Cost Analysis and Optimization of Modern Power System Operations

The reliable and economical operation of modern power systems is increasingly complex due to the integration of diverse energy sources and dynamic load patterns. A critical challenge is maintaining the balance between electricity supply and demand within various operational constraints. This study addresses the economic scheduling of generation units using a Mixed Integer Programming (MIP) optimization model. Key constraints considered include reserve requirements, ramp rate limits, and minimum up/down time. Simulations are performed across multiple scenarios, including systems with spinning reserves, responsive demand, renewable energy integration, and energy storage systems. For each scenario, the optimal mix of generation resources is determined to meet a 24 h load forecast while minimizing operating costs. The results show that incorporating demand responsiveness and renewable resources enhances the economic efficiency, reliability, and flexibility of the power system.