Economic Dispatch and Duality

Question 2. (40 points). Economic Dispatch and Duality Below is a basic economic dispatch problem and its dual. This basic economic dispatch problem is a special case that does not consider transmission constraints. The minimum outputs of the units are assumed to be OMW. Primal: Dual: Min: EgEG Cgpg Max DA - EgeG Pmax ag s.t.: s. t. : EgEG Pg = D, (2) (5d) 6A '75 0 - V -Pg 2 - pmax BA (ag) ag 2 0, BA Pg 2 0, bA 2a) (8 points) What does EgEG Pinax a, represent? Give an economic interpretation regarding this term and explain. Here are some hints: generation cost; generation revenue; generation profit; load payment; congestion cost; congestion revenue; capacity revenue; capacity rent. Additional hint: you may or may not need to examine properties regarding complementary slackness