Price-based generation control in flow constrained power grid

Price-based generation control is a promising approach to incorporate the fluctuating wind power in the context of electricity market. This paper addresses the problem in a power grid with limited line ratings. The flow limits are taken into account through weighed aggregation in the objective function. The weight of flow is initially small. Once congestion presents on certain transmission lines, relevant weights grow larger until the flow constraints are satisfied. The information fusion estimation algorithm is adopted to numerically optimize the nodal price. Simulation results on IEEE-39 bus benchmark power grid verify the effectiveness of the proposed method under various line rating constraints. Technical and economic performances are also evaluated, such as power imbalance, GenCOs' total pay and cost.