Medium-term generation scheduling in electric power systems

The paper considers specific features of problem statement for the medium-term generation scheduling in a wholesale electricity market environment. An approach is suggested to solve the problem on the basis of bilevel optimization models. Such models take into account possible distortion of data on economic parameters of generating units and further centralized scheduling of electricity generation by the System Operator. The bilevel models calculate the levels of locational marginal prices in the wholesale market. The calculation of prices is necessary to take account of the price elasticity of demand and to analyze the profit of electricity suppliers. To simulate the competitive behavior under the conditions of oligopoly market, the authors determine the equilibrium state, at which electricity suppliers have no incentive to change their decisions unilaterally.