Emissions control research of spot markets for the separate generation system

Abstract

In separate generation systems, the ability of an optimal economic generation dispatch to satisfy emission constraints for power agencies is crucial. While attempting to minimize deadweight losses resulting from emission constraints of power agencies imposed on every power agency on the emission trading market, this study also presents an equitable criteria for the most suitable emission standard to construct a preliminary operating model of the emission rights trading market. Owing to its ability to evaluate the quantity and price of emissions trading, the operating model can be used as an index for emission right trading in a separate generation system. This study also applies the sequential unconstrained minimization 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, then applies a transformation method to transfer the constraints into the unconstrained nonlinearity-programming problem. This method also simultaneously incorporates the characteristics of the quasi-Newton method while assuming that a reliable initial value does not need to be assigned to determine the optimal direction of the search. Finally, the optimum solutions are obtained by regularly adjusting the penalty parameter. An illustrative example is presented to improve the accuracy of this technique.