Clearing and Pricing for Coordinated Gas and Electricity Day-Ahead Markets Considering Wind Power Uncertainty

Abstract

Abstract-Natural gas and electricity systems are becoming increasingly strongly coupled. Gas-fired units (GFUs) are replacing retired coal plants, and the power systems are more dependent on the flexibilities provided by GFUs. The GFUs' power generation capability relies on the availability of gas resources, which is jointly determined by the capacity of gas suppliers and pipeline networks. However, the gas and electricity markets are operated separately. Consequently, the GFUs are forced to "represent" the entire power system to bid on the gas market: they must make forecasts regarding future gas consumption and bear the risk of improper contracts or being unable to meet generation schedules due to occasional insufficient gas supply. When facing larger shares of renewable energies and more-frequent gas network congestions, the current market framework is particularly unreliable and inefficient, as well as economically unfriendly to the investors of the GFU assets. In this paper, we try to develop a framework that can combine the two markets. By properly pricing the scarce resources, e.g., gas transmission capacity, the joint market can help allocate the resources more efficiently while satisfying the demands. Moreover, a more forward-looking day-ahead market clearing framework is presented by considering the uncertainty brought by renewable energies. The formulation and algorithm of the proposed joint market model will be presented, as are some case studies.Index Terms-day-ahead market, gas and electricity coordination, wind power, unit commitment, stochastic programming. 1

Unit Commitment With Gas Network Awareness

“…The optimal solution (x p ,x g ,ȳ g ) of Problem (13) satisfies the following conditions: becomes feasible to the dual of Problem (14) as α approaches 1 (by Equation (21b)), and together they satisfy the strong duality condition of Equation (21a) as α becomes closer to 1 (by Equation (21a)). Therefore, as α → 1, (x p ,ŷ p ) becomes a feasible solutions of P (ẑ p ) and has the same optimal objective value.…”

“…Other researchers have also studied how to incorporate the economic coupling between these two infrastructures using new market mechanisms. A new market framework with a joint ISO, using priceor volume-based approaches, was investigated in [14], [15]. Instead of introducing one joint ISO, other researchers have proposed a new market framework that assumes centralized independent gas markets, synchronizes the electricity and gas market days, and allows some information exchange between some parties in the electricity and gas markets (e.g., market operators or GFPPs) [16]- [21].…”

User-Centric Multiobjective Approach to Privacy Preservation and Energy Cost Minimization in Smart Home

“…Third, it can avoid price volatility due to abrupt changes in supply and demand in a real-time market. In addition, day-ahead pricing schemes have been considered in a number of recent studies on related topics (see, for example, [66]- [68] and [69]), showing its popularity among other pricing schemes.…”

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.…”