Energy Futures Lab and the Integrated Development of Low-Carbon Energy Systems (IDLES) programme host Mehdi Madani from N-Side for a special lunchtime seminar.
There is an intrinsic value in higher integration of multi-carrier energy systems (especially gas and electricity), to increase operational flexibility in the electricity system and to improve allocation of resources in gas and electricity networks (Pinson et al., 2017). However, the integration of different energy carrier markets is challenging due to the existence of physical and economic dependencies between the different energy carriers. We investigate here the design of an integrated day-ahead multi-carrier gas, electricity and heat market which includes new types of orders to represent technical constraints and cost structures of conversion and storage technologies. In that frame, we derive market equilibrium properties and, besides a centralized clearing, propose two decentralized clearing procedures which differ in how the decomposition of the underlying mathematical optimization problem is performed. We argue that such multi-carrier energy markets mitigate (spot) market risks faced by market participants and enable an improved price formation mechanism.
Mehdi Madani is a consultant in the department of Energy Analytics Solutions at N-SIDE, where he is responsible for R&D activities related to EU electricity markets integration and multi-carrier energy systems. He holds an M.Sc in Mathematics (ULiège, 2009), a M.Sc. in Financial risk management (ULiège, 2013) and a PhD in Operations Research (UCLouvain, 2017) with a thesis on Mixed Integer Programming models and algorithms for European day-ahead electricity auctions, followed by a postdoctoral research position at The Johns Hopkins University.
Joint work with Shahab Shariat Torbaghan, Ana Virag, Hélène Le Cadre and Kris Kessels (VITO), and Peter sels (N-SIDE) realized in the frame of the Magnitude project which has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No. 774309. The work and the results described reflect only the view of the authors. The European Commission and the Innovation and Networks Executive Agency (INEA) are not responsible for any use that may be made of the information they contain.
This talk is being organised by the Integrated Development of Low-Carbon Energy Systems (IDLES) programme, in which N-SIDE is an industrial partner. This five-year EPSRC-funded programme brings together researchers from across Imperial College London to investigate key areas of whole-energy systems analysis. IDLES aims to create a modelling tool that can indicate optimal forms of future, integrated, energy systems to decision makers, enabling large cost savings in providing decarbonised energy, ensuring security of supply, and alignment with long-term national policy objectives such as meeting CO2 emissions targets.