A two-stage MIP based optimization framework for unit commitment and energy pricing

Power system unit commitment (UC) is a non-convex NP-complete problem, which is very complex to solve on a large scale. Solution methods for the UC problem have been explored, with Lagrangian relaxation (LR) being one of the most popular approaches in practice. The significant reduction in numerical solution times of commercial Mixed Integer Programming (MIP) solvers makes transitioning from LR to MIP possible. This paper presents a MIP based two-stage optimization approach for solving the UC problem as well as the energy price. The proposed framework has been implemented using MATLAB and tested on two test power systems.