Electricity-Gas Dispatch via ADMM and Nash Bargaining

Coordination between electricity and natural gas systems enhances economic efficiency. However, due to the heterogeneity of entities, such cooperation is challenging to achieve unless surpluses are allocated to balance privacy protection and incentive compatibility. In the paper, we propose a decentralized scheduling method for coordinating electricity and natural gas systems via the alternating direction method of multipliers (ADMM) and Nash bargaining. First, the power system operator (PSO) solves optimal power dispatch to obtain the isolated dispatch cost of the PSO. Second, the natural gas system operator (NGSO) calculates the optimal gas flow to acquire the isolated dispatch cost of NGSO. Third, the optimal energy flow of electricity and natural gas systems is determined by ADMM to obtain the coordinated dispatch cost of PSO and NGSO. Finally, the cooperative surplus is redistributed through Nash bargaining to encourage PSO to cooperate. Our simulation results of two cases at different scales demonstrate that the proposed approach achieves incentive compatibility and privacy protection.