Midterm hydrothermal generation scheduling using nonlinear dynamic programming

The electricity generation scheduling is an essential problem in the power system operation. In a market environment this problem should take into account the strategic behavior of electricity producers, locational marginal prices and consumers´ response to prices (demand elasticity). Generation companies aim to maximize their profit. The proposed approach is based on a bilevel optimization model. The model of the problem uses the dynamic programming technique. The statement of the scheduling problem under market conditions is formulated and the algorithm for its solving is developed. The applicability of the method and algorithm is shown on the example of Siberian Power System.