CO2 emission-incorporated ac optimal power flow and its primary impacts on power system dispatch and operations

The electric power industry is and will continue to be a primary focus of existing and future greenhouse gas (GHG) emissions regulations. Different from other air pollutant regulations such as sulfur dioxide (SO₂) and nitrous oxides (NO_X), GHG regulations have the potential to significantly affect electric power system dispatch and operations soon, so the implications are significant enough to warrant an in-depth study. A formulation of the CO₂ emission-incorporated ac optimal power flow (OPF) is presented in this paper. A CO₂ emission cost model is included in this formulation and its impacts on generation dispatch are analyzed. The effects of the proposed approach on power system dispatch and operations are investigated using the standard IEEE 24-bus reliability test system through several case studies. For each case study, a wide range of CO₂ prices are modeled.