An Integrated Energy and Water Market for the Supply Side of the Energy-Water Nexus in the Engineered Infrastructure

Abstract

In regions that utilize thermal desalination as part of their water supply portfolio, the cogeneration of water and power in cogeneration desalination plants couples the supply sides of the electricity and water grids. For a fixed plant design, there is a limited range of ratios of generated electric power to produced water at any given time. Due to this coupling, electricity and water require co-optimization. In an environment in which electricity supply is determined by deregulated wholesale markets, this need for co-optimization suggests a need for integrated electricity and water markets. In this market, independent power producers, independent water producers and independent cogeneration plants would submit bids to satisfy demand over a time horizon to a clearing mechanism, indicating relevant physical constraints. The mechanism would then optimize supply of both electricity and water over the time horizon of interest. Recently, a simultaneous co-optimization method has been contributed for the economic dispatch of networks that include water, power and cogeneration facilities in such an integrated market. This paper builds upon this foundation with the introduction of the corresponding unit commitment problem.