A practical method for solving economic dispatch problem

This paper develops an efficient and practical approach for solving the economic dispatch (ED) problem in an environment of Power Markets. In this paper, the bidding principles are analyzed and an economic dispatch algorithm is described in detail. Based on the theory analysis of bidding principles, we drew a conclusion that the calculation principle of ED is the equal incremental bidding criterion for generators in the case of pay as-bid. According to this criterion, Newton Interpolation (NI) was adopted to solve the Economic Dispatch problem. In order to ensure the validity and efficiency of the algorithm, some measures are taken when processing the incremental bidding curves. In addition, some special conditions arc discussed and efficient measures were taken for them. By doing so, the program has high applicability. Due to these measures taken in the programming, the fast calculation speed and reliable convergence can be guaranteed. At the same time, Newton Interpolation has the characteristics of easy programming, high efficiency, fast calculation and accuracy of results. The detailed calculation procedure and program flow diagram are provided in the paper. The algorithm was tested with the practical bidding data of Liaoning Power Market. The calculation results are compared with those of Dynamic Programming. The comparison showed that Newton Interpolation had the same calculation results as DP while costing much less calculation time. This demonstrates that Newton Interpolation is an efficient and practical algorithm and fits for the Economic Dispatch problem of Power Markets.