Unit commitment with transmission constraints in deregulated power market

As the power industry across the world is undergoing a radical change by separation of transmission from generation activities, scope of competition by bidding or through provision of bilateral transactions in spot markets exists between different market players of generation and transmission. So there is a need for the unit commitment in power industry with generation biddings, load biddings and bilateral transaction biddings. In general unit commitment can be formulated as nonlinear, large scale, mixed integer combinatorial optimization problem. For quick response, piece-wise linearization of cost function, slack terms with high penalty factor are incorporated in unit commitment along with all generator, system, operator and line constraints. Then unit commitment with three-part generator bidding, load bidding and bilateral transaction with both elastic and inelastic parts is performed which is suitable for the recent deregulated power industry and tested on a test case of ten generators with three bus network.