Application of a two-step optimization technique to an economic dispatch problem in a hydro-thermal-purchased power network

A two step optimization technique is proposed for solving economic dispatch problems in power networks. This technique is applied to an economic dispatch problem faced by a company having access to power from hydro, thermal, and purchased power sources. Emphasis is given to the second phase of the optimization technique, which involves the optimization of a linear programming model. After developing the model, economic dispatch schedules are generated under varying cost and availability levels of the purchased power and varying availability levels of the hydro power. Through analysis of these schedules, the relationships existing among these parameter values and the overall economic dispatch are observed and discussed.