Joint optimization model of generation side and user side based on energy-saving policy

• Energy-saving generation dispatching model in generation side is constructed.
• Relationship between TOU price and load is built by demand elasticity matrix.
• A joint optimization model of demand side and generation side is proposed.
• Cases show that unit commitment become simple after optimization.

China is actively promoting energy saving policies to achieve the commitments promised in Copenhagen. Meanwhile, the relevant energy-saving programs are being implemented in the upstream and downstream of the electric power industry, including energy saving dispatching in the power generation side, and Time-of-Use (TOU) price mechanisms in the user side, etc. In order to optimize the energy efficiency of the power industry chain, it is necessary to implement joint optimization of the generation side and user side. In this paper, considering the constraints such as the user demand for electricity and benefits of the grid company, the joint optimization model of generation side and user side is built, with objective function of minimizing the coal consumption. In the user side, the TOU price is implemented and the fluctuation level of the load curve is reduced by adjusting the tariff of the peak periods and valley periods. In the power generation side, the electricity demand load optimized by TOU in the user side will be balanced in accordance with the principle of energy saving generation dispatching. Optimization results indicate that the response of demand load to TOU price will contribute to achieving energy saving benefits in the generation side.