Short-term energy and emission trading analysis

This paper presents four different methods to compute the cost of a power system short-term transaction with environmental constraints. The transaction to be analyzed can be either an energy or emission transaction. The advantages and disadvantages of these methods are discussed. An efficient method based on an incremental analysis is proposed to calculate the cost of a transaction. The method proposed can be efficiently used to screen a very large number of transactions. This paper demonstrates that once the emission constraints are introduced, normal economic dispatch cannot be used to perform even an energy transaction. The need for current Economy A to include emission constraints is presented. Different test results for a sample test system are presented