INTERNATIONAL

JOURNAL of RENEWABLE ENERGY RESEARCH

V. Suresh and S.Suresh, Vol.5, No.4, 2015

Economic Dispatch and Cost Analysis on a Power

System Network Interconnected With Solar Farm
Velamuri Suresh*‡, Sreejith S**
*School of Electrical Engineering, Research Scholar, VIT University, Vellore
** School of Electrical Engineering, Associate Professor, VIT University, Vellore
(velamuri.suresh@vit.ac.in, sreejith.s@vit.ac.in)
‡
Corresponding Author: Velamuri Suresh, VIT University, Vellore, Tamilnadu, India Ph: +917845825241
velamuri.suresh@vit.ac.in
Received: 20.08.2015 Accepted:12.11.2015

Abstract- Frequent escalation of fuel prices, concerns on environment and diminution of fossil fuel reserves have forced the
incorporation of Renewable Energy resources with the existing generation. This paper presents an Economic Dispatch model
developed for a system consisting of thermal units and Photo Voltaic (PV) plants. Since solar power is intermittent in nature,
Beta distribution function is utilized for estimating the power output of PV panels. The seasonal changes of desired location
are also included for effective analysis of the output. Case studies are carried out for various generation levels and seasonal
changes. The possible choices of installing solar plants in the test system are analysed. The proposed methodology is tested and
validated on a standard IEEE 30 bus test system..
Keywords Economic dispatch, solar irradiance, Beta distribution function, thermal generator, PV array.

1. Introduction be used through solar photovoltaic technology which

empowers direct change of sunlight into electrical energy [5].
To meet the prerequisites of increasing population, At present solar energy generation contributes a very small
reducing the utilization of fossil fuels and green house gases, proportion of total generation. But with the decreasing
convincing research has been conducted through the world system costs and availability of resources, future expansion
for improvement of sustainable and renewable energy and integration of solar energy with the grid is necessary.
systems [1-2]. In general the power systems of many
The balance between the power generation and load
countries are planned as an interconnected systems and
demand is a critical task while considering the renewables
intensely depends on conventional sources of generation.
into account. This is due to the variability and uncertainty of
This framework needs alterations and upgrades so as to meet
the power output from the renewables with time [6-7]. The
the future necessitates. Integrated energy planning has
generation schedule of a solar panel depends on the solar
become a necessity for the sustainable growth of energy
irradiance available in a site. Solar irradiance varies from
sector for any country [3]. Many developing countries are
time to time over a day and also with seasons[8]. Therefore
executing the public policies required for the far reaching
the solar irradiance must be properly modelled for exact
advancement of renewable energy technologies and markets.
value of output. There are many methods available for
A minimum of 20% contribution from the renewables has
irradiance modelling out of which beta distribution PDF has
been set as a target by many countries [4]. For example, in
been used by many researchers for its accuracy [9-10]. This
order to encourage improvement and generation of alternate
requires historic data of the solar irradiation over a particular
or renewable energy, Indian government established
period. Past one year data is considered and processed in to
Jawaharlal Nehru National Solar Mission in 2010. The main
three seasons namely summer, spring and winter. Now for
goal of this mission is to install 20000 MW capacity of Solar
the three seasons, variations in power output for the same
plants by year 2022 [5]. Globally many countries are setting
installed capacity is observed and is further utilised in current
up their own policies for the integration of renewable energy
problem.
in to the grid and thereby reducing the emission from fossil
fuels. Economic Dispatch (ED) is an imperative and a
continual step in operational planning of a power system.
India is enriched with an exceptionally limitless solar
The general economic dispatch problem is stated as the
energy potential. Most parts of the nation have around 300
procedure of distributing generating levels to the thermal
sunny days. Normal solar radiation occurrence over the area
units, so that the system load may be supplied altogether
is in the scope of 4-7 kWh every day. The solar energy can
economically [11]. Constraints like generation limits, power
INTERNATIONAL JOURNAL of RENEWABLE ENERGY RESEARCH
V. Suresh and S.Suresh, Vol.5, No.4, 2015

balance etc. are important considerations in this problem. Ø Cost comparison by replacing some thermal units
Many researchers concentrated on the improvement in with Solar farm
general economic dispatch problem where as the research on
The rest of the paper is organised as follows: Section 2
dispatch considering renewables is limited [12].
describes the general economic dispatch problem and also
Economic dispatch using equal incremental cost was the changes to be adopted with the integration of renewable
used initially and transmission loss and penalty factor were energy in economic dispatch problem. Section 3 gives the
incorporated in that later. A review on ED methods from information on solar irradiance modelling and estimation of
1977 to 1988 are given in [19]. To evaluate the economic power output from a PV array. In section 4 integration of
dispatch problem thermal generators were used extensively. solar energy in economic dispatch and the cost optimisation
Intelligent methods like Particle swarm optimization (PSO), for various scenarios is described.
Differential Evolution (DE), Genetic Algorithm (GA),
Evolutionary Programming (EP) are used for complex 2. Economic Dispatch problem
dispatch problem considering prohibited operating zones,
valve point and quadratic cost functions. ED with cost and The main objective of economic load dispatch problem is to
emission is considered as a multi objective problem which minimise the fuel cost of the thermal generators [13]. The
requires optimization techniques to solve this.. In [20] PSO objective function can be formulated as
based ED with valve point effect is presented, which depicts
n
the effects of valve point loading of thermal generation in
generation cost. In [21] multi objective combined economic
Fi ( Pi ) = ∑ (ai Pi 2 + bi Pi + ci ) (1)
i =1
emission dispatch is converted to single objective economic
dispatch using penalty factor and ABC algorithm is used to where Fi ( Pi ) : Fuel cost of all the generators ($/hr)
solve the problem. In [22] economic dispatch considering
single solar and a wind farm is carried out on standard IEEE ai,bi,ci : Cost coefficients of ith generator.
30 bus system and SPEA algorithm is used for solving the
problem. In [23] DED is carried out with the incorporation Pi : Power generated by ith generator.
of two solar and two wind farms in addition to three thermal n : No of generators
units using a PSO algorithm and shows that the emission is
minimised with inclusion of these renewable energy sources. subjected to:
Equality constraints:
1.1. Proposed Work:
The power balance of the system is given by
m
Considering the literature survey on ED and renewable
energy sources, the solar plants are considered lossless and ∑P −P
i =1
i D − PL = 0 (2)
the climatic effects of their power outputs are not considered.
Since, the same transmission line is utilized for the where PD : Load demand (MW)
transmission of solar power also; considerable losses will
occur because of the resistance and reactance of the PL : Transmission losses (MW)
transmission lines. The solar power depends upon the Transmission losses can be represented as
irradiation which in turn depends on the climatic conditions.
n n
Considering all these factors, in this work, a fixed percentage
of loss is considered while transmitting solar power through PL = ∑∑ PB
i ij Pj
(3)
the existing transmission lines. Since the output of solar i =1 j =1

power depends in climate, the case studies are considered for where Bij : Transmission loss coefficient
different climatic conditions. In this model solar power
plants are assumed to be installed by the public utility and Inequality constraints:
the cost for installation is not considered. The power generation of all the generators has maximum and
IEEE 30 bus test system consists of 6 thermal generators, minimum limits
41 transmission lines interconnected to the 30 buses. The
thermal generator cost coefficients, Power generation limits Pi min ≤ Pi ≤ Pi max (4)
and Schematic diagram are given in appendix A and B. The
following case studies are conducted on the above said test where Pi min , Pi max are the minimum and maximum
system. generation limits
Ø Cost comparison considering solar farm output as
negative load 2.1. Coordinated Economic dispatch model considering solar
energy:
Ø Cost comparison including losses from Solar farm
Ø Cost comparison by incorporating Solar farm at The output power from a solar panel depends mainly on
desired location the irradiance. So, the power output for various irradiance
values is the be estimated which requires proper functional

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model. The the best adopted model is beta distribution The average value of variation in solar irradiance is shown in
function. The historical data of solar irradiance is processed Fig. 1. It is observed that the irradiance is maximum in
according to seasons and then it is utilised for modelling the summer season (for the months March to June) and
beta distribution function. Using this function the output of a minimum for the months November to January.
solar panel is estimated and then the total output obtained for
the entire solar farm is calculated. This power generated by 3.2. Solar irradiance modelling
the solar farm is considered as negative demand and is
incorporated at the specific point. Then economic dispatch is A stochastic model [16] of Solar panel is constructed based
carried out using this model and the results are compared. on Beta distribution function. Beta distribution is considered
to be the most suitable model for statistical representation of
For incorporating the solar energy into the exiting
the probability density function. The Solar irradiance
generation, the power generated by PV arrays is considered
distribution of the panel is given by
as a negative load and equation (2) is updated as follows
n Γ(α + β ) (α −1) ( β −1)
PD' = PD − ∑ PiS (5)
fb (s) = s (1 − s ) ,0 ≤ s ≤ 1;α , β ≥ 0 (6)
Γ(α )Γ( β )
iS =1

n ⎛ µ (1 + µ ) ⎞ µβ
where PD' is new power demand and ∑ PiS is the sum β = (1 − µ ) ⎜ 2
− 1⎟ , α =
⎝ σ ⎠ 1− µ
iS =1
of solar power generators. where fb(s) is Beta distribution function, Γ(°) is the
gamma function and s is the random variable of solar
3. Solar Power generation model
irradiance (kw/m2), α and β are the parameters of the Beta
distribution function. µ and σ are the mean and standard
Solar power depends on meteorological conditions such as
deviation of s for the corresponding time segment.
irradiance, ambient temperature which are directly related to
geographical location [8,14]. For effective utilisation of PV 3.3. Power generation from PV array
arrays the characteristics should be desperately analysed. For
The expected output of PV is given by
the above case study, Vellore region which is located in
Tamilnadu, India is considered. P(s) = Po ( s)* fb ( s) (7)

3.1. Analysis of resources The total output of the PV array corresponding to

specific time segment is given by
Vellore region (79.15o E, 12.95o N) has noticeable seasonal 1
changes. The study period of one year is divided into three
seasons Summer (March to June), Spring (July to October) TP = ∫ Po ( s ) * f b ( s )ds (8)
and Winter (November to February). Each day of the season 0

is divided into 24 segments which refers to hours of a day. where power generation of panel at solar irradiance s is
Mean and standard deviation of solar irradiance are given by
calculated from the historical data [15]. For this study, mean
and standard deviation at 12o clock of the day for the three Po ( s ) = N * FF * Vy * I y (9)
seasons are calculated and furnished in Table 1.
where N is the total number of PV modules.
Table 1. Mean and standard deviation for three seasons
The voltage - current characteristics of a PV module for
Parameter Summer Spring Winter a given radiation level and ambient temperature are
Mean (µ) 0.9402 0.7834 0.7152 determined using the following relations
Standard Deviation (σ) 0.1088 0.1772 0.2402 VMPPT * I MPPT
FF = (10)
VOC * I SC
Vy = Voc − K v * Tcy (11)

I y = s[ I sc + K i (Tcy − 25)] (12)

⎛ N − 20 ⎞
Tcy = TA + s ⎜ OT ⎟ (13)
⎝ 0.8 ⎠
where FF is the fill factor, VMPPT,IMPPT are the voltage
and current maximum power point, VOC, Ioc are the open
circuit voltage and short circuit current of PV module, Kv and
Fig. 1. Monthly variation of solar irradiation (kw/m2)

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Ki are the voltage temperature coefficient and current The discrete solar distribution of the solar panel during
temperature coefficient, TA, TCY,NOT are the ambient 12o clock of a day in winter is shown in Fig. 2 and the power
temperature, PV cell temperature and Normal operating variation during summer and spring is shown in Fig. 3.
temperature respectively. The specifications of a 220 W PV
module[17] are given in Table 2. 4. Results and Discussion
Table 2. Specifications of 220W solar panel
Proposed methodology has been simulated on standard IEEE
Parameter 30 bus system. The details of the test system are given in
Value [18]. Newton- Raphson power flow is used to evaluate the
Maximum Power point Voltage, VMPPT 28.36 V test system. A constant load model is assumed throughout
the year. It is also assumed that the geographical conditions
Maximum Power point Current, IMPPT 7.76 A analysed for considered location are similar for the test
Open circuit Voltage, VOC 36.96 V system. Based on the solar power generation model shown in
Section 2 various cases are considered for the study.
Short Circuit current, ISC 8.38 A
4.1. Scenario 1: Combined Economic dispatch with Thermal
Nominal Operating Temperature, NOT 43 °C
and Solar generation
Ambient Temperature, TA 30.76 °C
The solar farm is designed with 20000 PV modules which
Voltage Temperature Coefficient, Kv 0.1278 V/°C
comprises an installed capacity of 44 MW (20000*220W).
Current Temperature Coefficient, Ki 0.00545 A/°C The power output for each season is estimated using Beta
distribution function. The contribution in each season for
meeting the demand is plotted in Figure 4. Here four possible
combinations of utilising the solar power are discussed.

Fig. 2. Discrete Power distribution (W) of a PV module in Fig. 4. Contribution of solar energy during various seasons
Winter season
4.1.1 Case 1:

In this case, output of solar farm is considered as negative

load such that the updated demand is the difference between
the actual load and the solar power output. Economic
dispatch is carried out for the updated demand and the
objective function is optimised for three seasons and is
analysed. The power generated and fuel cost of all the
thermal units are given in Table 2.
From Table 2, it is clear that, the generation cost is less in
summer season, since the contribution from the solar farm is
considerable compared to the remaining cases. In this case, a
random location is considered for installing solar farm in the
test system. Even though the solar power generation in
winter and spring is less compared to summer season, the
Fig. 3. Power variation (W) of PV module during profit obtained with the incorporation of solar farm is
Summer and Spring seasons significant compared to the base case.

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Table 2. Generating capacities and Fuel costs of the combined solar thermal systems

Base case Winter Spring Summer

Gen No
Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr)
Pg 1 178.5827 476.7596 162.5436 424.1639 160.7432 418.3804 151.7077 389.7226
Pg 2 53.6740 144.3451 49.6172 129.9128 49.1022 128.1217 46.5319 119.3220
Pg 3 19.5279 43.3617 18.6417 40.3611 18.5061 39.9108 17.8287 37.6951
Pg 4 15.0412 50.7618 10.0000 33.3300 10.0000 33.3300 10.0000 33.3300
Pg 5 11.5033 37.8180 10.0000 32.5000 10.0000 32.5000 10.0000 32.5000
Pg 6 12.0000 39.6000 12.0000 39.6000 12.0000 39.6000 12.0000 39.6000
Pg S 0 - 26.30 - 28.62 - 40.34 -

Pg Total 290.3291 792.6462 262.8025 699.8678 260.3515 691.8429 248.0683 652.1697

farm is located near generators 5 and 6. The generation in

4.1.2 Case 2:
these two locations are completely replaced by solar power.
The cost obtained in this case in given in Table 4. This cost
Here, the case study is carried out similar to Case 1 by
is more compared to the winter season in Case 1 since, the
considering the losses incurred with the incorporation solar
cost coefficients are different for all generators. In the same
farm into the system. It is observed from the base case that
case, three generators namely Pg 3, Pg4, Pg5 are replaced by
the real power losses is 2.4% of the total demand. As the
solar power and the analysis is carried out . This cost is also
solar power is transmitted through the same transmission
slightly more than the cost for summer season compared to
lines, similar proportion of real power loss is considered for
Case 1. From this it is clear that, installing solar farm in
solar power also. Here also a random location is considered proper location can reduce the generation cost. If the solar
for installing solar farm in the test system. The generation plants are distributed randomly, the generation cost may
cost obtained without and with solar along with the profit for
increase depending on the generation.
various seasons is given in Table 3. It is observed from
Table 3 that, the generation cost is increased by a small
4.1.4. Case 4:
percentage when losses are considered.
In this case it is assumed that the solar power farm is situated
Table 3. Profit analysis of Thermal and Combined solar
at a near a generator bus and the burden on that particular
thermal systems
generator is reduced. Results when the solar power generator
Thermal is situated at bus 1 and bus 2 are shown in Table 5.
Thermal Profit From the case studies above in scenario 1, it is clear that the
Season + Solar
($/hr) ($/hr) total generation cost with the incorporation of solar energy
($/hr)
depends on climatic conditions. This cost varies with the
Summer 792.64 655.41 137.24 irradiation available at various seasons. During summer
season the solar contribution is more and the thermal
Spring 792.64 694.20 98.44 generation can be reduced depending on the load demand.
But in winter season, the contribution of solar is less and the
Winter 792.64 702.04 90.60
thermal plants are forced to increase their generation
compared to summer season. The solar power cannot be
4.1.3. Case 3: considered as a fixed share for all climatic conditions. This
analysis is done with fixed load demands throughout. It is
For the above two cases, random location is assumed for evident from Table 4 that the location solar place plays a
solar installation. In this case , it is assumed that the solar vital role in generation cost.

Table 4. Generating capacities and fuel costs after replacing some thermal generators by solar

Base case Winter Spring Summer

Gen No
Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr)
Pg 1 178.5827 476.7596 178.5827 476.7596 178.5827 476.7596 178.5827 476.7596
Pg 2 53.6740 144.3451 53.6740 144.3451 53.6740 144.3451 53.6740 144.3451
Pg 3 19.5279 43.3617 19.5279 43.3617 19.5279 43.3617 17.7279 37.3703
Pg 4 15.0412 50.7618 12.2445 41.0390 10 33.33 - 0
Pg 5 (S) 11.5033 37.8180 - 0 - 0 - 0
Pg 6 (S) 12.0000 39.6000 - 0 - 0 - 0
Pg Total 290.3291 792.6462 705.5054 697.7964 658.475

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Table 5. Cost comparison by incorporating Solar farm at specific period such that there is negligible start up cost. But
desired location practically all the generators have finite start up time. Hence,
in this case analysis is made considering the start up
Gen No Winter ($/h) Spring($/h) Summer($/h)
constraint. Here output from solar generator is sufficient to
Pg 1 - Pg S 707.41 700.10 664.00 turn off the units 4,5 and 6 for the particular time interval.
Pg 2 - Pg S 709.32 703.09 674.72 But it is not feasible to turn off the units as it imposes
additional penalty costs for the upcoming intervals if the
4.2 Scenario 2: Combined Economic Dispatch considering thermal units are to be immediately started. So for this
start up constraints situation we will run the thermal units 4,5 and 6 at minimum
MW limit and the available solar power is utilised by
The solar farm is designed with 10000 PV modules which reducing the generation of unit 2. The cost analysis is
comprises an installed capacity of 22 MW (10000*220W). presented in Table 7.
Here two case studies are done for various seasons
considering the start up constraints for the thermal From the case studies above in Scenario 2, it is evident that
generators. the scheduling of generation is an essential part. The power
generation from thermal units cannot be turned off as
4.2.1. Case 1: required depending on the solar power available. In this
This case follows the equation (5) given in section 2 and the condition, these generators are allowed to run in its minimum
economic dispatch is obtained. Here the cost comparison for generation value and the dispatch is carried out, which aviods
various seasons is presented in Table 6. the additional penalty costs. However, this may result in
increased generation cost if the costly generators are put into
4.2.2. Case 2: service.

The studies carried out in Case 3 and 4 of Scenario 1 is

applicable when the generators can be shut down only for a
Table 6. Generating capacities and Fuel costs of combined solar thermal systems
Base case Winter Spring Summer
Gen No Gen
Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr)
(MW)
Pg 1 178.5827 476.7596 171.2218 452.3821 170.5699 450.2425 169.7285 447.4863
Pg 2 53.6740 144.3451 51.6330 137.0122 51.4529 136.3720 51.2206 135.5480
Pg 3 19.5279 43.3617 19.0209 41.6332 18.9761 41.4819 18.9183 41.2872
Pg 4 15.0412 50.7618 12.3899 41.5412 12.1540 40.7266 11.8494 39.6759
Pg 5 11.5033 37.8180 10.3166 33.6105 10.2115 33.2414 10.0760 32.7660
Pg 6 12.0000 39.6000 12.0000 39.6000 12.0000 39.6000 12.0000 39.6000
Pg S 0 - 13.15 - 14.31 - 20.17 -
Pg Total 290.3291 792.65 276.5822 745.78 275.3644 741.66 273.7928 736.36
Table 7. Cost comparison by incorporating solar farm considering start up constraints
Base case Winter Spring Summer
Gen No Gen
Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr) Gen (MW) Cost ($/hr)
(MW)
Pg 1 182.8443 491.0587 182.8443 491.0587 182.8443 491.0587 182.8443 491.0587
Pg2-PgS 55.4914 150.9977 42.3413 105.4710 41.1743 101.7232 35.3159 83.6289
Pg 3 20.1840 45.6462 20.1840 45.6462 20.1840 45.6462 20.1840 45.6462
Pg 4 10.0 33.3303 10.0 33.3303 10.0 33.3303 10.0 33.3303
Pg 5 10.0 32.5004 10.0 32.5004 10.0 32.5004 10.0 32.5004
Pg 6 12.0 39.6000 12.0 39.6000 12.0 39.6000 12.0 39.6000
Pg Total 290.5199 793.1333 277.3698 747.6066 276.2028 743.8588 270.3444 725.7645

farm. In addition, the uncertainty of solar irradiance is solved

5. Conclusion using beta distribution function. The maximum solar shares
of 40.34 MW (13.8 % of 290 MW), 28.62 MW(9.8% of 290
In this paper a simple method to solve Economic dispatch MW) and 26.30MW (9.06% of 290 MW) have been
problem for a system containing conservative thermal recorded at 12:00 hr of a day during summer, spring and
generators and solar farms is presented. Four case studies winter respectively. It shows that higher solar irradiation
with six thermal generators and a solar farm have been provides maximum solar share in all the seasons. Cost
examined. Economic dispatch problem has been solved for analysis by incorporating solar farm at various locations in
three different seasons with two installed capacities of solar the chosen test system is analysed. Maximal solar share for a

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V. Suresh and S.Suresh, Vol.5, No.4, 2015

given load demand results in reduced fuel cost of the loading effect. " International Journal of Electrical
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multiple fuels, cost recovery of newly established plants in a
and wind distributed generations considering
scheduled period
performance improvement of electrical distribution
network." Renewable Energy 75 (2015): 173-186.
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economic load dispatch problem considering valve point
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Appendix B: Schematic diagram of an IEEE 30 bus system

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