Emission control research of spot markets for separate generation systems

Abstract

In a separate generation system, the ability of an optimal economic generation dispatch to satisfy emission constraints for power agencies is crucial. While attempting to minimise deadweight losses caused by emission constraints of power agencies imposed on every power agency on the emission trading market, this investigation also presents equitable criteria for the most suitable emission standard for constructing a preliminary operating model of the emission rights trading market. Owing to its ability to evaluate the quantity and price of emission trading, the operating model can serve as an index for the trading of emission rights in a separate generation system. This investigation also applies the sequential unconstrained minimisation technique (SUMT) to obtain a solution that satisfies the lowest generation cost in emission constraints. The SUMT method takes the limit of the nonlinearity equality or nonlinearity inequality, and then applies a transformation method to transfer the constraints into the unconstrained nonlinearity-programming problem. Simultaneously this method also incorporates the characteristics of the quasi-Newton method while assuming that a reliable initial value need not be assigned to determine the optimal search direction. Finally, the optimum solutions are obtained by regularly adjusting the penalty parameter. An illustrative example is presented to verify the accuracy of this technique.