Bid-based demand contingency constrained economic dispatch

In this paper, the economic dispatch (ED) with demand contingency and competitive bidding mechanism were dealt as the bid-based demand contingency constrained economic dispatch (BBDCC) ED problem. The BBDCC ED problem, allowing supply/demand side bids for both power and reserve in the spot market, maximizes the social welfare and achieves the resource allocation. Various constraints, such as capacity coupling, reserve capacity, nonfirm load and transmission line constraints are explicitly taken into consideration. The proposed IP algorithm provides a tradeoff between power and reserve in the optimization process. The incorporation of flexible AC transmission systems (FACTS) devices also eases the line congestion. Many tests have shown that the proposed method provides a very effective resolution