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AIM:
To understand the fundamentals of economic dispatch and solve the problem by using Lambda-
iteration method without line losses and with generator limits.
SOFTWARE REQUIRED:
MATLAB
THEORY:
The goal of economic dispatch is to determine the generation dispatch that minimizes the
instantaneous operating cost, subject to the constraint that total generation is equal to the total
demand and losses.
Cost is one of the primary characteristics of a generating unit that must be considered when
dispatching units economically. The EDC is concerned with the short-term operating cost, which is
primarily determined by fuel cost and usage. Fuel usage is closely related to generation level. Very
often, the relationship between power level and fuel cost is approximated by a quadratic curve:
F = aP2 + bP +c.
c is a constant term that represents the cost of operating the plant, b is a linear term that
varies directly with the level of generation and a is the term that accounts for efficiency changes
over the range of the plant output.
The Price
The price at which an electric supplier will be compensated is another important factor in
determining an optimal economic dispatch. In many areas of the world, electric power systems have
been, or still are, treated as a natural monopoly. Regulations allow the utilities to charge rates that
guarantee them a nominal profit. In competitive markets, which come in a variety of flavors, price
is determined through the forces of supply and demand.
The amount of electric energy to be supplied is another fundamental input for the EDC. If a
consumer switches on a motor, the electric supplier must provide the electric energy needed to
operate the motor. In competitive markets, this obligation to serve is limited to those with whom the
GENCO has a contract. Beyond its contractual obligations, the GENCO may be willing (if the
opportunity arises) to supply additional consumer demand.
In a power system, with negligible transmission loss and with N number of spinning thermal
generating units, the total system load PD at a particular interval can be met by different sets of
generation schedules.
(K) (K) (K)
{PG1 , PG2 , … … … . . PGN }; K = 1,2, … … NS
Out of these NS set of generation schedules, the system operator has to choose the set of schedules,
which minimize the system operating cost, which is essentially the sum of the production cost of all
the generating units. This economic dispatch problem is mathematically stated as an optimization
problem.
Given: The number of available generating units N, their production cost functions, their operating
limits and the system load PD.
𝑃𝐺𝑖 ; 𝑖 = 1,2, … … 𝑁
Which minimize the total production cost,
𝑁
𝑀𝑖𝑛; 𝐹𝑇 = 𝐹𝑖 (𝑃𝐺𝑖 )
𝑖=1
and satisfies the power balance constraint
𝑁
𝛷= 𝑃𝐺𝑖 − 𝑃𝐷 = 0
𝑖=1
and the operating limits
𝑃𝐺𝑖,𝑚𝑖𝑛 ≤ 𝑃𝐺𝑖 ≤ 𝑃𝐺𝑖,𝑚𝑎𝑥
ALGORITHM:
𝛥𝑃 = 𝑃𝐺𝑖 − 𝑃𝐷
The fuel cost functions of three thermal units in Rs/hr are given by,
C1=500+5.3P1+0.004P12
C2=400+5.5P2+0.006P22
C3=200+5.8P3+0.009P32
200 ≤ P1 ≤ 450
100 ≤ P3 ≤ 225
The power demand is 975 MW. Find the optimal dispatch and the total fuel cost of the power system.
RESULT:
The economic dispatch problem without transmission line losses and with generator limits for a
given load condition using Lambda-iteration method was studied by developing a MATLAB program
and verified by using manual calculation.