Clearing and Pricing for Coordinated Gas and Electricity Day-Ahead Markets Considering Wind Power Uncertainty

Natural gas and electricity systems are becoming increasingly strongly coupled. Gas-fired units (GFUs) are replacing retired coal plants, and the power systems are more dependent on the flexibilities provided by GFUs. The GFUs' power generation capability relies on the availability of gas resources, which is jointly determined by the capacity of gas suppliers and pipeline networks. However, the gas and electricity markets are operated separately. Consequently, the GFUs are forced to "represent" the entire power system to bid on the gas market: they must make forecasts regarding future gas consumption and bear the risk of improper contracts or being unable to meet generation schedules due to occasional insufficient gas supply. When facing larger shares of renewable energies and more frequent gas network congestions, the current market framework is particularly unreliable and inefficient, as well as economically unfriendly to the investors of the GFU assets. In this paper, we try to develop a framework that can combine the two markets. By properly pricing the scarce resources, e.g., gas transmission capacity, the joint market can help us to allocate the resources more efficiently while satisfying the demands. Moreover, a more forward-looking day-ahead market clearing framework is presented by considering the uncertainty brought by renewable energies. The formulation and algorithm of the proposed joint market model will be presented, as are some case studies.