Integrated Gas and Electricity Markets in eTransport
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- Institutt for elkraftteknikk 
The liberation of gas and electricity markets in Europe has created a need for a better understanding on how the two energy systems interact and depend on each other. A declining domestic gas production has motivated Denmark, which has an extensive electricity production based on natural gas, to further investigate these mutual dependencies. Traditionally, the two energy systems in question have been developed and operated separately, partly due to the use of different analyzing tools. For several reasons, analyzing tools designed for appliance on electrical systems are not well suited for calculations on gas systems, and the other way around. eTransport is an optimization tool for energy systems, developed by SINTEF Energy Research. The model includes multiple energy carriers and a variety of options for energy conversion and transport. The scope of this master thesis is to build a model of the integrated gas and electricity systems in Denmark, and carry out an operational analysis involving new gas supplies to the Danish system. The two supply options evaluated include a new gas pipe connection from Norway via Sweden, and an import of gas from Germany through existing pipeline constructions. Possibilities for exchanging electricity with Norway, Sweden and Germany are included, as well as the option of exporting natural gas to Holland, Sweden and Germany. Two optimal operational states were identified, differentiated by the amount of gas imported and exported, as well as the amount utilized for electricity production. The Norwegian gas supply came out as favorable to the German, yielding larger imports, continued export to Germany and higher electricity production from natural gas. The results from the analysis should be further investigated. Due to the structure of eTransport as of today, patterns of change in energy prices or demand over the year or analyzing period, can not be differentiated for different parts of the system. Modeling accruing costs in the gas supply chain also proved challenging, and did most likely result in the costs of electricity production becoming too low. This gave an considerable export of electricity from Denmark to all adjacent countries that is not thought likely to become reality. Modeling gas flow in eTransport with the existing models creates large optimization problems, which on several occasions had to be stopped manually due to long computation time and failure of calculating optimal solution. A simplification of the model formulations might be an option to consider in order to secure that optimal solution is found when analyzing extensive gas systems.