Solving economic dispatch in competitive power market using improved particle swarm optimization algorithm

Generally the generation units in the traditional structure of the electricity industry try to minimize their costs. However, in a deregulated environment, generation units are looking to maximize their profits in a competitive power market. Optimum generation planning in a such structure is urgent. This paper presents a new method of solving economic dispatch in the competitive electricity market with the aim of maximizing the total contribution profit of power generation. In this regard, with a combination of two intelligent optimization, a new efficient algorithm which called improved particle swarm optimization algorithm is suggested. The simulation of the new approach and conventional PSO algorithm were performed on two case study systems, 10-units and 15-units. According to the results, the suggested method not only resolves the convergence problem, but it also makes more efficient response.