| Article ID: | iaor20119808 |
| Volume: | 216 |
| Issue: | 3 |
| Start Page Number: | 679 |
| End Page Number: | 686 |
| Publication Date: | Feb 2012 |
| Journal: | European Journal of Operational Research |
| Authors: | Kalczynski Pawel J |
| Keywords: | simulation: applications, economics, optimization, control processes, heuristics: tabu search, programming: branch and bound |
This paper presents a new discrete approach to the price‐based dynamic economic dispatch (PBDED) problem of fossil‐fuel generators of electricity. The objective is to find a sequence of generator temperatures that maximizes profit over a fixed‐length time horizon. The generic optimization model presented in this paper can be applied to automatic operation of fossil‐fuel generators or to prepare market bids, and it works with various price forecasts. The model’s practical applications are demonstrated by the results of simulation experiments involving 2009 NYISO electricity market data, branch‐and‐bound, and tabu‐search optimization techniques.