Coordinated Constrained Optimal Power Dispatch for Bilateral Contract, Balancing Electricity and Ancillary Services Markets

Abstract

This paper proposes a coordinated constrained optimal power dispatch (CCOPD) algorithmfor bilateral contract market (BCM) with curtailment bids, balancing electricity market (BM) andancillary services market (ASM). The CCOPD problem is decomposed into social welfare maximizationsubproblem which is solved by the mixed-integer linear programming (MILP) and real power lossminimization subproblem which is solved by the linear programming (LP). The social welfaremaximization subproblem and the real power loss maximization subproblem are solved iteratively.The proposed CCOPD algorithm maximizes the overall social welfare of BCM, BM and ASMsimultaneously subject to power balance, ancillary services requirements and line flow constraints.The CCOPD algorithm is tested on the modified IEEE 30 bus system with six generation companies(PowerGens) submitting curtailment bids in BCM, and offers to sell electricity and ancillary servicesin BM and ASM, respectively. The social welfare of the CCOPD is shown to be higher than constrainedoptimal power dispatch without coordination among BCM, BM and ASM.