The rising penetration of renewable energy and the diverse power transaction mechanisms in power market environment (PME) make the control problem of the power system more difficult. Considering environmental pressure and market competition pressure, it is more important to ensure the economic operation of power system in the control process. This paper presents a novel distributed economic model predictive control (DEMPC) strategy for the load frequency control (LFC) problem of a practical multi-area power system incorporating wind power plants (WPPs) in PME. Meanwhile, the real time economic optimization is achieved by integrating the economic factors into the objective function. A distribution company (DISCO) participation matrix (DPM) is applied to visualize the liberalization of power transactions between the DISCOs and dispatchable generation companies (DGENCOs). Area participation factors (apfs) are introduced to present the allocation of uncontracted load demands. The DEMPC controllers solve the optimization problem of power system with external disturbances and constraints including frequency fluctuation constraint, control input constraints, output power of WPP constraint and pitch angle constraint of the wind turbine. Response results for a three-area power system including WPPs and thermal power plants demonstrate the certain improvement of the system performance with the participation of wind turbines and the high-efficiency of the proposed DEMPC strategy.
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