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Optimal Management of Combined-Cycle Gas Units with Gas Storage under Uncertainty

Author

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  • Hernán Gómez-Villarreal

    (Department of Electrical Engineering, University of Castilla—La Mancha, 45071 Toledo, Spain)

  • Miguel Carrión

    (Department of Electrical Engineering, University of Castilla—La Mancha, 45071 Toledo, Spain)

  • Ruth Domínguez

    (Department of Electrical Engineering, University of Castilla—La Mancha, 45071 Toledo, Spain)

Abstract

We formulated a problem faced by a power producer who owns a combined-cycle gas turbine (CCGT) and desires to maximize its expected profit in a medium-term planning horizon. We assumed that this producer can participate in the spot and over-the-counter markets to buy and sell natural gas and electricity. We also considered that the power producer has gas storage available that can be used for handling the availability of gas and the uncertainty of gas prices. A stochastic programming model was used to formulate this problem, where the electricity and gas prices were characterized as stochastic processes using a set of scenarios. The proposed model includes the technical constraints resulting from the operation of the combined cycle power plant and the gas storage and a detailed description of the different markets in which the power producer can participate. Finally, the performance of the proposed model is tested in a realistic case study. The numerical results show that the usage of the gas storage unit allows the power producer to increase its expected profit. Additionally, it is observed that bilateral contracting decisions are not influenced by the presence of the gas storage unit.

Suggested Citation

  • Hernán Gómez-Villarreal & Miguel Carrión & Ruth Domínguez, 2019. "Optimal Management of Combined-Cycle Gas Units with Gas Storage under Uncertainty," Energies, MDPI, vol. 13(1), pages 1-29, December.
    • Handle: RePEc:gam:jeners:v:13:y:2019:i:1:p:113-:d:301730
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    References listed on IDEAS

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    1. Jirutitijaroen, Panida & Kim, Sujin & Kittithreerapronchai, Oran & Prina, José, 2013. "An optimization model for natural gas supply portfolios of a power generation company," Applied Energy, Elsevier, vol. 107(C), pages 1-9.
    2. Antonio J. Conejo & Miguel Carrión & Juan M. Morales, 2010. "Decision Making Under Uncertainty in Electricity Markets," International Series in Operations Research and Management Science, Springer, number 978-1-4419-7421-1, September.
    3. Knudsen, Brage Rugstad & Whitson, Curtis H. & Foss, Bjarne, 2014. "Shale-gas scheduling for natural-gas supply in electric power production," Energy, Elsevier, vol. 78(C), pages 165-182.
    4. Steven A. Gabriel & Supat Kiet & Jifang Zhuang, 2005. "A Mixed Complementarity-Based Equilibrium Model of Natural Gas Markets," Operations Research, INFORMS, vol. 53(5), pages 799-818, October.
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