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A Model of Residential Mail Delivery by Drones Read chapter Read first chapter

2019 | OriginalPaper | Chapter

On the Value of Dual-Firing Power Generation Under Uncertain Gas Network Access

Authors : Boris Defourny, Shu Tu

Published in: Modeling and Optimization: Theory and Applications

Publisher: Springer International Publishing

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Abstract

This work is concerned with the impact of gas network disruptions on dual-firing power generation. The question is addressed through the following optimization problem. Markets drive the price of gas, oil, and electricity. The log-prices evolve as correlated mean-reverting processes in discrete time. A generating unit has dual-firing capabilities, here in the sense that it can convert either gas or oil to electricity. Oil and gas are subject to different constraints and uncertainties. Gas is obtained in real time through the gas network. Due to gas supply disruptions, gas access is not guaranteed. Oil is stored locally and available in real time. The oil storage capacity is limited onsite. Oil can be reordered to replenish the oil tank, with a lead time between the order time and the delivery time. Oil is paid for at the order time price. In this paper, we formulate the stochastic optimization problem for a risk-neutral operator, and study the sensitivity of the value of the dual-firing generating unit to the gas network availability parameters.

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Metadata
Title
On the Value of Dual-Firing Power Generation Under Uncertain Gas Network Access
Authors
Boris Defourny
Shu Tu
Copyright Year
2019
Book
Modeling and Optimization: Theory and Applications

Print ISBN: 978-3-030-12118-1

Electronic ISBN: 978-3-030-12119-8

Copyright Year: 2019

DOI
https://doi.org/10.1007/978-3-030-12119-8_2