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A dynamic approach for the optimal electricity dispatch in the deregulated market

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  • Carraretto, Cristian
  • Lazzaretto, Andrea

Abstract

The electricity market has been experiencing the deregulation process in many countries. Effective approaches to the management of single power plants or groups of plants are therefore becoming crucial for the competitiveness of energy utilities. A dynamic programming approach is presented in this paper for the optimal plant management in the new Italian deregulated market. A thorough description of the method is given in cases of free or fixed production over time (e.g. when the overall production is limited by bilateral contracts or cogeneration). Analysis of market characteristics, detailed thermodynamic models of plant operation and reliable price forecasts over the time period of interest are required. The suggested approach is useful for both long-term scheduling and planning daily offers in the market.

Suggested Citation

  • Carraretto, Cristian & Lazzaretto, Andrea, 2004. "A dynamic approach for the optimal electricity dispatch in the deregulated market," Energy, Elsevier, vol. 29(12), pages 2273-2287.
    • Handle: RePEc:eee:energy:v:29:y:2004:i:12:p:2273-2287
    DOI: 10.1016/j.energy.2004.03.025
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    Cited by:

    1. Foley, A.M. & Ó Gallachóir, B.P. & Hur, J. & Baldick, R. & McKeogh, E.J., 2010. "A strategic review of electricity systems models," Energy, Elsevier, vol. 35(12), pages 4522-4530.
    2. Roy, Sanjoy, 2020. "A technical perspective on variability costs: Dependence on power variability and cross-correlations," Energy, Elsevier, vol. 198(C).
    3. Roy, Sanjoy, 2018. "The maximum likelihood optima for an economic load dispatch in presence of demand and generation variability," Energy, Elsevier, vol. 147(C), pages 915-923.
    4. Kim, M.K. & Park, J.K. & Nam, Y.W., 2011. "Market-clearing for pricing system security based on voltage stability criteria," Energy, Elsevier, vol. 36(2), pages 1255-1264.

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