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Economic Operation of Power Systems

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ECONOMIC OPERATION

OF POWER SYSTEMS
i. Economic Dispatch of Generation
ii. Unit Commitment
 At the end of this topic, the students should be able
to:
 Apply various optimization techniques to solve
economic load dispatch problems
 Obtain solution to unit commitment problems

TOPIC-LEARNING OUTCOMES
 The economic operation of power systems is one important
problem in the area of planning and operation of
interconnected power systems.
 This means that every step in planning, scheduling and operation
of the system, unit-wise, plant-wise and interconnection-wise must
be optimal, leading to absolute economy.
 Proper operation of the power system is very important for a
power system to return a profit on the capital invested.

INTRODUCTION
 Twothings put pressure on power companies to
achieve maximum possible efficiency:
 Rates fixed by regulatory bodies
 Importance of conservation of fuel

INTRODUCTION
 Dispatch of power plants is the process in which the
entity operating the power grid must continuously
adjust the output of its power plants to meet electricity
demand.

LOAD DISPATCH
 There are two stages to the dispatch process, namely:
 First Stage: Unit Commitment –the utility or power grid
operator makes decisions about which of its power plants to
turn on or off in anticipation of needing to meet electricity
demand.
 Second Stage: Dispatch–the plants that are committed are
selected to run at a given level to meet total electricity
demand. The dispatch decision is driven primarily by
economic factors.

LOAD DISPATCH
 Economic Dispatch is the short-term determination of
the optimal output of a number of power generation
facilities, to meet the system load, at the lowest
possible cost, subject to transmission and operational
constraints.
 Theobjective of the economic dispatch is to find the
real and reactive power scheduling of each power
plant in such a way as to minimize the operating cost.

ECONOMIC LOAD DISPATCH


 Rationale of Economic Dispatch
 There is a certain amount of demand known as the
“base load” that needs to be satisfied every single
hour.
- The grid operator would commit a collection of
base load plants (e.g., coal-fired power plants and
nuclear power plants) that may have long minimum
run times but low marginal cost. From hour to hour, it
would make economic decisions about how much
of each these plants should produce.

ECONOMIC LOAD DISPATCH


 Rationale of Economic Dispatch
 Demand is generally higher during the day than at
night.
- The grid operator would also commit a collection of
plants that are relatively quick to start up to run
during daytime hours. It would then make hour-to-
hour decisions about how much electricity each of
these plants should produce.

ECONOMIC LOAD DISPATCH


 Rationale of Economic Dispatch
 There are few hours per day when demand is
extraordinarily high. These are known as “peak”
hours.
- The grid operator would commit a collection of
“peaking plants” (e.g., hydroelectric plants, natural
gas fuelled power stations, etc.) that could be turned
within minutes if needed.

ECONOMIC LOAD DISPATCH


 Thefactors influencing power generation at minimum
cost are operating efficiencies of generators, fuel cost
and transmission losses.
 Themost efficient generator is the system does not
guarantee minimum cost as it may be located in an
area where the fuel cost is high. Also, if the plant is
located far from the load center, transmission losses
may be considerably higher and hence the plant may
be overly uneconomical

CHARACTERISTICS OF THERMAL
PLANTS
 Thermal plant characteristic curves assume
significance in analysing the economics of operation
of thermal plants.

CHARACTERISTICS OF THERMAL
PLANTS
 The
following can be used to describe the
characteristics of thermal plants.
 Input-Output Curve
 Heat-rate Curve
 Incremental Heat Rate
 Fuel Cost Curve
 Incremental Fuel Cost Curve

CHARACTERISTICS OF THERMAL
PLANTS
 Input-Output Characteristics
 The input-output characteristics for any thermal
unit/s that comprise the plant can be obtained
from the operating data.
 It
is the plot of the input BTU per hour versus the
power output of the plant in MW.

CHARACTERISTICS OF THERMAL
PLANTS
 Input-Output Characteristics
 Itshows the amount of heat
input energy required per
hour (BTU/hr) as a function
of the generator’s output in
MW.

CHARACTERISTICS OF THERMAL
PLANTS
 Heat-rate Characteristics
 Theheat-rate is the ratio of fuel input in BTU to
energy output in MWh
 The heat-rate indicates the amount of heat input
energy per MWh of generation required to
produce MW of power. The lower this number, the
less input energy is required to produce each of
MWh of electrical energy.

CHARACTERISTICS OF THERMAL
PLANTS
 Heat-rate Characteristics
 The heat-rate curve plots the
heat energy required per
MWh of generated electrical
output for the generator as a
function of the generator’s
MW output

CHARACTERISTICS OF THERMAL
PLANTS
 Heat-rate Characteristics
 The heat-rate curve is the
input-output curve divided by
MW.
 The heat-rate curve indicates
the efficiency of the unit over
its operating range.

CHARACTERISTICS OF THERMAL
PLANTS
 Heat-rate Characteristics
 Generally, units are least efficient
at the minimum and maximum
portions of their MW output
capability and most efficient
somewhere in the middle of their
operating range.
 Best heat-rate for most efficient
coal unit is 9.0 BTU/MWh.

CHARACTERISTICS OF THERMAL
PLANTS
 Incremental Heat-rate Characteristics
 It
is the slope of the input-output curve at any
point.
 Theincremental heat rate is equal to the small
change in input divided by the corresponding
change in input.

CHARACTERISTICS OF THERMAL
PLANTS
 Incremental Heat-rate
Characteristics
 Itcan be plotted by
calculating the slope of the
input-output characteristic at
every point.

CHARACTERISTICS OF THERMAL
PLANTS
 Incremental Heat-rate
Characteristics
 Ittells about the thermal
efficacy of the unit under
consideration that can be
used as comparison with other
units in performance.

CHARACTERISTICS OF THERMAL
PLANTS
 Fuel-Cost Characteristics
 The fuel-cost curve is the input-
output curve multiplied by the
fuel cost.
 Itspecifies the cost of fuel
used per hour by the
generating unit as a function
of the unit’s MW output.

CHARACTERISTICS OF THERMAL
PLANTS
 Fuel-Cost Characteristics
 Inall practical cases, the fuel
cost of a generator unit can
be expressed as a quadratic
function of real power
generation.

CHARACTERISTICS OF THERMAL
PLANTS
 Fuel-Cost Characteristics
 The
total cost of operating a system with n
generating units can be represented by

CHARACTERISTICS OF THERMAL
PLANTS
 Incremental Fuel-Cost
Characteristics
 The incremental fuel-cost curve is
obtained by taking the derivative
of the fuel-cost curve.
 It indicates the marginal cost of
the unit: the cost of producing
one more MW at the unit

CHARACTERISTICS OF THERMAL
PLANTS
 Incremental Fuel-Cost
Characteristics
 Itis a measure of how costly it
will be to produce the next
increment of power.

CHARACTERISTICS OF THERMAL
PLANTS
 Thesimplest economic dispatch problem is the case
when transmission line losses are neglected.
 System configuration and line impedances are not
considered.
 Inessence, the model assumes that the system has
only one bus with all generation and loads are
connected to it.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
 Theproblem is to find the real
power generation for each plant
such that the objective function
(COST FUNCTION) is minimum
subject to the constraint

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
A typical approach to solve this
optimization problem is by
Lagrange multiplier method in
which the constraints are
augmented into the objective
function.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
 The minimum of this
unconstrained function L is found
at the point where partial
derivatives of the function to its
variables are zero.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
ECONOMIC LOAD DISPATCH NEGLECTING
LOSSES AND NO GENERATOR LIMITS
ECONOMIC LOAD DISPATCH NEGLECTING
LOSSES AND NO GENERATOR LIMITS
Analytical Method
The value of λ is found and is
substituted into the coordination
equations to obtain the optimal
scheduling of generation

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
Gradient Method (Iterative)

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
Gradient Method (Iterative)

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
Example 1: The fuel function of three thermal plants is $/hr are given by:

Where: P1, P2, and P3 are in MW. The total load is 800 MW. Neglecting
line losses and generator limits, find the optimal dispatch and the total
cost in $/hr.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES AND NO GENERATOR LIMITS
 The power output of any generator should not exceed
its rating nor should it be below that necessary for
stable boiler operation.
 Generations
are restricted to lie within given minimum
and maximum limits.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS
 The
optimization problem
becomes:

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS
 TheKuhn-Tucker conditions
complement the Lagrangian
conditions to include the
inequality constrains as
additional terms.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS
 The minimum is found at the point where the partials of the function to
its variables are zero:

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS
 Insummary, the necessary conditions for the optimal dispatch with
generator limits become:

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS
Example 2: The fuel-cost functions of three thermal plants is $/hr are
given by:

The total load is 975 MW. Find the optimal dispatch and the total cost in
$/hr with the following generator limits.

ECONOMIC LOAD DISPATCH NEGLECTING


LOSSES BUT WITH GENERATOR LIMITS

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