A Stochastic Programming Model for Anticipative Planning of Integrated Electricity and Gas Systems with Bidirectional Energy Flows under Fuel and CO2 Price Uncertainty

TL;DR

This paper introduces a stochastic programming model for long-term planning of integrated electricity and gas systems, accounting for bidirectional energy flows and fuel and CO2 price uncertainties, to optimize investments and operations.

Contribution

It presents a novel two-stage mixed-integer linear stochastic model incorporating bidirectional energy conversion and detailed operational features for integrated energy system planning.

Findings

Detailed system representation improves reliability of results.

Considering price uncertainty reduces overall system costs.

The model effectively guides decarbonisation strategies in energy systems.

Abstract

A two-stage multi-period mixed-integer linear stochastic programming model is proposed to assist qualified operators in long-term generation and transmission expansion planning of electricity and gas systems to meet policy objectives. The first-stage decisions concern investments in new plants, new connections in the electricity and gas sectors, and the decommissioning of existing thermal power plants; the second-stage variables represent operational decisions, with uncertainty about future fuel and CO2 prices represented by scenarios. The main features of the model are: (i) the bidirectional conversion between electricity and gas enabled by Power-to-Gas and thermal power plants, (ii) a detailed representation of short-term operation, crucial for addressing challenges associated with integrating large shares of renewables in the energy mix, and (iii) an integrated planning framework to evaluate the operation of flexibility resources, their ability to manage non-programmable generation, and their economic viability. Given the computational complexity of the proposed model, in this paper we also implement a solution algorithm based on Benders decomposition to compute near-optimal solutions. A case study on the decarbonisation of the Italian integrated energy system demonstrates the effectiveness of the model. The numerical results show: (i) the importance of including a detailed system representation for obtaining reliable results, and (ii) the need to consider price uncertainty to design adequate systems and reduce overall costs.