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Keywords
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Integrated energy service provider, Natural gas market, Electricity market , District heating systems , Flexible demand ,
Price-maker
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Abstract
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Managerial relevance statement This study investigates the role of integrated thermal and electrical energy service provider as a price-maker player in natural gas and wholesale electricity markets through bi level multi follower optimization framework, wherein natural gas market and wholesale electricity market operators are defined as individual followers, while integrated thermal and electrical energy service provider is the leader. KKT conditions and theory of strong duality are deployed to transform the problem into a single level framework. Moreover, information gap decision theory is deployed to handle uncertainties of the system. With emergence of combined heat and power units, integrated energy service providers participate in natural gas and wholesale electricity markets to satisfy customers demand. However, none of the previous studies have addressed this issue as price maker, which can influence market price. Provision of such tool would be crucial for integrated thermal and electrical energy service providers to participate in various energy markets.
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