This paper examines the optimization of power system dispatching with a focus on energy conservation and emission reduction. Through analyzing current situations and challenges, it aims to propose effective strategies and methods to achieve efficient power system operation while protecting the environment. The article commences by detailing China's advancements and obstacles in energy conservation and emission reduction within its power system. It addresses issues such as the variability of renewable energy sources, efficiency constraints in thermal power generation units, the intricate nature of the power grid infrastructure, and the novel challenges introduced by reforms in the electricity market. Subsequently, the paper presents four major strategies: priority dispatching of clean energy, flexible dispatching of thermal power units, power grid structure optimization, and market mechanism introduction. Research findings, when integrated with practical case studies, demonstrate that the utilization of virtual power plants and advanced dispatching systems can markedly enhance the capacity for clean energy consumption, decrease the operational duration of thermal power units and the intensity of carbon emissions, while simultaneously improving the overall efficiency of power systems. This research holds significant importance for promoting green and sustainable development in the power industry
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