Generation Scheduling and Economic Estimation of Power Systems Including Bilateral Contracts

Abstract

The electric power transactions are classified into pool transactions and bilateral contracts as well as security transactions. A certain transaction level of, for example, bilateral contracts may affect pool transactions by causing transmission congestion etc. In this paper, we will discuss how both the market and the bilateral transaction participants share the operation cost and charge for using network in consideration of power transmission loss allocation among generators. Following these discussions, we present an optimal scheduling method for pool participants. To ascertain the effectiveness of the proposed scheduling algorithm and to show how the bilateral contract level affects the pool operation, we will demonstrate various simulation results for a model power system of 8 units 44 bus power system.