication
 
Number of pages: Full text:
31 Download PDF  

Abstract:
Gas and electricity (G&E) markets are interdependent due to the participation of natural gas fired power plants (NGFPPs) in both markets. Policy makers and regulators require tools to understand the implications of possible technology-, policy-, and economic developments in one market for the opera??on of the other. Although each market is studied extensively, i.e. by means of a gas market model or an electricity market model, these studies are confined to a certain extent in the sense that G&E market interdependencies are not considered, or at most, only in an iterative manner. In this paper, we propose an integrated gas- and electricity market model focusing on short-term interdependencies that relate to price and volume interactions. The short-run Integrated ELectricity and GAS market (I-ELGAS) model is an economic equilibrium model for hourly price and volume interac??ons, that takes into account ramping rates of conventional units, intermittent renewable (I-RES) variability, seasonal- and peak gas storage, and electricity storage. We show that this equilibrium model can be formulated as a Quadra??c Program (QP) under the assumption of perfect competition. This assumption allows for solving large-scale systems. The model is applied to a (four-node) system to analyse the impact of higher I-RES generation, higher CO2 prices and different types of energy storage on the price and volume interactions in the gas- and electricity market.


Back to List