FACULTY OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF ELECTRICAL ENGINEERING

EEB 551: POWER SYSTEM ECONOMICS
LAB2: DYNAMIC ECONOMIC DISPATCH

TEMOSEGO MALEPE 201903208

PROMISE SEBAKA 201901194

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Contents
INTRODUCTION...........................................................................................................................................3
THEORY........................................................................................................................................................4
LITERATURE REVIEW....................................................................................................................................5

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INTRODUCTION

Dynamic Economic Dispatch (DED) is a significant optimization problem in the field of power system
operation, particularly in electricity markets, where the goal is to optimize the dispatch of generation units
over a specific time horizon to meet electricity demand while satisfying various constraints. The
constraints mentioned in your description can be categorized as follows:
Equality Constraints:
Load Demand Balance: This constraint ensures that the total generated power matches the load demand.
In a vertically integrated utility environment, this is a strict and non-negotiable requirement, making it a
hard constraint.
Dynamic Constraints:
Ramp Rates: These constraints limit how quickly the generation levels of units can change over time.
They are considered dynamic constraints because they involve how fast generations can be adjusted.
Violating these constraints can lead to undesirable transients in the system.
Inequality Constraints:
Generation Capacity Limitations: These constraints limit the output of each generation unit within their
respective capacity limits. Exceeding the capacity of a unit is typically not allowed, making these
constraints hard as well.
Additionally, you mentioned other constraints like spinning reserve and security constraints. These can
also be categorized into one of the three main constraint types (equality, dynamic, or inequality),
depending on the specific nature of the constraint.
In mathematical terms, dynamic economic dispatch is often formulated as an optimization problem where
you aim to minimize the operational cost (typically a combination of fuel cost and start-up costs) while
satisfying the constraints mentioned above. This can be expressed as:
Minimize: Total Cost = Σ (Cost of each unit * Generation level of each unit)
Subject to:
Equality Constraints: Load Demand Balance
Dynamic Constraints: Ramp Rate Limits
Inequality Constraints: Generation Capacity Limits
Spinning Reserve Constraints
Security Constraints
The objective function is typically convex, representing the cost functions of each generating unit.
However, constraints might include non-smooth or non-convex functions in more complex models.

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Solving the DED problem requires optimization techniques, such as mixed-integer linear programming
(MILP) or quadratic programming (QP), depending on the specific modeling and complexity of the
problem. Advanced algorithms like dynamic programming and mixed-integer nonlinear programming
(MINLP) are often employed for more accurate and detailed models. The choice of the optimization
technique depends on the specific requirements and constraints of the problem.

THEORY

Dynamic Economic Dispatch (DED) is a fundamental problem in power system operation and control,
especially in the context of managing and optimizing the generation of electrical power from various
sources, such as conventional and renewable energy generators. DED involves finding the optimal
generation schedule for power plants over a certain time horizon to meet the varying electricity demand
while minimizing the operational costs and adhering to various operational constraints. Below, I'll provide
an overview of the theory behind Dynamic Economic Dispatch.
Objective: The primary objective of DED is to minimize the total operating cost of the power system.
This cost is typically a combination of the fuel cost for thermal generators (e.g., coal, natural gas), the
startup and shutdown costs, and other related costs. The problem can be mathematically formulated as an
optimization problem.
Time Horizon: DED considers a time horizon, which can range from minutes to hours or even days,
depending on the specific application. During this time horizon, the electricity demand varies due to
factors like weather, time of day, and day of the week.
Generator Types: DED often involves a mix of generator types, including thermal generators (coal,
natural gas, oil), hydroelectric generators, and renewable sources (wind, solar). Each type has its
operational characteristics and cost functions.
Constraints: Constraints are essential in DED. These can include generator output limits, ramp rate limits
(how fast the generators can change their output), and transmission line constraints. There are also
environmental constraints that may limit the output of some generators.
Dynamic Aspect: The term "dynamic" in DED refers to the fact that it considers changes over time. This
includes not only the changing electricity demand but also the dynamic behavior of generators. For
example, some generators may have a startup time, and their output cannot be changed instantaneously.
Mathematical Formulation: DED is formulated as an optimization problem, typically a constrained non-
linear optimization problem. The objective is to minimize the total cost of generation subject to
constraints on the power balance, generator limits, and other operational constraints.
Solution Methods: There are various methods to solve DED problems. These include gradient-based
optimization algorithms, such as the Gradient Projection Method, and metaheuristic methods like Genetic
Algorithms, Particle Swarm Optimization, and Simulated Annealing. The choice of method depends on
the complexity of the problem and the desired accuracy.
Real-Time Operation: In practice, DED is often performed in real-time or near real-time to adapt to
changing conditions. Advanced control and optimization techniques are used to ensure efficient and
reliable operation.

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Economic and Environmental Considerations: DED is not only about minimizing costs but also
increasingly about reducing greenhouse gas emissions and other environmental impacts. This involves
integrating renewable energy sources into the dispatch strategy and considering the costs and benefits of
different fuel types.
Integration with Energy Storage: With the growing use of energy storage systems, DED also involves
optimizing the use of energy storage to balance supply and demand, improve system reliability, and
reduce costs.
Dynamic Economic Dispatch is a critical component of modern power system operation. It ensures that
electricity generation is efficient, cost-effective, and sustainable while meeting the dynamic demands of
the grid. It plays a crucial role in the transition to cleaner and more sustainable energy sources.

LITERATURE REVIEW

Economic Dispatch (ED) is a crucial and frequently employed function in energy management
systems. Its primary role is to optimize the overall cost of producing active power while
considering certain constraints [1]. This optimization assumes that each generator's active power
cost follows a convex curve, and that each generator has specified upper and lower limits for
active power generation. Additionally, it presumes that the sum of all generator's active powers
must match a specified total system load [1].
The fundamental objective of the economic dispatch function is to efficiently coordinate the
operations of fossil fuel generating units in real-time to ensure that they meet the system's power
demand at the lowest possible cost [1]. The dynamic dispatch problem sets itself apart from the
static economic dispatch problem by taking generator ramp rate limitations into account. There
are two distinct approaches to tackle this problem. The initial approach is referred to as optimal
control dynamic dispatch (OCDD), which treats power system generation as a control system
and optimizes it by considering ramp rates as input variables. The second formulation, known as
dynamic economic dispatch (DED), came later and focuses on optimizing the output powers of
the committed generation units [2].
In this paper, we first provide an overview of these two formulations and then delve into the
mathematical optimization techniques, Artificial Intelligence (AI) methods, and hybrid strategies
that are employed to address the problem, particularly when dealing with complex and extended
objective functions or constraints [2].
The dynamic economic dispatch (DED) problem deals with the task of providing a constant
amount of power from a specific set of units within a defined time interval. Its objective is to
minimize the cost of supplying this power while adhering to constraints related to the static
behaviour of the generating units [3]. Often, additional system constraints are introduced to
specify the minimum reserve capacity required. Plant operators aim to maintain safe thermal
gradients inside the turbine to prolong the life of their equipment. This mechanical constraint is
typically translated into a limitation on how quickly the electrical output can be increased,

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known as ramp rate constraints [3]. These ramp rate constraints set DED apart from the
traditional static economic dispatch. Due to the involvement of these ramp rate constraints and
their impact on the evolution of generator outputs, DED cannot be solved for a single load value.
Instead, it focuses on minimizing the cost of generating a specific electricity demand profile [3].