Integrating price-based resources in short-term scheduling of electric power systems

This paper discusses the application of a Lagrangian relaxation algorithm for solving short-term power system resource scheduling problems in the presence of “endogenously priced” resources. The authors demonstrate how such resources can be incorporated into the scheduling model as opposed to the prevailing practice of activating them through post-dispatch price signals derived from the short term scheduling of resources directly controlled by the electric utility. Through a simulation study, the authors compare operations and costs of integrated scheduling to those resulting from the post-dispatch approach. Their analysis demonstrates that integrated scheduling can produce significant improvements