Electricity generation planning (Unit Commitment Problem)

The following problem deals with a planning decision regarding which electricity
generation units to run in every period (month) in order to satisfy a known demand
for electricity at the lowest costs.

In a typical electrical system, there are many units available for generating electricity,
and each has its own characteristics. At one extreme, a nuclear power unit can
provide electricity at a very low marginal cost for each additional MWh, but it has
both a high cost of starting up again, once it has been shut down, and it takes some
time to produce at its full power. Usually, a typical nuclear unit may be shut down
only during the spring or summer, when the demand is rather low. At the other
extreme, a gas turbine generator can be started up in a few minutes, but its marginal
cost per MWh is much more expensive.

In this problem there are 4 units, i.e., gas, wind, hydro and pump. The following
table shows (i) Fixed cost (FC) per period if it is spinning (in ); (ii) Average cost
(AC), per MWh (in ); (iii) Start cost (SC) when the spinning starts (); (iv) Max
generated capacity (GE), in MWh per period; (v) Monthly demand per MWh; (vi)
The production of wind power (in MWh) varies per month (due to wind conditions).

GAS WIND HYDRO PUMP

FC 5950 1 2 1.9

AC 25 1 1.1 2

SC 10000 1700 800 790

GE 1100 680 2600 660

Demand 900 1190 1480 1520 1520 1298

Per month Jul Aug Sep Oct Nov Dec

(1)
(2) (3) (4) (5) (6)

Wind GE 270 280 310 200 300 250

Spinning is a binary variable. Initially there is no spinning (0), but if it starts, its value
is 1.

The Hydro and the Pump have some specific characteristics.

The Hydro has an initial inventory of water (= MWh) of 300 units, an inflow of water
(rain and snow-melting) of 220 units per month and a max inventory level of 1000
units. For simplicity assume that 1 unit of water = 1 MWh.

The Pump unit has 0 initial storage of energy (i.e. no inflow yet). As is known, in a
hydro pumped storage unit, energy is stored by pumping water from a lower level to
a higher elevation. The effect is about 95.23% = 1/1.05, i.e. one needs 1.05 MWh to
put 1 MWh in storage. The energy is recovered for utility use by passing the water
from the higher to the lower elevation through a hydro turbin driving by electric
generator. Assume that the max pumped into storage per month is 420 units and the
max inventory level is 970 units. Assume of course that the loss in efficiency is when
it is stored and not when it is generated.

Suppose that all generator plants are owned by the same firm and its objective
function is to minimize the start-up, spinning and energy costs, subject to all relevant
constraints, such as:

All generators monthly production should satisfy the respective demand,

including the energy used for pumping.
Each one of generators can generate some maximum MWh, only if it is in
operation (and FC are paid); you need a binary z = (0,1) here.
If it is in operation, it must have started in the previous period (and SC are
paid); you need also a binary y = (0,1) here. The y binary should be consistent
with the z binary. For instance, if y = 0 in month 1 for some generator, z must
be zero two (not in production). Similarly, if Hydro starts at month 3, i.e. yhydro
= 1, and does not close after that, zhydro = 1 for all months from month 3 to 6.
Hydro has some balance equations for every month such as: Inventory at t = 1,
plus inflow (always = 300) = generation at t = 2, plus inventory at t = 2, plus
possible spill at t = 2.
Pump has some other balances, such as the amount of Water pumped in
period t+1 (called it W) plus the inventory in t+1 = inventory in t+2, plus
possible spill, plus generation at t = 2; of course the capacity constraints and
the efficiency constraints should be considered.

In your report you need to find the following values in a table like below and
interpret it clearly! (Some values are of course given in the problem). Please explain
your constraints! (The problem can be formulated and solved in LINGO, MatLab,
Excel, Mathematica, GAMS etc).

Jul Aug Sep Oct Nov Dec

 GA

Generation WI

HY

PU

Demand 900 1190 1480 1520 1298 1030

GA

Start WI

HY

PU

W(ater) PU

INV(entory) PU

HY

Tot Cost