Research on Demand Response Based on the Locational Marginal Prices in the Integrated Electricity and Natural Gas System

Abstract

Under the background of Energy Internet, renewable energy generation, power-to-gas (P2G) technique and optimization of multi-energy system have attracted more and more attention. In this paper, an optimizing operation model of integrated electricity and natural gas system with wind power and P2G is established, in which the price-driven demand response (DR) mechanism is considered. First, the locational marginal prices of electricity and natural gas are calculated. Then, demand response is implemented based on the locational marginal prices in the integrated energy system. Finally, a case study is carried out based on a modified IEEE 14-bus power system and 14-bus natural gas system. Simulation results present that the demand response based on the locational marginal prices improves the consumption of wind power and contributes to the economic performance of the integrated energy system.