Skip to main content
SpringerLink
Log in

Optimal bidding in emission constrained economic dispatch

  • Original Paper
  • Published:
International Journal of Environmental Science and Technology Aims and scope Submit manuscript

Abstract

Emission levels play a crucial role for the thermal power companies to limit their flue gas in the competitive market. Realistic power bidding optimizations demand the responsibility of power regulators for searching of the optimal power bidding from economic emission aspect. Different discrete bidding situations have been analyzed in this attempt when a number of thermal power generating utilities demand bidding price at different percentages of their respective marginal price. These utilities compete among themselves not only for gaining maximum profit, but also they are made bound here to offer energy price along with flue gas emission level as minimum as possible. Pareto optimization has been searched by establishing Nash equilibrium of Game Theory considering minimum total objective of fuel cost and flue gas emission from the consumers’ aspect along with maximum profit gain for the power bidders. These multi-objective optimization results show that at economic and environmentally constrained situations, power bidders can earn more profit not only at optimally higher bidding price, but also at optimally lower bidding price along with selling higher quantity of electricity. Those bidders who bid at optimally lower marginal price along with selling lower quantity of electricity to satisfy minimum total objective are found suffering loss. Overall study shows that cost functions and emission functions as well as marginal prices of respective units play important role in different environmentally constrained bidding situations. An Indian Utility of 62 buses has been used for study, and program code is written in MATLAB R2013b platform.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5

Similar content being viewed by others

References

  • Aggarwal M, Bhaskar U (17th November, 2017) Thermal power plant may dodge new emission norms: report. https://www.livemint.com

  • Alrashidi MR, Hawary ME (2008) Impact of loading conditions on the emission economic dispatch. Int J Electr Comput Energ Electron Commun Eng 2(3):369–372. https://doi.org/10.1999/1307-6892/5966

    Article  Google Scholar 

  • Anderson JA (2009) Electricity restructuring: review of efforts around the world & consumer response. Electr J 22(3):70–86. https://doi.org/10.1016/j.tej.2009.02.017

    Article  Google Scholar 

  • Bagheri MN, Nasiri M, Mousavi SM (2011) An appropriate multiple criteria decision making method for solving electricity planning problems, addressing sustainability issue. Int J Environ Sci Technol 8(3):605–620. https://doi.org/10.1007/BF03326246

    Article  Google Scholar 

  • Barroso LA, Carneiro RD, Granville S, Pereira MV (2006) Nash equilibrium in strategic bidding: a binary expansion approach. IEEE Trans Power Syst 21(2):629–638. https://doi.org/10.1109/TPWRS.2006.873127

    Article  Google Scholar 

  • Bhattacharya K, Bollen M, Daalder JE (2001) Operation of restructured power systems. The Kluwer Academic Publishers, New York. https://doi.org/10.1007/978-1-4615-1465-7

    Book  Google Scholar 

  • Borenstein S, Brushnell J (2000) Electricity restructuring: deregulation or reregulation? Energy 23(2):46–52

    Google Scholar 

  • Chang YC, Yang WT, Liu CC (1994) A new method for calculating loss coefficients. IEEE Trans Power Syst 9(3):1665–1670

    Article  Google Scholar 

  • Chatain O (2014) Cooperative and non-cooperative game theory. https://works.bepress.com/olivier_chatain/9/. Accessed 08 Aug 2018

  • Christie RD, Wollenberg BF, Wangensteen I (2000) Transmission management in deregulated environment. IEEE Explore 88(2):449–451

    Google Scholar 

  • David AK, Fushuan W (2000) Strategic bidding in competitive electricity markets: a literature survey. In: Power engineering. Society summer meeting, 16–20 July 2000, IEEE explore, Seattle, WA, USA, vol 4, pp 2168–2173. https://doi.org/10.1109/PESS.2000.866982

  • Exelby MJ, Lucas NJD (1993) Competition in UK market for electricity generating capacity—a game theory analysis. Energy Policy 21(4):348–354. https://doi.org/10.1016/0301-4215(93)90275-K

    Article  Google Scholar 

  • Ferrero RW, Shahidehpour SM, Ramesh VC (1997) Transaction analysis in deregulated power systems using game theory. IEEE Trans Power Syst 12(3):1340–1347. https://doi.org/10.1109/59.630479

    Article  Google Scholar 

  • Foley AM, Gallachoir BPO, Hur J, Baldick R, Ckeagh EJ (2010) A strategic review of electricity systems models. Energy 35:4522–4530. https://doi.org/10.1016/j.energy.20

    Article  Google Scholar 

  • Gnanadass R, Padhy NP, Manivannan K (2004) Assessment of available transfer capability for practical power systems with combined economic emission dispatch. Electr Power Syst Res 69(2):267–276. https://doi.org/10.1016/j.epsr.2003.10.007

    Article  Google Scholar 

  • Gross G, Finlay DJ (1996) Optimal bidding strategies in competitive electricity markets, In: 12th power system computation conference proceedings, August 19–23, 1996, Dresden, pp 815–823

  • Harris PG (2000) Impacts of deregulation on the electric power industry. IEEE Power Eng Rev 20(10):4–6. https://doi.org/10.1109/39.876876

    Article  CAS  Google Scholar 

  • Hobbs BF (1992) Using game theory to analyze electric transmission pricing policies in United States. Eur J Oper Res 56:154–171. https://doi.org/10.1016/0377-2217(92)90219-Y

    Article  Google Scholar 

  • Huang PS, Shih LH (2009) Effective environmental management through environmental knowledge Management. Int J Environ Sci Technol 6(1):35–50. https://doi.org/10.1007/BF03326058

    Article  Google Scholar 

  • Ilic M, Galiana F, Fink L (1998) Power system restructuring: engineering and economics. Kluwer Academic Publishers, Boston

    Book  Google Scholar 

  • India Environment Portal (7th December, 2015) Revised standards for coal based thermal power plant. https://www.cseindia.org

  • Kaur H, Kumar P, Sharma A, Kamaiya N (2014) Power system restructuring & competitive wholesale electricity markets in deregulated environment. In: Innovative applications of computational intelligence on power, energy and controls with their impact on humidity, 28–29 November 2014, IEEE explore, Ghaziabad, India, pp 233–237. https://doi.org/10.1109/CIPECH.2014.7019096

  • Kothari DP, Dhillon JS (2006) Power system optimization. Prentice Hall, New Delhi

    Google Scholar 

  • Lai LL (2002) Power system restructuring and deregulation: trading, performance and information technology. Wiley, Hoboken. https://doi.org/10.1002/0470846119

    Book  Google Scholar 

  • Liao Y (2004) Impact of emission compliance program on competitive power market. In: IEEE international conference on electric utility deregulation, restructuring and power technologies, 5–8 April 2004, IEEE explore, Hong Kong, China, pp 32–37. https://doi.org/10.1109/DRPT.2004.1338464

  • Mielczarski W, Michalik G, Widjaja M (1999) Bidding strategies in electricity markets. In: Proceedings of the 21st international conference on power industry computer applications. connecting utilities. PICA 99. To the millennium and beyond, 21–21 May 1999, IEEE explore, Santa Clara, CA, USA, pp 71–76. https://doi.org/10.1109/PICA.1999.779387

  • Mohan V (2017) Environ ministry aligns itself with power ministry, seeks relaxed deadline on emission norms for polluting power plants. The Times of India, 15 December 2017

  • Moitre D (2002) Nash equilibria in competitive electric energy markets. Electr Power Syst Res 60:153–160. https://doi.org/10.1016/S0378-7796(01)00174-2

    Article  Google Scholar 

  • Moitre D, Rudnick H (2000) Integration of wholesale competitive electric markets: an application of the Nash bargaining generalized solution. Int J Electr Power Energy Syst 22(7):507–510. https://doi.org/10.1016/S0142-0615(00)00016-8

    Article  Google Scholar 

  • Nandi J (2018) New thermal power plants will have to comply with emission standards: NGT. The Times of India. 18 January 2018

  • Nash JF (1950) Equilibrium points in n-person games. Natl Acad Sci 36:48–49

    Article  CAS  Google Scholar 

  • Nwulu NI, Xia X (2015) Multi-objective dynamic economic emission dispatch of electric power generation integrated with game theory based demand response programs. Energy Convers Manag 89:963–974. https://doi.org/10.1016/j.enconman.2014.11.001

    Article  Google Scholar 

  • O’Malley M, Liu CC (2002) Competitive wholesale electricity markets. In: Lai LL (ed) Wiley online library. 24th April 2002. https://doi.org/10.1002/0470846119.ch3

  • Palit D, Chakraborty N (2013) Impact of decreasing number of bidders on power bidding in deregulated environment. In: IET Chennai forth international conference on sustainable energy and intelligent systems, 12–14 December 2013, Chennai, India, pp 189–195. https://doi.org/10.1049/ic.2013.0313

  • Palit D, Chakraborty N (2015) Constrained optimal bidding strategy in deregulated electricity market. In: Suresh LP et al (eds) Artificial intelligence and evolutionary algorithms in engineering systems, advances in intelligent systems and computing, vol 325. Springer, Berlin, pp 863–873. https://doi.org/10.1007/978-81-322-2135-7_91

    Chapter  Google Scholar 

  • Paola AD, Angeli D, Strbac G (2017) On distributed scheduling of flexible demand and Nash equilibria in the electricity market. Dyn Games Appl 8:761–7798. https://doi.org/10.1007/s13235-017-0237-3

    Article  Google Scholar 

  • Peng H, Jiang R, Jhou C (2017) Literature review of study of carbon emission rights. Low Carbon Econ 8:133–138. https://doi.org/10.4236/lce.2017.84011

    Article  Google Scholar 

  • Pereira MV, Granville S, Fampa M, Dix R, Barroso LA (2005) Strategic bidding under uncertainty: a binary expansion approach. IEEE Trans Power Syst 20(1):180–188. https://doi.org/10.1109/TPWRS.2004.840397

    Article  Google Scholar 

  • Philipson L, Willis H (2006) Understanding electric utilities and de-regulation, 2nd edn. CRC Press, Boca Raton

    Google Scholar 

  • Press Information Bureau, Govt. of India, Ministry of Environment, Forest and Climate Change (22nd December, 2015)

  • Rajamani L (2007) India’s negotiating position on climate change: legitimate but not sagacious, CPR issue brief. Number I. www.cprindia.org. Accessed 10 Aug 2018

  • Srinivasarao C, Sudha RY, Girrija VV, Sharma KL, Maruthi SGR, Prasad JVNS, Prasad YG, Sahrawat KL (2016) Assessing village-level carbon balance due to greenhouse gas mitigation interventions using EX-ACT model. Int J Environ Sci Technol 13:97–112. https://doi.org/10.1007/s13762-015-0788-z

    Article  CAS  Google Scholar 

  • Talaq JH, Hawary FE, Hawary ME (1994) A summary of environmental/economic dispatch algorithms. IEEE Trans Power Syst 9(3):1508–1516. https://doi.org/10.1109/59.336110

    Article  Google Scholar 

  • The Economic Times (18th January, 2018) https://www.ETEnergyworld.com

  • Thermal power plants may get more times to meet emission norms. The Economic Times (13th February, 2017)

  • Tongia R, Seligsohn D (21st February, 2017) Challenges and recommendations for meeting the upcoming 2017 standards for air pollution from thermal power plants in India. http://www.brookings.in

  • Weber JD, Overbye TJ (1999) A two level optimization problem for analysis for market bidding strategies. In: IEEE explore, pp 682–87

  • Weisman J, Eckrt LE (1985) Modern power plant engineering. Prentice Hall, Englewood cliffs

    Google Scholar 

  • Younes Z, IIic M (1999) Generation strategies for gaming transmission constraints: will the deregulated electric power market be an oligopoly? Decis Support Syst 24(3–4):207–222

    Article  Google Scholar 

Download references

Acknowledgements

Authors would like to thank the Department of Power Engineering, Jadavpur University, Salt Lake Campus, Block: LB, Plot: 8, Sector-III, Kolkata-700098, India, for extending all sorts of cooperation for the completion of this research work that has been carried out since January 5, 2017.

Author information

Authors and Affiliations

  1. Department of Power Engineering, Jadavpur University, Salt Lake Campus, 5th Floor, Block: LB, Sector-III, Plot-8, Salt Lake, Kolkata, 700098, India

    D. Palit & N. Chakraborty

Authors
  1. D. Palit
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. N. Chakraborty
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to D. Palit.

Ethics declarations

Conflict of interest

The authors hereby declare that they have no conflict of interest.

Additional information

Editorial responsibility: Parveen Fatemeh Rupani.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Palit, D., Chakraborty, N. Optimal bidding in emission constrained economic dispatch. Int. J. Environ. Sci. Technol. 16, 7953–7972 (2019). https://doi.org/10.1007/s13762-018-2160-6

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13762-018-2160-6

Keywords

Search

Navigation