Price convergence in an integrated simulation of the electricity and the gas market

Within the decarbonization goals of the European Union, fossil gas shall be substituted for example by synthetic natural gas which can be produced in power-to-gas plants. Thus, the electricity and gas sector are coupled which is amplified by gas-fired power plants which in turn generate electricity by using gas. As these plants participate at both markets, the interdependence of electricity and gas prices will also be rising. Market simulations are used for long-term market analyses by both market participants and decision makers responsible for the design and regulation of energy markets. An integrated simulation of an electricity and gas market model is presented and evaluated where prices are calculated simultaneously and the dispatch of coupling plants is determined considering both markets. A gas market model is therefore integrated into an existing electricity market simulation. The simulation is validated through the convergence of electricity and gas prices in exemplary investigations.