Market Based Intraday Coordination of Electric and Natural Gas System Operation

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2018-01-03

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This paper outlines the design of an intraday market-based mechanism for coordinated scheduling of gas-fired electric generation, intra-day natural gas purchases, sales and deliveries, and underlying pipeline operation. The mechanism is based on an exchange of physical and pricing data between participants in each market, with price formation in both markets being fully consistent with the physics of energy flow. In organized nodal electricity markets, prices are consistent with the physical flow of electric energy in the power grid because the economic optimization used to clear the market accounts for the physics of power flows. In the gas system, the proposed physical operation and pricing will be based on the transient optimization approach that accounts for physical and engineering factors of pipeline hydraulics and compressor station operations. The paper provides theoretical foundations for the market mechanism.

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Markets, Policy, and Computation, gas-electric coordination, locational marginal value of gas, market mechanism, transient pipeline optimization

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10 pages

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Proceedings of the 51st Hawaii International Conference on System Sciences

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Table of Contents

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Attribution-NonCommercial-NoDerivatives 4.0 International

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