Transferring transmission pricing principles from electricity to natural gas

This paper discusses the application of several electricity transmission cost allocation methods to compute natural gas transmission tariffs. Cost allocation methods that have been implemented include four of the most relevant transmission cost allocation methods that have been considered in the ele...

Full description

Saved in:
Bibliographic Details
Main Authors: Unsihuay-Vila, C., Olmos, L., Perez-Arriaga, I.J.
Format: Conference Proceeding
Language:English
Subjects:
Costs
Energy conversion
Fuels
Game theory
Grid computing
Natural gas
Natural gas industry
Optimization methods
Pipelines
Pricing
Online Access:Request full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper discusses the application of several electricity transmission cost allocation methods to compute natural gas transmission tariffs. Cost allocation methods that have been implemented include four of the most relevant transmission cost allocation methods that have been considered in the electricity sector. These are analyzed both qualitatively and quantitatively. In order to do this, equations modeling the flow of gas in transmission networks have been formulated and solved. Cost allocation principles applied are the same used in electricity. Numerical results corresponding to a 12-node gas network are presented and discussed. Based on this analysis, the paper concludes that transferring some of the methodologies applied in electricity transmission to gas leads to satisfactory results.
DOI:10.1109/INFRA.2008.5439606