A General Economic Dispatch Problem with Marginal Losses

Standard economic dispatch problems that consider line losses are linear approximations of a non-convex economic dispatch problem formulated by fixing voltage magnitudes and assuming the decoupling of real and reactive power. This paper formulates and analyzes the general non-convex economic dispatch problem, incorporating and generalizing the Fictitious Nodal Demand (FND) model, resulting in a slack bus independent formulation that provides insight into standard formulations by pointing out commonly used but unnecessary assumptions and by deriving proper choices of “tuning parameters.” The proper choice of loss allocation is derived to assign half of the losses of each transmission line to adjacent buses, justifying approaches in the literature. Line constraints are proposed in the form of voltage angle difference limits and are proven equivalent to various other line limits including current magnitude limits and mid-line power flow limits. The formulated general economic dispatch problem with marginal losses consistently models flows and loss approximation, results in approximately correct outcomes and is proven to be reference bus independent. Various approximations of this problem are compared using realistically large transmission networks.