An Auction Based Dispatch Algorithm for Deregulated Power Systems using Differential Evolution Technique

In this paper, a new approach to auction based dispatch algorithm in a deregulated power system using differential evolution technique is presented. In a deregulated power system, the production cost is replaced by seller’s bidden cost function including not only the production cost, but also the market strategy, which may become concave, whereas the conventional economic dispatch (ED) algorithm relies on the convexity of the cost function. Evolutionary algorithms are heuristic methods that have yielded promising results for solving non-linear, nondifferentiable, and multimodal optimization problems in power system area. The differential evolution algorithm is an evolutionary algorithm that uses a rather greedy and less stochastic approach to problem solving than the classical evolutionary programming algorithms, such as genetic algorithm, evolutionary programming and evolution strategies. In this paper, an auction-based dispatch problem in a deregulated power system is formulated as the least bidden cost optimization problem, in which the seller’s total bidden cost is minimized while the balance of supply and demand constraint and the capacity limit constraints are satisfied. The proposed algorithm is validated for three test systems consisting of 3 and 8 seller’s system. The results obtained by the proposed method indicate that it outperforms the other algorithm reported in literature (GA) for obtaining the fair market competition in a deregulated power market.