Gas-Electric Co-Optimization

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OPEN 2015
Boston, Massachusetts
Project Term:
04/11/2016 - 07/19/2019

Technology Description:

The team led by Newton Energy Group will lead the Gas-Electric Co-Optimization (GECO) project to improve coordination of wholesale natural gas and power operators both at the physical and market levels. The team's approach uses mathematical methods and computational techniques that have revolutionized the field of optimal control. These methods will be applied to natural gas pipeline networks, and the final deliverable will consist of three major components. First, they will model and optimize intra-day pipeline operations represented by realistic models of gas network flow. Next, the team will develop economic theory and computation algorithms for the pricing of natural gas delivered to end users, in particular to gas-fired power plants. Finally, they will combine these two analytical components to design practical market mechanisms for efficient coordination of gas and electric systems. The goal of efficient market design is to develop a mechanism under which access to pipeline capacity will be provided on the basis of its economic value as determined by gas buyers and sellers, and not on the current allocation of physical capacity rights. The tool guarantees natural gas will be available when power plants need it, and that the power produced can be sold to consumers at a price sufficient to cover the cost of the natural gas.

Potential Impact:

If successful, innovations from the GECO technology will develop novel mathematical modeling and optimization methods to control operation of gas pipelines and design market mechanisms for coordinated operations of gas and electric networks.


Improved coordination of these networks will increase energy resiliency and reliability, while reducing the cost of natural gas supply for electricity generation.


Natural gas generation can displace coal-fired power, support integration of renewable resources, and reduce emissions of carbon dioxide and other pollutants.


The team’s innovation could streamline operations and ultimately save costs for natural gas and electricity consumers. A 1% reduction in wholesale natural gas prices could save U.S. consumers over two billion dollars per year.


ARPA-E Program Director:
Dr. Kory Hedman
Project Contact:
Dr. Aleksandr Rudkevich
Press and General Inquiries Email:
Project Contact Email:


Polaris Systems Optimization
Boston University
Los Alamos National Laboratory

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