A solution for PBUC problem using payment for power delivered and power allocated method

Unit commitment in the power system schedules on/off states of generating unit that minimize the total fuel cost. In PBUC, the objective is to maximize the profit of the GENCO in the deregulated environment. In deregulated environment, GENCO´s works on the bases of forecasted demand, reserve and price where the objective is to maximize their profit. The proposed method uses payment for power delivered and reserve allocated to solve PBUC problem. The proposed approach has been tested on 3 units system. The results of the proposed method have been compared with traditional unit commitment.