Determining Spot Price and Economic Dispatch in Deregulated Power Systems

This paper presents a new formula for determining spot price and a new algorithm for economic dispatch in deregulated power systems. According to participant's biddings, an independent system operator (ISO) manages deregulated power systems (DPS) and decides transaction between participants. ISO aims to obtain minimum cost for entire power system. However each participant aims to work with minimum cost for only themselves. Each participant in DPS shares expensive operating and upkeep costs. Energy sources are used more efficient. Energy prices are determined according to the costs. The proposed algorithm considers price / power bids, generating / demand balance and generating units' constraints. The results are shown on the IEEE 30 bus standart test system.