Stochastic models for optimal generation production in electricity markets

Stochastic models for optimal generation production in electricity markets, including a model for optimum quantities of the whole electric power plant and a model for optimum unit loading scheme of generating units, a new genetic algorithm for the solution of these optimization problems are presented in this paper. The generation production optimization problem which is a stochastic optimization process is solved by decomposing the original problem into piecewise linear function. In the proposed problem, the generating units with different unit production costs, unit holding costs and unit shortage costs are loaded to produce electrical quantities in order to meet time-varying stochastic demand in a planning period. The optimization problem is to determine the electrical quantities to minimize the expectation of production costs, with a consideration of holding costs, shorting costs, start up costs and shut down costs. A study case is given to illustrate the results of the proposed model.