Phase 1:
The project addresses the optimization of electricity generation in power stations faced with varying load demands. Three types of generating units are available, each with operational cost characteristics. The goal is to determine the optimal combination of generators and their operation schedules to minimize the overall production cost while ensuring a 15% load reserve. Additionally, the project aims to calculate the marginal cost of electricity production during different periods of the day, guiding tariff pricing decisions. Finally, the project evaluates the cost associated with maintaining the 15% load reserve, providing insights into the cost of security of supply guarantees.
Phase 2:
Building upon the Phase 1 problem, Phase 2 introduces hydro generators with their own operational characteristics and environmental constraints. The reservoir must be maintained within specific depth limits for environmental reasons, and replenished using thermal generators when necessary. To further complicate matters, the reservoir must reach a set depth at midnight daily. The project extends the optimization model to determine which generators to operate during different time periods while managing the reservoir effectively to minimize total costs. This includes utilizing hydro generators, thermal generators for reservoir replenishment, and adjusting thermal generator outputs. The goal remains to minimize costs while meeting demand fluctuations and environmental constraints.
In both phases, the project uses a mathematical modeling approach solved with GAMS to address these complex optimization problems in the electricity generation and pricing domain, providing valuable insights into cost-effective power generation strategies and tariff rate decisions for power stations.
You can find the results and step-by-step explanations for this project in the .pdf file. We've also included the codes, along with complete documentation and line-by-line explanations for your further review.