Economic dispatch in multi-area using particle swarm optimization in electricity market

Competitive bidding for energy and ancillary services is increasingly recognized as an important part of electricity markets. On the other hand, the transmission capacity limits should be considered to optimize the total market cost. In this paper, a new approach based on Constrained Particle Swarm Optimization (CPSO) is developed to address the multi-product and multi-area electricity market dispatch problem. Constraint handling is based on feasibility rules and probability distribution. CPSO method offers a new solution for optimizing the total market cost in a multi-area competitive electricity market considering system constraints. The proposed approach is verified with several cases studies with quadratic and non-smooth cost functions.