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A bi-level bidding strategy model for gas-fired units, power-to-gas facility and renewable power in a coordinated energy market considering demand response programs
Onen, P.S. Zubo, R.H.A.
Onen, P.S.
Zubo, R.H.A.
Publication Date
2025
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© 2025 The Author(s). IET Generation, Transmission & Distribution published by John Wiley & Sons Ltd on behalf of The Institution of Engineering and Technology.
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.
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openAccess
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2025-11-27
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Abstract
Environmental concerns in recent years have encouraged governments worldwide to integrate large proportions of renewable energy sources (RESs) into electricity networks. However, the intermittent nature of the RESs has introduced new challenges, such as the imbalance between electrical supply and demand. The power-to-gas (P2G) and gas-fired units (GFUs) are practical solutions to overcome these challenges. Therefore, this paper presents a bi-level bidding strategy for GFUs, P2G facilities and RESs in a coordinated energy market considering demand response program (DRP). To enhance the flexibility of the system, DRP is modelled as a price-responsive bidding mechanism for shifting loads. Furthermore, the stochastic nature of RESs and load is modelled using a Scenario Tree concept. In the bi-level model, the upper-level problem maximizes the profits of the GFUs and P2G facility, while the lower-level problem maximizes social welfare in the energy market. The nonlinear bi-level formulation is changed into a single-level mixed-integer linear programming problem by substituting the lower-level optimization by its Karush-Kuhn-Tucker (KKT) optimality conditions and converting nonlinearities to linear equivalents. The CPLEX solver in the GAMS optimization program is utilized to solve the model. The beneficial effect of the suggested model was evaluated using an adjusted twenty-node Belgium gas network and an adjusted sixteen-bus UK Distribution System. Numerical results show that when natural gas demand is limited, the production of gas from the P2G facility can improve the secure and cost-effective functioning of the coordinated electricity and gas networks. It further shows that converting renewable electricity into natural gas, P2G facilities can enable a broader penetration of volatile renewable energy.
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Onen PS, Zubo RHA, Mokryani G et al (2025) A bi-level bidding strategy model for gas-fired units, power-to-gas facility and renewable power in a coordinated energy market considering demand response programs. IET Generation, Transmission and Distribution. 19(1): e70211.
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