Operating strategies under emission constraints

The emission-constrained dispatch problem is formulated as a nonlinear constrained minimization problem. Consequently, the solution to the problem gives a continuous relationship between cost and annual emission for SO₂. It is shown that the power system should be operated at the same value of the Lagrangian multiplier, η, in every hour where η is defined as ∂(production cost)/∂(hourly emission). The addition of η as a proxy cost of emission in the economical dispatch procedure achieves this goal. It is shown that the emission-η relationship obtained by NLCM procedure can be used to make operating decisions, in particular, the trading of allowances