Profit-based unit commitment problem with bilateral contracts

This paper addresses the thermal unit commitment problem for power generation companies that operating in the market environment. The model for this problem is formulated as a deterministic optimization task where the optimal solution obtained using the 0/1 mixed-integer linear programming technique. The main feature of the model is that it provides a comprehensive and accurate representation of operating costs and operating constraints for thermal units. The model have been incorporated a long-term bilateral contracts with defined profiles power and price, and forecasted market for hourly prices for day-ahead auction. Solution is achieved using the homogeneous and self-dual interior point method for linear programming with a branch and bound optimizer for binary programming. The effectiveness of the proposed model is demonstrated through case study with detailed discussion.