Generation dispatch with pool and bilateral coordination

Emerging electricity markets are normally developed based on pool and bilateral models. For the markets which employ both models, the generation dispatches should take into account all the trading informations including transmission cost to attain the feasibility of operating constraints, e.g. transmission line limits etc. In this paper, we propose a generation dispatch model which takes into account both pool an bilateral market transactions. The objective of the dispatch is to maximize social welfare which includes participant benefits and transmission costs from both markets. A Linear Programming (LP) technique is used to solve the problem. The proposed method has been successfully tested with the IEEE 30 bus-test system.