Considering Carbon Emissions in Economic Dispatch Planning for Isolated Power Systems: A Case Study of the Taiwan Power System

Abstract

By integrating simulated annealing and the interactive best-compromise approach, this study proposes a method for determining economic dispatch in power systems while accounting for carbon emissions. To satisfy load demands and operational constraints, traditional economic dispatch is determined through the minimization of total power-generation costs based on the power output of the generating units in a system. In the proposed method, carbon emissions are taken into consideration. A CO2 equivalent model was created that accounts for the various fuel types (e.g., coal, oil, and natural gas) used in power generation. The correlation between power-generation costs and carbon emissions was determined according to CO2 emissions tradeoff and incremental cost–CO2 reduction curves. The proposed method was applied to the Taiwan Power Company system. The results indicate that the method was effective in determining the influence of CO2 emissions on power-generation costs during off-peak, semi-peak, and peak hours, as well as daily load demands. The system enables the simultaneous consideration of economic and environmental benefits.