Generation scheduling and economic estimation of power systems including bilateral contracts

Electric power transactions are subdivided into pool transactions and bilateral contracts, as well as security transactions. A certain transaction level of, for example, bilateral contracts may affect pool transactions by causing transmission congestion and the like. In this paper, we discuss how both the market and the bilateral transaction participants share the operation cost and charge for using a network, taking account of power transmission loss allocation among generators. Following these discussions, we present an optimal scheduling method for pool participants. To ascertain the effectiveness of the proposed scheduling algorithm and to show how the bilateral contract level affects pool operation, we will demonstrate various simulation results for a model power system of an 8-unit 44-bus power system. (c) 2006 Wiley Periodicals, Inc.