Coupled natural gas and electric power systems

Abstract

Scarce pipeline capacity in regions that rely on natural gas technologies for electricity generation has created volatile prices and reliability concerns. Gas-fired generation firms uniquely operate as large consumers in the gas market and large producers in the electricity market. To explore the effects of this coupling, this dissertation investigates decisions for firms that own gas-fired power plants by proposing a mixed-integer linear programming model that explicitly represents multi-year pipeline capacity commit- ments and service agreements, annual forward capacity offers, annual maintenance schedules, and daily fuel purchases and electricity generation. This dissertation's primary contributions consist of a detailed representation of a gas-fired power-plant owner's planning problem; a hierarchical application of a state-based dimensionality reduction technique to solve the hourly unit commitment problem over different tem- poral scales; a technique to evaluate a firm's forward capacity market offer, including a probabilistic approach to evaluate the risk of forced outages; a case study of New England's gas-electricity system; and an exploration of the applicability of forward capacity markets to reliability problems for other basic goods.