The Feasibility Assessment of Power System Dispatch with Carbon Tax Considerations

Abstract

Traditional economic dispatch methods, which are used to minimize fuel costs, have become inadequate because they do not consider the environmental impact of emissions in the optimization process. By taking into account the horizon year load and carbon taxes, this paper examines the operation and dispatch of power units in a power system. The objective function, including the cost of fuels and the cost of carbon taxes, is solved by the modified particle swarm optimization with time-varying acceleration coefficient (MPSO-TVAC) method under operational constraints. Based on different load scenarios, the influences of various carbon taxes for the dispatch of units are simulated and analyzed. The efficiency and ability of the proposed MPSO-TVAC method are demonstrated using a real 345KV system. Simulation results indicate that the average annual CO2 emissions are 0.36 kg/kwh, 0.41 kg/kwh, and 0.44 kg/kwh in 2012, 2017 and 2022, respectively. As the capacity of gas-fired plants was increased in 2017 and 2022, the average cost in 2017 and 2022 doubled or tripled compared with the average cost in 2012. Reasonable solutions provide a practical and flexible framework for power sectors to perform feasibility assessments of power system dispatch. They can also be used to assist decision-makers in reaching minimal operation cost goals under the policies for desired emissions.