Auction-Based Dispatch Algorithms in Deregulated Power Systems

Abstract

In deregulated power systems, the classic economic dispatch has been replaced with theauction-based dispatch in which both the generating units and loads participate. Instead of constantload demand in the classic economic dispatch, the loads are variables in the new dispatch. As aresult, the conventional economic dispatch algorithms no longer can be applied. In this paper wereformulate the auction-based dispatch into a general minimization problem so that the loads canbe treated as variables similar to the generations. Based on this new reformulation, efficient algorithmsto solve the auction-based dispatch problem are proposed. The first algorithm solves the dispatchproblem in which the objective function contains only quadratic bidding functions. Since someloads might submit linear incremental bidding functions, a second algorithm is developed to handlethe situation where the objective function contains both quadratic and linear incremental biddingfunctions. At the end, we demonstrate the efficiency of our algorithms through examples.