An optimal approach for smart grid economic dispatch

Smart grid economic dispatch (SGED) is more complicated than the traditional economic dispatch since it involves the operation of the uncertain renewable energy resources, as well as chargeable and dischargeable storage. This paper presents an approach to solve the smart grid economic dispatch problem using a two-stage optimization method. The proposed SGED model contains wind power generation and the storage provider. The first stage involves the fixed wind power generation, which is estimated and also cannot be adjustable. The second stage involves smart grid economic dispatch considering network loss and security constraints, as well as adjustable wind energy, where the wind power generations are variable at some range. Three objectives may be used for the second stage. They are the minimization of the generation cost, the minimization of system loss, and the minimization of the movement of generator output from the first stage generation plans. A modified IEEE 30-bus system, which contains the wind farm and storage device, is used for testing. The test results show the effectiveness of the proposed two stage smart grid economic dispatch approach.