Long Run Analysis of Natural Gas and Electricity Export via System Dynamics

Document Type : Review Article

Authors

1 Electrical Engineering Department, Shahid Bahonar university of kerman, Kerman, Iran

2 Department of Electrical Engineering, Shahid Bahonar University of Kerman

3 Electrical Engineering Department, Shahid Bahonar University of Kerman, Kerman, Iran.

Abstract

Analyzing different scenarios for exporting natural gas and electricity is the main subject in this paper.
The place of Iran as the owner of second largest reserves of natural gas in the world and exporting it to
different countries increase the notability of this study. On the other hand, in the restructured power system,
the role of natural gas is growing in the electricity generation. This paper analyzes exporting natural
gas and electricity via three scenarios, including 1) direct transfer of natural gas at real time and forward
prices, 2) exporting the electricity, considering fuel payment and without fuel cost and 3) conversion of
natural gas into electricity and transferring via the power market. Markove Chain Monte Carlo (MCMC)
is applied for modelling the natural gas price during the studied time horizon. In this regard, the scenarios
are analyzed via system dynamics. Published data by energy information administration (EIA) about
natural gas price, the costs of generation by different technologies and plans for exporting the natural gas
and electricity are used in this study. The results show that exporting the natural gas or the electricity in
suitable forward price are the most profitable scenarios. Transferring the natural gas at real time price is
profitable, while exporting the electricity at the real time price of power market can not meet the economic
goals, even by expanding the renewable resources.

Keywords

Main Subjects

Journal of Energy Management and Technology
Volume 1, Issue 2
October 2017
Pages 20-30

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History

  • Receive Date: 05 June 2017
  • Revise Date: 25 September 2017
  • Accept Date: 08 November 2017

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