An Integrated Market for Electricity and Natural Gas Systems with Stochastic Power Producers

Abstract

In energy systems with high shares of weather-driven renewable power sources, gas-fired power plants can serve as a back-up technology to ensure security of supply and provide short-term flexibility. Therefore, a tighter coordination between electricity and natural gas networks is foreseen.In this work, we examine different levels of coordination in terms of system integration and time coupling of trading floors. We propose an integrated operational model for electricity and natural gas systems under uncertain power supply by applying two-stage stochastic programming. This formulation co-optimizes day-ahead and real-time dispatch of both energy systems and aims at minimizing the total expected cost. Additionally, two deterministic models, one of an integrated energy system and one that treats the two systems independently, are presented. We utilize a formulation that considers the linepack of the natural gas system, while it results in a tractable mixed-integer linear programming (MILP) model. Our analysis demonstrates the effectiveness of the proposed model in accommodating high shares of renewables and the importance of proper natural gas system modeling in short-term operations to reveal valuable flexibility of the natural gas system. Moreover, we identify the coordination parameters between the two markets and show their impact on the system's operation and dispatch.

A Novel Hybrid Framework for Co-Optimization of Power and Natural Gas Networks Integrated With Emerging Technologies

“…The storage balance and capacity limitations are provided by (23) and 24, respectively. Also, (25) and (26) meet the initial and final requirements of the natural gas storage unit.…”

“…Moreover, (19) and (20) demonstrate DC power flow and the line capacity limitation of DC power flow, respectively. [19] Stochastic [20] Stochastic [21] Stochastic [14] Robust [22] Robust [23] Robust [24] Robust [25] Stochastic Proposed IGDT-Stochastic 5) Natural gas storage: The natural gas storage system has been considered in this study to inject the storage gas to the integrated network for flattening the gas load profile. The gas storage unit can be utilized as an appropriate option when the gas load cannot be supplied due to the limitation of the gas capacity supplier or gas transmission pipeline capacity.…”

Electric Power Grid and Natural Gas Network Operations and Coordination

“…Some of the proposed market-based approaches are based on deterministic unit commitment and/or economic dispatch formulations using steady state [39] or dynamic [40,41] gas models. Market-based approaches based on stochastic unit commitment formulations and steady state (or simplified versions of the dynamic state) gas models have been proposed to deal with uncertainty in variable renewable power generation [42,43]. Although steady state gas models can be appropriate for long-term planning [44,45], these models do not capture the potential use of and dynamics of linepack storage where applicable and thus may underestimate operational flexibility of the gas system [46,47].…”

Strategic-Agent Equilibria in the Operation of Natural Gas and Power Markets

“…However, tools to comprehend the effect of such interdependency are limited. Many of these tools adopt a centralized perspective, in which a single operator manages both the gas and power systems [3][4][5][6][7][8][9][10][11][12][13][14] , which is unrealistic. Representative references are briefly discussed below.…”

“…Antenucci and Sansavini [13] investigate the impacts of gas-system operational constraints on a stochastic unit commitment model with large renewable penetration. Ordoudis et al [14] develop an integrated electricity and gas market-clearing model, in which the value of the gas system flexibility to accommodate high shares of renewables is discussed.…”