Locational Marginal Price(LMP(

• Locational marginal pricing is a way

1 2
for wholesale electric energy prices to
reflect the value of electric energy at
1 2
different locations, accounting for the
patterns of load, generation, and the
physical limits of the transmission
system.
500MW 400MW
 Cost function data

Generator 1 MW Cost($/MWh( Generator 2 MW Cost($/MWh(

Segment A 400 5 Segment C 200 6.5
Segment B 800 7.5 Segment D 400 8

Generator 1
Generator 2
Cost Function
Cost Function
Cost $/h

Cost $/h
MW MW
400 800 200 400
 Power flow dispatch

700MW 1 2 200MW
200MW

1 2

500MW
400MW

500MW 400MW

Segment MW Price
A 400 5
Generation dispatch C 200 6.5
B 300 7.5 Clearing Price

If we add one more MW to the load at either bus ,what will be the new dispatch?
 Transmission Limits
Suppose now that the transmission line between buses 1 and 2 is limited to a maximum of 100MW.

600MW 1 2 300MW
100MW

1 2

500MW
400MW

500MW 400MW

Segment MW Price
A 400 5
Generation dispatch C 200 6.5
B 200 7.5
D 100 8 Clearing Price
 • If we add 1MW of load, it must come from segment B
of generator 1at a cost of 7.5
Bus1 • The LMP for bus 1 then is 7.5

• If we add 1MW of load, it must come from segment D

of generator 2 at a cost of 8
Bus2 • The LMP for bus 2 then is 8
 By ignoring transmision losses

When all LMP values are the same, none of

the transmission lines are at maximum flow.
• When the LMP values at different buses
differ, the cause is a liming transmission line.
Unit Commitment
Chapter 5
 Unit Commitment
Unit commitment (UC) is an optimization problem used to determine the
operation schedule of the generating units at every hour interval with
varying loads under different constraints and environments.
• Values of load changes in a day (daily cycle). Depends on time
• Values of load varies in a week (weekly cycle). Which day? Which hour?

• Commit enough units.

• It is quite expensive to run too many generating units.
• A great deal of money can be saved by turning units off (decommiting
them) when they are not needed.
To find the least cost
dispatch of available
generation resources to
meet an estimated electric
power demand over a
given time horizon.
 Difference between Economic Dispatch & Unit commitment

Economic Dispatch Unit commitment

• It is a short term determination. • It aims to make power system reliable.
• Dispatch at lowest possible cost. • Given load profile.
• Given load • Given sets of available units.
• Given set of units on-line.(N units) • When should each unit be started,
stopped and how much should it generate
• How much should each unit generate to
to meet the load at minimum cost?
meet load at minimum cost?
 Example
• Suppose one had the three units given here:
Unit 1: Min=150MW Total Demand=550MW
Max=600MW
𝐹𝑢𝑒𝑙Cos𝑡1 = 1 𝑆Τ𝑀𝐵𝑡𝑢
𝐻1 = 510 + 7.2𝑃1 + 0.00142𝑃12 𝑀𝐵𝑡𝑢 Τℎ 𝐹𝑢𝑒𝑙Cos𝑡2 = 1 𝑆Τ𝑀𝐵𝑡𝑢
Unit 2: Min=100MW 𝐹𝑢𝑒𝑙Cos𝑡3 = 1.2 𝑆Τ𝑀𝐵𝑡𝑢
Max=400MW
𝐻2 = 310 + 7.85𝑃2 + 0.00194𝑃22 𝑀𝐵𝑡𝑢 Τℎ
Unit 3: Min=50MW
Max=200MW
𝐻3 = 78 + 7.97𝑃3 + 0.00482𝑃32 𝑀𝐵𝑡𝑢 Τℎ

What unit or combination of units should be used to supply this load most economically?
 Unit Combinations and Dispatch for 550-MW Load of Example

Unit 1 Unit Unit 3 Max Min 𝑷𝟏 𝑷𝟐 𝑷𝟑 𝑭𝟏 𝑭𝟐 𝑭𝟑 Total

2 Generation Generation Generatio
n
Cost
Off Off Off 0 0 - - - - - - Infeasible
Off Off On 200 50 - - - - - - Infeasible
Off On Off 400 100 - - - - - - Infeasible
Off On On 600 150 0 400 150 0 3760 1658 5418
On Off Off 600 150 550 0 0 5389 0 0 5389
On Off On 800 200 500 0 50 4911 0 586 5497
On On Off 1000 250 295 255 0 3030 2440 0 5471
On On On 1200 300 267 233 50 2787 2444 586 5617
Developing the example by considering a simple “peak-valley’’ pattern

If the operation of the system is to be

optimized, units must be shut down as
the load goes down and then
recommitted as it goes back up. We
would like to know which units to drop
and when?
Load variation=500MW-1200MW
For 24H:From 4PM to 4PM
 Constraints in Unit Commitment
Unit constraints and system constraints.
• Equality and inequality constraints.
Such as:
• Spinning Reserve Constraint
• Unit Constraints
 Spinning Reserve

• Spinning reserve is the term used to describe the total amount of

generation available from all units synchronized (i.e., spinning) on the
system, minus the present load and losses being supplied.
• Spinning reserve must be carried so that the loss of one or more units
does not cause too far a drop in system frequency.
• Simply, if one unit is lost, there must be ample reserve on the other units
to make up for the loss in a specified time period.
 Spinning Reserve allocation
• Typical rules specify that reserve must be a given percentage of forecasted peak
demand
Or
• Reserve must be capable of making up the loss of the most heavily loaded unit in a
given period of time
1. Make up for a generation-unit failure
Reserve must be sufficient to: 2. Be allocated among fast-responding units and
slow-responding units.(10 min)

For restoring frequency and interchanging quickly in the event of a generating-unit outage.

The spinning reserve is the unused capacity which can be activated on decision of the system
operator and which is provided by devices that are synchronized to the network and able to affect
the active power.
 Offline Reserve (scheduled reserve)
• Non-Spinning Reserve is off-line generation capacity that can be ramped to capacity and
synchronized to the grid within 10 minutes of a dispatch instruction by the ISO, and that is
capable of maintaining that output for at least two hours.
• Non-Spinning Reserve is needed to maintain system frequency stability during emergency
conditions.
• Non-spinning (unsynchronized) reserves act only after synchronisation.
• Units that can quickly respond to system events (such as the loss of a generator)
Quick-start diesel generating units, gas-turbine units,Hydroelectric power plant, pumped-storage
hydro-unit.
 Example
Suppose a power system consisted of two
isolated regions: a western region and an eastern
region. Five units have been committed to
supply 3090 MW.
The two regions are separated by transmission tie
lines that can together transfer a maximum of 550
MW in either direction.

What can we say about the allocation of spinning

reserve in this system?
 Minimum cost Unit capacity-Unit output

Loss of Unit1?
Loss of Unit4? The tie capacity of only 550 MW limits the transfer
 Thermal Unit Constraints
Minimum up time: Once the unit is running, it should not be turned off immediately.
Minimum down time: Once the unit is decommitted, there is a minimum time before it
can be recommitted.
Crew constraints: If a plant consists of two or more units, they cannot both be turned on at
the same time since there are not enough crew members to attend both units while starting
up.
Start-up cost: Before a thermal plant can feed electricity to the grid, it has to be started up,
i.e. ramped up at least to the minimum generation level. This usually comes at a cost
independent of how much output is produced
 Two approaches to treating a thermal unit
during its down period.
Start-up procedure of a turbine depends on its casing and rotor temperature.

Cold • Boiler has been off for

several days, zero pressure
Start on light-off.

Warm • Boiler is on hot stand-by

with some level of steam
Start pressure prior to light-off
 Time dependent start-up costs
Allows the unit’s boiler to cool down and
then heat back up to operating temperature
in time for a scheduled turn on.
Fuel Cost
Thermal time constant for the unit
Cold Start Cost when cooling= 𝐶𝐶 1 − 𝜀 −𝑡Τ𝛼 × 𝐹 + 𝐶𝑓

Cold-start cost (MBtu)

Time the unit was cooled
Fixed cost (includes crew expense, maintenance expenses )
Start-up cost when banking=𝐶𝑡 × 𝐹 × 𝑡 + 𝐶𝑓
Cost(Mbtu/h) of maintaining unit at operating temperature
 Other Constraints
• Must Run: A specific generating unit that has been designated by the system operator to be
on line or on the grid to insure the flow of electricity. A unit may be designated as must run for
operating reasons that may include system reliability, voltage control, or system stability.
• Fuel Constraints: A system in which some units have limited fuel, or else have constraints
that require them to burn a specified amount of fuel in a given time, presents a most
challenging unit commitment problem. (Some plants cannot be operated due to deficient fuel
supply.
• Emission Constraints: Air quality constraints in the form of limits on emissions from
fossil-fired plants
 Other Constraints
• Ramp rates: (The rate, expressed in
megawatts per minute, that
a generator changes its output.)To avoid
damaging the turbine, the electrical output
of a unit cannot change by more than a
certain amount over a period of time.
Ramp up-Ramp Down.
• Maximum generation capacity,
Minimum stable generation.
 Unit Commitment Solution Methods

• Solving the problem for M periods.

• There are N units to commit and dispatch.
• There are M load levels.
• N Operating limits for units.
• System constraints