http://ieeexplore.ieee.org TOC Alert for Publication# 17 2013 May 16 60 2 C1 C4 94 60 2 C2 C2 140 60 2 213 214 71 60 2 215 226 494 60 2 227 237 369 60 2 238 246 221 60 2 247 259 839 60 2 260 271 518 60 2 272 288 1550 60 2 289 300 440 60 2 301 314 344 60 2 315 326 452 60 2 327 339 1588 60 2 340 352 1334 60 2 353 365 674 60 2 366 385 2288 2 emission reduction is important to the sustainable development of the electric power industry. In this paper, we propose a CO₂ emission reduction policy for the thermal generation scheduling problem in the deregulated electricity market. By introducing a variable penalty factor, the policy is designed to apply a different penalty mode according to the range of the emissions quantity. The objective of the scheduling is to maximize the generation profits, which are determined by the electricity sales revenue, the generating cost, and the emissions penalty over the planning horizon. Using a piecewise linear function to express the variable penalty factor, the problem is formulated as a mixed integer nonlinear programming model. A variable splitting-based Lagrangian relaxation algorithm is developed to solve the problem. The numerical results for test cases of different sizes show that the proposed algorithm can find near-optimal solutions in a reasonable time. Additionally, the choice of the number of the penalty modes and the effectiveness of the proposed emission reduction policy are discussed.]]> 60 2 386 397 828 60 2 398 408 917 60 2 409 423 555 60 2 424 437 668 60 2 438 446 3863 60 2 447 447 76 60 2 448 448 161 60 2 449 450 49 60 2 451 452 64 60 2 C3 C3 125