Suppose a power system which operates three generators to serve its load (800 MW in total)

Generators	Cost Curve	Pmax	Pmin
Unit 1	P1=101+7.5P1+0.025P12	300MW	150MW
Unit 2	P2=31+11P2+0.05P22	300MW	200MW
Unit 3	P3=78+2.0P3+0.05P32	400MW	100MW

1. What is the goal of economic dispatch? Formulate it mathematically. Explicitly represent the objective and constraints.

2. Why and under what situation does the economic dispatch model the decision making process of the generators in response to the price?

3. Neglect any operational limits of each generator and find the generation amount for each generator and Lagrange multiplier. What does Langrange multiplier indicate?

4. If he operating limits of the power system are binding, what would happen to the power system operation?
 
 
 
 
 

max