Solution to profit based unit commitment problem using optimization techniques under deregulated environment

Abstract

Electrical power systems have been deregulated and restructured in newlinesome countries. The restructuring of electrical power systems has resulted in newlinemarket-based competition by creating an open market environment. A newlinerestructured system allows the power suppliers to function competitively, as newlinewell as allowing consumers to choose their suppliers of electric energy. Under newlinethe new environment, electrical power system divides into three basic main newlinecomponents: generation, transmission and distribution. These have become newlinethe responsibility of generation, transmission and distribution companies. newlineAccording to these changes, traditional methods of power system generation newlinehave become the main challenges of generation companies. The problems newlinesuch as economic dispatch and unit commitment need modifications. For the newlinevertically integrated monopolistic environment in the past, economic dispatch and unit commitment were defined as scheduling generating units in order to newlineminimize the total production cost of utility and constraints such as power newlinedemand and spinning reserve are met. These problems under deregulated newlineenvironment, on the other hand, are more complex and more competitive than newlinetraditional problems. Generation companies solve economic dispatch and unit newlinecommitment problem not for minimizing total production cost as before but newlinefor maximizing their own profit. Besides, in the past, utilities had an obligation to serve their customers. That means all demand and spinning newlinereserve must be completely met. But this is not necessary in the restructured newlinesystem. Generation companies can now consider a schedule that produces less newlinethan the predicted load demand and reserve to create a maximum profit. This newlineproblem is called profit-based optimization problem. In this thesis, two newlineproblems are addressed: Profit-Based Unit Commitment and Emission newlineOptimization with profit-based unit commitment. Profit-Based Unit newlineCommitment is defined as a method to schedule generators economically newlinebased on the forecasted information,