Convexification of the Nash Bargaining Based Environmental-Economic Dispatch

The environmental-economic dispatch (EED) is a bi-objective optimization problem. The Nash bargaining theory provides one way to determine a compromising solution without a clear carbon tax or carbon cap, or any subjective attitudes on both objectives, which yields a non-convex program. This letter proposes a convex formulation for Nash bargaining based EED and a linear programming (LP) based algorithm. Case studies show its scalability on real-world large-scale power systems.