Short-term generation scheduling under a SO2 emissions allowances market

This paper presents a model to carry out the short-term scheduling of a thermal generation park ruled by a SO2 emissions allowances market. Units are allowed to operate purchasing emissions allowances within the market or paying penalties due to the emissions excess. Each unit is lineally separated into three fictitious units which represent different situations of operation for it within the market: to have surplus allowances, to have to buy allowances and to have to pay a penalty. In order to solve the problem, Genetic Algorithm combined with Lagrangian Relaxation are used. The transmission network is modeled through DC Load Flow equations. The model is applied to a test system of 24 bus and 26 units. Results show that the model is a simple and useful method to handle operational alternatives within an allowances market.