Wind, as a renewable energy source. has been generally applied as a means to reach emission reduction goals as a result of increasing concern regarding environmental protection. Although wind generation does not directly produce harmful emissions, its effect on the generation dispatch of conventional plants can actually cause an increase in emissions especially during low and medium energy demand periods. This paper presents an interactive bi-objective programming with valuable trade-off approach for solving generation dispatch which considers environmental and fuel costs inherent to large scale penetration of wind energy. An effective encoding/decoding scheme combined with simulated annealing-like particle swarm optimization is applied for the optimization methodology, thereby dramatically improving search efficiency and solution quality. The proposed approach can provide a valuable trade-off Pareto-optimal solution by following the preferences of decision makers. The non-linear characteristics of power generators and their operational constraints. such as generation limitations, ramp rate limits, prohibited operating zones, and transmission loss are considered for practical operation. The effectiveness and feasibility of the proposed approach were demonstrated through an IEEE 30-bus test system study. The experiment showed encouraging results, suggesting that the proposed approach was capable of providing higher quality and a wider range of Pareto-optimal solutions such that the decision makers can be presented more flexible and reasonable choices. (C) 2009 Elsevier Ltd. All rights reserved.