Effects on Electricity Customers’ Welfare Considering Optimal Generation Dispatch and Emission Reduction in Composite Power Systems

Electricity generation and consumption processes are invariably associated with a significant portion of the current carbon dioxide emissions worldwide, which result in negative effects on the overall quality of the environment and wellbeing. Power system planners and operators can contribute to this matter by employing responsible practices that include different socioeconomic and environmental factors. In this sense, a framework to assess the welfare of electricity consumers is proposed in this paper, based on the current growth trends of renewable energy sources and a method for the optimal dispatch of electricity generators. The proposed study includes a preliminary analysis of the system’s static safety region to guarantee its operation within technical boundaries and a welfare model considering the consumption of energy and non-energy-related commodities by different customer archetypes. The IEEE 118-Bus test system serves as a benchmark for testing the proposed methodology and historical data on consumption patterns from the Brazilian national interconnected system is used to promote changes in the base system.