Generation scheduling and dispatch for Smart Grid operation

Smart Grid is a new paradigm for the complete energy ecosystem. It will drive changes that affect all aspects of power system operation - from generation to demand, and from transmission to distribution. At the philosophical level, Smart Grid manifests the continued march towards increased decentralization and empowerment, where different local entities can make “locally-Smart” decisions. Global “wellness” comes from the multitude of local entities adhering to appropriately designated common rules or protocols. Compared to operations of the classical vertically integrated utilities (VIU), competitive electricity market was a major evolutionary step towards distributed decision making - where actions of the market operator and the market participants are driven by typically heterogeneous business objectives of their respective organizations. Lessons learned during the last decade can be invaluable for successful deployment of Smart Grid. This paper focuses on how a generation company may adapt their scheduling and dispatch practices for Smart Grid operation.