A MILP Production Costing Method Realizing Environmental Benefits of Wind Power

Due to concerns of environmental pollution and energy crisis, renewable energy sources, especially wind power, is integrated increasingly into power systems worldwide. Unit commitment and generation dispatch problems are extensively studied to evaluate and realize its environmental benefits, such as carbon emission reduction. However, production costing is rarely visited. It also deserves careful study since decisions including coal type selections and order quantities, which have great impacts on future system operation and resulting emissions, are made. In this paper, the production costing problem is formulated as a mixed-integer linear programming (MILP) problem with thorough consideration of fuel issues. Wind power is incorporated to realize its environmental benefits in terms of emissions of CO 2 , SO x and particulate matter (PM). Case studies demonstrate that the proposed model is effective in realizing wind’s benefit to offer economic and environmental friendly fuel portfolio decisions