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Journal of Engineering
Volume 2016 (2016), Article ID 6105720, 10 pages
http://dx.doi.org/10.1155/2016/6105720
Research Article

Application of Unit Commitment with Market Pool in a Peaking Power Generation Firm in the Philippines for a Cost Reduction Case Study

1Department of Industrial Engineering, University of San Carlos, 6000 Cebu, Philippines
2Department of Mechanical and Manufacturing Engineering, University of San Carlos, 6000 Cebu, Philippines
3Department of Electrical and Electronics Engineering, University of San Carlos, 6000 Cebu, Philippines
4Department of Mathematics, University of San Carlos, 6000 Cebu, Philippines

Received 15 November 2015; Revised 22 February 2016; Accepted 15 March 2016

Academic Editor: Ashish Goel

Copyright © 2016 Luke Rey Santillan et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper attempts to provide an optimum loading schedule of power generating units with the least cost by solving a unit commitment (UC) problem and to present good estimates of cost differences when UC problem is not applied. UC is a fundamental optimization problem of power generation systems which determines the optimum schedule of generating units which minimizes generation costs. However, for small power generation firms which are situated in developing countries, UC-based problems are poorly understood if not implemented and the scheduling of generating units is based on some methodologies which may provide results that are not optimal. Thus, a case study in a small power generation firm in central Philippines is carried out to elucidate these objectives. The case requires a solution of the mixed-integer nonlinear programming (MINLP) problem. Results show that the proposed UC-based problem yields optimal costs and the cost disparity from the current scheduling scheme is approximately at 27% which may be considered as potential cost savings. This shows that UC-based problem provides a reliable platform in achieving minimal generation costs. These results are significant to decision-makers particularly in small power generation firms and to engineering practitioners in the Philippines and in some developing countries as these provide an overview of the disparity of cost figures of not implementing UC.