Solution of Combined Heat and Power Economic Dispatch Problem Using Direct Optimization Algorithm

This paper presents the solution to the combined heat and power economic dispatch problem using a direct solution algorithm for constrained optimization problems. With the potential of Combined Heat and Power (CHP) production to increase the efficiency of power and heat generation simultaneously having been researched and established, the increasing penetration of CHP systems, and determination of economic dispatch of power and heat assumes higher relevance. The Combined Heat and Power Economic Dispatch (CHPED) problem is a demanding optimization problem as both constraints and objective functions can be non-linear and non-convex. This paper presents an explicit formula developed for computing the system-wide incremental costs corresponding with optimal dispatch. The circumvention of the use of iterative search schemes for this crucial step is the innovation inherent in the proposed dispatch procedure. The feasible operating region of the CHP unit three is taken into account in the proposed CHPED problem model, whereas the optimal dispatch of power/heat outputs of CHP unit is determined using the direct Lagrange multiplier solution algorithm. The proposed algorithm is applied to a test system with four units and results are provided.