Scheduling Natural Gas Power Plants Considering Operational Constraints

Abstract Book of the 11th International Conference on Management, Economics and Finance

Year: 2026

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Scheduling Natural Gas Power Plants Considering Operational Constraints

Prof Dr. Ahmet Yucekaya, Şeyma Kaya Gezmiş

ABSTRACT:

The Unit Commitment Problem (UCP) is a fundamental optimization problem in power systems that aims to determine the most profitable schedule of generation units while satisfying operational constraints. In liberalized electricity markets, Generation Companies (GENCOs) have shifted their focus from traditional cost minimization to profit maximization. In this study, we propose a profit-based Unit Commitment (PBUC) model specifically for natural gas-fired power plants, including the operational constraints. Key operational constraints such as minimum up/down times, ramp-up/down rates, startup costs, and capacity limits are incorporated into the model. The objective function maximizes total profit by subtracting production costs and startup costs from electricity sales revenue over the planning horizon. The production cost is modeled quadratically using the heat rate function and natural gas price, enabling sensitivity analysis under different gas price scenarios. The problem is formulated as a Mixed-Integer Quadratic Programming (MIQP/MIQCP) model and solved using GAMS with real data from the Turkish electricity market (2024 prices) for the 2025 planning horizon. The study highlights the increasing importance of integrated electricity and natural gas system modeling in modern energy markets.

Keywords: Unit Commitment Problem; Profit Maximization; Natural Gas Power Plant; Mixed Integer Quadratic Programming; Electricity Market Optimization