IEEE Power & Energy Magazine - November/December 2014 - 100

in my view

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(continued from p. 104)

midnight, prevailing time) and the "gas day" (9 a.m. to 9
a.m., Central time). That is, nominating gas for the day-ahead
electricity market involves nomination in two gas days, and
the first of these two gas days begins before the clearing of
the day-ahead electricity market. while the value of coordination between gas and electricity is fairly clear, there have
also been concerns about sharing information between gas
pipeline operators and independent system operators (ISos)
that could have helped to better coordinate gas and electricity operations. This is particularly vital for responding to contingencies on either the electric or the natural gas systems.
nevertheless, natural gas markets within, for example,
ErCoT have generally been able to provide for the needs
and wants of gas-fired electric generation. Moreover, in
order number 787, the Federal Energy regulatory Commission (FErC) has specifically allowed the sharing of information. The FErC is currently considering changes to
the timing of the gas day that could better align day-ahead
gas scheduling with day-ahead electricity markets. These
changes will help with the coordination between gas and
electricity markets.
with the large-scale addition of intermittent renewable
resources, the variability and uncertainty of net load will correspondingly increase. Increased integration of intermittent renewable resources will imply a more variable net load that must
be met by the thermal system.
while wind-forecasting technology used by market
participants, wind asset owners, and system operators continues to improve, forecast errors intrinsically increase as
predictions are made further into the future. That is, dayahead forecasts of wind power are relatively more uncertain than in-day forecasts because wind speed forecasts are
relatively uncertain within the day-ahead context. Two-day
ahead forecasts tend to be worse than day ahead, although
forecast error may not worsen much more with further increases in a forecast horizon beyond two days.
There will be a greater need to adjust natural gas consumption during the operational gas day to satisfy the variability
and uncertainty of increasing the overall levels of wind and
other variable resources, such as photovoltaic resources. As a
matter of practice, natural gas markets generally have limited
trading intraday and are typically illiquid on weekends and
public holidays. A forecast of net load made on Friday for
Monday will have rather greater error than a forecast made
on Monday for Tuesday. Consequently, natural gas nominations for electricity production on Monday will be relatively
less accurate than gas nominations for Tuesday.
over the last four years, my colleagues and I from the
McCombs School of Business, the School of Law, the LBJ
School of Public Affairs, and the Cockrell School of Engineering at The University of Texas have convened an annual
conference on the electricity industry. At our recent Austin
Electricity Conference (http://www.mccombs.utexas.edu/

http://www.mccombs.utexas.edu/ http://www.sestech.com

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - November/December 2014