Valuing intra-day coordination of electric power and natural gas system operations. (June 2020)

• Record Type: Journal Article
• Authors: Craig, Michael; Guerra, Omar J.; Brancucci, Carlo; Pambour, Kwabena Addo; Hodge, Bri-Mathias
• Is Part Of: Energy policy. Volume 141(2020)
• Publication Date: 2020-06
• Subjects: Power and gas coordination -- Power system optimization -- Natural gas simulation -- Natural gas deliverability -- Intra-day coordination; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2020.111470
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: Increasing renewable energy penetrations and low natural gas prices have increased the reliance of U.S. power systems on natural gas-fired generation. Increased reliance has sparked concerns over and resulted in natural gas deliverability constraints. To mitigate these constraints, research and regulatory reform have tried to improve coordination between power and gas systems. The U.S. Federal Energy Regulatory Commission (FERC) issued Order 809 in 2015 to improve day-ahead and intra-day coordination of power and gas systems. Given little research on intra-day coordination and FERC's recent action, we quantify the value of improved intra-day coordination between gas and electric power systems. To do so, we co-simulate coordinated day-ahead, intra-day, and real-time operations of an interconnected power and natural gas test system using a dynamic natural gas simulation model and a power system optimization model. We find intra-day coordination reduces total power system production costs and natural gas deliverability constraints, yielding cost and reliability benefits. Sensitivity analysis indicates improved intra-day renewable energy forecasts and higher renewable energy capacities increase intra-day coordination benefits for gas network congestion. Our results indicate FERC Order 809 and other policies aimed at enhancing intra-day coordination between power and gas systems will likely yield cost and reliability benefits. Highlights: Co-simulate an interconnected power and natural gas test system. Quantify cost and gas deliverability benefits of intra-day coordination. Coordination reduces power system costs and increases gas deliverability. FERC Order 809 will likely improve cost and reliability through better coordination.