Day-ahead coordinated operation of utility-scale electricity and natural gas networks considering demand response based virtual power plants

The steady-state coordinated operation of electricity networks and natural gas networks to maximize profits is investigated under market paradigm considering demand response. The components in its gas supply networks are modeled and linearized under steady-state operating conditions where combined cycle gas turbine (CCGT) generators consume natural gas and offer to the electricity market. Interruptible-load based and coupon-based demand response virtual power plants are considered trading in the market like physical generators. A bi-level programming optimization model is formulated with its upper-level representing the coordinated operation to maximize profits and its lower-level simulating the day-ahead market clearing process. This bi-level problem is formulated as a mathematical program with equilibrium constraints, and is linearized as a mixed-integer programming problem. Case studies on a 6-bus power system with a 7-node natural gas system and an IEEE 118-bus power system with a 14-node gas system verify the effectiveness of the coordinated operation model. The impacts of demand response based virtual power plants on the interactions between the two networks are also analyzed.