Optimal energy pricing for integrated natural gas and electric power network with considerations for techno-economic constraints

Natural gas (NG) and electricity are delivered to end users through separate NG and power networks, however, the intrinsic characteristics and interdependency of these energy carriers affect their pricing. The objective of this study is to determine and analyze the optimal locational marginal prices for NG (GLMP) and electricity (ELMP) in an integrated natural gas and electric power network (IGPN), based on interior point algorithm for optimization subject to various techno-economic constraints. Results from scenario-based analyses of an IGPN show that (a) GLMP in each NG network (GN) node is dependent on NG cost in the nodes feeding a particular node, (b) ELMP is concurrently a function of generation cost as well as IGPN contingency status such as NG pipeline outage, power line outage, reduction in NG and electricity flows (c) the distance between gas-fired power plant (GFPP) and GN affects power generation and ELMP, and (d) efficiency improvement for GFPP can decrease total energy generation cost and ELMP.