Generation scheduling in the electricity market environment

Generation scheduling is an important problem for power system operation and management. Results of scheduling are used by generation companies, electricity consumers and market regulators. The electricity market creates new environment for generation scheduling. New models and methods are needed for adequate solution of the problem. The paper presents a two-level optimization model that helps to assign optimal cost functions to be submitted by producer to the System Operator. The model takes into account the price elasticity of demand. Oligopolistic behavior of producers in the market is treated as a Nash game with multiple players. Two algorithms for obtaining Nash equilibrium are described.