PSO Based Pool Strategies for Deregulated Power Market

Abstract

With the deregulation of electric power systems, market participants are facing an important task of bidding the energy in a pool operation. This paper essentially aims to propose a new optimal bidding solution methodology for both power suppliers and for the system. The impact of line limits and the transmission losses in the bidding strategy are also explored. The model of the producer surplus maximization is a bi-level maximization problem and the model of social welfare function with elastic demand is a maximization problem. In this paper a novel hybrid optimization technique based on PSO-SQP is developed to solve the problem. In this hybrid algorithm, Canonical PSO with constriction factor is used as a global optimizer and SQP as the local optimizer. Simulations have been carried out on a 3-bus system and modified IEEE 30-bus system, to show the robustness and the effectiveness of the proposed hybrid algorithm.