The Impact of Wind Generation on Operating Cost and Profit in a Bilevel Optimization Dispatch Model



Economic Dispatch, Wind Generation, Deterministic, Stochastic, Bilevel Optimization


In this paper, the problem of economic dispatch of energy of an electrical system is solved, based on three different approaches: first is deterministic, a second is stochastic and a third given by bilevel programming. It is observed that when solving the deterministic economic energy dispatch, results follow the principle of order of merit, likewise under some scenarios availability of a large flexible capacity during the power balance stage becomes necessary. In another hand, the stochastic model becomes a tool that optimizes flexible capacity by sacrificing the order of merit which is not the case of bilevel model that adopts both, order of merit and optimization of flexible capacity by choosing an optimum of wind power to dispatch. In terms of profit, it has been observed that under the stochastic approach those flexible participants must fall into losses under certain scenarios. However, under the bilevel approach, the aforementioned issue is improved. Finally and in order to illustrate the impact of the bilevel approach a 24-node system serves as a test system to obtain results and demonstrate the economic advantages of an bilevel dispatch.


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Author Biographies

Miguel Angel Arellano Jiménez, Sección de Estudios de Posgrado e Investigación ESIME Zacatenco IPN

Graduated in Electrical Engineering from Instituto Politécnico Nacional (2018). Master of Science in Electrical Engineering from SEPI, ESIME, IPN (2021). His research areas include Electricity Markets and Optimization in Electric Power Systems Under Uncertainty.

Mohamed Badaoui, Sección de Estudios de Posgrado e Investigación ESIME Zacatenco IPN

Bachelor in Mathematical Sciences at Mohamed I University in 1998. Master of Science in Mathematics at ESFM-IPN in 2003 and PhD in Mathematical Sciences at FC-UNAM in 2012. He is currently a professor at SEPI, ESIME, IPN in Mexico. His areas of interest include Financial Mathematics, Risk Theory and Mathematical Modeling in Electrical Power Systems.

David Sebastián Baltazar , Sección de Estudios de Posgrado e Investigación ESIME Zacatenco IPN

He received the bachelor degree of Industrial Engineer in Electrical Engineering at Instituto Tecnológico de Morelia, Mexico in 1990, his master and PhD’s degree in Electrical Engineering at SEPI, ESIME, IPN, Mexico in 1993 and 1999, respectively. He is currently a professor at SEPI, ESIME, IPN in Mexico. His research areas include Electrical Power Systems Protection and Energy Markets.


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How to Cite

Arellano Jiménez, M. A., Badaoui, M., & Sebastián Baltazar , D. (2022). The Impact of Wind Generation on Operating Cost and Profit in a Bilevel Optimization Dispatch Model. IEEE Latin America Transactions, 20(8), 2079–2086. Retrieved from



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