Application of fuzzy logic to priced-based unit commitment under price uncertainty

This paper proposes a new formulation for the price based unit commitment (PBUC) of electric power generators under a deregulated electricity market. The methodology is developed from the viewpoint of a generating company (GENCO) wishing to maximize its own profit and to hedge its risk as a participant in the market. The problem is expressed as a mixed integer programming (MIP) optimization model in which the expected profit is maximized while the uncertainty of forecasted market price is modeled as a fuzzy variable. The volatility of market price is identified by certain fuzzy definitions pertaining to market volatility. The proposed model can be solved using a standard mixed integer-programming (MIP) solver. Case studies with 36 units are presented in this paper. We study the impact of uncertainty in forecasted parameters in PBUC solution and compare the results with those of crisp PBUC model.