A discrete model for optimal operation of fossil-fuel generators of electricity

This paper presents a new discrete approach to the price-based dynamic economic dispatch (PBDED) problem of fossil-fuel generators of electricity. The objective is to find a sequence of generator temperatures that maximizes profit over a fixed-length time horizon. The generic optimization model presented in this paper can be applied to automatic operation of fossil-fuel generators or to prepare market bids, and it works with various price forecasts. The model’s practical applications are demonstrated by the results of simulation experiments involving 2009 NYISO electricity market data, branch-and-bound, and tabu-search optimization techniques.

► A model of a fossil-fuel generator of electricity is developed. ► A discrete approach to the price-based dynamic economic dispatch (PBDED) problem is developed. ► The new model can be solved with discrete optimization techniques and heuristics. ► Our approach can be applied to automatic operation of fossil-fuel generators or to prepare market bids. ► Numerical simulation experiment results confirmed practical and theoretical applications of the new model.