Simulated Annealing - Based Optimal Solution Methodology under Deregulation Power System Environment

In economic load dispatch solution procedure, the fuel cost characteristics of a thermal generator are usually approximated by (i) a quadratic function; (ii) piecewise quadratic function; and (iii) a polynomial function with order higher than two. When functions in (ii) and (iii) are adopted, the economic load dispatch problem may have several optimum solutions with one being the global optimum solution. To fi nd the global or near global optimum solution, the new algorithm based on Genetic Algorithm (GA) or Simulated Annealing (SA), etc., for solving the economic dispatch problem is needed.

In this paper, the generation dispatch methodologies under deregulation power system environment have been developed. The classical economic dispatch algorithm relies on the convexity of the cost function. However, in deregulated power market, the market strategies make the seller's bidden cost function concave causing classical economic algorithm inapplicable. Here, a special type of algorithm is developed based on the deregulation strategy and also a heuristic algorithm is proposed which combines with the powerful searching mechanism of simulated annealing with mathematical foundation on global optimization.