The Impact of Wind Generation on Operating Cost and Profit in a Bilevel Optimization Dispatch Model

Abstract

In this paper, the problem of economic dispatch of energy of an electrical system is solved, based on three different approaches: first is deterministic, a second is stochastic and a third given by bilevel programming. It is observed that when solving the deterministic economic energy dispatch, results follow the principle of order of merit, likewise under some scenarios availability of a large flexible capacity during the power balance stage becomes necessary. In another hand, the stochastic model becomes a tool that optimizes flexible capacity by sacrificing the order of merit which is not the case of bilevel model that adopts both, order of merit and optimization of flexible capacity by choosing an optimum of wind power to dispatch. In terms of profit, it has been observed that under the stochastic approach those flexible participants must fall into losses under certain scenarios. However, under the bilevel approach, the aforementioned issue is improved. Finally and in order to illustrate the impact of the bilevel approach a 24-node system serves as a test system to obtain results and demonstrate the economic advantages of an bilevel dispatch.