1. Market-based coordination of integrated electricity and natural gas systems under uncertain supply
- Author
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Christos Ordoudis, Pierre Pinson, Stefanos Delikaraoglou, and Jalal Kazempour
- Subjects
Mathematical optimization ,Information Systems and Management ,General Computer Science ,Computer science ,0211 other engineering and technologies ,Scheduling (production processes) ,Integrated electricity and natural gas systems ,02 engineering and technology ,Management Science and Operations Research ,Bilevel optimization ,Industrial and Manufacturing Engineering ,Scheduling (computing) ,Natural gas ,0502 economics and business ,SDG 7 - Affordable and Clean Energy ,Flexibility (engineering) ,050210 logistics & transportation ,021103 operations research ,business.industry ,05 social sciences ,Uncertainty ,Volume (computing) ,OR in energy ,Renewable energy ,Market-based coordination ,Bilevel programming ,Software deployment ,Modeling and Simulation ,Electricity ,business - Abstract
The interdependence between electricity and natural gas systems has lately increased due to the wide deployment of gas-fired power plants (GFPPs). Moreover, weather-driven renewables introduce uncertainty in the operation of the integrated energy system, increasing the need for operational flexibility. Recently proposed stochastic dispatch models optimally use the available flexibility and minimize the total expected system cost. However, these models are incompatible with the current sequential market design. We propose a novel method to optimally define the available natural gas volume for power production scheduling, anticipating the real-time flexibility needs. This volume-based model is formulated as a stochastic bilevel program that aims to enhance the inter-temporal coordination of scheduling and balancing operations, while remaining compatible with the sequential clearing of day-ahead and real-time markets. The proposed model accounts for the inherent flexibility of the natural gas system via the proper modeling of linepack capabilities and reduces the total expected system cost by the optimal definition of natural gas volume availability for GFPPs at the forward phase. The volume-based coordination model is compared with a price-based coordination alternative, which was recently proposed. In the latter one, the natural gas price perceived by GFPPs is similarly adjusted to enhance the temporal coordination of scheduling and balancing stages. This comparison enables us to highlight the main properties and differences between the two coordination mechanisms.
- Published
- 2020
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