Incorporation of fuel limitations and environmental constraints in production simulation models

Fuel limitations and constraints on CO/sub 2/ emissions have an impact on the operation of the electric power system and therefore should be taken into consideration while determining the optimum operation and estimating the generation cost. In this paper a methodology is proposed, which is based on the concept of shadow prices. The methodology is incorporated into a production simulation model developed at NTUA (PROSIM) and the updated version of the model is applied to the Hellenic electroproduction system.