Profit evaluation inclusive of reserve pricing for renewable-integrated GENCOs

Abstract

Abstract Under the deregulated market scenario, the electric power industry is rapidly getting transformed due to integration of increasing renewable generation. Profit maximization has always been of highest priority for all the stakeholders. The generation planning problem is an important problem in the operation and planning of power systems which is required to be solved to accomplish the maximum profit. The individual GENeration COmpanies (GENCOs) are envisioning their most profitable Unit Commitment (UC) in the light of the available forecasts of availability of solar and wind power, energy prices and reserve prices during a given scheduling period. This paper presents a UC strategy for GENCOs’ profit with a generation portfolio comprising thermal generation, wind generation, and solar PV generation in different combinations. Priority List Method (PLM) and Modified Particle Swarm Optimization (PSO) with Time-Varying Acceleration Coefficients (PSO-TVAC) solution technique is deployed on the MATLAB platform. The aim is to maximize the profit while satisfying the load demand together with maintaining sufficient reserve at each hour. Sensitivity analysis of profit has also been carried out to showcase the impact of different pricing techniques, different parameters chosen and the different bidding prices for the power dispatched as well as for the reserve power maintained. The observations that emerged through the presented solution model may help develop an insight to the GENCOs to gain maximum profits.