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

Christos Ordoudis*, Pierre Pinson, Juan M. Morales

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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.

Original languageEnglish
JournalEuropean Journal of Operational Research
Volume272
Pages (from-to)642–654
ISSN0377-2217
DOIs
Publication statusPublished - 2019

Keywords

  • OR in energy
  • Integrated energy systems
  • Electricity and natural gas markets coordination
  • Renewable energy
  • Stochastic Programming

Cite this

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title = "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.",
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author = "Christos Ordoudis and Pierre Pinson and Morales, {Juan M.}",
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language = "English",
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An Integrated Market for Electricity and Natural Gas Systems with Stochastic Power Producers. / Ordoudis, Christos; Pinson, Pierre; Morales, Juan M.

In: European Journal of Operational Research, Vol. 272, 2019, p. 642–654.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - An Integrated Market for Electricity and Natural Gas Systems with Stochastic Power Producers

AU - Ordoudis, Christos

AU - Pinson, Pierre

AU - Morales, Juan M.

PY - 2019

Y1 - 2019

N2 - 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.

AB - 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.

KW - OR in energy

KW - Integrated energy systems

KW - Electricity and natural gas markets coordination

KW - Renewable energy

KW - Stochastic Programming

U2 - 10.1016/j.ejor.2018.06.036

DO - 10.1016/j.ejor.2018.06.036

M3 - Journal article

VL - 272

SP - 642

EP - 654

JO - European Journal of Operational Research

JF - European Journal of Operational Research

SN - 0377-2217

ER -