| Unit commitment and economic dispatch, when combined together, is a useful tool to find the most economical generation schedule with which demand and spinning reserve requirement are supplied and all generating unit constraints, such as unit ramp rates, unit minimum and maximum generation capabilities, and unit minimum up-time and down-time, are satisfied over a time horizon. For systems consisting of multiple areas, area import/export capabilities and tie line capacity constraints also need to be taken into account. Adaptive Lagrangian relaxation, unit decommitment and lambda-iteration methods are applied in this dissertation to determine the optimal unit commitment and economic dispatch schedule for large-scale multi-area systems.; In addition, the market operation components are integrated into this newly developed multi-area UC and ED to optimize the cost of generation and meet the needs of the restructured power industry. These market operation components consist of bilateral contracts which are direct agreements between a power producer and either a load serving entity or an ISO outside of a centralized bid-based power market. The bilateral contracts considered in this dissertation include call options, put options, forward contracts and reliability must-run (RMR) contracts. Options and forward contracts are commonly used by generation companies and load serving entities to hedge against the risk of price volatility in the real-time market and increase their profit. The RMR contracts are bilateral agreements between an ISO and generation companies to operate designated generating units at specified MW for the local demand. These contracts are initiated to mitigate local area reliability problems when other market solutions such as transmission expansion are not available.; The multi-area unit commitment and economic dispatch program with important market operation components developed in this dissertation will provide the dispatchers a robust tool for planning both operation and market strategies with consideration of cost optimization, risk management, and resource adequacy. |
