Since 1999, the Australian state of Victoria has operated a natural gas spot market to both determine daily prices for natural gas and develop an optimal schedule for the market based on an LP (Linear Programming) approximation to the underlying inter-temporal nonlinear aspects of the gas flow optimization problem. This market employs a dispatch optimization model and a related market clearing model. Here we present the model employed for both the operational scheduling and price determination. read more →
Many electricity markets are now cleared using Linear Programming (LP) formulations that simultaneously determine an optimal dispatch and corresponding nodal prices, for each market dispatch interval. Although natural gas markets have traditionally operated in a very different fashion, the same basic concept can be applied. read more →