Now showing 1 - 2 of 2
  • Publication
    The role of power-to-gas in the future energy system: Market and portfolio effects
    Electricity systems based on renewables have an increasing demand for flexibility. This paper considers the potential of power-to-gas to provide flexibility and enhance system integration of renewables. Existing research on power-to-gas typically analyses the system effects of a predetermined power-to-gas unit without endogenising the investment decision. Moreover, insights related to market and portfolio effects of power-to-gas are rare. To this end this work presents a stochastic electricity market model. Market players considered include generating firms with different generation portfolios and different consumer groups. Firms earn revenues from an energy market, a capacity market and a feed-in premium for renewable generation. They maximise their profits by optimising the operation of existing assets and investing in new generation assets and power-to-gas. Firms with renewable generation benefit from investing in power-to-gas. While the technology itself is loss-making, power-to-gas particularly increases demand and hence prices in low-load hours. Therefore, renewable generation becomes more profitable, which justifies the investment. Metrics such as LCOE, which consider each technology in isolation, fail to capture this effect. The increase in the electricity price results in higher costs to consumers and so the overall transfer from consumers to wind generators increases in the presence of power-to-gas.
      266Scopus© Citations 28
  • Publication
    Examining the benefits of load shedding strategies using a rolling-horizon stochastic mixed complementarity equilibrium model
    (Elsevier BV, 2018-06-01) ;
    As a result of government policies increasing the amount of electricity generated from fluctuating renewable sources in many countries, the requirement for flexibility in the corresponding electricity systems increases. On the demand side, load shedding is one demand response mechanism contributing to an increased flexibility. Traditionally, load shedding was based on rather static or rotational strategies, whereby the system operator chooses the consumers for load shedding. However, ongoing technological developments provide the basis for smarter and more efficient load shedding strategies. We therefore examine the costs and strategies associated with such mechanisms by modelling an electricity market with different types of generators and consumers. Some consumers provide flexibility through load shedding only while others additionally have the ability to generate their own electricity. Focussing on the impacts of how and to whom consumers with own generation ability can supply electricity, the presence of market power and generator uncertainty, we propose a rolling horizon stochastic mixed complementarity equilibrium model, where the individual optimisation problems of each player are solved simultaneously and in equilibrium. We find that a non-static strategy reduces consumer costs while allowing consumers to provide own generation to the whole market results in minimal benefits. The presence of market power was found to increase costs to consumers.
      235Scopus© Citations 12