Abstract
This paper studies the role of hourly economic demand response in the optimization of the stochastic day-ahead scheduling of electric power systems with natural gas transmission constraints. The proposed coordinated stochastic model (referred to as EGTran) considers random outages of generating units and transmission lines, and random errors in forecasting the day-ahead hourly loads. The Monte Carlo simulation is applied to create multiple scenarios for representing the coordinated system uncertainties. The nonlinear natural gas network constraints are linearized and incorporated into the stochastic model. Numerical results demonstrate the benefits of applying the hourly economic demand response for enhancing the scheduling coordination of natural gas and electricity networks. It is demonstrated that electricity demand response would offer a less volatile hourly load profile and locational marginal prices, and less dependence on natural gas constraints for the optimal operation of electric power systems. The proposed model for EGTran could be applied by grid operators for the hourly commitment and dispatch of power system units.