Power System Operator in Mexico Reveals Millions in Savings by Updating Its Short-Term Thermal Unit Commitment Model

José L. Ceciliano-Meza (), Juan Álvarez López (), Armando De la Torre Sánchez (), Rolando Nieva Gómez (), Isaías Guillén Moya (), Roberto Navarro Pérez (), Favio Perales Martínez (), César Torres Ruiz (), Anselmo Sánchez Sánchez () and Mehmet B. Yildirim ()
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José L. Ceciliano-Meza: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Juan Álvarez López: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Armando De la Torre Sánchez: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Rolando Nieva Gómez: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Isaías Guillén Moya: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Roberto Navarro Pérez: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
Favio Perales Martínez: Departamento de Análisis de Redes, Instituto de Investigaciones Eléctricas, Cuernavaca, Morelos, México 11510
César Torres Ruiz: Subdirección del CENACE, Gerencia de Operación del Mercado, D.F, México 01780
Anselmo Sánchez Sánchez: Subdirección del CENACE, Gerencia de Operación del Mercado, D.F, México 01780
Mehmet B. Yildirim: Department of Industrial and Manufacturing Engineering, Wichita State University, Wichita, Kansas 67260

Interfaces, 2016, vol. 46, issue 6, 493-502

Abstract: In 2013, Centro Nacional de Control de Energía (CENACE), which is Mexico’s power system operator, updated its short-term hydrothermal coordination planning (STHTCP) tool. CENACE utilized commercial software to solve mixed-integer programming models for the unit commitment and economic dispatch of thermal units, such as gas, coal-fired, and combined-cycle plants. In an earlier paper that we reference, authors of this paper describe the mathematical model for the thermal unit commitment (TUC) problem, which is a sub-problem in the STHTCP process. The new STHTCP tool, which uses a mixed-integer programming-based TUC approach, has enhanced the modeling and solution quality compared to the Lagrangian relaxation-based TUC approach. The new tool has improved CENACE’s operations for managing its existing infrastructure, including power stations and transmission lines, and establishing the marginal prices needed to make energy trades. From the beginning of 2013 to the end of 2014, CENACE saved $2.2 million annually, which it attributes to better management of its thermal units. Over 10 years, it anticipates that these savings will represent more than $20 million in total savings.

Keywords: energy; electricity; reliability; planning; optimization; linear programming; quadratic programming; mixed-integer programming; dynamic programming; Lagrangian relaxation (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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