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Power system reshvctunng and daegulatian: trading, perfomance. and inlomrion technology/ edited by L.L. h i . p. em Includes bibliograpliical rsfemces and index. fS%N0 471 49500X 1. BIcciriml power systems - Control. 2. Electric utilities - Cost control. 3. Elcchic Utilities Deregulation. 4. Elecmc utilities . Technological innovation%1. Lai, h i Lei
~

TK1007. P68.2001
333.7932- dc21

2001045404

British Libraty C Q t a l o ~ uin ~ g ~ Pu~li~aCion Dafa

A catalogue record for this book is avatlahle from the Bntish Library

TSBN 0 47149500 X Produced from Word files supplied by the Editor Pnnted and bound in Great Britam by Antony Rowe Ltd ,Chippenham, Wtlts This h w k is pnnted on acid-free paper responsibly manufactured from sustainable forestry, in which at least two trees arc planted for each onc used for paper production

............................................................................................................................. reface ............................................................................................................................... e~~~............................................................................................................ ................................................................................................................. ent ..........................................................

1.2 1.3 1.4 1.4.1 1.4.2 1.5 1.5.1 1.5.2 1.5.3

xv
5

xxi

............. 1
2 4

Competitive Market for Generation ............. .................................................. The Advantages of Competitive Generation .................................................. ....................... The Role of the Existing Power lndustry ............. Reconfiguring the Electricity System. ............................................ Trends in Conventional Electricity G Electricity Demand Operation and Reliability ............................................. Power Plant Operation .................................. Reliability Assessment ...................................................... Availability of Fuel .......................................
s ...........................................

1,6.5

Solar.....................................................

....................................................................
1.9.1

17

Capital Costs for New Plants ........................

..............................
.................................................
25

1.10.4

Coimectioii and Use of System Charges . Introduction ..........

1.11.1

vi

Contents

Circuit Connection and P 1.11.3 Performance Analysis..... 1.11.4 Solution Technique......... 1.1 1.5 Results and Discussion ........................... 1.1 1.6 S i ~ p l i ~ Phase-balanci ed 1 .11.7 Appendix ......................... ..................................................... Case Study 2: Controlling a S 1.12 1.12.1 1.12.2 The Solar Power Plant .................................................................................. 1.12.3 Control Structure of the Plant ....... ................................ 1 A2.4 CA Formulation............................................................................................ 1 .12.5 Experimental Results ........... .................................................................. 1 .I3 Conclusions ........................................................................ 1.14 References ...... ............................................................... .........................

1. I J .2

38 40

42
46

2.1 2.2 2.3

2.4 2.4.1

2.5 2.5.1 2.5.2

2.5.3

2.6
2.6. I 2.6.2

2.7
2.8 2.8.1 2.8.2 2.8.3 2.8.4 2.8.5 2.8.6

l a ~ ~ o nE ~ ~ c~~ ~~ ~ c i t ~ e s of i ~ Introduction ............................ .......................... Traditional Central Utility MO Reform Motivations...................... ................... Separation of Ownership and Central Dispatch Versus Competition and Direct Access in the Electricity Market.................................... Competition in the Energy Market ..... .............................................. Competition and Auction Mechanism ..................................... Direct A c c e s s ~ ~..e e ~ ~ ~ ~ Independent System Operator .............................................................................. Pricing and Market Clearing .................... Risk Taking............. Retail Electric Providers.,. ............................................................ Different Experiences........................................................ England and Wales .......... ........................................................ Norway ................... California................ ........................................ Scotland ..................................................................... New Zealand........... ........................................ The European Union and Gennany ..............................................................

....................................................................................

50

54
54

60

61
63 64

71 72 73 74

2.9

......................................

.............................

3 CO a ~ ~ e ~ ~ 3.1 Introdtiction ................................................................. .................................. 3.2 The Independent System Operator ................... ............................................. 3.3 Wholesale Electricity Market Characteristics............ .................... 3.3.1 Small Test System ............ .......................................... ............................................... .................... 3.3.2

.................................................................

76 76 79 80
81 82

Contents

vii

3.3.3 3.3.4 3.3.5 3.3.6 3.3.7 3.3.8

Bidding ..................................................................... ........................... Market Clearing and Pricing ........ ............................................ Market Timing ........................................... Sequential and Simultaneous Markets ............................................... Bilateral Trading............................................... .............................. Scheduling..................

83

89

3.3.11

Physical and Financial Markets......................................

....................................................
stem Capacity .......................................................................... 3.5.4 Technical 'Issues......................................................................

97

4.2. I

Competition in Supply..

4.2.4 4.2.6 4.2.8 4.3

Key Issues or Distribution Businesses .................. Use of System Billing.................................................

Competition in Metering ..........................

Maintaining Distribution Planning ...................

4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10

Network Planning Tools............................................................................. 124 Asset Replacement Planning ................... . 125 Risk Assessment ......................................................................................... 125 Skills and Resources ................................. .......... 125 Neiwork Design ....... ............................................................................. 126 ~ i s ~ ~ ~ u t i on Automation .......................................................

viii

Contents

4.3.1 1 Automation Case Study .Remote Control in London Electricity ............. 129 4.4 Future Devclopmeiit .............................. 4.5 Appendix: Distribution Automation i 4.5. I Introduction ................................ 4.5.2 Remote Terminal Units .................................................. 4.5.3 SCADA Master Station . ....................................................................... 134 4.5.4 S o h a r e Functionality .................................... .... 136 4.5.5 Operations and Maintenance (O&M)......................................................... 136 4.5.6 System Integration, Design and Management................... ............... 137 4S.l Coi~~inunication Systems . ............................................................ 140 4.6 References ...............................................................
5.1 5.2 5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.4

Introduction ........................................................................................................ Role of the TP ....... .................................................

.................................................... 1
153 155

New Market Organisation .

5.5
6.1 6.1.1 6.1.2 6.1.3 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.4 6.2.7 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.4

Priority Insurance Scheme........................................................ Transmission Expansion ........................... Conclusions ........................................................................................................ References .............................................. ....................

169 170 171

pen Access ...*..........= 17 Introduction .................................................................... The Traditional Power Industry Motivations for Restructuring the Power Industry.. Unbundling Cencration, Transmission and Distribution ........................... 174 Components of Restructured Systems........................................ ...... 175 Gencos ................................. ............ ..................................... 175 BOT Plant Operators and Contracted IPPs .. 175 Discos and Retailers ..................................................... 175
Independent System Power Exchange (P

...........................................................

................

....................................................
....................................................

176 176
176

PX and ISO: Functio

....................................
California Power Exchange ........................................... IS0 Functions and Responsibil~ties ........... ..................................... Classification of IS0 types ..................................................... Trading A~angements ................................ ..........................

178

183

6.4. I 6.4.2 6.4.3 6.5 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.6 6.6.1 6.6.2 6.6.3 6.6.4 6.7 6.7.1 6.7.2 6.7.3 6.7.4 6.7.5 6.8 6.8.1 6.8.2 6.5.3 6.8.4 6.8.5 6.9 6.10 6.1 1 6.22

The Pool .......................

.........................................
..........................
184 186 187

ulti 1atera1 Trades ......... T r ~ s ~ i s s i Pricing in on

..........................

olled-in Pricing Methods ..............

.........................

System Control ............... hicillary Sewice Provision............................................. Congestion ~ a n a g e ~ eii? Open-access Transmissioo Systems...................... nt Congestion Management in Nomial Operation.......... Integrated Transmission patch Strategy................ wer System ........................ ~ ~ ~ u s t r a Using a Sma ~ioii Sfatic Security-constrainedRescheduling ...................................... Dynamic Secmity-constrainedRescheduling ................. ........................... Open-access ~oordi~iatioii Strategies..... Price Elasticity as a Me Relieving ~ongestion ~oordina~~on betwce ~l~ustrat~on oTraii~action Coordiiiatioii ...... ~ n t e ~ r ~Coordinati ted Conclusions ..........................

195

202

209

............................................................................. ......
....................................................................................
a

2 16 216 217

............................................

*.**

a***...

7.1 Development of Electric Power Industry 7.2 S ~ c c e ~ Growth of Power Produ ~~ve 7.2.1 Further Expansion of Power Nehvo 1.2.2 Continuo~I~ increase of Electricity C 7.2.3 7.3 ~ a n a ~ e i System~ Electric n e ~ of 7.3.1 The State Power Corporation ......... ..................225 hilosophy aiid Strategy o f tlie SP ............................................................. 23 1 7.3.2 Market in China... 7'4 7.4. I ~ o ~ i v a t ifor Reformation ...................................................................... 234 o~s 7.4.2 efonn PLaii of tile SP ........ 235

Contents

Obstacles in Establishing the Power Market in China 7.4.3 7.5 Electricity Pricing .................................................... Basic Theory of Predicting Electricity Costs .. 7.5.1 Electricity Cost Derivation.............................. 7.5.2 Elcctricity Pricing of Inter-provincial Power 7.5.3 7.6 Traiismission pricing ...........,....,.......................,.,,. Current Decomposition Axioms 7.6. I ~athematical Models .,.................................. 7.6.2 ................................... '......'.....~..,.. 252 Methodology of Graph The0ry..... 7.6.3 Algorithms and Case Studies............................ .... ...... 253 7.6.4 ......................................... ......................... 254 7.7 7.8 Acknowledgenients............... ............... 7.9
~

8.1.1 Benefits o f FACTS Technology....................... 8.2 Transmission System Limitations ........ 8.2.1 System Stability....................................
s......._. 261 ..........

8.2.4
8.3

Thermal Limits ......

FACTS TeGhnology.............

..........................................................

262

Control Methods and DSPiMicroprocessor Technology ........................... 264 8.3.2 8.3.3 Present Status on FACTS Solution Options with FACTS ............ 8.4 8.4.1 Fundamental Concepts of 8.4.2 Skuiit Controllers.. ............................................................................. 266 8.4.3 Series Controllers .................................................. Combined ScriedShuiit Controllers ...,............,.............. 8.4.4 8.4.5 Phase Angle Controllers.................... HVDC Transmission Controllers ............................................................... 278 8.4.6 Other Controllers........." ........... .. 8.4.7 8.5 ........................ '........ 281 8.5.1 85.2 8.5.3 8.5.4 UPFC .................................. Concluding Remarks ....... 8.6 Ackaowledgements ........................... 8.7 ...."_........_._.284 ..... ................... ....l.............. 8.8
~ ~

Contents

Xi

anagenment

.........................................................................................................
...............................................................
287

9.2 Pre-privatisation (1 990): Th 9.3 Post-privatisation(1990): F 9.4 Early-inid 1990s: Getting t 9.5 1994/5+: Getting More for Less .................... 9.6 Late 1990s: Capital Effici August 1999 Interim Report: All Change?.... 9.7 9.8 The 1990/2000 Regulato 9.9 Asset Ownership............................. 9.10 Asset Governance. 9.11 Asset Management ...................................... 9.12 Asset Information and t 9. I3 Condition Monitoring.................................. 9.13.1 Transforniers..... 9.13.3 9.13.5 9.13.6 9.13.7 9.13.9 Switchgear..

.......................

289

...............
298

~ n d e r s ~ a i i dLong-term Asset Costs in~ ......................................... Underground Cables ..................................................... HV Cables.................... ............................. Zero Sequence Impedance

...................

...............
9.16.4 9.17 Common Mode Failure.................. Asset Infoimation Acquisition ...........

9.17.5

Data Cleaning ...........................................

Xii

--

Contcnts
I -

9.18 Conclusions .......................................... ........................ .322 Appendix: Fuzzy DGA for Diagnosis of Multiple Incipient Faults...................323 9.19 9.19.1 The IEC DGA Codes ...... ......................................... The Fuzzy IEC Code 9.19.2 9. i9.3 Fuzzy C)iagnosis Results... ............................. 9.19.4 Trend Analysis of Individual Faults .... ........................................ 327 9.1 9.5 Comments........................... ............................. 9.20 Refesences . y

..............................................................................................................

10.1.1 10.1.2

..................................................................................... A General Overview ....................................

PQIS

10.2.1 10.2.2 102.3

The Wavelet Transform. ........................................... Wavelet Analysis ..................................................... Application to PQ [25] . .....................................

336 339

...........................................

342

10.3.4

~ p c s i o ~Distortion ic

10.6

~~f~rc~ces

........................................................
11.2 11.2.2
S o h a r e Agents .....................................

353

Genesal Issues and the Future of Agents.

....................................

362

.4

Evolutionasy Programming-based Optimal Power Flow Algorithln

..............................
11.4.2
11.4.4 11.4.5

EP.. ...................................

..............................................

373

Load flow Solution.......... Gradient Acceleration........................................................

...........................

379

Contents

'.*

Complex Artificial Neural Networks for Load Flow Analysis ..... 11.5 Conventional A for Real Numbers .. " 11.5.1 New ANN for Complex Numbers ......... 1 I .5.2 Comparison of the two ANNs by Coinputer Sirnulatiou ........................... 11.5.3 113.4 Applicati 11.6 Virtual Reali Types of' VR systems................... 11.6.1 1 1.6.2 Non-immersive (Desktop) Systems. .............................................

388

396

11.6.6
11.6.8

Cave .................................................... Augmented ...............................

11.7.1 11.7.2

The Hardware ................. ................................................................... The Correspondence......................................

401

X 1.7.4 Iinp~eiiientation Example........................ 11.8 Coiiclusioris ........................... 11.9 Acknowledgements..

.................
12.2 The Internet................................ ...................... 12.2.1 What Is the Internet? .................................................................................. 416 12.2.2 oes the Internet Work .... ............417 12.2.3 What Would Happm Without the Intcrnet? ............................................... 417 12.2.4 Wow Can the Power lndustry Benefit from the Internet?. 12.2.5 ow Can I Find the Inromiation I Need?.................................................. 419 12.3 Usability of the Interne 12.3.1 12.3.2 12.3.3 Internet Products.......... 12.3.4 12.3.5 iltimedia Access .............. 12.3.6 0x1-line Setvices ......................................................................................... 42 I 12.3.7 Support for Professionals ........... 422 12.3~8 The Power Industry and the liitemet .......................................................... 422 12.3.9 Recent Improvements on the Inteilnet ....... 424

xiv

Contents

12.4 Internct Technology............. .... ....... .................424 12.4.1 Access to the Internet ................................................................................. 425 12.4.2 Operating Platforms on the Internet ..

12.4.7

Internet Sccurity ......................

......................

433

Interpreled Versus Compiled Iaiguages .... 12.5.3 What Is JavaScript? .................................................................................... 434 12.5.4 What Is Java? .............. .......... ........ ........ 435 12.6 Web Pages. ................................................ 436 12.6.1 .. 437 12.6.2 Difference Between a Static and a Dynamic Web Page ............................ 437 12.6.3 Displayiiig Database Content ................................... 438 12.6.4 Web Pages with Fuuctionality.................................................................... 440 12.6.5 Web Pages with Integrated Applications ...... 12.7.1 Why the Need for XML
ation of Content and I .ayout.. .................... Layout Validation with DTD .............................. Styleshects .......

12.75

.....................

445

Monitoring Power Station Equipment........................................................ 454 12.8.3 .457 12.5) Case Study 2: Power Trading Application .... Trading Platform Architecture ................................................................... 458 12.9.1 12.10 Conclusions ................................ 12.11 Acknowlc~~ements ...... ................................................................... 460 12.12 Refercnces ....................
ex

..................................................................................................................................

The electricity power utilities in many countries have been, or are being, rest~c~ured. There are many reasons for restructur~ng, some countries restruc~uringhas been driven In by the desire of gove~ment meet ~ncreasingdemands for electricity by encouraging to independent power production, which relieves government of a financial obligat~on.In countries where ownership of assets is in private hands, restructuring has been driven by mergers and ac~Liisi~ion~, as companies seek to gain competiti~e advantage. In the most a ~ v a n countries, restruciuring is being driven by the desire to allow c~ consu~ers choose their electricity supplier on the basis of price and service provided~ to These drarna~~c changes in the organisation of electricity power utilities bring with them new challenges and opportunities, as the previous centrally designed and operated systems are di~mantled replace by a new competitive framework. and ~ompani~s operating in a competitive market need more s o ~ ~ ~ i s t i c a ~ e d and control management systems to ensure that their business objectives can be achieved. The development and application of new technologies is also accelerated in this new environmen~~ companies seek to improve their effecliveness and efficiency. as This book is con~ributed a group of world authorities. It explains in depth the reason by ring, without including superfluous detail. Examples are given from tails are provide^ on new s~rate~ie$ tec~nologie~ and which are being f ~e~~e~ation~ ~ransmissionand supply. The implications for the ~ n v i r o n ~ e ~ ~ are also reviewed. Tools being ~ t i for asset s an age men^ and fo ~ ~ ~ management of ~nfrastruc~ur~ i~l~strated are with practical examples. m o d e ~ l i n ~ general analysis of ~ o m p e t i ~ power markets are also illus and ~ve This book provides a com~rehensive review of all the many facers place in a d y n a ~ i c ~ d u s X iy . o ~ p u ~ s o r y ~ ~ sc t reading for graduates and e n g i ~ e ~and , ~s other pro~essiona~s, are entering or involved in the electricity power industry. who

avid G. Jefferies CBE, B;

This book was written as a result of the ongoing stimulating worldwide dere of the power industry. This move away from the ~aditional mo towards greater competition, in the form of increased numbers of indepe producers and an u ~ b u of the main~service, starred in the United King ~ ~ ~ n ~ and this change was driven by the large differences in electricity tariffs across regions, by adva~icemen~s technologies which &low small producers to c o ~ p e t e in with large ones, and by a strong belief that competition will produce an all-win situat~on. group of experts to produce a broad and The book was contributed by an ititernat~ona~ of the main issues. The intent has been to provide the reader with an in etail ut without excessive specialisation, to avoid a purely ~ualitative trea~meIi~ epth by ~ ~some a ~ a ~ y and numerical methods, and to offer9whenever possible, real ~ c a ~l ~ d ~ ~ ~ ~ ~ case studies, worked examples and project discussions. Since each power utility is unique, it will not be possible to present the best path to fotlow in the restructuring exercise. The market models, regulation and tariffs used by orks, and the r r ~ e c h ~ ~ ~ s~ ~ i n t a a high level of r e ~ ~ a ~ ~ ~ i ~ y , for m ~ ~ ~ n g will use of the advancement of communications technology and increased compu~iii~ power, it is possible to consider different market structures. a d v ~ n c ~ ~no n t ~ f ~ ~ could be availabtbte in time for the business o ~ ~ r a t ~ ~ n . e~ n a ~ ~ o n Different markets have been considered in the book. In brief, they could be u ~ m a r ~ s e d types. In the complete1 ~ a r ~ e t - d r i v eenv~~onment rket ~orcesseek to n the b e h a v i ~ ofrvarious layers in the market, e.g. the ~ regulators. In the kransiti 1 markec there is a process o r ~ ~ u i a e n v i r o n ~ ~ tot a d ~ r e g u l a ~ e ~ t~d n ~nvironment.In the embry~nic free m a ~ ~ e ~ , state retains own~rship the generators and some of the ~ a n s ~ ~ s sinfrast~uct~re, of ion opens up the market to ~ ~ m competition at the distribution level. ~ ~ e d As there is much u i i c e ~ ~ n inythese environments, due to the s t ~ c t ~ofethe t r E pi~ning over a long-term horizon is p e r c e i v ~ very difficult at present. Yet, as long-term planning, it is likely that the electricity power industry would be at great risk, as it ~~~$~~ not be able to supply the growing d ~ or to~~~~~a~~the ~ n ~ service as it is c ~ r r e ~ t providing to its consu~ers. recent chaos in ly The his could have very serious con~~quences the lon to ~ndus~~. This book shows how new ~ e c ~ i n o ~ o ~allow us to cha will y market structure to one that relies on co~~petition set the to t e c ~ ~ o ~ o g iwe ,can use less energy, result in^ in lower ene es avoid OX defer a d d i ~ ~ o n a ~ expensive plant c o n ~ ~ rThe ~ ~~~ d OF new p ~ ~ ~ ~ ~ ~ a o ~ .~ ~ o ~ ~ such as independent power producers, power marketers and brokers, has a ~ d e da new task of maintai~inga reliab~eelectric system. This book will detail into accou$itsome of these issues. In the new market e n v ~ r o n generation represents most of the CO ~~~~~~, r e p o ~ ~ the deve~opmentof new strategies and compares ~ ~ f f e ~tec t on en e l e ~ t r ~ c i~ e n e r a ~ i o ~ ~ n v i r o n m ~and ~ ~y with n ~ political considerat~ons. This i ~ c i ~ d e s
t

xviii

Preface

decen~a~ised power supplies, renewables, regulatory constraints, new technical challenges ifferent mechanisms, such as the pool, have been set up for the operation of the new emerging electrical market. The market should dictate when new generation is needed and where it is located. ince there i s a large number of players in the m ~ k ~ ti s i m p o ~ n to WO it , t type of bidding, or negotiation strategies that each player can use. It is especially ~ ~ p o ~ a n t to work out the information content of the bidding strategies. Chapter 2 covers expe~ence and tools from various countries on power utility res~cturing deregulation. An~lyt~cal for the ~ o d e l ~ i n g analysis of c o m ~ t ~ t i v e and power markets are presented. Chapter 3 also discusses several wholesale electricity markets around the world and most of these are in a continuous process of change. This evolutionary process is being d ~ v e K ~ the need to by address some of the outs~anding issues in the design and implementation of these markets. Some challenges, such as reliability, market power evaluation and mitigation, are outlined. hapter 4 reports on the change in ~~s~nbutio13 business in a dere~ula~e Various issues such as planning, control, load forecasting, metering, customer services and risk assess men^ have been considered. A case study on the remote control of London ~ l ~ ~ r iiscincluded, ~ly Chapter 5 deals with transmission expansion. Following develop men^ of the market, the transmission provider transforms into the independent transmission company (TTG) so as to adnilmir a highly sophisticated market. The ITC is required to make c~mplexbusiness 5 over a wide range of time scales, such as the long-term, short-term and near realis chapter discusses future directions and ~ o d i ~ c a t i o n s the ~ g u l a ~ o policies to ry r. 0th a market maker and a service ssion open access. The economic issues associaked with scussion of some ~rnpor~an~ opera~oiia~ issues in the e ~ e r g ~ n mal dispatch, congestion mana~ement the e ~ f e of ~ e c ~ i n and c ~ en discussed with examples from the open-access viewpo~nt. 7 Chapt~r deals with the Chinese market. A tailed back~roundon the industry is given. It also explains why the approaches a opted by the d e v ~ ~ o p are not suitable. The chapter also proposes a new app ch to c a l c u trans~ ~ ~~ power systems with better e f ~ c i ~ n can,ac~urate y To operate the ever i transmission loss m ironment, reactive power control to assure v o ~ ~ ~ Row control to avoid line overloading o p ~ r a t i o Flexi ~. ctronics technology presents the applica ms. The impact of entrants is discussed. Chap~er deals with asset management. A comprehensive awe 9 ~i~y required to support business in the deregulated e ~ e c ~ i market. characteristics 06 the model components are descdbcd in detail. It wit1 benefit all internal and external users in the open-access environ~ent, resulting in realistic and traflspa~ent open-access charges, and bring long-term ecoi~omicbenefits to all pa anagemene in power industry r e s ~ ~ ~ c t u n n ~ ~ u ~ ~withepractical tire i at d ex~~pl~s.

Preface

xix

Elechicity industry restructuring has had a dramatic impact on the energy market. To gain a conipetitive advantage, toclays energy providers need to focus on value-aclded products and services, such as power quality. Powcr quality is a critical issue for industrial customers, especially in the high-tech sector. In order to understand power quality, many customers or energy providers have installed power quality monitoring systems to record electrical system perfo~iance andor facility equipmcnt reactions, and the analysis of the monitored data has become a challenge. Chapter 10 reports on the techniques, methods and standards used or proposed for power quality issues. The explosion in thc use of information technology has seen the introduction of computer-based work management systems, asset management systems, and control systems to manage system operation. Information teclinology is rnalcing markets more efficient, resource production less speculative and costly, and the delivery and monitoring of energy more etficctive, while enfi-anchising customers to make more intelligent choices. Improvements in infomation technology will continue to allow economical aiid reliable solutions to problems facing tlie power industry. Chapter 11 introduces intelligent agents, genetic algorithms, evolutionary programming, artificial neural networks and virtual reality technology, and reports on their applications to load flow, valuing electrical options and power equipment diagnosis. Tlic chapter highlights the technology behind the new market brought about by deregulation. Energy service companies will continue to make iucreasing demands for more sophisticated software and equipment to monitor and control various aspects of power delivery. In just a few years, Java has taken the networked world by storm. Java comnbiries powerful, object-oriented programming with the ability to run on any computer platform without the need for recompiling or translating. Java promises to play a yet more kndaiental role in the future of on-line computing, including electronic commerce, for it can allow anyone to make use of powerful applications anywhere. One result of its i s that platform iI~~lepe~idence a scrap of code called a Java applet can be embedded in a World Wide Web page. Chapter 12 deals with the application of the Intcmet to power station monitoring and discusses its use for energy trading. It also presents an introduction to Web technology and i t s applications. This book addresses the most up-to-date problems and their solutions in the arm of power system restructuring aid deregulation in a cohesive manner. It will provide invaluable information for power engineers, educators, system operators, managers, planners and researchers.

The editor wishes to thank Mr Peter Mitchell of Wiley and his team in supporting this project. The editor also wishes to thank all the contributors, without whose siipport this book could not have been coiiipleted. In particular, the editor thanks Harald Brawn in maiiagiiig to complete the m a n ~ ~ s c rdespite great diffkulties caused by software ~iico~patibility. ip~ The editor also wishes to thank rs Vinay Sood and Professor Sood for their creation of the iuitial manuscript. The editor i s very grateful to Dr D a d Jefferies for writing the ~ o r $ w ( ? rThe permission to reproduce copyright materials by the IEEE and IEE for a ~. number of papers mentioned in some of the chapters i s most helpful. The arrange~ent f o the index by Miss Qi Ling Eai and Chun Sing Lai is imch appreciated. Last but not least, we all thank Wiley for supporting the prcparat~~n oftbis book and for the extremely pleasant co-operation.

ei Eai was appointed Senior Lecturer at Staffordshire Polytechnic (now Staffordshire University) in 1984. From 1986 to 1987, he was a Royal Academy of Engineering Industrial Fellow to both GEC Alsthom Turbine Generators Ltd and its Engineering Research Ceutre. He is currently Head of Energy Systems Croup and Reader in Electrical Engineering at City University, London. He is also an I-lonorary Professor at the North China Electric Power University, Beijing. Dr Lai is a Senior Member of the IEEE and a Corporate Member ofthe TEE. W has authoredlco-authoredover 100 technical e papers. T 1998, lie also wrote a book entitled Ivrtelligenf System Applications in Power n Engineering - Evolutionary P r o ~ a ~ m and ~Neural Networks published by Wiley. in Recently, he was awarded the IEEE Third Milleiiiiium Medal and 2000 IEEE Power Engineering Society UKRl Chapter Outstanding Engineer Award. In 1995, he received a high-quality paper prize from the International Association of Desalination, USA. Among his professional activities are his contributions to the organisation of several ~nternat~ona~ conferences in power engineering and evolutionary computing, and be was the Conference Chairman of the International Conference on Power Utility Dercgulation, ~ e s ~ c ~ f l n g and Power Technologies 2000. Recently, he was invited by the Hong Kong Institution of Engineers to be the Chairman of an Accreditation Visit fo accredit the University (IIons) degree in electrical engineering. Dr Lai is also Student Recruitment Officer, IEEE UI(R1 Section. In 1999, he was included in The Dictionury of Contemporary Celebrities qf Worldwide Chinese. In 2000, his biography was included in the 18th Edition of J z !4%0 %o 5 in the FVorld, Marquis, 1JSA. His b i ~ ~ g r has also been selected or inclusion in the 2001 a~~y Who I;yho in Science and Engineering, Marquis, USA.
Sc, PhD and DSc from UEUIIST, ~ a n c h e s ~ eIJK. r,

of the Royal Society of New Zealand. From 1970 to 1975, he was Head ofthe Power Systems and High Voltage Groups, UMIST. From 1975 to 1999 he was Professor of Electrical Engineering, University of Canterbury, ~ h i ~ s t c ~ ~ u r c h ,Zealand. From 1982 to 1995, he was also the Director of Systems New Software & Instrumentation (a Christchurch-based consulting conipany established in 1982). From 1985 to 1990, hc was Head of Department, Electrical and Electronic ~ n g ~ n e e rUniversity of Canterbury. From 1988 to 1995, he was a ~ e i n b of rthe i~~~, ~ CIGRE-I4 Working Group on HVdc harmonics (14-03). From 1989 to 19525, he was Convenor of GIGRE Task Force 36-05114-03-03 on AC System Harmonic ~ o d e l ~ i n g for AC Filter Design. From 1990 to 1996, he was a Member of CIGRE JWG 11/14-09 on Unit Connection. From 1996 to 1999, he was Convenor of CIGRE Task Force 14.25 on Wannonic Cross-inodulation in HVdc Traiisniission. Since 1990 and 1995 respectively, he has been Dircctor of CHART Instniments, Clx-istchurch and Director o Consulting, a Christchurch-based consulting conipany. Professor Arrillaga h many awards, such as John Hopkins Premium of the IEE, UM, 1975; the Premium, IEEE Conference on Harmonics and Quality of Power, ~ ~ ~ Q P 9 Electrotechnical Paper, IPENZ Annual Conference, 1996; Uno Lamm Hig Current Award, IEEE, 1997; John Munganest International Power Quali Power Industry, 1997; Presidents (Gold Medal) Award, Annual Meeting
xxiii

XXIV

~ogra~hy

~otechn~cal paper, I P Annual ~ o~ f e r e n ~1999; Silver ~ n ~ e, a1 S o c i e ~ Innovatio~in S~ienceand ~ e c h n Q ~ o2 y , or ~ ~echniea~ Committees Award, 2000, trained in the area of ~ o ~ e~ec~ronics e r with ~emen$, r a n k f u ~ , ~ Germany, from 1985 to 1989. He obtained his Diploma in ~ e ~ e c o m ~ u n i c a t iat n o F r i e d ~ ~ r ~ - ~ ~University, G ~ ~ a n in , 1994. He was a ~ a ~ - t i m e c ~ r e rat City essen y le n nr ni ~ ~ ~ ~ r ~ Qtny~, ofrom 1994 to 1996 ~ e a c ~oi b j ~ c ~ - ~ r i e~ t ~od g ~ a ~inr C++. ~ ~ si n, e was a Senior Programmer at A M . EST I n t ~ ~ a t i o n a ~ ~ o ~ ~ from 1996 to Etd, o n , esent, he is a Senior Software ~ n ~ i n e e r A L T I ~London, deve~op~ng , new nology s o f ~ a r eHe is w ~ r k i n ~ his . for at Ct ~ n i v e r s on a p a ~ - ~ i m e iy i~ ects to achieve it in July 2001. His arch interest is the e~tractionof i n f o ~ from data ~ ~ neural nehvor a ~ ~ using
~0~~~~~~ A. is Chair Professor and ~ngin~ering, Hong Kong Polytechni The ity. His BE degree is from the U n ~ ~ ~ rGeylon and PhD from ~ ~ p e r i a l of s i ~ Londo~. has ~ ~ e v i o u worked He s~y in Sri Lanka, USA, ~imbabwe Sweden a and search interests are in power system r e s ~ ~ ~ ~pricing,, control, MVDC, ~ a n s ~ estability, ~ro~ection ~ e l i a b i ~ i ~ . i n g n~ and ~ r ~ e s sDavid was elected an IEEE FeItow in 2000 for his ou~s~and~ng ~ ~ i b ~to i o n or ~o ~ trans~i~$sion acces He is the regional editor electricity supply in dust^ reform an ~o~~ tric ~ o wSystems ~ r for Asia of the ~ n ~ e r n a tJournal l

is r~$p~nsible skate for s the dis~ibution eonip ~ ~ n of e pian~inga c the n systems in the UK and abroa businesses, and helped deve~opthe d~s~ibutjon artered ~ n ~ ~ nand r ee lie has been at MIT since 1984 as a Senior Research Scientist in the here she conducts research and teache ~ r a d ~ acourses in the area of te systeni~ Since September 1999

Young Investigator Award for ~ s ~ i n ~ ~Li esc~ r e e .Pro~ess ~~ r d ale ~ i e c t ~ c power sys

Biography

xxv

has been Chairman of the National Grid Company plc since 1990, when the Company was formed as part of the privatisation of the UM electricity sector. His bold and far-sighted leadership has been a key ingre~ient its success of the in National Grid Group plc from the performance of the transmission system during a decade of major change in the industxy, though the conception and development of Energis, to the growth of the group internationally. He retired as the Chairman of the National Grid Group plc in July 1999. Dr Jefferies was previously Chairman of the London Electricity and of Viridian plc. He was the 1997/98 TEE President. Owing to his huge contrihution made to thc institution, he i s an Honorary Fellow of the IEE. He i s also a Fellow of the Royal Academy of Enginecring. He was a pioneer in the restnicturing and deregulation of the UK electric power utility.
ia received his PhD from the University of California, Berkeley, in 1983. Since then, he has been at the University of Washington, Seatile. He is currently Professor of Electrical Engineering and Associate Dean of Engineering at the University. Dr Liu is a Fellow of the IEEE and the US representative on CTGRE Study Committee 38. His areas of interest include power system economics, intelligent system applications and vulnerability assessment.

o obtained his MSc and PhD from the University of Manchester Institute of Science and Technology. He is currently the Head of the Power Systems Research Group at the University of Strathclyde. His group specialises in energy management systems, issues concerning the electricity market and deregulation, simulation, analysis, monitoring and control of powcr networks. Professor Lo has been an international advisor and member of many organising committees of international conferences, consultant/visiting professor to over 12 educational institutions, and has lectwed extensively in the Far East, Europe and America. He is the author of over 260 technical pL~blications. is a Fellow of the TEE and a Fellow of the Royal Society of Edinburg~~. He
is a member of London Electricitys Executive and is currently the Managing Director of both London Power Networks (LPN), which i s the distribution business of London Electricity, and London Electricity Services (LES), which is the private networks business of London Electricity. As Head of the Public Distribution Business he led the work during 1999 which culminated in the formation of 24sevei1, the joint venture network management services provider formed by LE and TXU Europe (Eastern Electricity). He has been in the electricity supply industry for 25 years in a variety of both operational and strategic roles within the distribution business. He has a practical engineering background having worked in a number of operational, project manager and leadership roles i n utility power distribution. Mr Morton is a Chartered Electrical Engineer and a Fellow of the IEE. He also represents the UK in the business area of distribution at ~ U ~ the pan-European association of electricity companies. E ~ ~ ~ ~ ~ C ~
SS ~~~y received his BE and PhD degrees from the National University of Ireland, Dublin, in 1983 and 1989 respectively. He is currently a Professor at the National University of Ireland, Dublin, with research interests in power systems, control theory and biomedical engineering.

XXVi

Biography

ebllk is a Professor of Electrical and Coinputer Engineering, Iowa State University, Ames, Iowa. He received his BS and MS degrees in electrical engineering from Purdue University and his PhD in electrical engineering from Virginia Tech. His industrial experience includes over 15 years with a public utility (Commonwealth Edison), with a research and development film (Systems Control), with a computer vendor (Control Data Corporation) and with a consulting firin (Energy and Control Consultants). He has participated in the functional definition, analysis and design of power system applications for several energy management systems since 1971. Dr Sheble also designed the optimisation package in use at over 50 electric utilities to schedule electrical production. He has consulted since entering the academic world with companies i North America and n Europe on electric industry deregulation as well as expert witness testimony on the National Electric Code and lntellectual Property Rights. His consulting experience includes significant projects with over 40 companies. He developed and implemented one of the first electric market simulators for the Electric Power Research Institute using genetic algorithms to simulate the competing players. He conducts approximately 24 seminars each year on optimisation, artificial neural networks, genetic algorithl~~s and genetic programming, and electric power deregulation around the world. His primay expertise is in power system optimisation, scheduling and control. Dr Sheblt? has been awarded over 1 million dollars of research support over tlie last 10 years, primarily in the application of adaptive agents to market bidding. He has authored a review of adaptivc agent market-playing algorithms for the Kluwer press release P o w r Systems Restmcluring: Engineerin'q and Economics edited by Ilk, Galiana m d Fink. He has written a monograph on tools and techniques for energy deregulation entitled Conjputational Auction Mechanisms.for Restructured Power Industry. He has also been an invited guest on radio talk shows and a resource for several news articles on electric power deregulation and industrial trends. His research interests include power system optimisation, scheduling and control. Professor SheblC is an IEEE Fellow. ~ o ~ Vijay ~ s obtained his BSc ftom University College, Nairobi, and his MSc e So0 ~ ~ degree fi-om Strathclyde University, Glasgow, in 1969. He obtained his PhD degree in power electronics from the University of Bradford, England, in 1977. From 1969 to 1976, DKSood was einployed at the Railway Technical Centre, Derby. Since 1976, he has been employed as a Researcher at IREQ (Hydro-Qukbec) in Montreal. Dr Sood also has held Adjunct Professorship at Concordia University, Montreal, since 1979. Dr Sood is a Member of the Ordre dcs ingknieurs du Quebec, a Senior Member of the IEEE, a member of the IEE and a Fellow of the Engineering Institute of Canada. He is the recipient of the 1998 Outstanding Service Award f%omIEEE Canada, the 1999 Meritas Award from the Ordre des IngBnieurs du Quebec, and the IEEE Third Millennium Medal. Dr Sood is presently the Managing Editor of the IEEE Canadian Review (a quarterly journal for IEEE Canada). He is a Director and Treasurer of IEEE Montreal Conferences Inc. He has worked on the analog and digital modelling of electrical power systems and their controllers for over 25 years. His research interests are focused on the monitoring, control and protection of power systems using artificial intelligence techniques. Recently, Dr Sood has been interested in the Internet and its applications for teaching purposes and was mandated by IEEE Canada to publish the journal IEEE Camdian Review on the Internet (www.ieee.ca). Dr Sood has published over 70 articles and written two book chapters. He has supervised 14 postgraduate students and examined 13 PhD candidates frotn universities all over the world. He is well known amongst thc electrical engineering community in Canada.

Biography

xxvii

is Technical 2 Regulation Manager of London Power Networks (LPN). % r Cliff LPN is the distribution business of the London Electricity Group. In his current position, he is responsible for all technical and regulatory matters regarding the public cleclricity distribution system in London and particularly the quality of supply and reliability performance that sets London apart. He has previously been Strategy Manager, Asset Manager and Planning IvIaager for London Electricity's Public Networks Group. In his recent roles he has championed the development of an integrated technology strategy, strategic asset management, fault causation analysis, incipient fault detection and location techniques, as well as creating the strategies behind the implementation of one of the largest distribution remote control, telemetry and automation pro-jects. Mr Walton joined LPN whea it was established in April 2000; his career in electricity distribution spans 29 years. IIe has worked with a number of overseas utilities and has written and presented many papers on a wide variety of technical and asset governance and m ~ a g e ~ issues. en~ He is a Chartered Electrical Engineer and a Member of both the IEE and IEEE.

r ~ ~ ~ s s ~ r was born in May 1936. He graduated from Xi'an Jiaotong University in 1957. He has since been with the School of Electrical Engineering of the university, where he now holds the rank of Professor and is the Dircctor of the Electric Power System Department. He is a Senior Member of the IEEE. From September 1981 to September 1983, he worked iii the School of Electrical Engineering at Cornell University in Ithaca, New York, USA as a Visiting Scientist. From September 1991 to September 1993 he worked at the Kyushu Institute of Technology in Kitakyushu, Japan, as a Visiting Professor. Prof Wang has a 40-year experience of researching and teaching in electric power system analysis and planning. His main research fields include reliability evaluation, generation and transmission network planning, operation planning, system contingency analysis, dynamic and transient stability, short-circuit current calculation, optimal load flow, and probabilistic load flow. He is especially proficient in constructing mathematical models and developing application software in the above areas. He also took part in many research and planning tasks of key electric power projects in China, such as the Three Gorges Hydro-Power Station. He proposed a new transmission system, namely the fractional frequency transmission system (FFTS) which uses a lower frequency to reduce the reactance of AC h-ansniission systems. I n recent years, he has been researching the electric power market.

~ t received~his BE (Ions) and PhD degrees fiom the University o f s ~ Canterbury (New Zealand), where he is now a Senior Lecturer. Dr Watson has authored and co-authored approximately 100 technical papers and 3 books. Paper awards received include; Best Paper Award (The Sixth International Conference on Harmonics in Power Systems, 1994), the William Perry Award (TPENZ) and Finalist for the Carter Holt Harvey Packing Award for Innovative Technology (IPENZ). He has also given a nuinbcr of invited lectwes in Singapore, Australia and Canada,
ail Wen received his BEng and h4Xng degrees from Tiarijin University, China, in 1985 and 1988, respectively, and his PIiD from Zhejiang University, China, in 1991, all in electrical engineering. He was a Postdoctoral Fellow at Zhejiang University Eroin 1991 to 1993. He joined the faculty of Zhejiang University in 1993, and has been a Professor of Electrical Engineering since 1997. W held a visiting position at the National e

xxviii

~io~apliy

apore from 1995 to 1997. e is on leave from Zh ong Polytechnic Universi as a research fellow. ral Science Award of China, Zhejiang Provin~~aI Young ~cientist Top and several other awards from the Ministry of Education (China), Zhejiang ial gove~ment, Zhejiang University and the National University of Si~gapore. He is a ~ e ~ bof the editorial board of the JournQzo ~ ~ ~ ? o mofEleclric Power ~ y s ~ e ~ s e r u~~on ese) and was a guest editor of a special issue on Artificial intelligence ~pplicat~ons r systems. His research interests are in power system r e s t ~ c ~ r i n g artificial and lications in power systems. obtained MSc, PhD and DEng from University of ~ a n c h e s ~ e r echnology in 1971, 1974 and 2001 res~eceive~y. u ~ e he is ~ ~ C n ~ Electrical En~ineering the University of Western Australia. at system dynamics, protection, electromagnetic transient evaluatio n, artificial intelligence and c o ~ p u ~ a t i o nin~elligence in power system a~ operation and planning. Professor Wong has published over 140 research papers and has been awarded the Sir John Madsen Medal of the Knstitution of Engineers Australia. He was the Founding Chairman of the Western Australia Chapter o f the IEEE Power Eiigineer~ng Society and was the Chairman of the Western Australia Section of the IEEE from 1999 to 2000. He h a member of numerous technical committees for intema~i~nal of 2000 co~~erences~ r Wong was the General C h a i ~ a n the IEEE ~ ~ S / C S E ~ Inte~ational nce on Power Systems Technology powerc con 2000). W is an e editorial board member of the interna~ional journal Electric Power Systems Research and Jour~~ul ~ ~ t e f l i g e ~o r ~ u t i o n o f ~nf f Processing Syst~ms.In 1999, he was uts~nding Engineer Award of the lEEE Power Enginee~ngSociety WA Chapter. He was a recipient of the IEEE Third Miflennium Medal in 2000. Professor Wong is a Fellow of the Hong Mong ~iisti~ut~on of Engineers, Fellow of ~nstitu~ion ~ngjneers of Aus~alia, Fellow of the IEEE, and Fellow of the TEE. cquired her degree of Bachelor of Engineering in Electrical ee S The University of Hong Kong in 1996. In the same year SYS Miss Yuen was awarded The China Light & Power Company Prize in Electrical Energy, The of because of the dis~inctionof her final year project en~~tled applic~~ion ~ i ~ c i a l neural n e ~ o r k s the detection o f high i~pedance on faults. During 1994 to 1998 Miss Yuen pursued the degree o f Master of Philosophy with a thesis entitled Fault detection and oven tection in low voltage power systems. In 1998 she was awarded the China Light Co. Led. Electricai Energy Postgraduate Scholarship. In the same year she was awarded John Swire & Sons Ltd. James Henry Scott ~cholarshipfor ~ngineering Studies at the U n i v e r ~ o ~S~athclyde if ~ which enabled her to pursue the degree o f Doctor in of ~hilosophy Scotland. Miss Yuen is also an Associatc Member of the IEE. Her current research interests include the analysis of international energy markets, congestion manage~en~~ transmission piicing and the application of i n f o ~ ~ ~tcc~nology energy ion in markets. received SB degrees in applied m a t h ~ ~ a t i cand in electrical s engineering and com~uter science and MEng degree in electrical engineer~ng computer and science from the Massachusetts Institute of Technology (MIT), Cambridge, in 1995 and in 1997, respectively. He completed his PhD degree in electrical e n g i n e e r i ~ ~ computer and

IT, c ~ n c e n t ~ t i n g e l ~ ~powercsystem economics engineer^ on r ~ network economics: underlying p~inciple is entitled Electric independent transmiss mpany (ITC) and designing a ~ c ~ ~ tfor c ~ r ~ e re research i n t ~ r e s ~ s include ~ o d e l l i ~ g energy markets as stochastic dyn of epts for the 1C and ~esigning software tools for various en~rgy a ~ ~ e ~ m has a strong b a c ~ ~ r o u n control, estimation, m a ~ h e ~ aresearch , in ~ ~~~s design and r ~ g u l a t economics. o~

Dr Loi Lei Lai City University, London UM

Restructuring of the ele&icity supply industries is a very complex exercise bas na~~onal energy strategies and policies, macroe~onomic develo conditions, and its application varies from country to country. It is i m p o ~ to point out ~t that there is no single solution applicable to all countries and there is a broad range of diverse trends, ~ ~ b e r a ~ i s ~ ~eregulation reregulation) and pr~vatisationare all processes under tion, (or the general label of market reform. Liberalisation refers to the ~~troduction a less of restrictive regulatory framework for companies within a power sector. This could deregulation, which is the modification of existing regulation. It can reregulation is a more accurate term than deregulation since new laws are on the industry with reguIato~ watchdogs appointed to protect c o n s ~ ~~nterests. er I~eally, then, a true liberalised energy market would work within a set r e g u l a t o ~framework, overseen by a regulator and with no external political influence upon the particip sation is the sale of g o v e ~ e n tassets to the p n v ~ t e sector, by itself, ~rivati~ation not sufficient to introduce competition into a reformed sector. ~ompet~tion is will be the result of careful regulation of the privatised entities to allow new e n ~ r access ~ a ~ ~ to the ~ a r ~ e t . ~ompetition ~ u n d a m e n ~ 1most market reforms and it is introduced in is to order to reduce costs and increase efficiency. There is considerable variation in the extent tion which is introduced. For example, competition could be introduced just n of new gene~atingcapacity and referred to as competitive bid din^ where the existing gen~ratingcompany invites contractors to tender to build, operate and sell price. ower to the monopoly at a ~ p e c i ~ e d Alternative~yall licensed g~nerator~

e allowed to compete to supply wholesalers or retailers through a short-term market ~ k or via longer term contracts; this is called compet~t~vee ~ ~ ~ tThe next ~ t ~ g io~. vel i s wholesale competi~ion~ competit~onin the sale of electricity to wholesale i.e. ies for resale to a retail level or directly to final customers. This usually allows the ion at final c o n s ~ ~ m ~ r level, n s ~ ~ e tos choose their own s r This is us~ally very last the ~ousehold consumers, is calle step o f the reforms, as it requires a complex information technology system because of the of small users involved. Retail c o ~ p e ~ t i o nusually i n t r ~ d u c ~ is the larger i n d u s ~ ~ ~ ~ consumers, then the medium cons~mers und the world are currently in ~ a n s i t towards more i~~ arkets. The changes were initiated by:
8 r~alisat~on generation and dis~ibution nctions need not be mono that a feeling that public service obligations are lion potential of competition; availability and fuel supply s ~ ~ b i l iand~ ty the develop men^ of new technologies in power generation and i n f o ~ a t i o n technolo

erican electricity m The ~ontinu~ng growth of competition i the 1978 passage o f the Public Utility latory P o k e s Act ( conservation measure, PURPA establ ducers (IPFs) to sell electricity to local regulated investor-owne~ utilities (IOUs). were broadened s ~ b s t ~ t i by~the y a ~ passage of the Energy Policy Act of 1992 which requires transmission line owners to wheel bulk power [l]. Thus, under current fe(iera1regu~ations non-utility power producers can sell electrici~ any utility on the grid, to adopted a policy F u ~ h e r ~ o rin, April 1994, the California Public Utility C o ~ m i s s ~ o n e establishing complete open access to all power producers. By 1996 ~ n d e p e n d ~ n ~ generators could compete to sell electricity directly to large industrid customers, ef~ectiveiy ~ditiona~ utilities. By 2002, the policy will pennit all ele consu~ers, of size, to purchase electricity any utility or independe rator on the grid. No longer will the consumer be res to buying e l e c ~ c i t y from the local utility. A ~ o ~ p e t i ~ i v e for gene~tion have been es~ablihed market will [2,3]. The system evolving in the USA provides i ing competition and div~rsity among gen~r~tors. vary from established utilities They and co-generators to small producers that use renewable fuels and other non-utility genera~ors y 1990, a decade after reform movement got under way in the USA, co-gen enerating capacity than were the ~aditionai utili C a ~ ~ f o r Edison buys 30% of its power from NUGs. n~a in M ~ c ~ ~ consists of 12 gas turbines with a generati gan C ~ ~ p a nin ,~ i z o n ais an indepen~~nt y , power b~~~ custo~ers, a ~ e l y Tucson Electric Power n the Edison 141. Compared with the deregulation of I 0 monopoly requires a complete and ~ d ~ chan e n ~ ~

Energy Generation under thc New Environment

property rights in the electricity supply industry in order to obtain the benefits of increased efficiency and innovation. A shift from public to private ownership refocuses the goal O f the producer towards profits. Pursuit of the latter provides a strong econon~ic incen~ive,n i a competitive environment, to improve and maintain the quality of customer services, monitor costs more closely, and invest in productivity-enh~cingt e c ~ o l o ~ i e s ~ These incentives are blunted by state ownership. With respect:to privatisation, the since 1989 seems more germane than does the regulatory reform the USA has been undergoing since 1978. The European C o i ~ is ~ i ~ these same issues and has agreed to draft addressing directives calling for open access in energy markets. As of January 1993, the E u r o p e ~ or Commission seeks to let large users of electricity, those using 100 g i g a w a ~ more of power per annum (aluminium, steel, chemicals, glass and fertiliser producers), to purchase electricity from any supplier in the Community.

.3

Th

Competitive generation provides a market within which independent fimis compete on the basis of price to sell electricity directly to large industrial customers, and to supply electricity, via common carrier transmission, to distributors who in twn sell power to final users [5,6], Produc~rsmay specialise or diversify by load characteristic. For example, some may prefer to compete for long-term base-load contracts. These firms are likely to own hydro and nuclear power plants. On the other hand, f m s with fossil fuel plants might seek to supply base and cycling loads. Finally, producers with gas combustion turbines and co-generators could compete to meet peak loads. Other firms may diversify and be ready to compete for base, cycling and peak loads. Prices charged for each type of service (peak and off-peak load, daily to ~ e a s o n a l ~ could be established by contract, 24 hour advance notice, and in spot markets. Unit could vary by the amount of electricity purchased per period. As a result, customers face more service options and a more complex pricing scheme. There are a nu advantages to having a variety of types of generators linked to the transmission grid. The first major advantage involves cost savings. At any given moment^ power is supplied to the transmission grid by the firm with the lowest marginal costs. according to merit saves resources and reduces the cost of generating electricity. Because the different plants may have different load characteristics, peak and load duration curves, generating capacity can be more fully utilised and additional capital resou~ces saved. The second ~ d v a n of competitive generation is that a spot market for electricity will ~g~ develop. The ability to sell electricity on the spot market increases the ge~erators ~exibilityin scheduling production. The presence of a spot market means that less idle capacity must be maintained in order to provide a given level of service re Shortfalls and emergencies can be met by purchasing power on the spot market. and supply are eq~librated flexible spot prices. by The third advantage o f competitive generation is that the market will provide an anray of service standards that more closely match consumer preferences. Consumers could be offered priority service with a schedule of electricity rates increas~ngwith the level of reliability. According to reference [7], priority service offers significant efficiency gains over random ration~ngwith fixed electricity rates. A compet~tivemarket in elec

Power System Restructuring and ~ e ~ e ~ l a t i o n

generation would offer a much broader m a y of services than do state n i ~ ~ o p o l i e s or re~lated generators. erhaps it is not surprising that 70% of USA private utilities, facing new c o ~ p e ~ ~ tpressure at the generation stage, now offer some form of voluntary ive inte~up~ible service 181. The fourth advantage of competit~vegeneration is innovation. C o m p e ~ i ~ notn only i~ leads firms to be more responsive to consumer demands, monitor costs more closely, and compete:on the basis of price, but also provides an incentive to be i ~ ~ o v a t i vDevel e, a new c o n s u ~ e service, a better method o f reducing costs, or a faster way of d e a l ~ n ~ r with pro~~ems promises the innova~or competitive edge. a

xis~i
The nature of the existing generating plants will affect the speed of reforms. In countries where the coal industry has dominated the economy there has been opposition to r e s t ~ c ~ r i n g electricity industry, which usually includes a s u b s ~ t i a a ~ o ~of coalthe l nt fired capacity. Deregulation of the electricity sector meant loss of a secured market for coal w h i ~ h has to compete for its share in the market. now The nuclear industry in the UK was initially excluded from competition and subsidised. The nuclear power s ions bid into the power pool and were electricity due to the n-Fossil Fuel Obligation (NFFO). The on the distribution companies to buy a set percentage of their electricity from stations using non-fossif.hels. In 1990, this was mainly nuclear power. A Fossil Fuel Levy was placed on the e l e c ~ i cbill of all electricity consumers (which ~ ~ u n t to 10% of the total bill) and i~ ed over 90% of the money collected was given to Nuclear Electric to cover gen not recouped from sales of electricity to the pool [9]. In 1996, when British formed, the subsidy to the nuclear power industry was abolished. The levy and since then it has been used to support renewable energy projects. Prices tend to go down as competition is introduced and are expected to fall sign~~cantly the long-term. For example, in the UK prices have fallen since the market in open in^ and they are expected to fall even lower. In 1995 real prices, the price of elect~city industry decreased by almost 13% and the price for households by 6.3% for between 1991 and 1995. It is has been observed that i n d u s ~ prices have decreased more a~ ousehold prices in most of the countries where reductions have occurred [IO]. ne of the conse~uences p~vatisation the ~eve~opment the i n t e ~ a ~ i energy of is of on~~ co~pany concept - a company whose focus is becoming more global and more multile US electricity and gas companies have been ~ u r c h ~ electricity in~ Australian and UK companies have been heavily involved in setting r projects in developing countries. Another change with privatisation older value. Privately owned companies have to compete for funds in the capital market and it is important to show that they operate efficiently to do well in the business environment to attract investors. That means a comple~ely new organisational structure and strategies for companies from what were used in the highly re~lated power industry. Goal is expected to retain a strong position in power generation worldwide in the future. In 1995 solid fuel, mainly coal, accounted for almost 40% of world electricity pro~uction is expected to retain this percen~ge and until 2020. In 1995,60% of total world

Energy Generation under the New ~ n v i r o ~ e n t consumption was for power generation and this is expected to grow to 65% in 2020. The emand for coal will increasing~ybe dominated by Asia. expect^ to increase from 25% in 1995 to 43% in 2020 E 11. 1 There are a number of issues that will affect future use of coal and in some cases the results are quite u n c e ~ i n .The Inte~ational Energy Agency (IEA) points projections of coal use are subject to the outcome of competition between coal urope, and to the policies adopted by governments to improve nnance and comply with greenhouse gas reduction c o ~ i ~ e [InI].~ s

In the past, power systems were developed to transmit large amounts of power at hi voltage from remote generati~g stations and to diskibute power at lower voltage down millions of small consumers. This was the favoured pattern, allowing ever-l~ger power stations, mostly coalfired, to be built and achieving economies of scale and high efficiency. The national grid evolved to ensure secure supplies to all consumers and centralised conkol and supe~ision essential. In the present privatised electricity supply ~ n d u s ~ was based on free trading of electricity as a commodity, central control is unwelcome. er ever possible, electricity generation should be closely i ed with space and stems. newab able process heating in a diverse array of combined heat and power energy sources should be harnessed by large numbers of wind and wave machines, marine t i d a l ~ ~ u r r eor~s m ~ ~ - h y d r o n plant, solar photovoltaic generators on roofs and small generating plant close to farms supplying wood fuel or to sources of combustible waste products. Generating plant will be small and dispersed and since CHP systems must be located close to their heat loads there will be a natural tendency for most e ~ e c ~ c i ~ generation capacity to lie close to the consumer. There will be little need to transmit large amounts of electric power over long distances. The h c t i o n of the power system will be to handle the f l u ~ ~ a t i o ins load and in the output from the renewable power generators. n ~ i g ~ - p o w long~distance er~ kansmission will be much less important, In the current energy structure, a central power plant is the key facility providing energy for houses, factories and offices. With decentralised co-gener power and the d ~ l o ~ eof renewables, this situation would change. n t would be less centralised and more dispersed. Network stability and frequency regulation would gain in importance and energy storage would become very ~mportant.Ele is genera~ion provided by a large number of small units rather than a small number units, Co-generation is the generation, on site, of your own power and at the same time taking advan~age the exhaust heat from your gas turbine or other engine to meet on-site of heat needs. Heat can be used to heat buildings, heat dryers, generate steam ~ o u an h ~ HRSG (heat recovery steam generator), or to provide air-conditio abso~tion chiller. Power and beat can be generated locally from na~ural using an efficient, reliable gas turbine. The uncertainty in the USA today is what will happen to electricity prices. The major c o ~ p e t i factors are limited deregulation and lack of new generat~ng n~ stations ~ ~ c u ~ a r l y large coal or nuclear stations). Estimates range from modest decreases in prices, to the levelling of local inequities, and significant increases driven by demand without supply. O r view is that prices over the long haul will increase slightly with some local equities u

Power System Restructuring and ~eregulation

being eased. All this means that for many sites cogen (distributed power) will be a viable option for those willing to improve their competitive position through ~ e d ~ c e d e r ~ n costs. New enabling technologies have now improved transport of eleclkcity in ~ ~ g h - v o ~ t a g e C systems to the point where this may be cheaper, and use less energy, than ~ a n s p o ~ i n g fossil fuels, for distances o f 5000 km and above. This might make it possible to link lowCOzpower sources where demand is low to distant regions where demand is high.

1.4.2

Trends in Conventional Electricity Generation Tec~n~logies

Co~ventionalsources of electricity supply will m a i n ~ their central role in ~ r i ~ a r y i~ energy supply for many years to come. Further advancement of fossil fuel generation technologies will increase the options for mitigating greenhouse gas (GBG) emissions. This is particularly important for some developing countries and transitiona~economies with abundant, low-cost fossil fuels, where electricity demand is increasin~ rapidly. The large share of nuclear and hydro in the generating mix of some countries already makes a s i ~ i ~ c a~ontribution mitigation of GHGs. nt to

atio
World electricity production is expected to grow by an annual rate of 3% in the period 1995 to 2020 according to IEA projections. Coal retains a strong position in world power generation and will continue so. However, gas is expected to grow faster at 6% than solid fuels at 2.9% (e.g. coal) [I 13. This is because, in countries where gas is available at competitive prices, gas-fired plants are cheaper to build and operate. D e r e ~ l a t ~ o n has played a role in opening the way for gas to compete with other fuels. Coal is still the favoured fuel in locations close to low-cost coal production (e.g. p a t s of North America, Australia and South Africa), in areas where gas is unavailable or expensive (as in those deveIop~g countries that have coal available, like China and India), and in areas where there are existing coal-fwed units. Prior to deregulation, utilities tried to predict the future energy demand in their area and build new capacity accordingly. In a deregulated energy market gener current demand is and try to fill as much of the demand as possible plants. The predicted growth in the demand for energy on a wor provide an incentive for generators to build new plant or extend their existing capacity to take advantage of this trend. Competition rules will determine the market players. However, the only players in practice who can invest in new capacity are those who feel they can achieve a competitive advantage. In deregulated markets this should not be market access or cost of capital but a genuine advantage such as feedstock, technology, captive market of heat, extension of existing plant to take advantage of existing assets, refurbishme~t, The possibility of having stranded costs would seem to rule out new, etc. ensive power plants. Most of the additional capacity is expected to come from incremental i n v e s ~ e n t in extensions done as part of general ~ p ~ v e ~ e or t s n ma~ntenance. New plants are likely to be smaller, more cost effective, and close to areas of demand that can compete effectively for local market share. This means that there could be a swing away from large fossil-fuel-fired plants in the ene y mix towards sma~ler, less

Energv ~ e n e r a ~ under the New Envirolment ~on

intrusive plants sited close to the area o f demand. The fact that industrial sites are now allowed to install their own genera~ng capacity and export electricity to the grid could lead to an increase in smaller scale distributed g ~ e r a t i n g capacity.

1.5.1

~ Q w ~ r

The operation o f power plants is also changing dramatically in dere Generating companies are no longer obliged to generate electricity; generate and sell their electricity when they think it is profitable for them. This means that most of the generators will want to operate their plants at base load where most profit can be made. There is little incen~ve the generator to provide electric~ty more expens~ve for for intermediate and peak demand, which make up only a small portion of the market. As d e r e ~ l a ~ i proceeds an increasing number of players enter the system which is no on centrally controlled. This makes the quality and reliability issues more difficult to m Experience so far shows that deregulated markets can reliably meet demand and are expected to do so in the foreseeable future. The UK systems re~iabilityand availa~i~ity actually increased between 1992 and 1997 when the transmission and dis~ibu~ion network was restructured [4]. It i s believed that the system will work without problems of security of supply for the next 5-10 years. Coal contracts are also affected by changes in power plant operation. There is a general move to shorter term fuel supply contracts to match the electri sales contracts in deregulated markets. ~ ~ e x i ~ i plant operation i s an adv in l i ~ the competitive small-scale units market where conditions change quickly. Distributed gene could also give more flexibility to the system. An advantage of coal is the fact that it cm be easily stored in stock~iles, whereas storing gas is much more complicated and expensive o and restricted to certain quantities. In deregulated markets demand and a v a i ~ ~ ~ fi l i ~ dictable and therefore the risk of disruption in fuel s u ~ p l y more is es can ensure security of supply for the generator.

Utilities are forced to operate in a more reliable, economic and efficient manner and plan their expansion investments more accurately. There are a number of reasons promoting int~rcon~ec~ions among utilities. These include economic interch~nge,Brm power and energy transactions, wheeling, improved operating reliability and ~ ~ x i b iand reduction li~ in installed generation reserves. Usually utilities construct new power plants to meet the increas~ngdemand or to rep~aceold plants, which need large investments, ~ o w e v e r ~ ~ t ~ r ~ o ~ ~ e c t e d jointly install a generating unit in which the utilities may have utilities may different or similar shares or the interconnected utilities may buy a certain perce the output of a generating unit, which already exists in the other utility, Therefore, the failure of a jointly owned generating unit will cause a decrease in the available capacities of all the sharing utilities simu~taneous~~. Because of this correlation, the conventional model of a ~enerating cannot be used to represent a jointly o ~ e generating unit, unit d The re~iability modelling and evaluatio~methods of composite ~efierationand transmission systems need to be extended when the system being analysed includes generating units that are jointly owned with other interconnected systems. This is because

Power System R

~ c ~ r~ g u l ~it i o~ ~ and ~ e r n

the modelling of jointly owned units causes two major problems. The first problem is that they cannot be included in the area generation model in a conven~ional manner because a jointly owned generator contributes generating capacity to two or more areas. Consequently, a failure or derated state of a jointly owned generator affects all the sharing areas. This condition cannot be incorporated in the traditional generation model, which has an inherent assumpt~on independence among generation models of various areas. The of second prob~em with the transmission model. In the absence of jointly owned units the is transmission links are used only for emergency help and energy transaction^^ Since the ontracts and the transmission c ity states are fixed, emergency help th n e ~ g h b o ~ n g is fixed. areas when jointly owned units are includ reliability analysis of the system, common generation flows are present and vary depending on the states of jointly owned units. Consequently, the emergency help that can be given to neighbouring areas is dependent not only on the tr~nsmissioncapacity states and energy contracts, but also on the common generation flows which vary according to the states of the jointly owned generating units [12,13]. Further research on a detailed system representati~nis necessary to consider the particular operating features of jointly o w e d units so that their impact on the reliability performance of the respective power systems can be i n v e s ~ i g a t ~ . It is impo~ant ~nderstand market response to the increased risk associated with to the the introduction of competition into the market for generating electricity, Typically a v e ~ i c a l ~iy t e ~ a t e dstate monopoly deals with fluc~ationsin demand and r ~ d o m n equipment failure by carrying excess capacity, including redundant backup capacity. It may also address predictable fluctuations in demand by offering peak-load pricing schemes, although the incentive to do so is weakened by state ownership or regula~on. Competitive generation produces at least two additional sources of complex pricing structure, and loop flow problems when independent electricity into the transmission network. Moreover, electricity flows along the path of least resistance. Thus, for example, electricity sold by Generator A to Industrial Customer may not travel along the contract path that is, the shortest line within the network tha directly links the buyer and seller, Depending on circumstances, electricity introduced into the network at any point may give rise to loop flow affecting ail suppl~ers the grid. to Loop Bow can disrupt the quality and reliability of service to everybody taking electricity from the grid at the moment additional power is introduced. If decentralised markets introduce additional risk, they have to provide a bro ways of dealing with it. All of these sources of risk potentially influence the service to the final consumer of electricity. In general, the market offers methods to reduce risk and to price risk so that it can be spread or shared optimally. Consider how a generator faces the risk of uncertain prices for electricity. Firstly, the producer can sell power by long-term contract to large industrial customers and regional distributors. ~ o n ~ a cspecifL prices and adjustment clauses. Thus, only a small proportion ts of its output may even be exposed to unknown price fluctuations [ 141. Se the spot market on a regular basis offers normal returns because prices on mean over a large number of sales. By selling regular~y the spot market, the producer is reducing risk through diversification. Thirdly, the producer can hedge spot market sales in the futures market.

Energy Generation under the New Environment

Fuels used to generate eleclricity are produced using the follow~ng fuel sources: namely, coal, nuclear, natural gas, ail, hydrogen and renewable resources. ~ e n e w a b ~ e resources include hydro power, geothermal, biomass, wind, solar and p~otovolt~ics. Coal is the predominant fuel source. ~ u c l power is projected to decline her over the next 20 e ~ years owing to retirements of existing units, Generation from both natural gas and coal i s pro~ectedto increas~to ofset these retire~entsand to meet the growing demand for e l e c t r ~ c iThe coal trade has been increasing and is expected to continue doing so in the ~. future. It is expected to increase faster than coal production. Between 1992 and 2010 the coal trade is projected to grow by an annual 4.3% whereas coal product~0n will 2.3% a n n ~ a l ~ y Coal prices dropped during the 1990s in line with compet~t~on [15j. and with the fact that there is excess capacity for mining coal for the international market. Cheap coal i s seen as being readily availabie in the short and medium tern. The ~ollowing sections s ~ a r i s the discussions of issues related to the markets for coal nuclear, e natural gas, oil and renewable fuels, followed by electric power industry res fuel markets. Goal Power generators will attempt to pass on market risks to coal producers and carriers wherever they can. As a result^ coal purchase contracts will ~ i k e ~ y become s ~ ~ in~ e r duration and lower in price. The existing capacity of the power industry in each country will play an important role in its ~ t u r fuel mix. In the EU, 17% of the conventional thermal capacity is over 30 years e old, indicating that much of the plant is in need of refurbishment or replacement [16]. Where coal-fired plants already exist it is usually more economic to operate them rather than build new gas-fired capacity. Refurbishing or repowering an existing coal-fired plant can reduce costs as the entire i n f r a s ~ c ~ uremains in place. Retrofit of pollution ~ n t r o ~ re e ~ ~ i p m e nmay be necessary to meet environmental standards. In cases where t h y d ~ e l e ~ ~ ~ ~ o nuclear power dominate base-load generation other fuels notab~y a n i tr y coal and gas wiIl compete more strongly for position in the mid-merit market for electricity,

wer plants are expected to become uneconomical. ~ o m p e ~ i t i e e e c ~ i c ~ ~ vl prices may be so low that nuclear power plant operators will not ee enough income to enable them to recover the costs of operating and maintaining the ants and the costs of capital ~~provenients, such as steam generator replacements. In the immediate f u ~ e , some nuclear power units will be at risk of early retirement as a result of r e s t ~ c ~ ~The . ng additional inability of plant operators to cover a plants full costs, ~ n c ~ u d ~ n g costs, capital under restructuring produces stranded costs. For nuclear plants, operating costs after deregulatio~ be driven mainly by plant size, age, capacity factors, and requirements for will of new c a p i ~ l improvements. Average fuel costs make up only about 0 n e - f o ~ h the operating costs for nuclear power plants, but the competitive environment created by a r e s ~ c ~ electric power industry will encourage nuclear power plant operators to ~ d u c ~ e d all o ~ e r a t i n ~ inc~uding costs of purchasing and managing nuclear fuel. ore over, costs, the if early retirements of nuclear power plants result from competition in electricity markets, the deniand for nuclear fuel will be reduced. To compete, suppliers in the n u c l e ~ fuel

Power System ~ e s ~ c ~ rand ~g r e ~ l a t i o n in e

~ d u s t r ywill be forced to reduce prices or improve efficiency, In 1996, 434 nuclear reaclors in operation in 32 countries produced 2400 TWh of electricity avoiding an estimated 10%of global human-made emissions of carbon dioxide.
S

gas is primarily used during peak demand periods and is the prefe~edenergy source for new generating capacity. The electric power and natural gas industries are both network industries, in which energy sources are connected to energy users through ~ s m i s s i o nand distribution networks. As the restructuring of electric^^ m a r k e ~ proceeds, the develop~ent htures contract markets and electronic auction markets could of lead to greater integration of the electricity and natural gas industries and the em~rgence of competitive energy markets. The availability of market information and public markets for natural gas and electricity will be a key to the development of an integrate for those commodities. The use of natural gas in electricity generation has been growing rapidly. According to the IEA World Energy Outlook, gas-fired e l e c ~ c i t y output will almos~ double ~etween 1993 and 2010, even under an energy savings scenario. Low capital cost, short construction time and competitive fuel price make natural gas generation attractive, especially in deregulated markets. Technologies being in current c o ~ e r c i a l operation are gas turbines and gas engines. The rapid devel o f gas turbines in recent years - bringing higher efficiency, lower cost, reduced NO, emissions and increased ope~ational flexibility . puts natural gas electricity generation tec~ologies a position to in make a large contribution to GHG mitigation. For large gas turbines, complex cycles (Le. reheat, intercoo~edcycles, etc.) may hrther improve efficiency. Gombined-cycle power plants attained thermal efficiencies of 40% in 1970, and are now close to 60% ~ ~ i c i e n t , Gas turbines and gas engines for small-scale generation need firther to improve their e ~ c i e n c yprice and e n v i r o ~ e n t a performance to gain wider application in the market, , l Conver~ion technology using electrochemical reactions, namely he1 cells, should become competitive in the near future. Natural gas-fuelled fbel cells can attain 50% e f ~ c i e n ~ y (under very h i g h ~ t e ~ p e r operation), which would be further i ~ ~ r o v tod a~e e 70% if used in combined cycle.

a
Oil prices have ranged between US$l0 and 20 per barrel during the 1990s and &ere is no sign of any shortage in the short or medium term. Owing to assumptions about electricity industry restrucbxing prompting the construction of Iess capita-intensive and more efficient natural gas generation technologies, the share of coal generation will e ~ e n ~ a l l y decline while the natural gas share will continue to increase. With the d e r e ~ ~ a t i o n of electricity generation and the resulting incentive for power generators to lower fuel costs, the use of relatively expensive residual he1 oil for electricity production is likely to decline that even fisther. As a result, petroleum refiners may be faced with a growing ~roblem: is, how to dispose o f leftover residual fuel and petroleum coke. Among other options, two po$s~bilitiesare related to electricity markets: (1) selling petroleum coke to e l e c ~ c i t y generators for use as a fuel component, and (2) gas~~cation the refine^ by using at integrated gasification combined-cycle (IGCC) technology to produce steam for process heat and for electricity production.

Energy ~ e n ~ r a t i under the New ~ n v i ~ o ~ e n t on

11

~ecause lec~city e genera~ionfrom renewable sources generally is more conventiona~sources, constrained competition in electri result in a reduced role for renewables. As a result, a variety of propos~~s, schemes and policies incIude specific ~rovisions which are used to s~pport c ~ n t i n ~ e the system ment and use of renewable energy. Renewable portfolio standar ing and charges are among the programmes being considered. Green pric~ng prog~ammes,already being im~lemented electric utilities, may also provide a by se c o n s u ~ demand for electricity from renewable fuels. The role of ~r y sources in competitive electricity markets will also depend an the cost of the indiv~dual renewable fuels. In addition, because renewab~ee ~ e r g y generat~g ~acilities generally depend on the availability of energy resources at s p e c ~ ~ c sites, often at sites remote from major electricity grids, transmission issues will affect the pene~ation renewable fuels in the electricity ~eneration of market. e an essential element of the climate change p r o g ~ ~ ssions and ~ ~ ~ i ~ clower levels of other ~ ~ l ~ u t a n ~ s ~ a n ~ l y ort for renew~bles, policies and prog stry to become comp~titive. supply a proportion of renewable powcr ren~wable~eneratorsc ~ n ~ ~ e that ethere will be a market for their pro nc ren e~~ctricity genera~ionschemes, using established te Pro power at prices which are more or less competitive mains~eam coal and gas. Figures 1.1 1.2 show the changes in the arke et shares and the geneTa~ion ~ ~ s p e c t i in ~ ~ y mix v the

Links First Hydro Others

1pp* 7%

1%

,/-1%

lPPs

National

Energy
18%

-. .

\-Mission 4%

1.1 C ~ a ~in the market shares ~ e s

12

Power System Restructuring and Deregulation

8%

33%

igure 1.2 The generation mix

Althou~h number of the technologies are inherently small-scale c o m p ~ with central a e~ station power generation, this has some distinct advantages suc d operation. As electricity markets are restnuc is likely to expand and renewables will become E There is a more diverse range o techno~ogies, 0th their technical and economic devel energy crops, p h ~ t o v o l ~ i cfuel cells, s, ass residues, wave power and geothetrnal energy. The world is c h a n ~ i n ~ and es are driven by the use of energy.

n operates on a small to m d combined cycles can also a d v ~ ~ of e e m o v ~ ~ g p ~ i c u l a t e s g r all from the co iency of over 85%. This teclmology is close Eurther ~evelopment the fuel cell, where a is che version at conve~ing i authorities, difficult f trade or promotional orga~isatio~s w tariffs for sale of bi ackup electric supplie costs also consti~te serious barriers.

Energy Generation under the New Environment'

13

6.6.2

Fuel Cell

A fuel cell consists of two e~ectrodessandwiched around an e ~ e c t r o l ~ e ~ over one electrode and hydrogen over the other, generating electricity, water and heat. Fuel cell systems will compete with other distributed generation technologies, inc~uding micro~rbinesand reciprocating e n ~ ~ iavailable at prices competitive with e x i s t ~ g ~s, Fuel cell systems will have a competitive advan~agein that forms o f power ~eneration. they can be more easily scaled to residential size and will be more efficient in handling the load profile of residential customers. They will be quieter, e n v ~ o n m e n ~cleaner, more l~y efficient, and less expensive to install, service and maintain. Fuel cell systems will also te with solar and w~d- ower red systems. enerative fuel cell technology, National Power rece developed a new electricity storage technolo change the way power systems o f the future are planned and opera the world's most ad~anced e ~ e n e r a t ~ v ~cell t e c ~ o ~ o g y r fuel Re be attractive as a closed-loop form of power generation. Water is separated into and oxygen by a solar-powere~ el water. The water i cell, which genera~es electricity, h solarpowered ~ ~ e c ~ o ~ y sthe and e r The e ~ e ~ ~ ~ o ~process,~which operates like a giant rechargeable b a ~ has the ~ ~ hem ~al ~ e potential to deliver commercial, operational and environmen~~ benefits for electricity suppliers worldwide. It stores electricity when demand and costs u e low and releases it when demand and prices are high, removing the need to call up more expensive pawer plants. The system, which can deliver power instantly, can therefo~eassist deman~ planning, improve the use of power station assets so that less capacity is n~eded, enhance operational. control and give customers greater security of delivery. It will also offer lower lifetime costs than convent~onalstorage. The single biggest i n v e s ~ e n ~ Regenesys is that: it will offer lower lifetime costs than either pump ry plants - energy storage that could curtail peak demands stored, power electronic developments offer 8 fast respo Work and electrical DC energy stored in batteries. These considerations underline the potential value of energy storage in curtailing daily peak periods and that it would most e~ectively located near the source of load variations, the consumers in the be distribut~on networks [183. Coupkd with advanced power electronics, storage systems can reduce h ~ o ~d iis ~ o ~ i oand elimina~e c ns voltage sags and surges. Most ~istribu~ed ene on~~ storage y ~ ~ m be made ~ u l t ~ - ~ n c t withnlittle or no ~ d d ~ t i cost, so that, can ~o a~ example, both uninterrutable power supply (UPS)and energy ageme me^^ applications can be served by the same equipment. In combination with renewable reso~ces, energy storage can increase the values of p~otovoltaic(PV) and w~nd-generated e ~ e c ~ ~ c ~ t y supply ~ o i n c i d ~with periods of peak consumer demand. Energy storage systems nt used to follow load, stabilise frequency and manage peak loads. ~egenesys a. has number of distinct a d v ~ t a g e s over existing electricity storage technologies like hydro rind battery storage. It offers all the benefits of pumped-hydro, but can be located here on a power system thus avoiding environmental problems. Though similar to a battery storage plant, ~egenesys much more flexible. Unlike a battery, the power o u ~ u ~ is and storage capacity can be specified individually, Based on h e 1 cell technology, ~egeneys be built in modules to the required size ranging from 5 to 500 megawa~s can of

I4

Power System R ~ s ~ c ~ rand ~ ~ r ~ g u l ~ t i o n ing

capacity. It i s able to provide vital services to elec~icitygrids, ~ncIudin voltage control. Regenesys could meet peak demand and maximise inve allows better use to be made of the cleanest generating plant by reducing the need to operate less efficient peaking plant. It can also enhance the value of renewable generators such as wind and solar power.

1.6.3

Wind

Cunently some 50 countries have major wind power ins~allations~ Europe is presently the most important market but demand in Asia is growing strongly. Ease o f rapid installation (six to nine months) and a free local source of power make wind an attractive technology in developing countries. Over 1300 MW of wind-electric capacity has already been instal~edin Germany and more than 1000 M W is on-line in Denmark. The Danish goal is to provide 10 % of its elecwicity consumption through wind-electric energy by 2005 and more than 40 9 by 4 2030. At about 4 US cents per kW of installed power, electricity from Danish turbines now costs around the same as the average cost for electricity from coalfired power plant. However, there is no such thing as a single price for wind energy as the costs depend on both wind speed and the accessibility of sites. Wind-electric energy has the potential to supply 25 % of Europes electricity needs. Some countries could also export power to neighbour in^ countries.

Potential applications of PVs range rom basic electrification for the 2 billion people of the world without electricity to the integration of PVs in building structures in deve~oped, urban areas. Customers need complete systems of PV modules, panels and arrays to provide electricity appropriate to their needs. Improved light-to-electricity conversion efficiency of individual cells is less important than reliable, integrated systems. The flexible thin-film amorphous silicon panel is at the forefront of PV technology. D i s ~ i b ~ t e d generat~onwith PVs has been tested to relieve substation o v ~ ~ h e and as n g ~ ~ ~ a means to defer transmission or distribution system upgrades. Remote locations in developed countries are also prac~icalapplications for PVs. ~xamples include water p u m ~ ~ n fence gq elect~~cation, radio station power supply. PV is one of the most flexible technology and s u ~ ~options available for electric power product~on ly because they can supply loads from several watts to megawatts.

More than 350 MW of electricity are generated by commercial solar-thermal power plants in the USA. To exploit s o i ~ - t h e ~ a l power hlly, broad~r coop~~ation The gov~~ment, electric utilities and private industry i s ne~ded. major investments ~ieeded to develop and market solar technology must be supported by stable ~ o n g - t re ~ ~ l a ~ o ~ e policies, which can only be provided by government. For example, in the UK recent

Energy G e n ~ r ~ t i under the New Environment on

studies point to the need of tax equity to improve the economic ~ompetit~veness solarof thermal plants more than ~echnolog~cal ~reakthroughs.

World concern over carbon emissions, new domestic pollution regulations, ~mprov~ng small-scale technology, and the: prospect of open competition for energy markets are forces that converge to demand greater efficiency in energy generation - to lower h e l costs, iiicrease marketable products and reduce emissions. These forces argue strongly for a new paradigm o f dispersed, combined heat and power (CMP) plants that have double the efficiency and produce half the pollution. Although large units will continue to operate in the short term, most will eventually be replaced by new facilities and virtually all new growth will come in the form of small units. Readily available technologies now exist to combine the generation and supply of heat and power. By capturing unused heat energy, generators and consumers can, in effect, use the same fuel twice. Combining heat and power production reduces the net fuel demands for energy generation by supplying otherwise unused heat to residential, commercial and industrial consumers who have heating and air-conditioning needs. CHP technologies can be widely implemented. In almost every case, such teGhnologies will save enough money, now spent on fuel, to pay for their capital cost. By combining roduction and supply, 80 to 90 % of the useful energy in fuel can be put to beneficial use. When these plants extraGt steam from the turbines ar relatively low pressure to drive industrial processes or provide heat, they lose some electricity production, but capture all of the heat, eliminating the use of other fuel to make this heat. Total ef~ciencies can reach 90%, d e p e n ~ n g how well the electric and thermal needs are matched or on balanced. CHP takes energy from a central electric plant and distributes it to end users as steam, hot water and chilied water using piping networks. An increase in efficiency of 1% would result in a 2.5% reduction in CO, em~sions, An UK study suggests that half of the CO, savings required up to 2010 can be met most casteffectively with CHP. CHP can reduce fuel use, cut emissions and save money. Policy makers should take a ~ ~ ~ asteps to encourage use of CHP. The technology is ~eadily ~ i v e available, has a net economic benefit and can cut fuel consumption and pollutant emissions in the e n e supply~ ~ ~ industry in half. There are many ways in which r e ~ l a c i n ~ separate heat and power generatiQn with CHP systems can reduce emissions s i g n ~ ~ c ~ n tFor. iy example, producing 1 kWh of electricity, and a given amount of heat, from hard coal in a CHP system can reduce emissions by almost 30% compared with producin~both s ~ p a ~ a t e ~ y the sanie fuel. Using natural gas in the CHP system can reduce e~issions from by almost two-thirds compared with generating the heat and power separately from coal. CHP meets energy needs and can save money for a wide range of energy c~stomers incl~dingpublic sector users - and also helps preserve the earths precious energy resources, reducing the impact on the environment of harmfbl pollutanls. The GHP shares of European power generation range from about 34% in the Netherlands to about 6% in Sweden, s ~ ~ g e s t i nscope for large increases in some countries. Energy m ~ k e t g deregulation could produce more favourable conditions for CHP, by increasing investmen< innovation and market entry, and decreasing the costs of backup power and natural gas.

1 6

structuring and ~

capital costs of these systems may deter

er such i n v e s ~ e n t under s

consumers inter

is fair. In some

renewable energy sources. In Italy, for example, new legislation requires that from 2001 all generators and ~ m p o ~ e of electricity will have to supply into the system a quota rs generated by renewable sources [X 91. The EU directive allows member states to n with public services where this is necessary in the general interest of the vided they comply with Community law. Examples could be an oblig~tion for to p ~ c h a s ea certain percentage of electricity from r~newableenergy sources or an obIigation for distributors to supply all customers in their area at an equal

s been good value, and now it is even more so, with the UK g o v ~ ~ m e n tdecision to exempt s d-quality CHP from the Climate Chan starts in April 2001. This exemp will apply to electricity generated fro CNP and used on site or sold directly to other bus~ees. govemm$nt belie~es The with f a fair and appropriate fiscal and r e ~ i a t o ~ e w o r k ~ ~ ~ other measures such as negotiated ag~eements with indu ewable genera~ionand efgcient CRP will be ~creased, This should deliver substantial increases in CBP capacity in the coming years. It should en govemment to a ~ ~ o u n cin, the coming months, a new CBP target of around 10 e of the draft Climate Change P r ~ ~ a ~ m would that e resent more than s CHP capacity. Action by the UK government an essential to provide a market environmen~ with incentives and penaiti that the new tec~ologies become available at competit~ve cost and in ample quantity. For dis~bL~ted generators, there have been concerns about treatment of ~ ~ s ~ i bgeneration ~ted o~ by public electricity suppliers (PESs), especially distributed e n e ~ ~ t i thati they do not er the new a~angements dis~ibuted a generat~r owned by a PES will be to formal arrangements with the distribution business in the same w ted generator. The same r e ~ u i r e m e ~ t p u b ~ i ~the a to h ~ ~ ~ m generator bein treated in a more favourable way than minimise the risk of the ~S-owned others. The p o ~ ~ t decisions set the economic framework in which ~~al n e ~ o r k s d e t e ~ i success or failure in meeting the target. Private deve~o~ers w311 ~e will install the CHP and the renewable energy plant if they see a return for their investment, If developmen~s to happen, unpopular measures will be required, such as are ssions, incentives for the deve~opmen~ s u i i ~ ~ ~ l a t i o n s ~ the of n ~ ~ ~ and relaxing of restrictions imposed by ~ ~ ~ regulations. In order to meet the new ~ ~ i n g o b ~ ~ ~ a tai ~uppIier either supply the requ~red on can amount of renewable e l e c ~ i cor buy ~~, upplier who fails to meet the obl~gationwill be required to make a government has recently announced the basis for its new renewable energy support mechanism. Suppliers will be able to meet their obl~~ation~ t h by ~ er

chasing tradable green c e ~ i ~ c a t eA.~ ~ e ~ i a ~ v e ~ y s purchas~g~enewableenergy or by of their obligatio~~ able to buy out a ligaticsn and the associated inc e total cast of meet t ~ o to the end user. In addition, the provision of a ~ g ~ le sources at p r e ~ ~ u m via the NFFO and also the D prices 's New and Renewable Energy ~ r o g r has i ~ ~ resulted There are a number of le~~slative policy ~ e ~ ~ l o ~ m e~net n ~in y and c s l hand h hat will impact on d i s ~ r i ~ u ~ e d ~ r a t i o n influence its growth. The Utility Bill is aimed at g ~ and p u ~ the customer first. The Bill will ~ntrodu~e n ~ ochanges to the I98 ~ g i r ~ t Act. These changes will include the in~oduction new ~ a d i n g of and seXling electricity, separation ofthe PES supply and dis~ibuti ion on s u ~ ~ l i e r s to meet targets an renewable electricity. AI1 of these c e ~ m ~ l i ~ a t i o n s some if not all distributed generator^. In gove for for d e p a r ~ e has a ' een ~inister'with responsibi~~~y ensunn that energy e f ~ c ~ e n c y ~t targets are met. Tar~etshave been set in some ~ ~ ~ a for sourc~ngene s ~ e n ~ renewable sources (such as wind) rather than conven~~onal genera~~on.

e~egulatio~ led the e l e c ~ c i t y ~ d u s to ~ has i t focus a~ention the costs of on and provides incen~ives ors to reduce their costs and ~ ~ i r n itheir ri se investing in smaller scale Capital costs, construction time, h e 1 costs, up rn~tenance costs will d ~ c ~ s i o n what p~ants on are
~

osts ~ e on the s pee c i ~ ~ as~ well as the s ~ e c i ~ c a ~(size, oper~tiona~ ~ ~ site ion reliability, e n v i r ~ n m performance, safety r e q u i r ~ m ~etc.). Costs will be e~~~ n~, ant built an the gr~enbelt CO existing ~ i i f r ~ s ~can~ r used. Plants close c be e oses and avoid costs for CO rent sourc~s each project is site as s-fired plant can vary &om US$300 om ~ S $ 9 ~ ~for W e ~ advanced c o a ~ - ~ r e

Power System Restructuring and ~ e r e ~ i a ~ o n

corresponding to the replacement of major plant components after 20-25 years, whereas coal-fired plants can reach up to 30-40 years of life. Al~ough gas-fired tecknology is cheaper in U S $ ~ W e terns there are other factors that should be taken into account. Natural gas is not available in every country and prices are not always competitive. Moreover the i n f ~ ~ ~ c tto produce and ure than more capital ~ntens~ve the equivalent costs for coal. As discussed upstream capital costs are considered in the competitiveness of gas coalfired plants then the capital expenditure associated with both ~echnologies could be the gas same. The high costs of the pipeline network to t r a n ~ p o ~ can outweigh the difference in capital costs for plant construction. If in place, the electricity generator can benefit from d build cheaper gas-fired plant. However, as d e ~ a n d cture will be needed. It is estimated that to c in Europe (1.7% annual growth from t 999 to i n f r ~ s of US$l00-200 billion will be required [23]. Such inv ~ c ~ ~ ~ unde~akeii only in the fr~mework long-term contracts and it i s unc of rofitable in competitive electricity and gas markets.

1.9.2

Technology Advances - Clean Coal ~ ~ c ~ n o ~ o ~ i ~ s

Clean coal technolog~es a tern used for ~ e c ~ o l o g ithat achieve a higher effici~ncy is es and ns for converting thermal energy to electricity than conventio~al pul on (PCC) with subcritical steam and without emissions control. The also u s ~ d include e ~ s s i o n to control systems such as 0, control equipment. Clean coal technol~giesare the way forward for coal as they can ensure compliance with the ~ig~tening env~onmental standa . There has been considerable effort to develop these t e c ~ o l o g ~at s e compe~itive cost eserves of coal are large and w i d e l ~ ~~stributed likely to continu~to be widely used, so more efficient and cleaner coal technologies (CCTs) are an i i n p o ~ a n ~ option in a future energy strategy. CCTs will enable the use of coal with higher ene~gy efficiency and minimum e n v i ~ o n ~ e n~ p a~ t s . i ~a c . types of coal technologies applicable to large-scale power ~eneration: PCC t e c ~ o l o g ~ ewith emiss s control e q ~ i p ~ e(n ~ ng fluidised bed combustion C); pressurised fluidi and ~ntegrated gasi~cation combined cycle (IGCC) t e c ~ o l o g ~ e s . status of these technologies today and a compa~son technologie~with gas-fired power generation in various c ing and construction of plants using these technologies worldwide (241. CCTs can also be used to repower existing coal-fired power stations a~proaching the end of their lifetime, instead of buil~ing new plant, and therefore r e d ~ c e overall costs. coal-fired ~ e ~ o f i pollution control equip men^ is also important as future and exis~jng ~~ng plant may need to meet increasingly stringent environmentai standards.

nergy is one of the most critical r e s o ~ c e s for that energy c o ~ s ~ p ~will n least do i o at facto~ up to five in the next 100 years. At present 1 of

Energy Generation under the New Environment

19

energy poses threats to the climate, with potentially severe enviroi~men~al consequences~ given the levels o f consumption likely in future, it will be an immense chal the global demand for energy without unsus~inable long-term damage to the environment. This situation has attracted the attention of political leaders across the world, and at the Kyoto meeting of the parties to the UN Framework Convention on Climate Change in Dece~ber I997 there was agreement to tackle one aspect the amount of greenhous~ gases emitted to the atmosphere. The levels of atmospheric CO,, for example, have increased from 285 ppm before the ~ndustrial Revolution to about 350 ppm now. X is now generally t accepted that there is a strong case for acting to mitigate the threat of drastic clima~e change associated with the unrestrained continuation of this trend. The Kyoto meeting produced pledges by the industrialised nations to cut their GWG emissions, by 20 12, to an average of 5% below the 1990 levels. Deregulation could play a positive role by giving flexibility to different plants or even countries to trade emissions. In this way a generator could have a portfolio of plants including some using renewable energy and therefore meet overall environmen~al requirements. It could also help the development of less costly pollution coatrol technologies. In the single European electricity market, however, where electricity will be traded between member states, it is not yet clear where to allocate emissions. It could be the country where electricity is produced or where it is actually used, This is particularly important in the view of commitments to reduce GHG emissions. US e n v ~ r o n ~ e nregula~ionshave caused a niajor shift in demand for lower sulphur ta~ coal supplies. Since the 1990 amendment to the Clean Air Act, there has been a noticeable shift in coal use by ~enerating companies in the USA towards lower sulphur coal. ~ e r e g u I a ~increases the o p p o ~ n i t i e s using CEiP, since the power ~ e n e r a ~ e d i~n for can more easily be distributed and sold. GWP units can supply both electricity and heat at the same time, achieving high efficiencies and therefore reducing emissions to th compared with separate generation of electricity and heat. In all c o u i i ~ ~ s economical on industrial sites or community heating schemes where there is heat. In deregula~ed markets industrial users can set up a small CHP plant on their sites to sup~lyheat and sell any surplus electricity to the local grid. Before deregulat~onthis practice was either not allowed, or at least not encouraged in many countries 1241. There are two ways to reduce GHG emissions. One way is to increase our r e l ~ ~ n c e on nuclear power; the other is to develop a wide range of alternative methods of e x ~ a c t ~ n g energy from nature. The nuclear option is clean and feasible but it is hard to See opin~on would switch from its present hostility to the acceptance of a massive pr of c o ~ s ~ c t of o n nuclear power stations. The role of nuclear power is ex ~ new nc decrease in Europe as the perception of its environmental and economic p e ~ f ~ ~ a has e substan~ially chang~d, the 1970s nuclear power was regarded as a source of cheap and In em~ss~ons-free electricity. High costs invoived in decommissionin~nuclear reac~orsand the unresolved issue of nuclear waste have changed the image of nuclear plants. Italy has phased out nuclear generation since the early 1990s after the Chernobyl accident. ~ e ~ a n y decided in late 1998 to phase out nuclear power and is now d~seuss~ng possible ways for ~ t implementation. The UK ~ o v e r n ~hasnplans to start phasing out nuclear power in It is clear that the construct~on new nuclear plants in Europe will cause pubI~c of oppos~~ion and is unlikely to materialise, particularly in deregulated markets where such ~ n v e s ~ ~ n ~ s are not competitive, as they are too expensive. The contribution frorn nuclear power to the fuel mix is expected to decrease and will be replaced by other sources ~ne~uding coal.

Power System R e ~ ~ cand ~i e r ~ ~ u l a t i o n ~ n

_sl__

power, the power system must evolve to deliver 11 reinfor~e need 10 ensure diversity f b m the ~ a market the e n v ~ r o ~ e nimage of fuels and t ~ ~ d ta~ e decisions taken by developers and ~ o ~ ~ ~ ~ c i a n s fo ~ o m p e t i t ~ o n retail will certainly create in c o n s u ~ to ~ s ~ influence ~ ~ v e l o p ~ e n t s . Although cost an ~~a~~ a c ~ a ~ f ~ c t i n g ~ t o choice^ as e ~ v ~ r o n ~ f o~ c~ ~er be ~ n f l u ~ c e d the e n ~ i r o ~ considera~io~~ by e n ~ suppliers are ~ ~ ~ n or have launched environm ~ j n g e l e ~ ~ ifrom~r ~ ~ e w a benergy projects. An opinion poll in the ci le 6% of c o ~ s ~ i ~w r su prefer to buy e l e c ~ from ~ eo ~ ~ c ~ renewable sources, but only 21% e p r e p a r ~ ~pay more for it. In ~ a ~ ~ f o ran ienergy supply company has to n a ~nergy scheme which gives eustomers the option to buy a part of or all om r e n ~ ~ a benergy sources 1251. le some c o u ~ ~there shas been opposition to the cons ~e 1 r ~ a o ~ . poor environmen~lim The on. plants of an earlier g e ~ e r ~ ~ iThis erive from the pollu state-of-the-art pl act on new projects. where the r e s i d u ~ ~ re~sed building ~ a t e r i a l s ~ o ~ ~ n e ~ are in can the ~romotion CCTs and their excellent e n ~ ~ r o n m e nperfo of ~al a role for coal plants in the re [24f.

f the ge~erating ~ n c t i o n chan ~ have d new capacity, and, if t h e i ~ ~ u d gis ~ ~ ~ t e face an additio~al u n k ~ o ~that is, n . To ~ i n i ~their risks, they ~ s e ds and low unit capital CO e, it is expected that ne

ercut c ~ n ~a ~ ~u ~ iicosts and have l ~ o ~ ~ l ~

grid is fin e l e c ~ ~~~ s~ ~l ~set of e e~ e ~ f i ~ ~ r s y t g n a of c ~ s ~ o m[28-403. ~r

Energy Generation under the New Environment

any studies indicate that distributed generation (DG) might play a s i g n ~ ~ c arole in nt the future power system structure. A study by the Electric Power Resea (EPRI), for example, indicates that by 2010,25 % of the new generation will be distributed [41]. Owing to variations in ~ o v e ~ m eregulat~ons, nt different de~nitions DG are used for in different countries. In England and Wales, the term dis~ibutedgeneration is predominantly used for power units with less than 100 MW capacity. In Sweden, DG is oRen defined as generat~onup to 1504 kW.In Austra~~a is ofken defined as power DG generation with a capacity of less than 30 MW. In New Zealand, DG is often considered as generation up to 5 MW. There is no special definition of DG in the Californian and No~egian electricity markets. A general ~ e ~ n i t i o n DG could be an electric energy source c o n n e c directly to the for ~~ distribution network or load centre. DG is decentralised and located closer eo the point of reater economic and env~ronmen~l sense. Several main reasons have combincd to make DG a technically, commercially, environmentally and, to an extent, politicalIy attractive proposition. Customers benefit from the success of DG because:

of The use of distributed energy will allow improvements in the dispatchab~li~ resources and improve the integrity of the ~nstnission dis~ribu~ion and systems. Identii~cationand use of alternatives to power generation, transmission and systems controls will ~mprove load levelling, load manage men^ and overall power quality, The system will become more robust in its ability to tolerate natural disasters, suffer less damage and minimise the dependence upon the need for ~ ~ e d i ares~orationof rhe te grid system. Over~ll system reliability will improve.
To get a better unders~nding the possible fbture develop men^ of DG in a com~eti~ive of market, some examples of typical DG applications are as follows:
~eiiewable energy technologies, e.g. wind power or solar power. These projects receive certain subsidies, or customers might pay premium prices for renewable en Peak supply systems, based for example on emergency generators or on-site uch systems ~ ~ i c a lsell to the wer exchange for only a very short period per year ly to capture exlremely high peak pri CWP systems, e.g. district heating, whereby a high efficiency can be achieved and additiona~ revenue from selling heat can be obtained. On-site generation based on microturbines or fuel cells. Electricity as well as hear are most likely to be used locally.

1.I U.1

Market Regulation

In competitive power markets, DG competes with cenlralised power generation. Hence, market regulatiosls should ensure that DG can act freely within power markets, similar to centralised generation. Tt is, however, often argued that most market ~ e g ~ l a t i ~ n s used

Power System K e s ~ c ~ and ~g ~ r ~ ~ l a ~ n

worldwide have been designed with large centxalised generation in mind and that, therefore, DG ofien faces significant barriers w~thin competi~~ve the market.

1.10.2

The Power Pool

The power pool is used to create an efficient marketplace for trading electricity. The power is usually by a c e n ~ a ~ ~ s independent or ed, sation that defines the ards for ele of rice bids and the eva~uation thes s, as well as organising ns the bidding and eva~uation procedure. The evaluation of power p o d r e ~ ~ a t i o regarding the t r e a ~ ~of DC is a very complex issue. nt The main difference between various approaches for e l e c ~ c i t y~ ~ r k e is sthat the t trading o f electricity through a power pool (or power exchange) is optional in some a~ in a ~ countries, e.g. in Nord Pool ( S c a ~ d ~ a v i and, m a ~ d a t o ~ others, e.g. ~ n g ~ and d ~ a ~ as well as in the National Electricity Market in Austra~ia.In ~ a l i f o ~ i the e s a, ation in the pool market is optional, except for three large private utilities. They trade through the power exchange until the year 2002. The rea~onfor a regulator to set up a m a n ~ t o r y pool system instead of an op~ional market is usually to achieve a high market transparency~e.g. to prevent some large ~ ~ n e r ~ t o r s gaining market power. In ge~eral, market pa~icipants b e n e ~from from all will t arent power market however, other options are also possible to prevent large rs g e ~ ~ market power, e.g. by splitting up the generators as was done in New ng The disadvan~ageof a mandatory pool approach is that all market p a ~ i c i p a n ~ have to join the pool. That leads to various fixed costs, e.g. members~ipfees, a d or n energy fees. Both fees are a way to recover the cost for the operation of the power pool. The me~bership is usually a fixed annual fee and the energy fee is based on the energy fee a c ~ a l l ytraded via the power exchange. These costs may be a major b ~ndepe~dently owned generation companies that focus on DG to enter the electricity market. Therefore, exception to the mandatory rule were incl~ded the re in ~ n ~ l a n d Austra~iafor small-scale generation. The exce~~ions and depend on ~ n s ~ l l e d ver, there is no obvious reason for a capacity (30 to 50 M ~ of)the DG source. N source with a capacity of 25 MW to be treat fferently from one with a capac~ty o u ~ h e ~ o rtechnical limitations in a distribution n e ~ o r k e, may aural iand an urban distribution network. Mence, regulations based on a certain installed capacity influence the way certain market pa~icipan~sbehave. to The cost problem for p a ~ ~ c i p ain ~ g pool market, however emains, even if certain t the capacity limits are removed, This issue is of particular interest or 6 concepts that aim at power generation, probably for only a few hours r year. To c a ~ ~thee r ing e ~ ~ ~e o m ~~p peaks, these dis~ibuted a ~ce ~enerators must p ~ ~ i c i p a t e change. Therefore, high annual fees can be seen as a major barrier for nerators to participate in a power market. As a solu~ion, cost recover for the o f the pool e x c h ~ g e should mainly be based on energy fees, In additio~, it oned that within the national electricity market in Australia d i s ~ ~ u t e d to sell all generated power within the d ~ s ~ b u t i n n ~ o r k oe [ i~cantly reduces the market o ~ p o ~ n i t of e s ~ small-scale gene~ation. With e treatment of the individual imbalance of each market ~ ~ i c i p is ~ t a ant for fluctuating power sources, such as wind or solar power. Such

Energy ~cneration under the New E n v i r o ~ e n t

t e c ~ o l o ~ i have the d ~ ~ a ~ that the ~ g e output during an upcornin es v ~ power urs, can only be pre~icted with some ~ c e ~ afor n ~ i e are three main ~ r o b l associated with the pool price: e~~

ts effectively bypass the pool. a1 price is paid to all, it i s ~ a t h e m a ~ ~ c a l l ~

3. Average pool prices bear no relation to any real price p hence of gene ratio^ has been falling steadily since 1990. until about 1994, s t e a d ~ and~ e ~ now seem set on an U

Figures 1.3 and 1.4 show the pool and an cen~ra~ised er at ion, but most renew low (33 kV or below) voltztge networks. So c l e c ~ i c i ~ wholesale prices, w h is wrong. The c h ~ a c t e ~ s to c s ~ c o ~ p l eof bids ~i~ 001 capacity ~ a y ~ ~ These nts. lack of tr~sparency contracts for in onsumer c o n ~ ~ e n c e . a result, n As Contracts for

re I.

001

needed reforms

Energy Generation under the New Environment

e v renewable and CWP enerators, are c o n c e ~ e dsince the a ~ ~ ~ e ~willn f ta s o ~ and those gene~tors with ~nflexibl tors with flexible and predic~ble redictable o u ~ u will face t ill b e ~ from~the ~ t oked at in a wider context. er d i s ~ b u t e d generators are likely to grow s coming years and the government has, therefore, paid cmfbl attention to t the economics of DC. It is i ~ p o ~ ato t n new e l e c ~ market that may adversely c ~ ~ CHP, obtain access to the el e n s ~ r ethat ~ i s ~ b ~enerators,inch ~ ~ e d META, a ~ ~ g e i ~ e thats wil nt d ~ s ~ i b u ~ ~ o on fair terms. As p market ~ to ana age their risks and achieve fair osals too, to deal with the needs of generators.

A n ~ i ~s l~a~~ caresthose i e

nctions ~ e r f o to s~ p p o the basic services of ~ ud ~ capaci~~ energy supply and power delivery. The costs for ancillary servic s i ~ n i ~ c a nfor e x ~ p ~in the USA the total costs for ancillary services are about t; e,

and mark^^ ~ a ~ i c i p a n ~ s we able that , the ancillary services are split up i

erat~on ~ l e c ~ i y ~istrib~ited of ci~ ~enerators with~n distri issues concerning real and reactive r qua~ity 1 ~ , 3 0 , ~ 4 ] . [

ution networks operate on a radial or open-r designed broadly on principle that load reduces along the I of each distr~~utor. d i s t ~ ~g~ t e r a t effectively reverse th ~~e ~ point on a distributor or interconnected network and this could affect c o n v e n ~ ~ Q ~ ~ 1 automatic voltage control schemes which cater only for conveneio the design of protect~verelaying systems i s much more complic going both ways. buted generators, such as the majority of wind gene~ators d sma1Is~a~e a ased on induction ~ a c h i n e which have no stead~-sta~e s reactiv generation c a p a ~ i ~ i ~ . is a need to import react~ve There power to provide Geld exci ators, partic~lar~y ~ c h r o n ogenera~ors, lead to localised increases s~ us can ich can potentially exceed the sho~-time ratings and ~ a ~ i ~ tg i n o f s n ~

~ o t e pn r ~ ~ l~arise ~ o e ~ with systems us create h a ~ o ~disto ic s y s t e ~ s ~ b ~ eto t s c rap

inversion (e.g. PVs

erspective, the effect of DG is that networks will be~ome more active in le in behavio~r. From a g e n e ~ ~ o r perspective^ althoug~ may s it to overall capacity, the c h a r ~ c ~ e ~ s ofcge~erators ti s and tible, and network c o n s ~ a ~ could result in ~enera~ors n~s

I n c r ~ a s ~ d of CMP and co-generatiQn will result in lower usage of the ~ e ~ in? o r ~ use terms of energy ~ a n s ~ o ~ ~ aand, n t i o therefore, po~entiallylower lev~lsof income. The e to i n c r ~ s rather ~han e ~ u c a p ~e~ l e r ~e olling a more compl~x increasingly and ~~eratQrs suitably located may also offer benefits to a d ~ s ~ i b u t o r for ex by, o f f s the need for re~nforcement provis~on other s e ~ i c e such as voltage ~ ~ ~ ~ or of s ayments to generators will be s u ~ s t i ~ t i n g other ex~enditur for

1.10.
uppose t

is a need to replace a circuit breaker as the fault level. It is i ~ p o ~ a to ts~ress n

Energy ~ e n ~ ~ tunder the New E n v i r o ~ ~ n t ion

installed because of all ge~erators.The contr~butionof each generator can be re~dily onventional short-circuit analysis tools. These con~butions the s h o ~ to ate the cost of replacing the circuit b such as there would not be a need to ear, cannot be credibly used to re entry to recover all system reinforcement cost. In this case, the distri rep~acesthe circuit breaker, and in the following price review peri in system charges accordingly to all generators with respect to their con~ibution order to recover the system investment. The der~vation charges for assets that provide the connection of a discre~e of plant to the system should be differentiated from those for the use of the system. In the former case the asset i s provided for a sole user and could have been financed directly, and even owned, by that user. In this instance charges should be based on the histo~c cost of the asset and a fair return on the cost of the capital provided by the d~stribution company. In the latter case the assets are used by a number of system users, past, present and fbture, and charges should be on the basis of a tariff differentiated by voltage. The d ~ ~ arises as ~ c u to how reinforce~entcosts of the infrastructure of the system should be treated when a new user joins. There is also a d i ~ ~ with1the costs of s ~ r ~ d i nd~ a s ~ c t u assets u ~ e re when an existing user departs.

In regions where renewable energy resources are abundant but usually situated in remote
locations, connection to the central power grid is expensive and in many cases ~ ~ ~to ~ c provide. Small-scale, autonomous generation schemes, on the other hand, are both economical and practicable. They utilise the energy resources available and supply the consumers in the local regions. The system cost can be reduced by using c a g e - ~ e sdf, excited i n d ~ c t i o ~ ge~ierators (SEIGs) [47-521 since these machines are cheap and r ~ a d ~ l y available. ~utonomouspower systems often employ single-phase g ~ n e ~ t i o n dis~bution and schemes for reasons of low cost, ease of maintenance and simplicity in protect~on[53]. When a three-phase SEIG is used to supply single-phase loads, however, the stzator c are s e r i o ~ s ~unba~anc causing degrada~ion in generator perfo y ov~rcu~ent, overvoltage efficiency and machine vibration. These xtent by the use of the Steinmetz c o ~ n ~ can be alleviated to a c the excitation c a p a c i ~ c e load are connected across different phases. For isolated and operation, however, perfect phase balance cannot be achieved when the load is purely resistive. The objective of this case study is to introduce a modified ~ t e i n m c o ~ e c ~ i o n e~ that ase singleenab~es perfect phase b a ~ a ~toebe achieved in a ~ e e ~ ~ hSElG which supp~ies c phase loads. A general performance analysis is presented and experimental results are given to validate the princip~es.

~ ~ r ~ ~ ~ i ~ and ~ t

n ~

~~

~ ~

~ ~

l ~

Figure 1.5 shows the mdified Steinmetz connection (MSC) for a ~ ~ l ~ - c o n nSEIG, d ~te which supp~~es ~ n g ~ e - ~load. e is assumed that the rotor is driven in such a d~~ection as ~ a s It that it ~ ~ v ~the stator s ~ s e winding in the sequence A-B-C, i.e. in h e same direction as the positive-sequence rotating field. Hence, if A-phase is taken as the reference phase, B-phase is regarded as the lagging phase. The main excitation capaci~nce and the auxiliary load G2 RL2 t e B-phase (the lagging phase), while the ~ u x i ~ i a ~ r e s ~ ~ ~ a n c e are c ~ ~ ~ across d excitation Gapacitance 6, and the main load resistance R,, are connected across A-phase (the reference phase). Compared with the original Steinmetz connection [54], is no it that the auxiliary load r ~ s ~ s RL2 and a u x ~ excitation capacit~ceC, have ~ c e l ~ ~ introdu~ed.These circuit elements provide additional current components that result in the flow of bdmced line currents into the SEIG. In a practical aut~nomous power system, the auxili load resistmce RL2 cm be local loads such as lighting, storage heating or battery charging Alternatively, it could be a portion of the remote loads. For the purpose of analysis, all the circuit parameters in Figure 1.5 have been referred to the base (rated) frequency hose introducing the per-unit frequency a and the per-unit by speed b [55]. Thus, each voltage shown in Figure 1.5 has to be m~ltipl~ed a in order to by give the actual value and the per-unit slip is equal to (U b)/a. Besides, the motor convention has been adopted for the direction of phase and line currents. The ~hase-balancing capabiIity of the MSC for a three-phase S E E may be studied by reerence to a ~ o l t a g e / c ~phasor diagram. It is assumed that the values of C,and C, ~nt are su~ciently large so that the SEIG has built up its voltage and is supplying the loads. Figure S 6 shows the phaasor diagram for the SEIG under balanced conditions. Because the . is delta ~onnected, line currents I,, I, and I3 lag the c o ~ ~ o phase ~ ~ the n d voltages V,, V, and V, by (ld, f d 6 ) rad, where li is the positive-sequ~nceimpedance l, angle of the S E E . The line current 1, is contributed by the current Ia through C and the current lR2 , through RL2. ~ ~ e a n w h ithe line current I, is contributed by -Icl ~e, (where Ictis the current through 6 , ) -IR,(where IR,is the current through RLl). It can be shown that the angle y and between 1, and I, is equal to (4 2 d 3 ) rad, while the angle Sbetween -IR,and I , is (5x16 bP) rad. The phasor diagram in Figure 1.6 can be drawn only when la leads 12,which implies that perfect balance can be achieved for values of #p ~xceeding 2x13 rad.

Energy Generation under the New E ~ v i ~ o ~ e ~ t

_/_3__

~~g~~~ . Modified Steinmetz connection for three-phase SEIG 15

From the current phasor triangles in Figure 1.6, the following relationships can be deduced:

For a given total output power, (1.1) to (1.4) can be used to determine the values of the load and phase converter elements required for perfect phase balance, provi and a of the SEIG are known. Equation (1.2) shows that B, vanishes when 53, = 5n/6 rad, which innplies that the auxiliary capacitance C, can be dispensed with. When # exceeds 5a/6 xad, B, becoines , negative, i ~ p l y i n g perfect balance can be achieved with an auxiliary induc~ance. In that practice, however, the full-load power factor angle of an SEIG ranges from 2 d 3 rad to 4n/5 rad, and hence it is very likely that an inductive element need be used.

B
Phasor diagram of SEIG with MSC under balanced conditions

A general analysis of the SEIG with MSC can be carried out using the method of be ~ o n s t a ~ t s ~ ~ e ~Gompone ~ All the equivalent circuit parmeters are as i c a s. nce air gap except the magnetisi reactance, which is a fbnction of the posit voltage. With reference to Fig. 1.5, the following 'inspection equations' E561 may be w~~en:

where,

1 y , = -= G1+ J
Z 1

and

~ q ~ a t (1.6j n ~ o implies that z ~ r o - s e q u ~ voltages and Gu~ents absent in the SE1 ce are solving (1.5) to (1.8) in terms of the delta system of synmetrical ~ o r n p [57], the ~ o ~ ~ ~osi~ive-se~uence volta~e and nega~ive-sequ~nce V, voltage V, c m be d e t ~ ~ i n e a :

Energy ~ e n e r ~ tunder the New Enviro~ent io~

v,=&v.

Y,+-Y2

(1.11)

Y2 -t- Y p + Y,,

v,=J?v.
Y2 +

(1.12)

Yp+ Yn

where Ypand Ynare the positive-sequence and negative-sequence admittances of the SEIG. The input i ~ p c d ~ Z e of the SEIG when viewed across stator terminals 1 and 3 c , (Figure 1.S) is given by

Yz + Y p + Y n 3 Y pY , -i- p Y2 + Yri y2 Y
Appiying ~ ~ c ~voltage law to loop 1345 in Figure 1.5, o f ~ s

(1.13)

For successful voltage build-up, I, f 0; hence

L

z,, =0

(1.15)

Equation (1.15) can be solved for the excitation fkequency a and m a ~ e t i s i n g reactance X . , d X have been d e t e ~ i n e dthe positive-sequence air gap voltage is found from , , using (1.5) to tisation curve. The generator performance can then be comput~d (1.12).

The input impedance Z,n as given by (1.13) involves the generator admittances 5 and Y,

whose real and i m a g i ~ parts are high-order polynomials of a a~ X,. As a result ofthe algebraic manipulations involved, both R,, and &,! in (1.13) are extremely complicated functio~s the above ~ W O of variables. Serious difficulties will be encount~red when solving (1.15) using conventional techniques such as the Newton-Raphson method [47] owing to the lengthy mathematical derivations required. To overcome these d ~ ~ c u la ~ ~ ~ s , function minimisation t e c ~ i ~ is e u employed in this case study for solving (1.15). This is based on , c e the o b s e ~ ~ t that,nor given values of a and X,, the input i m p ~ ~Z~ can be ~ o ~ ~o readily. The following scalar impedance function is first defmed:

z(a,

x,> =

(1.16)

32

Power System Restructuring and Deregulation and X , are respectively the equivalent series resistance and reactance of&. olution of (1.15) is next formulated as the following opti~isation

For given values of load resistances, excitation capxitancm and speed, determine the s values of a and X, such that thefunction Z(a, XJ i minimum.
It is obvious that Z(a, ) has a minimum of zero and the corresponding values of a and X, also satisfj (1.15). Any o p t ~ ~ ~ s a talgorithm that does not require the evaluation of ~ ~ c t i d ~ v a t i v e s ion on may be used for the above problem. In this study, the pattern search method 1583 is used for ~ n c t i o n ~ i m i s a t i o The method employs two search strategies, namely exploratory ~ n. rn moves, in order to a r b e at the optimum point. A ~ n c ~ i evaluation is on required each time an expioratory move or pattern move is to be made. For normal opera~ion an SEE, a is slightly less than the per-unit speed b whilst X is of , less than the u n s a ~ a t e dmagnetising reactance Xmu. A c ~ o r d i ~ ~b y , X , could in l and , , general be chosen as initial estimates for a and X, for starting the search procedure. In practice, it was found that a smaller initial value for the variable a (say 0.97b) would give more rapid converge~ce. To simplify the calculations and for easy comparison, all the machine p~ameter$ are expressed in per-unit values using the rated phase voltage, rated phase current and rated power per phase o f the induction machine as bases. TabIe I. 1 shows typical computed results for the $xperi~en~al machine. The hnction minima obtained imply that very accurate so~utionsare possible. Over a wide range of load, the number of hnction evaluations Nrequired to reach a solution varies from 350 to 450.
~ a b 8.1 e ~ Computed results for SE16 with MSC

RL,
(P.U.1

x t n
(P.U.)

N
412 402 345 377 401 449

z(Rm
@.U-)

1000 10 5 2
1

0.5
C = 47 PF;C , l

0.977 193 0.975 109 0.973059 0.9672 18 0.958454 0.944063

b = 1.0;ail= 0.97b: X , ,,

= 2.48 p . ~ . 146 PF;R u = 2.3 P.U.

-z,,,

1.2021 1.2205 1.2404 1.3084 1.4576 1.9230

9.94e-6 7.73e-6 2.09e-6 3.5Oe-6 4.48e-7 1.88e-6

To illustrate the phase-bal~cing capability of the MSC, ex~eriments were c 2.2 kW, d e ~ ~ - c o n n ~ c induction machine whose equivalent circuit data i s given i the ted n Appendix. The speed of the S E E was m a i n ~ i ~ e drated value (b = 1.0>and the values at of RLi9C,, RI.2 and C were carefully adjusted until perfect phase balance was obtained. , ical results are given in Table 1.2, The good ~greementbetween ~ o ~ p ~ and d te

neration under the New Environment

33

results confirms the principle o f phase b a l ~ c i n g a three-phase for

~ondi~ions perfect phase balance in three-phase S E E with MSC for

v
@.U,)

Zph

YP

@P

RL,
@.u.> 0.59 (0.56) 0.51 (0.49) 0.52
(0.50)

@.U,)

@.u.)
1.053 1.214
1.186

0.918 0.835
0.805

0.967 1.037 0.954

(deg) 130.8 134.7 135.5 133.8

c, ($1
50

RL2
@.U*)

c 2

2.73 (2.82) 1.78 (1.87) I .64 (1.83) 2.26 (2.

@.U*) 146 (146) I68 (167) 161 (160) 136

(49) 49 (46) 44 (4%)

0.796

0.789

0.992

0.62 (0.61)

41 (39)

Normal: experimental values; bracketed: computed values

~igures .7- I ,9 show the steady-s~atep e r f o ~ a n c e the SEIG with I of elements fixed at the following values: C, = 47 pF, C2 = 146 pF and RL2 seen that the SEIG i s balanced at a load current (experimental value) of 1 co~esponds a phase voltage o f 0.86 p.u. and a phase cunent of 0.92 to electrical power output is 1.63 p.u. (1940 W, or 88% of rated power), of which 80% is delivered to the main load RL, while 20% i s consumed by the auxiliary load RL2. Under the above conditions, the p e r ~ o ~ a n c e the SEIG is the same as if it were excited with of balanced capacitances and supplying a balanced load. For loads close to the balanced opera tin^ point, an experimen~al efficiency of 80% can be obtained. Very good c ~ ~ e l a t i o n between computed and experimen~~ results is obtained; hence the validity o f the a1 component analysis and solution technique is verified. 1.7 and 1.8 show that, when the values of the phase converter elements are ents and voltages in A-phase and B-phase may exceed the rated values when the load is reduced, particularly when the SEIG has been balanced at heavy loads. m e t h o ~ alleviate this undeirable effect i s to balance the SEIG at part load (say 80% o f to full-load current). The ~ e r f o ~ a n ofethe SEIG will then be a t ~ s f a c t o ~ we^ this load c etw and full load. Another method is to balance the SEIG again at smaller loads, which involves ~ ~ l t i ~ v a l uc ~ n v ~ ~elements controlled by a s ~ p s w i e h i n g ~ a t e ~ . phase o ~ er ~ ~ s

Power System Restructuring and ~ e r e ~ ~ a ~ i

volt

4.1

igure 3.7 Phase voltages of three-phase SEIG with MSC

Phase ciurents ofthree-phase SEIC with MSC. P,: output power to main load RLI: P,: output power to auxiliary load R , ,
2
1.6

1
0.6

re 1.9 Output power and efficiency of three-phase SEIG with MSC

Energy ~ e n ~ ~under the New ~ n v i ~ o ~ e n t a ~ o n

1.1 1.6

~ i m ~ i P~a~e-balancing ~ ~ ~ r n e i~~d ~

In circumstances where it is not pract~cableto provide auxiliary loads, or when a u x i ~ i a ~ loads need not be supplied, the simplified Steinmetz connection (SSC) shown in ~ ~ g be employed. In this case, all the electrical power output o f the $E to the sing~e-phase load &,. The phasor diagam for the MSC (Figure 1.6) and ondiiig equations (1.1)-(1.4) may be used to identify the conditions for perfect phase balance for the SSC. Since the auxiliary load resistance R,, is absent, in (I .3) is forced to a s s u ~ e zero value. Accordingly the posit~ve-seque a angle bpo f the S E E must be equal to 2n/3 rad for (1.3) to be satisficd. F and (1.4), the values of the load conductance and phase-conve~er s in a b a ~ ~ c o pde r a ~ i ~ nthe SEIG are: G,= 3 YJ2, B , = 43 YJ2 and e of

T
~ j ~ p iSteinmetz connection for three-phase SEIG i ~ e ~

The a u x i ~ i ae~ c i t a ~ ~capacitance C, is thus one-half of the main exci~a~ion x o~ y sel~cti~g proper values of C, and C,, perfect phase balance can be of stator current. with the SGG is simiIar to that for the SE1 ow equal to (0 +&). Figures 1.11-1.13 s e x p ~ r i ~ e n pae~~ o ~ a n ofe the SEIG with the SSC at rated s t c excitation capacitances fixed at 110 pF and 55 pF re at a load c ~ e n( t x p e r i ~ e nvalue) of 1.13 P.u., whic e ~l voltage of 0.985 p.u. and a phase current of 0.77 p.u. Under this p.u. (1320 W) is delivered to the load and the efficiency o f the SEIG is 79.6%. Again very good agree~ent e ~ w e ~ n c o ~ p u t e d experimental results is observed. b the and

1. 1

0.

El.
0.4

-/

4 Phase vohges of t ~ ~ ~ p hSEICewith S as

hase currents of ~ h ~ ~ - p hSEIG with S ase

1

1 .

Fi

3~

upowe~

Energy ~ e n e r a under the New ~ ~ v i r o ~ e n t ~~~n

1 ~ ~ a c h has the follow~ng ~ne pa~icula~s:

.4 A, four-~ole,50
~

three-phase, d e l t a - ~ o n ~ e ~ t e
0.0844 0.112 0.0~2 1 0.098 1 0.1 22 0.013

e ~ i a c ~ ia ~ a ~ ~(in e ~ s values) are: p ri ~ per-unit

_ I

(1.17)

de A l m e r ~ ~ (PSA) in Spain, xi@ and success. The key c

its seaona~ cycles. This results in s i the collector f X d and the plant a

set of system p~ameters optimised for a prescribed range of operations have proved to cently, fuzzy logic control (FLC) schemes, which enco like approach of processing and handling of information, have been of n o n - ~ i n p ~ a ~ with pKomising results. However, early studies show that in such FLC el ~s schemes the optimis~t~on the if-then rule base is often a c ~ b e r s o and la~orious of ~e rocess ~ ~ v o l v i n ~ and error. Genetic algorithms based on the i i a t u r ~law of trial ~ volutio~ lend themse~ves an ideal op~i~isation to be used in c o n j ~ n c ~with FLC as tool io~ syst~ms. This s ~ is one of the first of its kind to show the d e v e l o ~ ~ eo ft a ~ y n scheme aimed at o p t i ~ ~ s i the response time of a solar power plant to input power and ng t e m ~ e r a demand. ~r~

The solar power plant under investigation, Plataforma Solar do Almeria (PSA), in Almeria, Spain

Figure 1.15 shows the block diagram o a d i s ~ ~ ~collector field called the ~ted solar collectors a r r ~ g in 20 rows foming 10 p d long. The oil is pump d through the receiver tub the receiver tube walls. The storage tank is filled with oil in the far end. The oil is heated and then in~roduced into the storage tank to be used for e l e c ~ energ c~ plant [64]. The system feeding the heat exchanger of a desa~~nation three-way valve located in the field outlet that all its outlet t e ~ p e r a ~ K e is adequate for entering into the m in a dis~ibuted collector field is sired level in spite of disturba level, cloud ~ ~ v e ~ e n t , reflectivi~ inlet oil te mirror or

Energy ~ ~ n ~ ~ a t the o ~ ~ n v i r o n ~ ~ n t under i New

I

I
4

Steam Generato

Steam turbine
///*

ACUREX Collectors

I-I I

Pump

Distributed Collector Field

(20mws, 1 D loops)

!
j

Storage System

1
1

Power Conversion

Cooling

System

tower

Block diagram of the solar power plant

1.12.3

~ o n t r~ t l ~ c t uo e Plant ~r r the f

ed to the plant with shows the overall control bloc diagram of the FLC ted that the o ~ t ~ e ~ the proposed GA optimisa~ionscheme. For this solar plant, it I t e ~ ~ e r aof the field depends on other variables such as solar r a ~ a t i o n and the inlet ~re to also tempera~re the field 7;.,. Mirror r e f l e c t i v ~ ~ has an influence but ch that it may be co~s~dered constant. Hence dynamically the out1 e ~ ~ ~ e sas e d o n - l i ~ ~ ~ c ~ if oof oil flow U,solar radiation s an en n al The linearised model is based on p a ~ ~derivatives (of the ch ATo with respect. to changes Au, dl and AT,,):

(1.18)

The ~ a ~ de~vativescan be co~isideredas transfer fitnctions re~a~ing var~a~ion i a ~ the in outlet t e m ~ e r a ~ ~ e to variations in oil flaw Au, solar r a d i a ~ i o ~ AT, ATin, res~ec~vely. mathemat~~a~ which accoLin~s The model B ~ ~ f l u ie n ~ ~ ~ To approximate these effects, s complex. in series with the FLC s shown, has been develo
0.78691 - 0.485(~ 15 1.5) - 80.7 U-Trl

Uf

(1.19)

where !,is

the oil flow

U i s the t e ~ p e r a ~set point, re

radiation

Tin

1.16 Control structure of plant

i f - ~ ~ e mles in n

ase ofthe FLC as

where aj pi ,

xi ,6 i ,E, E

[Q,I],

~0000} , Rule 1 is not s i g n i ~ ~ a n t ; I wher~as as . It is found that using a higher number of r o v e ~ e n ~ s ~ e r f o ~ a but e ~ c r ~ a s in n~i ~ i ~ n ~ ~ The entire ~ h. r o m o s o ~ eis o f the f o ~ a ~ ~ a ~ t i y X

e there~ore a total of 245 bits of i n f o ~ ~ a t i o n . has

icai ~ ~ o r n ~ ~

Energy ~ ~ n e r a t under the New Environment ~on

~01010101000Q0101101Q1Q~0101010~01 1 1110101010~01Q111~0~01012110110000 1111 11100011100101111Q10101010l000000000000101~11101100111110 11 1Z 10001 1 111 I 1000110000~00011111Q0 ~ 0 0 0 1 0 0101110001I1 0001I 100 I1 1~ 1000111101110111111001010~

The chromosome

Rule base consisting of 49 rules

7 ~ ~ r o ~linked to rule~ e s o ~ ~ base

re~ro~uction, crossover 1.18. Firstly, the GA r nto an ini~~alisatio~

Power System Restructuring and ~ e r ~ g u ~ ~ ~

Step 1:

Initiaiising pool by randomly. (size=30)

geiierating chromosomes

Step 2:

run = run i ;/*mn = 0 initially */ 1 Ben = gen + 1; /*gen = 0 initially" / /*Reproduction*/ Calculating fitness of individual chromosome fram initialisation or mutation pool. Copying high fitness chromosomes to reproduction pool. (Roulette Wheel method) /*Crossover*/ Selecting chromosomes randomly from mating pool and crossover. /*Mutation */ Copying new chromosome into mutation pool, mutation probability is 0.001.

Step 4:

Step 6:

If gen = no-gen Goto step 3 If run = no-run Goto step 2 End

~ s e u d o ~ c or the GA o~e

~ x p e r ~ ~results on the simulator of the plant have been taken to verify the proposed en~l GA-FLC s c ~ e ~In .Figure 1.19, the effect of GA o p ~ ~ ~ i sof ~ i o ~ base on the e a the rule e r f o ~ a n c of the plant is illustrated. The upper graph shows the eiTor versus the number e of generations. The error, an index of the fitness of the c h r o ~ ~ ~ o ~seen to, decrease as is o ~ e . The middle graph show bottom one shows the corre emcnt of the dynamic response o scheme on a day wh tional PI control s c h e ~ e .It is the plant's robustness when external . Since there is only on un~~u~ly d~fferen~ any time interval, we in concurr~n~ly real-time. The validity of the comparison ~ e ~ e thenPI and GA-FLC in e ~ 0 ~ s ~ h ~ ~0 s 1 in the fact that the simulator is a proven ~ o of the plant [63] and c e e lies ~ e ~ period and use it as one of the i n p ~ to s ~ one can ~ ~ pthe solar radiation in a particu~ar ~ r e the simulator. The simulator's output is then compared under different control schemes. The current ~nvestigationis based on this principle.

Energy ~ e n e ~ a t i o n the New E n v i r o ~ c n t under

35000 30000 25000

j
-

20000 -

isaoo
10000

5000

300 -

300 1 25Q
00
150

100

I----

et point

~ ~ f c consthe ~ t

~of the plant by the GA ~ f o ~ optimisa~~on ~ ~

arison of GA-FLC with PI scheme un er extreme external dynamic c

neration under the New ~ n v i r o n m ~ n t

_ I _ _ _ p

such as l a r ~ e ~ s expen~ ca~ e ~ ~ s t cannot be sec s o ~ ~ ~

Energy Generat~on under the New E n v i r o ~ e n t

_ l l * _

shnell and S.S. Qren, idder cost revelation in electric power auctions, J o ~ r n u ~ of ory Economics, Vol.6, 1994, pp.5-26. o and R. Wilson, Priority service: Pricing, investment, a d market organization, Anzerieun Economic Review, Vo1.77, 1987, pp.899-916. Priority pricing of ~ n t e ~ p t electric service with early ib~~ [S] T. Straws, and S.S. notifica~ion,Energy ,V01.14, 1993, pp.175-196. [9] A. Midtun and S. Thornas, Theoretical ambiguity and the weight o f historical heritage: a c o ~ n ~ a r a ~study of the ritish and ~ o ~ c g i electricity l i h ~ r a l i ~ a t i EmerB Policy, ive an o~~, V01.26, 1998, pp.179-197. aas, N.Auer, C. Huber, and M. Tranger, Limits for competition in restructured electricity ~ ~ k e- tthe European pe~ceptive,19th annuui North Amer~cunCon~erence, s United States Association for Energy Economics and International Association for Energy Economics, 1998, pp.103-112. [I I] IEA, World energy outlook: I998 edition, Paris, France, QECDIIEA, 475pp, 1998. [I21 C, Singh and N. Gubbala, Reliability evaluation of interconnected power systems including jointly owned ~enerators, IEEE Transactions on Power Systems, Vo1.9, No.), 199 412. an, Evaluation of the reliability and production cost of i~i~eKconnc~~ed ems with jointly owned units, IEE Proceedings, Vol. 134, No.6, 1997, pp.377-382. ent n u l Jaskow, Price a ~ j ~ s ~in long-term contracts: The case of coal, ~ ~ ~ r qfLaw and ~conomics, Vo1.3 1, 1998, pp.47-84. [ 1 5 IEA, rroje~ted 11 costs o ~ g e ~ e r u t ielectricity, Update, Paris, OECD/ IEA, 243pp, 1998. i~g Vol.6, [ 161 J. Lane Sweeping thc board, Power EngineeringInt$~u~ional~ 1998, pp.25-29. on Embedded Generation, IEE, 28 February 2000. utanto, Battery storage plant within large load c e n ~ ~ s~ , E E ~ 9 terns, Vol.?, No.2, May 1992, pp.762-767. [ 191 Gmzettu Uficiule delta Republica Italians, Decrelo legislatho 16.3.1999 n. 79, Attuazione comuni per il mercato in afico e Zecca dello Stato [20] EC, Guide to the electricity directive, available from: http:J/www,~uropa.eu.in~en/ c o ~ ~ d g ~ ~ / e l e c . m e i n o r . h ~ , Belgium, European Com~ission, ~ r e c t o r a ~ ~ ~ ~ e n e r Brussels, D II ( ~ n ~ r g yIOpp,March 1999. ), E211 P. Baruya and D. Goidsacks, European coal issues - European tibcralisation af coal, ~ o ~ l d Coal, Vol. 7 (10); 1998, pp.29-34. road ben^, ~ G o ~ p e t i ~ i v eof e s ~ - the evolution of price, CS/05, London, U n coal Goal Research, 20pp, [23] UNEGE, Security supply in a changing European natura1 gas ~ ~ P . 3 / ~ ~ . 4 / 1 9 9Geneva, Switzerland, United Nations Economic C o ~ m ~ s s i o n 6/6, for Europe, Committee an Sustainable Energy, 17pp, June 1999. E241 Couch G., OECD coal-fired power generation - trends in the 199Os, IE esearch, 83pp, April 1997. [ E ] Modern POWCK Systems, World digest: Green power launched, Modern Power Sjwterns, VoI.19, ~ e 1999. ~ ~ a ~ lobal Private Power, Own coal?, GIobuE Private Climate, report, The ociety and The Royal ~ c a d e of y ~

hugar, 'The value of grid-sup T r ~ n s ~ coiz Energy ~ o n ~ e r s iVol.,10, 1995, ~io~ o~ eloping CHP in the public sector and beyond' up Ltd., April 2000, pp.2-22. Ilan, Pcter Gaossley, Daniel
icks, Fuel Cell Systems ~ x ~ ~ Q i n
hluture far ~ i s t ~ ~ ~ n ee a ~ ~ o niq ,e c ~ ~ i ~ ~ ~ gu t r ~ E

ket

~ a n a g ~ ~ ~ n t IiwM.w.nemmco.com.a~aulne

Energy Generation under the New E n v ~ r o ~ e n ~

. Wa~son, Arrillaga and T. Densem, Controllable d.c. power supply from wind driven J. se~f-excited induction m~chines*, Procee~ings, 1EE Vo1.126, W0.12, 1979, p p . 1 ~ ~ ~ - $ 2 4 ~ . [SO] T.F. Chan and L.L. Lai, Phase b a l ~ c i t ~ g n se~fexc~~edd u c g e~ o ~ ~ t o~ r ~ ~ e e ~ i n g s for ~n ~ ne ~ ~ r o of the In~erna~ional Conference on Power Utility De lation, ~estructuringand Power ~ e c ~ n o l o g i2000 ( ~ ~ T 2 0 0 0 ) , ~niversity, es City London, TEEE [SI] T.F. Chm and L.L. Lai, S~eady~state analysis o f a thr~e-phase co~iection, IEEE Power Engineering Review, V01.20, NO.10, [SZ] T.F. Chan and L.L. Lai, A novel s i n ~ ~ e - ~ s e~ e r e ~ ~ lself-excited i h ls a~~d using a ~hree-~hase machine, IEEE ~ r a n ~ ~ u c ~on Energy ~ o n v e r s ~ oVol. 16, iQns n,
in co~~ s ropriate technology - rural electri~ca~ion ~ e v e ~ o ~ ~ n g ~ eZEE , evzew, Vo1.35, No.7, August 1989, pp.25 1-254. E541 T.F. Chan, P e r f o ~ ~ a n c e Analysis o f a three-phase induction generator se~f-e~cited a with ~~E~ Power Engineer~n~ Society 1998 ~ ~ n~ t e e e ~ t ~i a~p ~ ~ ~ r single capacitan~e~, 0 ~ 8 ~ ~ C - 0 - 1 0 ~ e 9 ~r 7u ~1998, Tampa, Florida, U.S.A. ~ ~ b 1-5, , nt ~ ~ c h i n e s , London: Pitman (EL S), 5th Ed,, 1983, p ~ . 3 ~ ~ ~ ~ 3 method o f analysis o f 3 ~ ~ h a ~nduc~ion o with~ se ~ ~ Proceedin~s, VoI.~OOA, E, 1953, PI. o f a 3-phase induction motor connected to a single~ r o c e e ~ 1959, Vol.l06A, 1959, p ~ . 1 8 3 ~ 1 9 ~ ~n~s~ 1W e i ~ I ~ t r o ~ u~ ~to ~ ~ ~ i m i ~ u t ei o ~ , n a d ~ i~n ~ h o
L.L. Lai, T.E. Tong, A opt~~isation rule base in a fuzz of plant, ~roceedings ox the I n ~ ~ r n a ~ i o n~ l ~ n ~ ~ on ~ Pno w ee~ Utilip a r c ~ ~ ~ e~ e s ~~ a and Power rTechnologies 2000, City University, London, IRE]E, ~ ~ ~~ ~ ~~ o ~ ~ n ,g p d 2000, p p . 2 2 ~ - 2 2 ~

A. ~

~Experience of ~ ~ using the neural i a

and genetic algorithm or fault secdon estimation, P E PrQceeding~ ~ e n ~ ~ f f ~ ~ r a ~ ~and ~ ~ ~ . $~ ~s r~ ~o145, No.5, ~ e ~ ,~1998,~ ~~ e . s ~ ~ ~ - ~ 2 ~ ~ vol. ~~ u ~ ~ o e p

Miss Vee Shan Uuen Prof. Mwok Lun Lo i The University of ~ ~ a t ~ c ~ ~ d e The U n i v e ~ of~S ~lasgow~ c o ~ l ~ ~ ~ ~ a s ~ ~ cw ,t ~ a ~ d o o

The success tisation o f the airline, teleco tructming of the electricity ~eregula~~~ ers in ~ r i v a ~ ~ ~ vertically i n ~ ~ g r ~ ~ e d its n g el ~o~lowed 1990 and 1996 ~es~ectively. in The d Norway has encouraged other countries worldwide at have been ergoin in^ energy ~ e r e ~ i l a ~ i c n ~ d e ~ ~ ~ ain, Taiwan and ~ a l a y s i a . s used to refer to what one wouM regard as d e r e ~ u l aof ~~~ ~ ~ utiliti c ~ l ~ c ~ le the two words are d ~ f f e r e~iteral~y, ~~ Ironically, neither is th ~ e ~ t 2.5, none o f i o ~ titi ion or o ono^^^^. It i s ther~fo sive exercise of rn

~ e ~ ~ ~afaElectrico n t ~ Utiliti~s

1.

v
an

structuring and ~ e r e ~ l ~ t i o n

the details of der

latiara of Electric ~ $ ~ l i t i e ~

2.4. I

exercise market power and control the price of e l e c t r ~ ~ i ~ . itions where the providers of a service can c ose that would be established by a coinp~ti~ive mark actual prices and the prices that would arise from the assumption that the generators are priceta en a major impediment to price reduction in the Engl Pool. Efforts are being made to eliminate market ~ a ~ ~ c u lhere, will be a d r a ~ a ~reform of the energy market ar ic the year 2000.

Access to the ~ansmission system is one of the main issues in energy open and sound r~gulationsare required to facilitate ~ransmiss~on acces ng, TOA refers to the regulating construct such as the rights, obli dures, economic cond~~ions9 enablin~ or more parties to use a transniission etc., two etwork. With equal rights of access to the transmission network, it has become ~ ~ a s i b l ~ or loads to arrange transactions with each other and hence c o ~ p e ~ i t i o n is am on^ the key elemen~sfor facilitating competi~ionin the ~ ~ e r g y on will look at the details of the two issues.

2.5.1

it^^^ in the ~~~e~~

~ o m p e ~ is the~main goal of energy p r ~ ~ a ~ ~ s a Ideally, from ~~ on tion. view, perfect ~ o ~ p e tis the ~ o i desirable market structure. ~ ~ iiiost ~ cmre ~hara~terised notably by a situation in whic most are p r i ~ e ~ a ~and sthere is freedom of entry into and exit from ih er ng to these three criteria: inde~endence,product s ~ i ~ s t ~ t u ~ a b i l i wever, in any real markets, it is rare that all of the Considering also the te ints caused by the intrinsic properties can be d ~ d u ~ e d that etition does not exist in the e n e r ~ ~ by its social welfare. Social we~fare i d the benefit of the energy to socie for it. ~ a x i m ~social welfare i s m ~equently operates at a s ~ i b o p t ~level. ~al been introduced in most deregulated m their own s u ~ p ~Retailr ~ o m ~ e ~ i t i o n ~~ . c u s ~ o m ~ r s abie to select their are ated by the issue of direct access In tec~nQlogy. some countries9solid regul costly for res~dent~a~ customers t

e issue of e n e r g ~ subsid~es the depos~t~on of s~randed costs have also c o m ~ ~ ~ c efforts on energy ~ ~ v a ~ i s a ~ ~of~energy a~ed ne form ~ subsidies refers to those given to generators to purchase highly priced coal in order to sustain the Iocal coal industry. Generators receive s ~ ~ n i ~ c a n ~ i y subsidies after fewer

e r ~ ~ l a ~OSo n i Electric U t i ~ i ~ ~ e ~

that time were su

e less WQ~hy i ~ v e s t o could end up b e ~ ba ~ and ~s n n involves the d e t e ~ ~ ~ a t ofothe degree of recove i n e ~ a l i f o ~ Pool, the 8 ~an in the e ~ e c ~ ibill. ~ ci

a price and the ~ a x i IIU u ~ ~ tted offers are r ~ e lowest d

, each seller i ~ ~ ~ i asuby ll

are w ~ ~ lto ~ i ~ avail i make

om a seIler 10 a buy ed ~ a r k ~the sQ, ~

~ n s u f ~ c ~ e ~ t ne because

r ion ~acilities~ henever each whee

~ ~ r e ~ l a ofi Electric Utilities t o~i

o f the line is now res~aine by its t h e ~ alimit (Fi l perect~yinelastic ( e ~ a s t i c ii~ zero) mand which is no s generator 61 is met when 6 1 is forced Buy some of its el ~heoret~cai~y its price as hi as ~ossib~e. raise ~enerator6 2 is said to have a c ~ ~ i r e d ~ i i I ~ ~ ~ t w d o~ e r . ~ m e ~ w ~

Transfer L

i=1 ~

~ 0/ ~ ~ line

olution

~ l ~ ~ s ~ r aofim n~ kpower caused by congestion t o ~ t

~ i g ~ e ~ l l u s ~ a t e s iflerent ~ongestion pricing ~ ~ t h o d o l o 2.3 c l a $ s ~ ~ ~ a t iPriva~~sation on. a s is ~ ~ n e (e.g.t diffe n coordination betwe Europe and different states in e$sential to alleviate congest co~gestiofl~ ~ c i n ~ . calculated as dual ~ u l t i p ~ ~from optimal po ers ons. These we based ~ ~ c iIn places where nodal pricing is adopte~, ~ g . differences in nodal prices c m ~ e s uin t ~ arket ~ a ~ ~ c i ~can hedge cong ant congestion contracts which are also and give their holders ~ a ~ s m i s s ~system, on

[9, Z 51.

Q e r ~ g ~ l ~ t Electric Utilities of i o ~

a h a ~ f ~ h o u basis. Many customers will pay for electric power based on this price^ e~ther r~y
irectly ~l~rough distribu~~on their utility or t ~ o ~ a private power supp~y gh e Pool price. The IS0 can also operate markers for a n c ~ l t a ~ wer, spinning/non-spinning reserve and losses. The roles of the

2.6. I

~ and i

n Section 2.5.2 ~ifferent kinds of auction ~ e c h a n i ~ r were discussed. T ns uty to set the e l e c ~ c i ~ y Pricing is done essentially in eith price. ex ante or ex post. An ex ante market is one in which the price o f the CO is set prior to its del~verywhile an ex posl marke~is one in which the ned c o m I ~ i o d iis d e ~ e ~ ~ at the time o f delivery. In an electricity market, a ~ is like a b~~ateral con~rac~ market in which ~aders/pa~ic~pants on the a ~ ~ o ~ ~ agree electricity to be delivered at a certain time in the future at a certain price Nord Pool combines ex ante and ex post pricing. In its spot market, syst prices are set up the day prior to delivery. Any differcnce in the forecast wi delivery results in a discrepancy with the pre-set price and the spot price. This is c o ~ p e n s a ~ c d the presence of the ex post mechaiiism. In the ord Pool, there is a by genera~or bids are also s u ~ i ~ i ~ e d buy~ack market to make up for this difference. ~imilarly, on a o ~ ~ ~ ~ a y basis lin the ~ d - a ~ ~ England and Wales Pool, and participants are paid at the end of each day for their transactions plus CoInpensation. The England and ~ a ~ Pool is e s the~efore also an ex ante market with an ex post mechan~sm. post markets also exist and Ex examples are the New Zealand and Australia markets. In the New Zealand e l e c ~ r ~ ~ i ~ mar~et, ge~erators loads are aflowed to change their bids until 2 hours prior to d e l i v e ~ and and the market is cleared re larly d u r i ~ g bidding process. Ex post prices are c a ~ c ~ ~ a t e the using arke et-c~ea~ng software with the latest offershids and the actual r n e ~ demand ~ ~ r ~ of for together with losses. Figure 2.5 illustrates the ~n~eraction ex a m and t?x post p r ~ c i n ~ e i e c ~ r i cmarkets. i~

~~~ As in any other c o m r n Q market, all particip ts Rave to bear a certain degr rket. The $ys~emo~erator o has a share o f the risk rep an^^ of the forecast wi chal demand. The degree IS0 depends on the pricing ~ ~ c h a n i sof the market. For ex sate m s of market p a ~ ~ c ~ ~in ~ ti s~ a tce ~ ~ alc ~ s an o n ~ depe stem price in the future. In a ~ ~ m ab~ k e~~ ~ like d ior to delivery, and any real-time power imbalan xhibiEs the ex post m ~ c ~ a n i ~ i ~ is therefore much more susc y financial comrni e a serious issue w h ~ n c~ngestion comm is

Power System ~

~ and ~ e r en ~ g a t i o ~ c ~ ~ l

',

LOSS

'. .

Compensation

actual demand

~ _____

final clearing price I e.g. Nord Pool, E & W Pool

~ ~ r e ~ Electric U ~ i l i t~ ~ s of l ~ ~ i o i

tier prov~ders~ an play nine years after the e s t a b ~ ~ s ~ ~ B n ~ of e c o n s ~ e r rather than be c B ~ t u s 1 c o ~ s u ~ eshould have access 1 rs

is a type of b i l ~ t e r ~ l

eregulation of Electric Utilities

to meet forecast demand. It is a ma

By 10.00 am. every

=3

+ 0 . 0 2 and~ ~ ~

. (a) The network; (b) unconstrained dispatch; (c) constrained d i s p a t ~ 7 (Source: [151)

h is shown in Figure 2.7b Wh (~igure 2.8a). A that ~ ~ e ex ante price the day tice during real-time opera

costs of u ~ ~ and constrained dispatch ~ ~ s ~ ~ e nare ~ t listed in Table 2.1.

Deregulation of Electric UtiIities

67

(a) SMP; (b) G1 cost function and adjustment; (c) G2 cost function and adjustment
(Source: 1151)

Me 2.1 Gmerator payments and demand charges (Source: [IS])

Demand Payments Demand Charges (PSP) (Eh) Total Charge (E/h) ~enerator Payments G e n ~ r a t i n ~ (Light-shaded Areas) (Eh) Costs Generating Payments from Pool (Ou~ut*PFF) (E/h) Adjustments (Dark-shaded Areas) (E/h) Total Payment (Sum of Generating Payments and Adjustments) (f/h)

L1
308

L2 1156

1464

G1
616

62 487

952
25

340
147

1464

has been a significant drop in electricity prices in ~ngland Wales and this price drop does not hlly emulate the cost reduction of g are not passed on to customers entirely but are partially r es in the form of higher profit. Also, there has not yet been a decrease of price in the retail market. A possible reason for the i n e f ~ c ~ wholesale market is that the three largest generators could game and m ~ ~ p u l a the te w h o l ~ s amarket. The market lacks small IPPs which could potentially f ~ v o ~ o ~ p e t i t i o n l~ u~ and reduce the market power of the large generators. In view of the existing problems of the pool, the director of the Office of Gas and ~ l e ~ ~ i c i (~ ~ f published the~ Markets ~ ~ m NETA [$I, for England and Wales in 1898. The in reforms should commence in 2001 and should lead to significant chang~s the exis market. First of all, a d ~ ~ ~ ~ m iauction o ~ replace the uniform auction. Sec n a t will d e ~ ~ a n d - sbid e i ~ din^ is allowed so the market will transform into a bila~eralrn reform are designe~ such a way that pa~icipan~s choose over a i f f e ~ ways they in can e~~ ate in the market. In a different time frame before actual delivery ~ a ~ c i p a can s n~ choose to trade in the following markets:

Forwards markets: these are optional and are operated by i n d e ~ ~ d e o t ~ ~ i s a ~ ~ 5 ~ nr years ahead as desired. P a ~ i ccan ~ ~ bilateral contracts that are up to sev~ral i sign ~ S h o ~ - t bilateral market: this is optional and open from 24 to 4 h ~ u r s e~ ahead of the period, All trades will be organised by a market operator (MO). s is also optional and it is open 4 hours ahead to he SO obtains full control of the system after the close market. 4t would engage in trades to ensure that generation and d ~ ~ a n d balan~cd, are into a c c o ~and resolving any constraints on the ~ansmiss~on t network. al-time power ~ ~ charges~are imposed on ~ a ~ c i whose~ c o ~ ~ e c ~ e d a p ~ p ~~ a ~ o u nis different from the actual metered amount and they could be based on the costs t 0 to settle the imbalances. The r ~ f o feature full dem ~ $ bids and simple offers and bids, and they aim to higher flexibility over different ways of tradin , Neve~he~ess, many eptical about the proposed r e f ~ and s ~ believe this is not the solu~ion to get rid of market power and reduce prices [20,21], Moreover, there i s concern^ under the sed reforms, over the possibilities of exploitation of generators market power in the ing r n a r ~ e ~ through the incremen~ d ~ c r e ~ ebids. Inerement bids r e p r ~ s e the and nt ~t p a ~ i c i p ~wish to be paid for an increase in output or are willin ts increase in demand. ecrement bids represent the prices they are willing to pay for a d e c ~ e in output or wish to be paid for a decrease in demand. ~s~

d eration e o m ~ e n c in~ e Norway two years a&er the pass d from the former C optional pool was sufficient because o f the la~gen Norwegian power system ha ission n e ~ o r k which w , tatnett, which is also ket. The ~ o ~ e spot market, the Nord Pool or Elspot, is g i ~ icipants are free to trade in the bilateral contract power is in ~ a l ~for e e n e ~ ~ o rlarge custo~ers c g s, land and Wales Pool, the Nord 001 utilises ex ante pricing to set the or to delivery and compens s power i m b a l ~ c e susing ex post generator offers and ahead of actual delivery, the Nord Pool acc our of the following day. The system pric emand curve meets the ag price auction by paying all generators the last en bidding areas d ~ r i n gthis process, reas. In the s u ~ area, ~ s area price is ~ the by an amount equal to the line capac y the right shifting o f its supply curve

Deregulation of Electric Utilities

~ ~ Q I t ~e ~ ~~ s ~ area Q the, c

price in the su lus area is set up in such a way that it should demand which has a quantity equal to the capacity of the c o n s ~ ~ ~ ~ e hand, in the deficit area, the area pkce is set encouraged to supply an ~dditionalamount equal to the capa p a ~ i c i ~ a incur an ad itional cost and this charge is called the ' n~s is the dif~erence e ~ e e n system price and the area price. (A b the iilus~ate m e c h a n ~below) this s~ on is broadcast to pool participants by 2.00 p.m. on th power imbal~ncesare compe~sa~ed a separate in rators can submit buyback bids after the d a ~ - ~ e a d m is ~ ~ i s ~Thesedbids reveal how much a generator is willing to pay to buy ~e . surplus power and how much a g e n e r ~ ~costs to produce the deficit a ~ o u n t . or system operator selects the cheapest a v a i ~ a ~generators to buy or sell in case Q le and c ~ ~ g e s ~ ~ o n g e m e nand all in-merit generators are paid the price set by the i ~a t, h i ~ ~ ecost block. S ~ ~ ~ e mis done ~ s ~ ~ a l W Oweeks. st ent in l y

situation. This is reflected in the area prices. Also, because of the physical flow of 10

7
Area 1

Power System ~ e s ~ c and ~i ei r ~ ~ ~ a t i o ~ i ~

I
Sumlus Area
140MW
DCftClt

Area

LI

LI 40MW

16MW

(a1

1b0MW

@>
f,l/MWh

116.8MW

(a) Unconstrained Dispatch; (b) Constrained Dispatch (Source: [ 151)

EMWh
EMWh 61, Ll: surplus area

G2, L2: deficit area

46 .

5.8

80

MW

(b>

(c)

.I0 (a) System Price; (b) Surplus Area Price; (c) Deficit Area Price (Source: 1151)

Various Prices and Settlement

Capacity Fee in Surplus Area, C, Capacity Fce in Deficit Area, C, Settlement Price Charge Credited to Ll and G2 (Mc) ebited to C1 and L2 (Md) Net Income o f Grid Company
= P, -Pi = 0.72 f M h
I

= PI, - P, = 2.65 f/&W?h

P, = 6.52 E/IMwh

+ PG,*Cd = 73.32 51% = PGI*Cs PLZ*C, 410.32 E + = h

= PLl*C,

=Md-M, = Capacity * (Ph - PI) = 337 E h

The ~ o ~ e g i energy markets have been a successful example of energy ~ e r e g u ~ a ~ i o n . an ket power has not been an issue, ~ e v e ~ h ~ lthes management of power im~a~ances e s arouse^ concerns since it costs the SO money to resolve bo~Ienecks the regulating in market. ~ o ~ n a it has ~ y contributed to a sniall amount of S tmett operating ~ u d g e t ~ $ only SO f a [I cong~stion ~ a g e ~willnbe costly when con~est~on ~ e t becomes more serious. er, the selection of ~egulatingbids using merit order, which is easily c o m ~ ~ ~ ~ ~ by participants, does not necessarily result in the lowest cost to alleviate nsible co~gestion.

Deregulation of Electric Utilities

71

2.8.3

Galijhiu

The ~ n e r g y Policy Act PACT) of 1992 clarified the d e t e ~ n a t i o nof the USA for a com~etitive energy market. It is not m a n d a t o ~ implement a wholeale c to energy market in the nation. Individual states pursuit difl'erent policies an ending on their electricity prices. States with relatively high California, New York, Massachusetts, etc., arc more aggressive in implemcnting reforms. In 1998, California embarked on a four-year transitional period of deregula~ion. ~ t r a n d e ~ have com~licatedderegulation in California. The state gov costs solved this problem by issuing bonds to inflicted companies to compensate for thei Customers' bills include a small amount of charge (e.g. 4 cents~Wh),the so-calk competi~ion a n s f e charge (CTC), to account for stranded costs. ~ r During this transitional period, participation in the pool is optional, ap large private utilities, which have to trade through the PX until March 2002. One ~itinct d i ~ ~ r e n c e ~ e e n Californian Pool and the England and Wales Pool i s that in the be the former case market clearing and bids matching are under a separate entity, the PX, rather than embedded in the duties of the ISQ, as in the England and W C a ~ ~ ~ o r ntwo types of bilateral contracts exist: Contract for ia, Access Contracts. The fact that CFDs are tied to pool prices has 1 game the market using their market power, The idea of Direct Access Contrac~sis to c o ~ t e ~ athis problem: Direct Access Contracts are not bonded to the PX and pa~icipan~s ct only have to request their transactions through the ISd).

ge (CalPX) is responsible for holding auctions for the competitive forward markets (day-ahead and day of markets). Th,e day-ahead market is similar to its c o u n t c ~ a ~ Norway and England. Market pa~icipan~s in provide hourly supply/demand bids to CalPX one day prior to physical delivery. MCP is actually the equivalent of system rice in Norway or system marginal price in England and Wales. ~ n ~ ~ pricing is adopted and all pa~icipant paid or debited the orm are market provides pa~icipants with the chance to make up for system imbalances by ~ o l d ~ g auctions at various times during the delivery day. Zonal pr~cing cm~loyed congestion ~ ~ a g e m e n t . is for Markcl p ~ c ~ ~ acan tsubmit n s the so-called schedule a d j u s ~ e n ids (SABs) which are similar in nature to the r e ~ l a ~ ~ g bids in the Nord Pool, The S represents the desire of the ~ a ~ i c i ~to nadjust its a t price varies. When there i s congestion, the region is ~ ~ v i d e d zones into ates the zonal prices using SABs. The PX uses this i n f o ~ a t i o n work to out the final prices for participants so that upon settlement the PX remains revenue n e u ~ a l

P31.
tion stage in California and it is premature to c o on the ~ various markets. However, there is concern over the operation of the spinning and non-spinning reserve markets. ~ e n e r a ~ ohave to reserve a rs c e ~ a i na m o ~ n t their c a p ~ c in~order to bid in the reserve ~ a r k e t s , of i They are not

72

Power System ~ e s t ~ c ~and ~g e r e ~ ~ a ~ i in

e n c o ~ a ~ toddo SO unless they can make more money in the reserve markets than in the e ecause of that reason, generators submit very high bids to the r e s e ~ e markets, resulting in n o n ~ c o ~ p e ~ i treserve prices. ~on~spinning ive reserve has a relatively higher price than spinning reserve because there are insufficient pa~cipants the nonin inning res~rve a r k e For maintenance of system security, the IS0 has ~ ~. certain amount o f both reserves. Since non~spinnin~ res spinnin~ reserve, the consequence is a higher price for a 10 r e s ~ is not as worthy to the system as spinning reserve is). These exemplify ~ ~ k e t ~e ine~~ciencies caused by unapt market rules.

Scotland, u n ~ i ~ e Since the commencement of energy privatisation in 1989 in the ~ n ~ l a n d Wales, has not acquired a competitive and e f ~ c ~ e n t sale m a r ~ ~ t . and Also, for various reasons, Scottish customers have benefited much less than their counte and Wales, despite the fact that the England and Wales PO mar~inal generation COS& in Scotland, even after into ac~ount the smission losses, interconnector access charges, r transmission and distribution are regulated using the price-cap c o n ~ o l which depends on the inflation rate and electricity prices are set based on the pool ~ r i c e in s ~ngland and ales with a d j u s ~ e n t made after ~ i n into account the ~iffe~ences the s g of markets. land is chara~te~sed a surplus of generation capacity by on c a p a c i ~ almost two limes the total maximum demand [2 g e n e r a ~ types inch ing dual oil and gas, coal-fired, hydro, pumpe~-storage nuclear. o~ and The two ~ e n e r a t i o c o m p ~ i e s , Scottish Power and S c o ~ ~ s~ y ~ o - ~ l have ~ c ~ h e c ~ n t e r c o ~ e c ~ e d and Scottish Hydro-Elec~iccan access the grid in Eng~andvia grids privatised cottish Powers transmission system. Even ough these two d o ~ i n a ~ i ~ to ~ e ~ e r a t i o n ~ p a n iremain vertically inte~rat after ~rivatisation,they are re~uired ~o es~ keep separate accounts for separate busine s, i.e. tr~smission, d i s ~ i ~ u t i oC .o ~ p e t i t i o ~ n between the two companies is made possible t h r o ~ g ~ $econdtier suppliers who are autho~isedto supply ~ ~ e c ~ i customers ou~side to c i ~ their supply areas. ent trading in Scotland. Firstly, the ~ W Q otential obstacles to e ondly, the market is loo small to be ertically integrated. eneration capacity indicates that there i s compe~i~ve, Moreover, the substantial surplus no need to build new generators in the coming hture. Finally c ~ o c to ~ ~ ~withe Scottish Power or Scottish ~ y d r o - ~ l e c et etween the two countries. In view of the above, and ~lectricity a r k e ~ s , focus QXI reforms for the Scottish markets which will remove ~ will the obstacles and be consis~en~ the NETA [25]. with

The voluntary wholesale electricity market in New Zealand c o ~ ~ e n c e d 1996, but in before that there had already been limited competition in the supply sector. It is operate^

73

etplace Company L (M-COLtd) which has recently b s in the C a l i f o ~ Pool, market p ~ c i p a n t s New i~ in outside the pool through bilateral contracts, provided that the system o p e r a ~ is ~ f o ~ e d r of the ~ansactions. In New ~ e a l a n d ~eneration d o m ~ ~ a t by hydro power, which is located in the is ed Island. The load c o n ~ e n ~ a t on the North Island which is connected to the ~ o u t h es ~sland by an HVDC interconnec~or.Even though the three gove~ment"ownedgeneration ~ o ~ p a n i ~ominatethe wholesale market, the market remains s spa rent t ~ o u g h es the broa~castof predicted prices and load forecast. Effort was spent only on i n ~ o d ~ ~ ~ i n g co~petitionin the retail sector between distibutor and the state-owne~generation c o ~ p a n ybut it was soon realised that retail compet~tionalone was not e n o u ~ h re , to elecwicity prices and hence the wholesale market was developed subsequently. The New Zealand spot market: is an ex post market featuring nodal pricing. Nodal on the theory of spot pricing [26].Under nodal pricing, if the arke et is s h o ~ - t e ~ signals so generated should enhance the efficient price . ~owever,there have been ongoing discusions on effe~tive opera~ionof the m als and the management o f the losses and ~ o n s ~ a i n ~ .Expost pricing in the physical spot market is acco using the latest supply and demand bids and the actual measured plus losses actual demand is vital and it is one of the main roles of onciliadon Agreement. Final prices are published a few actual dispatch.

and even Afler years o f negot~a~on debate, The Council for the European ~ n i o n adopted Directive 96/92/EC in ~ e c e m ~ e r to liberalise the e l e c ~ i c ~ tin8 1996 y According to the ~~rective, members of the EU are required to open their y the year 2006 at least one-third of the EU-wide energy market will h rent European countries can liberalise their markets at their own pace, as long nts set by the directive are met, Apart from i n ~ o d u competition in the ~~g wholesale and retail sectors, the directive also features U . ~ o u n ~ at sthe e forefront of liberalisation include Spain and the Netherlands the existing one in England and Wales, will be developed hourly supply and demand bids, while in the N e t h e r l ~ d s Elec the m ~ d a t e s complete l ~ ~ e ~ ~ l i s a t ithe generation section by the year 2 0 ~ However, a of o n ~ . there are also coun~ies, France, Italy and Belgium, which keep their l~be~alisation like ess to the minimum level requ~redby the direc~ivebecause o f domes~icpoIi~ica~ reasons. e ~ a n opened its market to all suppliers and end users. As it is n y ely few natural resources, two-thirds of the energy con~umedis imported from other countries, Effort in deregulation is therefore focused on the ~8intenance security of supply. Under the Energy Law A~endment owners are of net required to provide o en access to facilitate competition. However, only 8 few out of about 700 net users have so far published the charges for using their networks [29]. At present, the of and nmst net owners also operate the grid; t~erefore issue of se~aration owne~sh~p

Power System R e s ~ c t u ~ xand ~ e r e ~ l a t i o n ig

opera~ion would need to be looked into, Also, practically small custo~er$ have not bcen able to change their suppliers easily under the current legislation. The ~ e ~ project group on the energy market is ~ r a ~ a poten~~al a n n g project sketch and it is likely that concept for the pote~~tia~ energy ark et will be similar to the EX [30] (European Energy Exchange). It is envisaged &at the d ~ v ~ l o p ~of n t e ill be done step by step. The first step will be the ~ e v ~ l o p ~of n tfutures e a market where bilateral contracts can be traded ahead of time. Then a spot market will be founded for physical and short-term power trading. efore reaching that step, Gemany has to work on the i n ~ a s ~ and ~ er~ e a t i o n s fast and rel~ab~e ~ e e l ~ g ~ r ~ for w which is essential for efficient ~ ~ i ofn gspot market. the

Energy Information Administration,~ t t p : / / ~ . e i a . d o e . g o v / e m e u l ~ e ~ e l e c ~ c i . BTM consult Aps, hnp://www.btm.dWArticle~~ed-globaf/Eed-glo~al.h~. Stefmo Zamagni, Microeconomic Theory: An Introduction, Basil Blackwell, Oxford, 1987, John Bernard, Robert Ethier, Timothy Mount, William Schulze, Ray D, Zimmerman, Beqiang Gan, Carlos Murillo-Sachez, Rober J. Thornas and Richard Scbuler, Markets for electric power: Experimental results for alternative auction institutions, availablc via h ~ t p : / / ~ ~ . p s e r c . w i s c . e d ~ i n d e x ~ u b l i c a t i Proceedings o the Hawaii ~n~ernation~l ons.~~l, f Conjerenceon Sysfern Sciences, January 1997. John Bernard, Timothy Mount, William Schulze, Ray D. Zimmennan, Robert J, Thoinas and chard Schuler, Alternative auction institutions for purchasing electric power, available via bttp://www.pserc.wise.edulpsercbin/tcsl/, 1998. Frank A. Wolak, and R. H. Patrick, The impact of market rules and market structure on the price determination process in the England and Wales electricity market, selected paper presented at the POWER Conference, March 1997, University of California, Berkeley, Berkeley, California, February 1997. Tim Mount, Market power and price volatility in restructured ~~~e~ for electricity, available via hnp://~.pserc.wisc.edulindex.gublications.html, November 1998. NETA, New Electricity Trading Arrangements for England and Wales, are based on proposals published by OFFER, Office of Electricity Regulation, July 1998, available via ~~:/t~.ofgem.gov.~~ lielix F. Wu, Coordinatedmultilateral trades for electric power networks, 12th Power Systems Compu~a~ion Conference, Dresden, August 1996. K.L. Lo and Z.Q. MO,Methods for determining wheeling rates, submitted to the special issue o f International Journal of @stem Science on the Beslnicttmring of the Electric Power Industry, 2000. StadIin, 'international power system lgnacio 3. Perez-Arriaga, Hugh Rudnick and Walter 0. transmission open access experience, IEEE Transactions on Power Systems, Vol. 10, No.1, February 1995. Young-Moon Park, Jong-Bae Park, Jung-Uk Lim and Jong-Ryul Won, An analytical a ~ ~ r o a c ~ for transmis5ion costs allocation in transmission system, IEEE Transactions on Power Systems, Vol. 13, No.4, November 1998.

Deregulation of Electric ~ t i ~ i t i e s

75

[13] J.W. Marangon Lima, M.V.F. Pereira and J.L.R Pereira, An integrated f r ~ e w o r k cost for

[14]

[lS]

[16]

[17]

a~locationin a mu~~-owned transmission system, IEEE Transuct~onson Power ~ s ~ e m s , V01.10, No.2, May 1995. J.W. ~ a r a n g o n Lima and E.J. de Oliveira, The long-term impact o f transmission pricing, IEEE ~ ~ n s a c t j o n s Power Systems, Vol. 13, No.4, November 1998. on K. Lo, Y.S. h e n and L.A. Snider, Congestion management in d e r e ~ l a ~ eelectricity d Conference on Power Utility ~ ~ r e ~ ~ a markets, Proceedings of the I~~erna~ionul ~ e s t ~ c ~ u r ~ nPower T e c ~ n o l o ~ 2000, City Universiw, London, IEEE, April 2000, and g ie~ pp.47-52. Michael D, Cadwalader, Scott M. Rarvey, William W. Hogan and Susan L. Pope, Coord~~ation congestion relief across multiple regions, Harvard Energy Policy Papers, available via ~ . k s g . h a r v a r d , ~ d ~ p e o ~ ~ e / w h o g a i ~October, h t ~ , ~ d e x . 1999. R.S. Fang and A, . David, Qptimal dispatch under transmission ~ontrac~s, IEEE Transa~~~ons on PO Systems, Vol.14, No.2, May 1999. sco Galiana, Lester Fink, Power Systems R e s t ~ ~ E~ ~~ i~ e~e rni r~ ~ i ~ n and : ~ r Academic Publishers, 1998. ie and Ivar Wan~ensteen,The energy market in Norway and Sweden:

Energy Institute, September 1999, available via http://www.ucci.berkeley.edu/ucei.

[ 2 The Nordic Power Exchange, The spot market, available via w~.nordpool.com. 2] [23] For derails and examples refer to, Zonal clearing market prices: A tutorial*, available via
h~:/lwww.calpx.comtnews/publ~cations/in. [24] $ c o ~ i has 10,000 MW generation capacity against maxim^ demand of around 5,750 ~d data taken from Review of Scottish trading arrangements: A c ~ n ~ u l ~ adtoi c u~ ~ n ~The o ~e , Office of Gas Electricity Markets, October 1999, availabIe via http://w.ofgem.gov.uW. [ZS] Details of future proposals can be found in the latest documents publishe~ O f g e via its by ~ web site: h ~ ~ .ofgem.gov.uM : l t ~ , t261 Fred C. Schweppe, Mchael C. Caraminis, Richard D. Tablors and Roger E. Bohn, Spot Pricing o ~ ~ l e c t ~ ~ i ~ ~ ~ b l i ~ h e r1988. Kluwer Academic s, associated with a discussion of the losses and c o n s ~ ~ isurplus9 n~ Marketplace Company Limited, July 1999, available via

[2S] Greenpeac~, e ~ ~ a n * ,S ~ r o ~ aDeutschland: Vom Monopol zum ell', ~ o v e ~ b ~ r G y in r ~ 1898, a v a ~ ~ ~via h~://www.greenpeace.de. bIe [29] ~ n ~ o ~ a tobtained in the Strombijrsensection at: h ~ t ~ : / / ~ . s t r o m . d e . ion

Un~versity College Dublin Ireland

Prof. Chen~Ching Liu Universi~ ~ashingtQn of Seattle, USA

~ l e markets throughout the world~are undergoing major chan es 111. These changes c ~ ~ ~ ~ are varied in their nature but h e uiiderly~g trend is towards a more CO and this results in electricity being traded as a c o m ~ o d ~ ~ e markets to facilitate this trade. Political forces [a33 are driving these changes. A compe~~tive electricity market is one in wh to to ~ (ge~~erators) c o m ~ e ~ i n g sell their e l e c t r ~ c ~a number are (loads). Here we are concerned with c o ~ ~ e ~ i tinoanwholesale electricity ~ a r ~where i e t the c~istomers lap consumers or a retailer who will resell the e l e c ~ i to ~ ~ are c th co~s~~ers. A l t ~ o ~ electric energy can be stored in batteries it w gh tities and hence ~ l e c t ~ is ia~ r ~ a l - t i ~ e c corn i~stan~ly. electrici~ The demand d also has a significant random Id in an ~ ~ ~ ~ ris~energy, i ~ ~ c ~ e t Th c active ~ o w e rand au~omaticgen~ratorcontrQ~ Er that the electricity system can need to be ~ r o v ~ d e d an e$ec~icity and m of t ~ e s eservices [ 6 ] . The g ~ e r a t o ~ ically and K ~ c ~ olaws s f ~ system. The consequence o ystem and altering the s u ~ (g~~ieratoru ~ u t s ) ~ l ~ o iates this c ~ ~ ~ ~ e s[7].o n ti y, a n ~ ~ lservices and la~

Competetive Wholesale Electricity arke et

77

with the real-time stochastic nature o f the electricity deman makes des~gning an arket a great challenge. s in a wholesale electrici~ market will be connected to the highsystem as opposed to the Iow-voltage distribution system. This ~ansmission system an sports the electricity. In some markets single entities units, transmission systems and supply the customers directly. These generati~g are ~o~ as vertically integrated utilities (VIUs) and can be monopolies. Where opol~es exist or where a ~ o ~ i n market position is held in one part of the ~ n d u s t r ~ , an~ c ~ i ~ agenera~ion, rl~ au~orities implementing new market s ~ c ~ r to e n c o u r a ~ ~ are e s corn~et~tion [2,3]. It is ~ i f o accepted that the transrnissi~n sys ~ ~ y n ~ o ~ o p oand in this new environmen~ should be regulated to ensure ly it open market [9]. Here it is assumed that all other aspects of the w market are competitiv~, a it is recognised that many who tive. For example, in Norway redefined limit are compensate limit are not [no]. Co~sumer demand is largely inelastic but demandc o ~ p e ~ ~ t i a ~ k e st tse c ~ i c a l l y ~ ve i feasible and is becoming more CO In a monopo~istic ~ameworka re lated VIU makes pl isions based on a least cost objective, subject to constraints ( ~ ~ i ~l ~ t e~r 1 ~ ~ 1This. p ~ a ~and~operationa~ c i ~~ a 31 i g process f scheduling algorithms, each one s roblem over a distinct time frame. ~nvo~ves econom ch ~~gorithms which achieve a real-ti and demand in a least cost manner. More advanced economic e consider the optimal the optimal ~ o w e r flow c o n ~ ~ a i n~ncluaing ts transmissi e limits, voltage levels, e frames unit commitment (UC)
~~~~~

s which are limited by these type

replaced by ~robabilistic models [IS]. Ln this ns are made. This planning and o ~ ~ r a t i o n e time for delivery approaches, the sc~edules ~ ~ s ~ aare h and tc to current circu~stan~es.

Power System ~

~ and ~

these markets result in cost m~nimisationin the short tern but their CO aspect should in the long Tun serve to reduce these costs even further. In the c o m ~ e ~ i t ~ v e market situation ~hereore set of markets need to be developed that mimic the VIU least a cost objective, subject to opera~io~al re~iabi~~ty and constrain~s.In p ~ i c u l are being replaced by markets for energy, transmission and Just as with scheduliiig algorithms these markets have di to ~alance e ~ e e n ~ The real-time or ba~ancingmarkets are run very frequ~ntly main~hn supply and demand and to ensure system security and are similar to economic d~spatch and OPF al~orithms.In many markets there may be a need to run day-ahead ~ a r k e t that will s be like the unit ~ o ~ i t m eprocess [22]. L ~ n g - c a e a c i ~ nt ~ p ~ markets may also be a feature hn some systems where or reliability reasons generators are compensa~edfor keeping available capacity 1231. ~ompetit~ve electricity inarket design is a highly complex exercise not only by economic and engineering considerations but also by histo social cons~aints. Many of the current designs have ~ecQgnisabIe flaws ibutcd to both technical and non-tec~ical ~ ~ u e n c e s . i to be assessed with these factors in mind. Lessons can be generally every market has particular c i r c u m s ~ c e s wh ity market designs in di~erent circums~nces be e q ~ i a ~ ~ y ~ ~ ~ i v can eff ired result, an efficient and reliable electricity supply. Different rna ~ i r c ~ s ~may also roduce the same desired results. There i s no c e s i ~ olution to the complex problem o f e l e c ~ c m~ ~ k de t ators will agree that competitive e ~ e c t r i cmarkets will resat1 i~~ society there are some very s i ~ i ~diferenc~s op~nion some c ~ t of on issues, These differe~ces opinion can be d o ~ ~ ain nature and s of ~ic to cloud the issues. Each regiodcountry should choose a design tha ition but suits their particufar social, e c o ~ o and political e ~~c re a broad o ~ e ~ i eof wholesale elecbi w on of the independent system operator in which describes wholesale e~ectricitymarket charact~r~st~cs follows in ~ e c ~ i o n c~arac~erist~cs auctions, b i d d ~ nprici~ig, o ~ a r d incl~de ~, f ential markets, congestion man ary services, physical and ~ n a n c ~m l a s are given to illustrate these cha ty markets Section 3.4 describes le e ~ e c ~ imarkets are still an active area o f rese ci~ the challenge^ in the design and opera~ion these of A c ~ o ~ ~ ~ d areeIn Section 3.6 and a CO g m e ~ ~ S e c ~ i 3.7. o~

C o ~ ~ ~ t e~~h v el e Electricity Markets io s ~ ~

79

As more and more regions/countries open up their electricity markets to competit~on,the ~uestion how to des~gn market in the best interests of the consumers and s u p p ~ i is ~ of the e of prime importance. Central to this are the energy, transmissio and ancillary services markets and how they are coordinated. The competitive market demand ~ n c ~ ~ effect~vely many markets, e.g. stock market ons in delivery of a product is required by a stock market whereas in an electricity market a p r o ~ u must e v e n ~ a ~be de~ivered c~ ly ins~ntly no storage) and its (i.e. ower system. The closer we get to physical delivery th the operational and reliability constraints. These basic principles are n many ~ ~ c ~ i o n i n g and it is universally accepted that e markets i~dependen~ system opcrator (ISO). Although an accepted pri market structures require a large role for the the IS0 is a hotly debated topic. S w h ~ others require l~ roach. This operator disc rim in at^^ to all e market hence the operator. In general responsible for tasks such g of load for all users and e n s u ~ n g com standards. The IS0 will o ~ ~ r the e a~ , open access to the transmission grid to all users gestion and constraints on a n e ~ b o ~ ~ system reliability the IS0 should also hancements, The I S 0 may also pro led basis and perform the s e # ~ e ~ e ~ t of aspects that need ~ ~ a g i n ranging from g, c o ~ e c ~ i o n l i c ~ econ~est~on ~o s, management and the a ~ i n i s t r a t i o nof ene n po~iciesare an ~ m p o ~ a n t aspect of the ESO res~onsibili~~es. and charges that all participants must meet in order to connect to the grid and in the marke~. trans~ssion The system is made up of a e n e r a ~ r sand cons~mersare located, and these buses are lines. These lines transport the electrical energy around the hi t r a n s ~ ~ s ssystem and have limited capacities, which for security io~ [26], When a line is at its limit the system is congested er inj~ctions every node in the system. Relieving th at generator^ andfor consumers to alter their quantities. ~ ~ e f o congestion puts a r e c o ~ s ~ r a i ~ t e n e r markets and in many instances may render them non-compe~itiv~ on the ~ [27]. Losses on an e l e ~ ~ i grid ~ u n a v o i ~ b l e c i are and can be substantial. A market nts p~ysical location on the transmission system, i.e. portan ant factor in wholesale electricity markets. Th ~ d ~ e n of establishing the instantaneous Iocati ~ a ~ s of electricity. For e x a ~ p i e a generator that is injecting p o w ~ r , location at one i n s ~ nin time can cause substa~tiaIly t different losses and c o n ~ e ~ tthan~a io similar i n j e c t ~ o ~another location andlor time. The cost of these loss at ~ sm~ss~ony ~ t n ~e to~be~~ l ~ o c ainesome manner to the s e t ~

Power System ~ e s ~ c and ~ n g ~

electricity market and this is not a trivial task [29]. The revenues collecte~ the TSO by from the ~enera~or loads for these ~ansmiss~one ~ ~ c e and s (co~ection, age, ay for the ~ a n s ~ i s s i o n s t e ~ tbe short an y in

In the V U environ~ent least cost objective ~ p ~ c a rl e~~ye ~ ~ i i l y the cost of H the e d to an6illa~ services such as r ~ s e and vol~dge o n t r o ~ ~ e a t as ~ ~e ~ were e opt ~ ~ is atio n process and their cost may not have been e x p l i ~ i ~ ~ y illary services is costly, and the ~ u a ~ ~ ~ ~ ~ ~ of reserv~ services that generat~ng are units provide they have significant costs associated wit11 them D23. ~ ~ ~ will ~ a not provide these services unless they are ade~uately compensa~ed[33]. In s o ~ cases, e howev~r,g ~ n ~ r a ~ may be obliged to provide these services in order to be all~wed or to
arket. Ancillary services can be self-~~ovided the e ~ ~ r g y by nsible for a ~ q u the ~ n ce. ~ h y s i c a ~self~ ~ ly ~ r o ~ i s i af n Q these s ient and ener~y ~~k~~ these services from others. Therefore in c o ~ p e t i t whole ~v~

a state where load shed and reserve that must rocess, then the ex

~ncentiveto ~ a i n t a units [41]. A strong ar i~ fines are not n ~ ~ e s sas pure market forces a~, in the competitive enviro the event of a shortfall in gen

In a ~ ~ o ~ e s a l ~ market ~ u l t i ~ l e electricity being traded over

d ~ $ ian~e l e~~ ~ r i ~ i ~ i number of choices at s ~ s model ~ used to i ~ ~ u s ~ the ebasic c ~ a r a c ~ e ~ s t i c s ~ e is

ity markets are used here to illus refe~encesto existing wholesale ele eneral these exist in^ m characteriti~s but it should be no ecul~ar~t~es do not allow them to be c which lso be noted that even at the time of this writing rn re a v a ~ ~ a bthe~ relevant web sites are giv l the r sh

3.3.1

~ r nTest~ y s ~ e r n ~ ~l
test system c o n s ~ s ~ ~ na supply si of g d a simple ~ ~ e e - bnetwork. us tors have quadratic production cost con~aints given by

~ i n i ~ u mr n a x ~ gen ~ and ~u

are the power outputs in MW of generator #1 and

ic utility curves and

n i m ~ m max~mum and

Power System ~ e ~ t ~ a ~ ~ i n g d

Line A Line AC

(3.5)
(3.6)

The coef~cients P, and Pzare the line sen~~~ivities respectiv~ of of the lines to inj~ctions at buses r~spectively[27].

us A

Line A us

s s~ istinct ~ a d ~ ~ g c h a n ithe~central auction n~ iers and ~ustomers both s u b ~ i t the market clears, i.e. d e t e ~ i n ~ m [46]. In their simplest forms these centralised auctions to a im~le merit order economic ~ s p ~ a~ g oh~ i [12].~ The l c ~h d auction for auction m e c ~ a n i s ~ ~
~~~~~~

Competetive Wholesale Electricity Markets

3.3.3

~ddin

idding into a simple central auction i s similar to the process of each generator submi~i cost data and each load submi~ing utility ( ~ l l i ~ ~ e s s - t o - pdata)to the ay used by the VIU to dispatch the system. In an ideal world with a electricity market the bid data should be the same as the ~roduction cost (utility) data or o p p o ~ n i t ycost, wRicRever is eater. The o p p o ~ n cost is the r~venue i~ p ~ i c i p would expect to get by selling in a different market. This price ~t assu~ption a competitiv~ in market is an optimal strategy for a market particip and The p ~ c i n ~ mechan~smi an important factor in this p r i c e - ~ i n ga s s ~ ~ p t i o n the to the seminal paper by Vickrey [49]. The fixed costs are not d ~ u a n ~ i t y , clearing the market. The incrementa1 costs i.e. (ut~~ities) all that are needed to clear the market. Here it will be assumed are no opportunity costs and that all market p ~ i c i p a n t s at ~ c r e m ~cost l bid n~ case where bids vary from incremental cost (utility) is dealt with later in the section on ~Se~tion 3.3.9). The cost (uti~ity) curves and the increme~tal cos small test system are given in ~ ~ ~3.2 and 3.3 respective~y. T r e s (utility) curves result in linear increnienta~ (utility) curves. cost
20

100

200

300

400 500 BOO Power (MW)

700

Cost ( ~ t i lcurves for the small test system i~~

5
n u

100

200

300

400

500

600

3 I ~ ~ r e ~ e icost a l i ~ (utility) curves for the small test system

C o ~ ~ e t e ~Wholesale Electricity Markets ive

Profits for the ~ e n ~ r aare ~ a ~ c u ~by~ e ~ i the di~erence ~crs a ta~ n~ between the r e ~ e n ~ ~ e cost. The cost in t h ~ calcu~ations taken to be the ~ is i~nore other fixed costs such as eapit ce ~ e ~ e the n e utility p r ~ c~i~~ h a n i sis n as you bid w h ~ pra~ i c i ~ a p ~ s c~ i pay ~ n is prQ~osed this type of d i s c r ~ ~ i n a ~ o r y that pricing wi

ts (3.11, (3.2), (3.3) and (3.4) and (be load balanc~ o ~ s ~ a ~ c

roce~ (a ~ ~ a d r a ~ i c g ~ a ~ i n g pro ils of solution) the no-load and fixed et in h i s m ~ n e with~ut r amb ~ ~ c r e a s ~[n g c r e a s ~ ~ g ~ , d~

Power System R ~ s ~ c and ~ e r e ~ l a t i Q n ~ n g

constraint (3.9) and the assumption of a lossless system, the pool (central auction) is revenue neutral, i.e. what is paid in by the loads is paid out to the ~enerators,
le 3.1 Market clearing, transmission uncQns~ained
G e n ~ ~ ~ Q r / Quantity (MW) ~Qa~ Generator #I 313.6 ~eneratQr #2 409. I Load #\ 522.7 Load #2 200.00

Price ( 18.3
18.3 18.3 18.3

~ Profit ( S u ~ l ~($A) ) s)

683.7 21 10.3 437 1.9 4345.5

3.3.5

~ a rTiming t ~ ~

to the stochas~icnature of the demand [ and the need to s c h e d ~ e e ~ e r a t i o n ~ resources in advance, electricity markets can characterised by timing. Forward s are run in advance of the delivery time. This enables suppliers to e~eration meet the demand and for the IS0 to coo~dinate a n s r n i ~ s andn to ~ i~ ervice needs. The forward markets also perform a very important financial ants by locking in prices an ractice [SZ]. In power I-time (spot) markets and is systems with large themal plants that are in unit constraints these 1. There may be a m u ~ t i ~ ofef o ~ ~ ~ r k e at s d a d ~ ahead, month ahead and day ahead. In C a l i f o ~ i a power the (PX) m s three different types of forward markets [53,54]. The day-ahead lishes prices and quantity of electricity for delivery d ~ each how of ~ ~ n the . The day-of~our-aheadmarket o erates similar to the day ding closer to the delivery hour. pa~icipants buy and sell energy months in ad can order of min~tes in ance of delivery are deeme a ~ p r o ~ ~ real-time markets are needed to ensure supply and hes c~rcumstances. These real-time markets are in adapt to unforesee~ d Norway the respecti~e lSOs operate market for real-time a d ~ u s ~ [55, ~ The p e n 101. of ~ r e a ~ -basis ~ ~ this is set to change with the ~ t r o d u c ~ i o n a binding day-a~ead a r ~ e t ~ i but
E567.

The core product being soid in electricity markets is energy. U l t i ~ a ~ e the coordi~&ti~n ly of units (sc~eduling) of the ~ransmission a n c i 1 1 services enables its and and ~ seque~tia~l e c ~ c market structure is one in which the energy t ~ a ~ ~ d e i~ ndently of the transmission and ancillary services. The provision of the e ~ e r g y a d in an ~ ~ ~ tlal trans~issionand ancillary services needs follows sequentia~ ~ a n n eIn. ~ a l ~ f oforward energy ~ a r k e t are con ~ r ~ia s real-tinre energy, congestion management and ancillary services a l i f o ~ ~[58]. There i s a strong physicai coup1 ia

Compete~ive Wholesale Electricity

s e ~ i c e and congest~on s management and this is reflec~ed some markets where cbre is one in which ded s ~ ~ u l t a n ~ o u sAys~muItaneo~s l . electricity market a n ~ ~ u s l y the transmission and ~ c i l l a r y with s ania, New Jersey, Maryland, USA) ~ n t e ~ c o ~ e [60]~ o n c~ this simultaneous c ~ a r a c ~ e ~ t i c . i ~ t ~ ~ r n The r pool is to use a hybri se~uent~a~simul~aneous arket structure in Alberta may also be a h y b ~ $ the as the energy market and the ancillary services markets as eously [56]. In the uncons ined m a r k e t - c ~ e ~ n g the ~ a n s ~ i s s i line power ws are given in Table on
3.2.
le 3.2 Power flow, market clearing, transmission ~ n c o n s ~ ~ n e d

Line AC (PAc) Line BC (PBc)

337.5 385.2

-100 200 400

The line c ~ n ~ e c t iA to bus C is overloaded by 137.5 M bus ~ ~ with this ~ o n g e s ~ isn clear the ~nergy transmission mar o to and h the e x a ~ that wille be given here will deal with ~ ~ ~ ~imulta~eously c it to deal with energy smission constraints in the ed line. This can be a c ~ ~ e v e d social welfare (3.8) subject to unit const~aints (3.1), (3.2), (3.3) a ons strain^ (3.9) and the transmission ~ons~raint (3.5), (3.6) and hic that illus~atesthis arke et-clea~ng m e c h a n i s ~ ~ c o n s ~ a ~ nen~rced ts Table 3.3 gives the ~uant~ties, prices and p the power flows.
Market clearing with transmission constraints

Generator #2 h a d #I Load #2

467.0 378.0 200.00

20.0 22.9 22.9

2871.1 228~.0 3419.1.

Power flow, market clearing with ~ransmissio~ cons~aints Line Line AC (PAJ Line flows (MW)
200.0

Line limits &IW)

-100

200 400

structuring and Deregulation

ce the ~ n ~ o d u ~ tof the ion ~ o t i c that in Table 3.3 the price at each bus is differe e price at each bus is the term locationa~marginal pricing or nodal 1 cost of the next ~ ~ g a w aoft po t I is active then typically the price at each bus ipants at different buses receive (pay) a d~f~erent and this is price the ~ c r e ~ e n tcost i s different at d~fferent al locat~~ns,o ~ a t i o n a l ~ the appropriate price signals regard in^ their location. ~ e n e ~ t o r #l is poorly located in co~parisQn with generator #2 as it is

~ e ~ the ~o buses. e e ~ ain as the revenue for the generators will be les

and New ~ e a l ~ ~

can r e a ~ a n g ~ result of the ener the

~ o m ~ e t e t i Wholesale Electricity Markers ve

~ q ~ a n and ~ t i price) ar is trading ap~roach the has ut the cheapest generators. ot c ~ e n t l y e ~ i in e d ~ ~ must be traded through the cen is set to change i Engl n
may be net inject~ons which may c n management process these
If these transacti m have been changed as se bilateral trade transmission c o ~ $ ~ a i n t s the central auction: for Line A

ine A
Li (3.12)

arket clearing with transmission constraints and bilateral ~ ~ ~ s a ~ ~ ~ o

~ e n e ~ a#I o ~ t ~ e n ~ r a tfc2r o Load #I Load #2

92.6 472.2 364.8 200.0

13.9 20.2 23.3 23.3

-214.3 2945.3 2129.6

Power System Restructuring and

Table 3.6 Power flow, market clearing with transmission constraints and bilaterals
Line Line AB (P&) Line AG (PAJ Line Rows (MW) -97.4 200.0 Line limits (MW) -100 200

The bilateral trades have altered the central market result. In order for be allowed they need to pay for the tranm~ss~on service. The ~ ~ s ~ i s b i l ~ t e ~W1 is the product of the q u ~(10 MW)~ the i n c r e m ~ ncost of ~rans~ission al t ~ by ~l between bus A and bus C ((23.3-13.9) $ i.e. 94 $/h. The ~ ~ s m i s i charge for on product of the quantity ntal cost of ~ansmision d bus G ((2~.3-20.2) / ~ i. ~ ~ ~ $ W ilatera~ trades re in a d~rect~on relieved congestion the price diff~rential~ that would be negativ ~ ~ ~ s m i s s charge would be negativ~,i.e. the bilateral trade would be re ion estion the bilateral trades can be ~Qnducted indep stem becomes c ~ n g e s ~ e d there then to pay the ~ a n s ~ i s s ~ o n these ilatera~~ a d e have been eEe charge s central auction. This concept is r e c o ~ n i s ~ dNorway where zonal in ement ~ u ~ o bilateral trades b e ~ e e n es zones c e ~ ~auc~ion al [20J P ith locarional (nodal is mandatory partic

able to match the p a ~ [67]. It is e ~ ng schedul~from a central a~iction

Competetive Wholesale Els&icity Mmkets

scheme scheme in the ~ a l i f o ~P a [54]. It is interesting to note that this iterative bid~ing i proposed for California proved impractical and has not been In the VIU envi~onmentgenerators were typically This UC a ~ g o ~uses ~ t h cost ts and accounts for the inter r a m ~ ~ n g [l5]. In so rates need to be ~ n t e ~ a l i s e d the bids of the p a ~ i c i p ~16s in t the prices in advance [69] and bid so that the pro~table. This self-schedu~~ng approach is in existence in the ~ a ~ i f o r n ~ ~ and Norway [70]. Bilateral trades are by their nature self-s security reasons, self-scheduling may be subject to approval by the IS0 "711. a central auction process can also involve a firm that owns mui~ple units submitting portfolio bids. These bids represent an aggregate offer. Afier market clearing the firm can then decide how it will schedule its own units to supply the q u ~ t i t i e s ,The CalPX allows portfolio bids. An alternative to self-scheduljng is centralised scheduling where a UC-type algorit i i is is used to clear the market [41]. ~ i d d i n g n f o ~ a t i o iin this auction m e c h ~ i s m very ~ e t ~ ~ ~n ~~ e~ ~ 9cost g all d ~ data and a p p r Q ~ ~ atechnical cons~aints.In the u te clearing examples above the optimisation problem variables were which are In of social con~inuo~s. a centrally scheduled system the objective is th welfare, subject to ~onstraiiits9 the variables are both continuous (quan~ities~ but and discrete (turn a generator on or off) [72]. In PJM some units can choos scheduled while others with bilateral contracts can self-schedule. In the e n e r market i s a centrally optimised UC process but this is set to change ~

In perfectly competitive electricity markets the most profitable swate is p ~ i c i p a n t to act as a price taker and bid at incremental cost [48]. ass~ption assumes an infinite number of competitors so the bidding beh player cannot affect the markets, i.e. influence prices. In the real world, however, there are only a finite number of market participants and each participant has to some degre to power, i.e. they can bid s~a~egicallyincrease their own profits. There is a mu possibilities for this type of gaming behaviour in ellectricity markets [73,74]. De bids from ~ncremen~al can also occur because a p ~ i c i p a n wants to en cost t schedule [66] or it knows it has another opportunity in anorher market incremental opportunity cost. As an example consider generator #I in the constrained market above. i n c r e m e ~ ~ ~~ e n e r a ~# Ir is making a loss (Table 3.3). In this: case ge cost o alter its bidding strategy so as to avoid this loss. Table 3.7 gives the result for one strategy wbere gen~ratQr ~ncrease~ linear part of its bid (3.1) from 12 ~ #I the ~ to W 14 h

Power System R e s t ~ ~ andn g ~

atkec clearing with ~ansmission constrain~ ~ e n ~ s a tkt ltbidding and o strategically, i.e. the linear coefficient is changed from 12 $ Mto 14 $MWh ~
~enerator/Load ~enesator #I Generator R Load #1 Goad #2 Quantity (MW) 106.3 48 1.3 387.6 200.0 Price ($/NIwh) 16.1
20.4

22.6 22.6

Profit (Surplus) ($/h) 25.2 3075.1 2403.2 3480.4

erator # I by a~tenng bid away from ~ n c r e m e ncost has t its ~l u le 3.3) into a profit of 25.2 $/h (Table 3.7). ~enerator 2 ## incre~ing profits from 2871.1 $k(Table 3.3) to 3075.1 $k(Tab 3.7). Load# 1 and its 2 have both also gained as their surpluses have increased. y b ~ d d ~ g its above ntal cost generator # 1 has increased its price and reduced s quantiw and most are a balance betureen ~ c r e a s price and reduc ~g q~antity, ~ i t inelastic h e is more scope for driving up prices w~thout excessi ads can also bid strategically. The price differenti ( bus B: has reduc~d T 7) and hence the loser in this g revenue from the c ~ ~ g e s t i o n ment has reduced from 23 15 ties and these exist in here pa~icipan~s in collusion 176,733. Cen are the market power. ~ o w ~ v e tr r, ~ ~ ~ i s s i o n mall pockets with very few ~ ~ i c i In this ~ . p ~ s with little market power ~ l o b a ~c y l ransmission systems that are prone to tive electricity market difficult. S their nature [26] pose s i ~ i l adiffic r ed that must run for r e ~ ~ a b i lreas ~w R) generators are ~ o ~ p e n s a t outsi ed market results [8OJ. In the example above it should be noted that the strategy of g~nerator I is not op~imal. # i n ~ ptirnal s ~ a ~ e g ican be found, however [S1,821. Successful ~ a ~behaviour r e ~ u ~ e s es ts to have good information about other p a ~ i c ~ pbi ~ and to consider the ~ s n a ~ r of the p r o b ~ [83]. e e~ onstra~~ts g a ~ i n g and behaviour act to reduce social we~fare. Table 3.8 below the social welfare for some of the ex sion c o n s ~ a ~and all ~ a ~ c i p ~ t s ts social welf~re a ~ a x i m u m .With the ~ a n s m ~ is lace of cheaper power and the social we1 are bi~ding away from ~ n c r e ~ e n tcost ( ~ t i l i then the social we~fare her r~duced, al ~) is

Coin~etetiv~ Wholesale Electricity Markets

Social welfare
Market

Social welfare ($h)

11,511

No t ~ ~ s ~ i s sconstra~ntstab^^ 3.1) iQn ~rans~iss~on constraints (Table 3.3) Gaming and transmission constraints (Table 3.7)

10,715 10,711

3.3.10

A n c ~ i Services ~u~

s e ~ i c e s required for the reliable operation of the power sys are s ~ n ~dre d n i ~ ofo n services is not globally accepted. AGC, resesve (s ~ ~ these s t a ~ d b yload fo~~owing,o ~ ~ control and b ~ a c ~ - sc a ~p a ~w oi u be~ ~, v ge t a ~ ~~ ised services. The generat5rs ically provide these ~ n c ~ l ~ a can also provide some. New these s e ~ i c e are not s term contract. Some of ~ ~ k eIn ~ J AGC is se t . ~ , l ~ they are L ~ w i or ~ ~ ~then the IS8 operates a acquired by cons~aining e process of a c q u ~ this ~ ~n energy and ~ansmis~on congestion manageme~t markets. Consider the simple test system. Assume that the IS spi~iing reserve is required for system r e l i a b ~ and~ ~i advance by acquiring it in a ~ o ~ amarket, e.g. day ahead. Spinning reserve is the a~~~~~ r d of an on-line erator tor (bad) to increase (decrease) its output (c period of time. The time per~od be d e t e ~ ~ bydthe s y s t e ~ t for smaller s y s ~ e ~ s will e the time period is nemlly smaller in order to avoid large ~ e ~ u ~eviati5ns ~ e ~ ~ c [38,86]. Assume that gesler r # 1 and generator #- 2 can ramp up by 25% and 50% respectively of acihes in the s ~ ~ ~reserve time period. It is also ass i n g loads are ~ncapable p r o v i d ~ ~ ~ reserve. Therefore the ~ of spinn~n e ~ ~ ~ e

1I- 0 . 5 ~ ~ 0 0 2 200 - P2)

Table 3.

(3.13)

the r e s ~ of ~ s ~ clear the market with the above constraint (3.13) m~ssion o ~ s ~ a i n t s c

Power System ~ e s ~ c ~and ~ n r e ~ I a ~ ~ ~ i e g

Market clearing, reserve constraint, transmission un~ons~ained

_ _ I _ . I .

G e n e ~ a ~ o r ~ oQuantity (MW) a~ Generator #1 3 16.9 291.5 Generator #2 Load #I 408.4

Load #2 200.00

Price ($/MWh)
21.9

Profit (Surplus) ($h)

1842.4

21.9

21.9 21.9

2969.2 2669.3
3614.1

The first thing to notice about Table 3.9 is tkdt in comparison with Table 3.1 the quantities have altered substantially. In order to meet the reserve c o n s ~ a i n(3.13) ~ g e n ~ a t o#2 has had its quantity reduced and loa r is largely unchanged and load #2 is unchanged. Although generator reduc~ionin quantity it i s more profitable than the unc~nstrained cas reason for this is that the price has increased. Although generator #2 cannot complain about its profits. The biggest gainer out o f this si whose profits have more than tripled. This high1 with ~ e c ~ i cparameters, i.e. generator # 1 has al It should be noted that if both generator #I and #2 had the ability to ramp up to m a x ~ ~ u m output within the s p ~ n i n g reserve time period then the market would clear at the same price and q ~ ~ ~ i in Table 3.1, i.e. the reserve constraint (3.13) will not be ~ ~ n d i n g . as t y Here the binding reserve constraint has caused the social welfare to reduce to 11095 $/h from 11511 $/h in the ~ c ~ n s ~ i case (Table 3.8). It shou~d be noted that in the ned also event o f this reserve being used then generators # I and #2 woufd be paid the real-ti~e price for their energy. This scenario, where both g e n ~ r ~are bettcr off because o f the to~ always the case and eref fore if a constraint causes a red~ction in ~ c ~services, i sanot~ ~ l profits a p ~ i c i p a n tshould be compensated for its o p p o ~ n cost [60]. The ~ y b r ~ d i~ approach in the New England Pool requires the ca~culationof this o p p o ~ cost for n ~ ~
An alte~ative approach for the provision of ancillary services is to set up m ~ ~ k e t In a s. competitive e n v i r o ~ e n the bid curves for reserve and other ancillary services should t reflect a pa~cipants expected o p p o cost. ~ Expected o p ~ o ~ ~ n i t y ~ ~ cost will require f o ~ e c ~ s tofthe energy spot price [69]. In C a l i f o ~ i the ancillary services markets fo i~g a in sequence after the energy and congestion management markets. In this way capaci progressive~ya s s i ~ e d the various tasks 1551. In New Zealand the ~eserve ~ k e is to m t cleared simul~neously with the energy and transmission markets. With ~ a n s ~ i s s i o n and reserve constrai~ts there may be a need to account for the interact~Qn between the two, i.e. in the event that reserve is needed it will require ~ a ~ s m ~ s s[87]. ion

3.3.11

ieal and Finan~ial Markets

~ a r k e can be physical or financial. If the markeE is physical then the quantities are to be ~ physic~llydelivered in contrast to a financial arke et where no p ~ ~ s i c d le ~ i v e ~ a is reqMired. In advance of physical d e l i v e ~ IS may well receive i n f o ~ a t i o n the that is ~ndicat~ve the physical deliveries. However, at some point in time the I of ~ n f ~ of the d ~ e bin~ing physical c o m m i ~ e n t s it can c o o r ~ i ~ athe so te

C o ~ ~ e t eWholesale Electricity Markets t~~e

security and reIiabi1~~. Deviations from these binding c o ~ i ~ are n ~ e with by buying or selli the differences at the real-time price. In C a l i f o ~ submit binding schedu and any imba~ances adjusted in the real-time m ~ k e that is are t operated by the CAISO. ecause of price volatility many ~articipants a central auction rocess may wish to in acquire financial contracts which hedge their position. In Alberta effectively hedged against the pool price. Alberta currently has only and this has been possible because of the large-scale hedging w p a ~ i c i ~fiomsprice volatility, This situation is set to change wi ~t being introduced in the near future 1561. teral trading is one m e c h ~ i that can be used to hedge the vola~lity a central s~ in a load that are participating in a central auction can ~iavea a price P,,. If the pool market has a uniform price of P, then and the load pays the same amount. his can be ach~eved at zero price and the load requesting MW and i n d ~ c ~ t ~ g he market price P, is higher than oad. If the market price P,, is lower than the P, - P,) to the generator. The net effect is W at a price P,,. The two that thc ~enerator and load h of the uniform price. The s bil~teral o ~ ~ aare perfectly c ct hedge is known as a Contract for Difference (CFD). ~ o w e v e r ,this hedging mechanism is u n d e ~ i n e din a system that congested and has a ~ocational congestion ~ a n a g c m e n ~ system. If are at the same bus then the hedge is still perfect. If, however, the I different buses they will have to pay for transferring Q MW from the gen could load bus. This p ~ y n i e n ~ be revenue depending on the price d~fferenti and the generator split this payment (revenue) between them is their own business. There involved: the IS0 which collects the charges for co~ges~ion ~ a ~ i o n a ~ can be very variable and ~ e n c ethe price of prices ly voIatile. A solution to this difficulty is the conc ~ r a ~ s ~ i s srights ~ ion ~ where pa~icipants in advance ~ ~ r c h a fre T ~ ) can s right to collect the ~ a ~ s ~ i s scharge for Q MW between two buses [63]. ion load and generator are again hedged. If these transmission rights are compe~~tively traded then their price should reflect the expected price ~~fferential ~ ~ e the load an b e n generator buses. The IS0 must also ensure that these ~ a n s m ~ s s ~ o n are feasible9i.e. rights its t r a n s ~ i s s i o ~ congestion income in the physical market covers the p these rights. Trans~ission rights may also be subject to gaming behav~our ex~s~ence ~ u l t i p l e of trading o p p o ~ n i t i e (bilateral, spot market, forwar s the wholesale electricity market ~ a ~ i c i ~ win ~ s a n endeavour to optimise their portfcdios [89,90].

From the el~ctr~city et characte~stics arke dec~~bed above it is eviden~ that there is a esign choices for electrici
lco r n o ~and the ~ i ~ a t e r a l ~l sion and ~ ~ c i ls~ ~ i r e s e a c~

pool and bilateral aspects with

rates all ~ h y s markets forward ~ ~ a ~

and cost ( u t ~ inform ~ i ~ ~

p a ~ c i p a n self-schedule. t~ This model oflers all the ~ e n ~of co~prehensiveCO ~ t icipa~io~ the cen in c ~ ~ i coif s ~ type of this ically not ~ i q u and the e is very sensitive to algorith~ ~ a ~ e t e which could lead p rs consequence of the i~teger n opti~~ation proce dificulty the prices are set by lex algorithm whic

oach should m i ~ i ~ i any se

~ l e ~markets are ~ ~ c i highly complex systems that consist of a number of ~ t ~ e l a t e d m ~ k e t sfor different commodities (energy, ~ansmissionand a n c i ~ services) and l~~ different time frames (real-time, hour ahead and day ahead). There are still man lems in the design and operation of e l e c ~ ~ i t y mar~ets. when the pure economic theory is applied to a power syst e economists want the electricity markets to embrace the laws d with simply ideal examples they can show the benefits af such a . The real-time nature, physical constraints and reliability issue all act to make the development of an ideal market impossible. It should be noted that it is well accepted that all markets, even those for simple c o ~ o d i t i eare, not ideal. T h e ~ e f o r ~ ~ the goal should be to develop a market that is a bestfit to the ideal. Several wholesale electricity markets have been established around the world and most of these are in a con~nuous process of change. This evolut by the need to address some of the outstanding issues in the these markets. Here some of these challenges are outlined.

3.5. I

~ a rPower Evulualion and ~itig~lion ~ ~ t

e t valuation of market models can have many differe~tv i e ~ o i n ~ sThe ~ a r ~ must . dmction in a reliable, efgcient and fair manner. The generators will want to maximise their profits t ~ o u g h markets. The consume^ will seek the best value for the service the they receive which may conflict with the aims of the generators [SS]. This will ne~essitate analysin~ social benefit that the market offers and the prices that are charged. It will the also be dent to ensure that market power and gaming do not exist and that m ~ k e t are s not overly volatile. on there are some a v a i l a b ~ ~ simuiat~on and a ~ a l ~tools. ic simulation model that considers the market s ~ c t u r and estimates e and ~uantities.Kumar and SheblB [93] have dev~loped auctio~ an s et al. @ I ] have developed a framework to in market simulator. supply Green when all p ~ c i p a n t are maximising their own s and ~ e w b [94]~investigated the UK market using the supply curve e T h ~ is little doubt that market power is bei exercised regularly in many electricity ~e rices, which are well above co~petitive m ~ r k [95,96~.This practice is characterised ~~s ~y and levels, The result is ~ i c a l very profitable for the ge~erator ult~matelycostly for s power can be exercised in many ways. aerators with global market power can manipulate the marginal (spot) price as in the gland and Wales p o ~ e pool r [96]. ~ransmissioncongest~~n give p ~ i c i p a n t s can local market power and they can ~ a n i ~the Iocational marginal prices 1971. Some possible solutions to this problem ~ ~ ~ t e i n c ~ u d ~ following [76]: the

Competelive Wholesale Electricity Markets

99

Better market design. Some markets have experienced difficulties, which could be resolved by better design [24]. The congestion management process in California has a gaming problem and the Federal Energy Regulatory Commission (FEW) appears to be encouraging the adoption of locational marginal pricing as a solution [3,64]. reaking up the large generating companies into smaller co~petitive WI oliticd issue, which may not fully solve the problem. In the perceived that the two dominant generation companies exercised their market power to raise prices above competit~ve levels [96]. ~ u ~ more~~ansmissionso as to avoid creating o p ~ o ~ n i t i e s local m a r ~ e t ~ n g for power. Over-building transmission may seem wasteful but with this ~ a n s r n ~ s ~ ~ o n capacity in place local market power can be removed and generators may act more e ~ ~ v e [8]. This additional ~ansmission ly will also increase the r e l i a b i ~ o~ the if system. There is, however, significant environmental concerns related to b ~ ~ d i more ng transmiss~on lines. n here the load is Making the load more responsive to price. In the examples responsive (3.3); however, this masks the reality where in mo markets the load i s largely inelastic. Any generator hoping to find that a responsive load will reduce its quantity and reduce . For domestic customers this may be very difficult to i e customers may be capable of ~ n s t a ~ ~equipment that can respond to the m a r ~ e t ing e. In the long run new technologies may make distributed generation (e.g. fuel cells) more prevalent and this will reduce the need for further investment in transmission [%I. It will also combat market power, in particular, if this type of generation is owned by groups of consumers (i.e. if the market price is too high they will generate themselves). If this does happen then the electricity market will become part o f a larger energy market. In some markets if the price rises above certain levels the prices are capped; however, this distorts the price s a1 and may have long-term negative consequences~ Price capping has been used at one time or another in most wholesale electricity markets. For e x ~ ~ ~ I California ancillary services markets have had price caps i m p ~ ~ [79]. the e , ed

3.5.2

~ y s t Capacity e~

The issue of p l a ~ i n g generation and transmission must be a d ~ e s s e d in with a view to ma~ntenance enhancemen~s meet increasing demand. On the generation side these and to functions are generally left to the market, the assumption being that energy prices will signal the best times to maintain units and when to build new plant. The energy price spikes in the Mid West (USA) in June 1998 highlight this issue. A market for generating capacity over a fonger time frame (more than one year) may provide the necessary market rs signals h ensure that the system will expand according to the needs of the c o ~ s u m ~1233. The concept of marginal cost pricing [99,100] for electricity is based on ~ndamental microeconomic principles [50]. In an ideal market bidding at ~ n c r e m e n ~ is an cost optima^ strategy [48]. However, the resulting schedule may be unprofi~ablebecause of costs such as no-load costs, startup costs and fixed costs (Table 3.3). In the VRJ environment with spot pricing Schweppe et al. (281 introduced the concept of revenue reconci~~a~ion ~ a r g i n a ~ where pricing may not be sufficient to cover all costs and give a

Power System R e ~ ~ ~and Dere n ~ ~ r i

reasonab~e profit. ln competitive markets revenue reconciliation shou~d redun be that m ~ ~cost pricing will in the long i-un resolve this issue. In the lon ~ a l not suf~cientto cover business. However, this i in the ~ n g l a arid Wales power pool ere are ~d c a p a ~p ~~ e n t s ia p ~ i c i p a n t sreceive in addition to the market spot ~ a l i f o no~such ~ a st in the energy market but there is ctures would appear to fail in in new trans~ission [8,102]. This may be a p r ~ a ~ r e tra~smissio~ v e s ~ e is ~ long-term issue [30 d the markets have only been recently in na i n t r ~ ~ u c e d . it could be argued that the tran Also sion system was over-bu~lt the past in and the excess capacity is only being utilised rec , In addition environmenta~ o n c e ~ s c are also a factor in the lack of investment in the tran~issionsys i n v e s ~ e n in transmission does not keep pace with the increasing de t there will be ~ o n g - t e ~ economic and reliability problems. The when transmiss~oncapacity is needed the market &I ction delays etc. this could lead to periods of u ~ e l ~ a b i ~ ~ t y and i~ef~c~encies.

.5.3

Reliability

W h ~ it is desirabIe to encourage co~npetitionin the e l e c ~ i c arke et to reduce the costs ~e i~ e quality for consumers, also v ~ ~ ai~m y o ~ to ~ a i n ~the l p t in . In an operational envir ent, an important re~~abilitye a u r e ~ is em security refers to systems a b i l i ~to w ~ ~ h l i ~ e l y ~ s t ~ A system is said to be in a secure state if it is able to meet the Load d cy~ without viol at^^ the erating constraints in case of a like c o n ~ n ~ e n such as a line or In other words, s e c u is defin with re spec^ to a set of next ~ ~ g ~ ~ e r ao u ~ g e to 11 ies that are likely to occur. Gatas hic failures of power c~caded events that are co~binati n a ~ r ac a l a ~ ~ t i(e. l es q ~ i ~ m e ~ a l ~ n c t ~ odesign flaws andor h ~ a e ~ o r s nt ns, n [ security assessment is to reduce the likelihood of catastrophic failures. uch effort in the past decades has been devoted to the develop~ent c of for s y s t e ~ e ~ ~ r i assessment. These tools include state estima~ion, ty select~on contingency evaluation, external network equivalents and 10 ustry evolves into a competitive environ~ent, system securi ~ n c t i o n . this new env~ronmen~, p~~~ responsible In the or a similar entity. Since the e n v i r o n ~ ~ nm is ~ ical challenges. For example, the level of unce as increased s i ~ i ~ c ~ tThis .is due to the fact that ly Con~ a ~ e n e r a ~ patterns and the market outcome may not be easily p r e ~ ~ c ~ ~ b l e .e q u e ~ ~ l y , on s y s ~ eng~neer the IS0 who studies system security may find it d ~ ~ ~ u l t the e~ at to predict eneration and load conditions for evaluation of system security. is defined fo city market ity Gouncil nes ATG as triC

Competetive Wholesale Electricity

the Total Transfer Capability (TTC), less the Transmission ~eliabil~ty Margin ( T ~ less , ~ the sum of e ~ i s ~~ansmission o ~ ~ t m e n(which includes retail customer s e ~ ~ can ) in~ c ts e 11061. Note that ATC is d e ~ n e d a ~ c t ~ t ~ o u for presents the amount of power that can be Van ng the ~ a n s ~ i s s i o n system contraints~ such as line flow limits. ing condit~onof a power system; the syste de thermal, voltage and stability limits. the effect o f various unce~inties system condi~ions ATC, in on smission ~ a n s f e r capability reserved by load-serving entities to ensure ~ h e i ~ erations from interco~ections meet the system r e l ~ a b irequirernents. to l~~ e x a ~ p of e ~ the d e t e ~ i n a ~ based on power flow c ~ ~ ~ ~ l can i ~ i ~ s ~on at in Bergen and Vittal [ To determine the ATC for a path from X to Y, one can ~nject an a ~ o ~of power at node X and remove the same amount of power at Y and calculate nt the i n j e c t e ~ r ~ ~ o amount i s increased to a level that c ved the power flows. h its capacity, the amount can no longer be increase ~ansin~ssion line e wer ~ a n s ~is r TTG. hen a iven line cont~ngencyis ~ a ~ in n e the flows of the post-continge~cy operating conditions also nee transmission line conskaints. ~onsequeiit~y~ATC may not be as high the the ~oiitingency conditio~ s not considered. The s ~ e a d y - s ~power flow m e t h o ~ be i te can exte~ded include s y s t e ~ y n a ~ ~ cTime domain simulatio~s to d s~ can various levels of power ~ a n s f eto evaluate system stability including vo r s y ~ c h r o n i s ~ the ~enerator of rotors. When dynamic security is considered in ad~ition to the steady-state operating cons~aints~ resu~t~ng may further be the ATC the availability of ancillary services such EIS reactive power sources can

e aware of the ~im~~ation path-based ATC concept [ 1081. The of the existence of the multiple transactions is a reality in the market environment. When the ATC of a path from X to Y is being evaluated, one needs to consider other t r a n s a c ~ ~ that ns have to be ~ccommodated. For the power flow method, other transactio wer inject^^ into and removed from other areas of the system. These taken into ~ccount simul~~eously the ATC for path X to U i when le kansact~on a ~will lead to differen~ ~ e ~ s values of illustrates the concept of multi-dimension ower transfers over tie lines 1 , 2 and 3 re projection of the thr~e~~imensional on the P,,-P, plane resern region describe the secure power transfer point inside the ~~ree-dimens~ona~ re ot violate the security conska~nts. The projec~ionon other similar manner. Now suppose the power 1 P,, is at the value of P,,,, the maxi eases to the value o f PTIZ, Waisfer level for P,, increases to Pn2. NQWit is not difEcult to see th p o ~ e~ a n s ~level P increases fro^ the zero level. To s u ~ a r i s ethe r er , , , parameters of the operating con the other ~EIn~~ctions. , represented by a tie line in F on the levds of other ented by other tie lines.

Power System R

~ and c

T3

Illustration ofa power system security region

Comp~te~ive Wholesale Electricity Markets

3.5.4

TechveicalIssues

~ e g ~ d l e ofs wholesale electricity markets power system p l a ~ i n g s and opera~~on has many technical challenges. With the advent of wholesale electricity markets new and d~fferenttechnical challenges may arise which need to be addressed. The comp~~ationa~ aspects of the electricity markets are one obvious area of interest [l09]. There are also interesting technical challenges related to the management of a large number of transactions [I 101. The OPF algorithm which i s at the heart of the marginal cost pricing paradigm [ZS] and of power system security analysis will have to meet ever-~cr~asing challenges [ 1 1 17. In the m ~ ~ m a l iIS0 model with ~elf~schedu~ingUC a l g o r i t ~ being implicitly st the is solved in a d i s ~ b u t e d a ~ e by the market particip~ts11121, which may or may not m r produce results which are as good as conventional UC algorithms. In the interest of efficiency these decentralised UC approaches need to be analysed. In the r n ~ ~I S ~ ~ ~ 0 model a cen~alisedU ~ / ~ ~ F - t yalgorithm is required [1131, Although s e c ~ t y pe constrained UC afgori~ms exist [ 16,171 a UC algorithm with a full QPF formulation for a practical-size power system is still a significant computational challenge. The UC algorithm itself is still a very active research area with many issues unresolved [114,14]. In particular, solutions are invariably suboptimal and not robust [92]. In the short-term, regulators, system operators and market ~ a ~ c i p a nwill have to face ts the challenges described above. However, any actions need to allow market forces to push the indusfxy towards possible long-term competitive solutions.

. 6
The authors would like to thank ESB National Grid, UCD President Res~arch w ~ d and A s Fu~brightfor their financial support. This work is partially supported by US ~ a t ~ o n a l Science Foundation through Grant ECS-9612636 with matching funds fiom Alstom ESCA Corp. The authors would also like to thank Prof. Richard Christie, Universi~of Washington, and Mr John Kennedy, ES National Grid, for their useful c~mments and insights.

.7
[I] [2] [3]
141
[5]

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[1061 ~

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Cliff Walton London Electricity Group UK

Robert Frief London Electricity Group UK

Dr Loi Lei Lai City University, London

UK

Transmission and d i s ~ i b ~ ~ are o n regarded as the natural monopoly elements in the ~ i still r e s t ~ c ~ r UK energy market. Since privatisation in 1990 there have been a number of ed changes in the structure o f the industry which have impacted on the dis~ibution businesses and the i ~ ~ t r o d u c of o ~ Utilities Bill heralds a further change in the relationship with t ~ the g o v ~ ~ ~ e n regulatory body and consumers. the t , One of the main objectives of privatisatio~ was to promote compe~ition. This has focused on the supply (Le. the retailing) of electricity and gas and has encompassed the associated aspects of metering. A c o ~ p e ~ t i framework was developed for new connections to distri~ution ve networks defining certain elements as contestable work, but to date this area has not seen the widescale competitive activity expected and the regulator has indicated his in~~ntion review to competition in the gas and electricity connection markets by March 2001. The biggest effects on the distribution businesses have resulted from the price control mechanism. Distribution businesses in the UK are price regulated, a part of which is to allow a return on the assets purchased at vesting and the i~vestmen~s made in the subsequent years. The latest price review, which came into effect in April 2000, saw the regulator propose reductions in distribution business income similar to those following the last review, None of the UK ~ i s ~ ~ b u tcom~anies ion have c ~ d i ~ e the o~ue~dc ~ ofn ~ ~~ r the latest review, which implies that the companies believe that they can achieve these savings. The only st~ctural change at the time of writing has been the announce~ent London by

Distribution in a Deregulated Market

Electricity and Eastern Electricity of a joint venture to operate their n e ~ o r k s with the , asset ownership remaining with the parent companies, Since the latest price control the UK r e ~ ~ a thas i ~ ~ l e m e n t a d or e pr the ~ ~ f o ~ a t i a ~by the regulated di~ibution prav~ded companies and incentives to introduce an element of competition. The details of any such scheme are still to be decided, but it sends a clear signal that after 10 years there remains much scope for a ~ and menls in ~ e ~ lpractice o ~the electricity distribution industry.

4.2. I

~ o ~ ~ e t iin Supply ~ion

The development of competition in the energy supply market in the develop~nent two distinct activities in the UK public electricity suppl of ty and distribut~on. The supply businesses are responsible for the sale of e ~ e c ~ c iand gas whilst the d~stribMtion businesses manage the cables, lines, ~ a n s f o ~ eand switchgear rs which form the power supply networks between the EHV grid system and the end users. The development o f competition in supply as part of the process of d subject in its own right. Certain aspects of the process to deliver a CO market have had a significant impact on the PESs distribution businesses. The most visible aspect of this has been the moves both physically and ~ ~ ~ c itoa l ~ y separate the retail and ~ i s ~ i b u t i o n business, and in some cases the sale of retail businesses to third parties. This process has involved the rebranding of the separate bus~esses. It was intended that the PES distribution businesses be rebranded and this will case, although those generators who have acquired retail interests (National and PowerGen) have essentially rebranded their retail arms (Mid~ands and respectively).

4.2.2

The ~ ~ s p 5 n s i b i l iof~ ~ s~ a i l ~ i s t ~ i b u t i o n t ~ e and

retail business bulk hases both electricity and gas and supplies them to their custo~ers the electricity and gas networks. A great deal of work has been required to over the necessary systems to effect a competitive market. of this ~ a r k e ~ l a the retail businesses have taken responsib~li~ meter ce for service providers r e a d ~ gwith the intent that this service be procured from ~ ~ t e r - r e a d i n g , on a compe~itivebasis. The development of competition in the mete~ngsector will even~ally the pr~vision meters to suppliers by meter asset ana age^ and opera to^. see of The distrib~tion companies manage and maintain the electricity d~stributio~ network. This involves both the technical asset manage~ent planning services and the b ~ ~ofl use g and ~ of system charges from suppliers and the management and maintenance of the existing meter assets.

12

Power System Restructuring and

eration services organ~sation London has been estabiishe in from the n ~ ~ o asset manager, with an a ed scope and level o f s ~ ~b e ~ c een r k ~ e

ive for separation o f businesses is a reui~emento f establishing a ~ o r n p ~ ~ i ~ ~ v in the supply of energy [I]. In essence the incumben~ i s ~ i b u ~may d or the position of the domina~t host supplier to the d e ~ r n e oft custom~r ~ Five comp~~itors. potential means of achieving this have been i d e n t i ~ ~ ~ :
a combined dis~bution could disadvantage comp charges to support the suppliers retail tariffs. s pote~tially access to i n f o ~ a t i o n other ~upp~iers not has that will le, the names o f customers supp~~ed a second-tier supplier. by intentions o f a dis~ibution business. For e x ~ p l e ad , ze and nature of changes to use of system 4. Cross-subsidisa~ionby a d i s ~ r o p o ~ o n aallocation of costs te overheads to the d i ~ ~ i b u ~business. A small reallocat~onwill have ion i ~ p a in ~ retail i n d u s ~ has very small ~ a r g i n s . The regul c a that this issue in the 1999 price control review by realloc tion to supply before assessing the relative ef~ciencies businesses. ution business will in some way ~ o ~ g r the service to a custo ~ d e s ~ ~ p ~ ~ example, the response to power o u ~ ~ ~ ~ . For e r .

ion businesses ~ e s u l t i nfrom c ~ m ~ e ~ i t in n ~ io s s e p ~ a t i ofnthe two business areas are: ~

on businesses of the i ~ ~ l e m e n ~ t the ~ of i o etablished at the time e in resolving system-b constraining s u p ~ ~ ~ e r s for e ~ b e d d ee~n e r a t ~ ~ ~ sales. sales energy

istribution in a Deregulated Market

It was decided that t ~ e was r ~

required s e ~ ~ e ~ a t i o n

e a p e r ~ Qs~ a ~ itoei ~ ~ i ~ i c ~ sat ~ ~ e ~ s . ~~v c du o torner^ er^ still receive the level of service the

i s conkoiled via

on ~alf-hou~lyQ ~ s u ~ ~ t i o n for 1 c data)

e s t i ~ a t ~for smaller (mainly quarterly s)
st o f a fixed portion or stan

11

Power System ~

~and Der~gu~atiQn c ~ ~ n ~

4.2.7

C ~ t oService~ ~ e

The ma~iagement customer relations is another area where competition in supply cre~tes of a number o f options. In New Zealand, the initial approach routed a11 customer contact throu businesses. This simplifies the contact issues for the customer, manage~ent the interface between suppliers and dis~bution of b the correct i n f o ~ a t i o n available to inform the customer. is the UK, the distribution businesses have kept an interface with c u s t o ~ in ~ e relation ly outages. Hence customers have two points of contact. ~ l t ~ o this s ~ m ~ ~ i ~ e s u g i of the m ~ a g e m e n ~ information flows on outages between istribution businesses and suppliers (there is none) the management of the routing of calls to the wro care. The future solution to some of these issues i s already apparent in call systems. These are already being installed to provide i n f o ~ a ~ i o n outages and are on of particular use in the extreme circumstances o f wide-scale power outages when call centres become overwhelnied. Internet technology will soon provide accurate supply of i n f o ~ a t i o n outages and on torat~on times to both customers and suppliers - the inte~ation fault reporting of lephone network. It is possibie to generate specific y~ice-ac~~vated messages g to postcodes or dialling code i n f ~ ~ a t i o n . may even go as f8r as pro It ~ f o ~ i a t i o n ring the customer). London ~ l e c ~ hc i ~ (i.e. d e ~ i c~~ ~ g power outages on its internal web site for so ent make this facility available via the Internet once suitable security safeguards h proven. 4.2.8

~ a ~ ~ ~ in Metering~ t i t i o

and 100 kW markets since I991 and 1994 Competit~on has existed in the 1 to own and operate meter assets in both these respectively. Third parties have bee i n areas since 1995. In conjunction with the h1 c o ~ ~ e t i t i oin energy physi~al financial separation of the dis~ibution supply b~sinesses~ and and competitive metering are being extended to the remainin market sectors. This has created two distinct business streams, meter rea asset m ~ a g e m e n (otherwise known as meter o t provide data retrieval and data processing @R s will provide meter asset provision and m ~ a g e m e n( k n o as t ~ dis~ibution businesses no longer have any part in the reading of meters, which is by the energy retail business via a contractual ~ a n g e m e nwith a meter reader. t any This is a n a ~ apro ssion in that meter readers could provide services for r e a ~ ~ n g l developments are likely to result in meters that are read utility service meter. o n g - t e ~ remotely. The existing meter assets are presently owned by the distribut ~ompany, provide can energy supplier, via a meter asset man~gement new cu$tomers DT as r lacements for existing meters. In the me will develop in the p~ov~sion meters and the ~anagement f these assets, of o

Distribution in a ~ ~ r ~ ~ u l a t ~ d Market

To ensure the availability of these services, the PES energy retail businesses will ovide a meter-~eadingservice of last resort and the erat~ons service of last resort.

d-side ~ ~ n a g e m e n ~
s to reduce the peak demand either of more efficient usage or by mov elements of the 10 the system load factor. real alternatives to rcernent. In general terms these the ~ansmission generation level where the cumulative effec and ema and-side ma~agement been encouraged by the use of tariffs, e. has the peak tariffs for storage heating. In this i n s ~ c e move away . am heat~ngto off-peak storage w impact on both generation and &r wever, at a distribution ievel the wi e installed c a p a c i ~ require^. mand occurring at nig ating has resulted in pe ated ~ a r ~ the promot~on of energy effi et ess clear. The generation capacity availabl~b cts exist between energy uppliers or retailers or respons~blefor bala~cingthe systems m a ~ ~ system voltage, ~ e~ u e n and security. Large c ~ ~ n i ~ q c~ ing themselves available for disconnection as istrative complexities of participating in such this to a few very large buine$ses. o recourse t modifying use of system tariffs to promote alternati ,the energy u ~ ~ l imay not be obliged to er any reulting ~ n c e n t i ~Addit~onall~ the e~. i n stomer contact and knowledge of their partic erator to m ~ a g the syste e bedded generation to offset the need for r e i n ~ o r c e m ehas ~~ become a major subject of debate. The principal difficulty is that p~omo~ing ennsurhg and the ~nta~lation suitable generation in advance of the reinforcement ~e~uirementfar of is from a simple task. Not only this but the ~ p p r o p r i a ~ commercial a ~ a n g e must be in s ~ ~ ~ ~ place for the risk to be m i n i ~ ~ ~s ~ f ~ c i e nfor y generation to repre~n~ ~ q u ~ ~ a b l e sed ~ l the an ~ ~ ~ e ~ to tt~aditiona~ ~ n f o r c e m e ~ t . a ive ~~ Therefore it can be seen that in the marketplace active d e ~ ~ a n d - s ~ ~ e re~uirea time of to be sent to c u s t o m e ~ tariff a via ~enerat~on, n m i ~a lion levels designed to reflect the local cmt this would be in reducing the need ive if system security is allow for the effects of would require careful risk assessment. Variances between actual would need to be reflected in v a r ~ a ~ use of system charges in le

d. It is not the intent to discuss here whether variable use of system a: on to ~ u s t o thro r ~ ~ ~ ticable as these woul

t in asset replace~enr,s

~ rein for^ ~

~i~ ian ted - ~ b u tin o ~ ~ r ~ g u l aMarket

117

Voltage tolerances, faul r e ~ a i n they were before the priv~tisation th as of r changes to h a ~ o n i s e within the E ~ o p e a n Union). reflect EM1 standards and This has not been due to the ~ e s ~ c of the indug ~ ~ n e unwiIlingness of What has chang~d th~ough r~gulat~onquality o f supply a is number and d ~ r a t i o ~i n ~ e ~ ~ t iand customer service. of ons section. s u ~ ~drivers is discus in the f o ~ l o w ~ ~ ly on covers the drivers affecting planning ncepts of p l a ~ i n g asset r e p l a ~ e ~ e n t

4.3.3

~~~~~~~~

y ~ i s ~ i b u tsystem design muse meet the following r e ~ ~ ~ r e m e n ~ ~ : io~

e able to supply the system demand whilst meeting the

s~stems n e ~ o r must also: the ~s

ng costs of the network.

mic and risk assessment. Whilst much h

ndard was written in the 1970s, the st ai~houghit only addresses the scaIe and duration of a loss of supply and not the ncy of which such incidents can be e~pected occur. to rmance, which are beginning to drive network the s ~ a n dpa~icu~arly ~espect the fre ~~, in of e d i f ~ c u here has been to find a common l~ ance levels that from the different e n. The most recen er for change has come from to make the best use of embedded generation connected to the d i s ~ i b u t i o ~ networ~s 132 at elow. This generation has not been considered in system security to date. This is due to:

Of tion of most gener~tion. 1 PPr commercial framework. The ~ i ~ ~ c u Iof ~ e s u ~ thegpresence of the necessary generation before systems t ~ s n need ~ e i ~ o r c i n g .

be solved at the time of w ~ t i n g 1 be a ~ ~ e n d with a means of asse ed

has been measure A ~ a i l a b i l i ~ :y s t e ~ S average i n ~ e ~ p t i o n duration

r some time by the f o l l ~ w i ~

) or customer minu~es

l stem average i n t ~ ~ p t ~ e q u e ~ c y ~S~~~~ or its e ~ u ~ v ain e ~ ~ on index r 100 connected custo~ers. These measures represent the average performance of the system and so do not a ~ c u r ~ ~ ~ l ind~~idual s t o ~ e may e x ~ e ~ e n [2,3]. In the cu r ce O f than I minu~e cou~tedtowards these statistic is 3 r to allow for the benefits of system automation. m dica~es customers prefer not to be ~ n t e ~ p tbutdin the event of an that ~ , d of restorat~onand accurate i n f o ~ a t i o n kely outage times ~ e c o m e The provision of such i ~ ~ o is ~ a ~ both ~ n po ~ through call centre

Ristribution in a Deregulated Market

11

re 4.1 demonstrates the relationship between incidents, ~ t e ~ p t i o and customer ns minutes lost. This cl shows that whilst by far the most inciden~s occw at low vol~age, ) 11 kV and 6.6 kV systems cause by far the most c u s t o ~ e r the medium-vol~ge c siest area in which to improve network e r f o ~ a ~as eere are dis~ption.It is also cos~~effec~ive solutio~s available. It comes as no surprise eref fore that i n v e s ~ e n t has centred on reducing the impact of MV system incidents and disruption. The most ~ o u b ~ e s impact on customers is that r~sulting o~e from ~ e ~ u eor t u ~ t i p l e n~ The p ~ m measures discussed above have there for^ recently been a ~ tl measure of multiple interruptions, which will determine the ~ e r c c ~ ~ a ~ rs who experience more than a given number of i n t e ~ p t ~ oper amum, ns the second post-pr~vatisation price control the d i s ~ b u ~ companies s ~on eved by the end of the second review period. During the third review place in 199842, the e l e c ~ cindustry regulator decided to set targets for the e l ~ c t ~ c i t y i~ c o m p ~ i erather than to allow the co~panies set their own. In addition to this a syst s to of incentives based around p e r f o ~ a n c eagainst some of these measures is to i ~ p ~ e ~ e in ~ e d [4]. Much discussion remained at the time of writing as to the n e ~ ~ h a sto sbe i to which measures and therefore it is dif~cult resolve haw these to measures will further aEect the development o f distribution p l a n n ~ g .The de networks to meet quality of supply requirements targets the reduction of the i network failures at two main areas: The p r e v ~ t of o ~ t e ~ ~ t ~ o n ~ ~~ n The restoration of supplies has increased the focus an imp Since deregulation, the U rent approaches have bee aspect of c~stomer servi different companies driven by their particular regional and network pro s i ~ i ~ c aareas of ~ v e s ~ e have been in insulated or semi4 nt nt auto reclosers on overhead lines and network remote control and Insulated overhead conductors have been used to reduc ~ n t ~ ~ p t i due s trees tou~hing o n to lines, which can lead to mor ~o~e-mounted auto reclosers have been in~oduced in conj intemptions a u ~ a ~ a t i c and ~ y therefore sometimes considered as a form of n e ~ o r k a ~ are au~omation. ~ e ~ o secondary system (i.e. V systems~remote c o n ~ o ~ r k sys~emshave been varying degrees by distributors in the UK. The most s ~ ~ n i ~ cinves ant ~on~on Elec~ic~ty,a s t e ~ E Elec~icityand S o ~ ~ ~~ e c ~~ c i ~ . much faster res~ora~ion supplies following faults on cable network^ or on of ely distant fiom o ~ ~ r a t i o n a ~ centres. They also reduce the n cing the amount of time an engineer needs to spend swi reducin~ risks associated with this activity. The case study at the end of this section the considers the scheme impIemented by London Electricity, the b e ~ i e ~realised and the ts long-term potent~ai foreseen for the system. These projects have as part of their implementation s i g n i ~ c a ~ t cy n ~ b u ~ e d the lo to ~ e p l a c e ~ orn u p ~ a d i ~ g p r o ~ ~ e m a t ~ c ~ t of network apparatus, be it overhead line or swi~hgear.

re, they can o p t i ~ i ~ e e l e c ~ c a~~licatiQn their i~ sched~ling to cost savin~s ~n~~~the , In a d ~ r e ~ ~c a t ~ dve power m ~ k e t utilities tend to maintai ~

12

Power System ~

~ and ~ ~ ~ n~ l~ a t i o c

roposed method for a VSTLF has been s u c c e s s ~ l ~ y ~mp~emented a ~ o w e r in utility in the USA, and is used by dispatchers for on-line load forecasting. The developed forec~ti~g system predicts eight values of load for the time leads from 20 to 90 minutes in 10 ~~u~ increments. To provide dispatchers with the information about e~pected forecast e~ors, mean absolute percentage errors ( ~ ~ E are )calculated base s forecasts for which load ~ n f o ~ a ~has n i o become available. For the 20, 30, .,, 40 minute [9]. fore~asts, mean absolute percentage error lies in a range o f 0.4~~.~%Load data is the from the automati~generation control ( A ~ C )system every g data is converted into lminute integrated loads which are consider~das COUS) loads. These loads are used as input i n f o ~ a ~ ~ o n o m ~ u ~ ~ g for c load pre~ictionsand they are also stored for training. e forecaster~sneural nehvo automatically retrained once a day. It is not the intent to discuss in detail load forecast~ng its d i s a g ~ ~ ~ a ttooanlevel and i where the installed capacity in the distribution n e ~ o r k can be es~ab~ished. s The advent of the increased demand for telecoms data and Internet services has also to add s i ~ i ~ c aloads to the d i s ~ ~ b u t ~ o n nt systems pa~~cularly the associated fx ing centres. The m a g n i ~ d eof such loads (10-4.0 ~ W and time scales (12-18 ) months) for such developments are such that the d~stribut~on com~any to be in a has position to ~espond creatively and ~exibly it is to avoid l o s ~ n ~ if the either to another company in a di~erent location where supply can be a r to a competitor who is prepared to establish a separate dis The large urban centres such as London are not see in^ the m a ~ i demand due to more efficient loads as these are being offset by these ~ u ~ ~T-related increases. ~ng businesses have adop a five-year p ~ a n ~ horizon, sed d~s~ibutio1~ culties of predic~ing~ e m ~ d l a r ~ ~ due to the ~ve-yearlyreview period and the ly changes, changes in shuction times related to major s y s t e ~ bstation projects make the ~ ~ e - y e~ re ~ ~o ~d~ a ~short l y a ve e tec~ologiesand s ~ c ~ or e networks must be tail in the ~o~lowing ieve this end are discussed in In

asset management and planning is to integra~eas asset replace men^ of poorly performi or high~risk a ~ d e ~ a r ~ e ~ t need ~ ~ will s g ay an i n ~ ~ ~ a s i n g ~ ~ asset r ~ ~ l a c e p r ~ ~ rta m ~ with n e ~ o r k ~on es reinforcement and major new c o ~ e c t ~ o n s works. The p l a ~ i n g asset rep~acement s discussed later. of i

4.3.4

Long-tt?m
int of l o n ~ - t e ~ p~anningis to d e t e r ~ ~ n e extema~~n~uences, how of new business and changes in the regulatory env f the network and the levels of i n v e s ~ e nthat will t

24 -

Power y s t e ~ e s ~ ~ and ~ ~gr e g ~ l a ~ i o R ~ n

In time adopting such a me~hodologyshould Lead to an ~mprovedm a t c ~ be ents and the d e ~ a n they must ~s uch t e c ~ ~ q u hav es d in a number of projects worldw d are ~ i c a l l y standard ~ r ~ c t ~ c e ians for ~ n t e ~ a t i o financing agencies. na~ on ~ ~ s c u s s e d use of a set of 10 the A similar ~ e c ~using three~altem i q ~ ness ~ l a ~ n i n g . Three views of all ent and investment drivers are normally eve loped being:

she goes view: a sable environme~tbased on exi ions encompassing a reasonable view of the effects of known de

mic and

s p e ~ ~ c l view: a positive view of the dev~lopmen~ the economy es~ of how this will impact on the demands on the business. oomy view: a more n e ~ a ~ v e conside~n the impact of a view ~ o n t r a c economic e n v ~ r o n m ~ n ~how is w o ~ l d ~~g and impact on the business.
e would look at a range of business factors, d priate s ~ a t or strategies. A ~ ~ ~ l a tof o n s c ~ i the ss fxtors allows the p l a ~ e to i d e n ~key s ~ ~ t e g i e r i~ an one scenario, as i ~ ~ u ~ aine d t Tab1

winess Factor 1

S c ~ n a ~ o ~ra~egy 1 1A ~ c e n ~2i o Strategy I Strategy 1 6 Scenario 3

Business Factor 2 S ~ a 2A e ~ ~ Strategy 2A Strategy 2 6

Business Factor 3

Strategy 3.4 Strategy 3 trategy 3

Business Factor 4 S ~ r a t e 4A ~y ~ r a 4B e ~ ~ Strategy 4C

are robust to more than one scena~o,

h t e ~ ~ i q u are widely used es n i d e n t i key long-term le ~~~

d i f f ~ ~ c software tools exist to aid the esign of power s y s t e ~ ~ . nt s studies and a few a ~ a ~load Row and~fault level ~ i c ~ use a fa^^^ rate c a ~ ~ ~ a t hols. ion which does not, in

a fault rate a ~ p r o a is~ it c that on ofthe under~ying causatioii

The asset ~ ~ a g e m ed~scip~ine network p l ~ n i n g ~ s s i ~ i ~ ci~iter~ace in nt and most a ~ t is the planning of asset r e p l a c e ~ ~ n tThe developrnent of asset ~ ~ n a g e m e n ~ . s covered in detail eIsewhere, The p l ~ e r role is to convert these policies &to programmes. In doing this the lamer must consider the asset mana objectives and the condition and carried out.

4.3.7

Risk Assessment

Risk assessment methodolo es are useful in any business and distribution b u s ~ e s ~ are es sk assessment is applied at two levels, the business level and for as g ~ n d i ~ i d u a ~ asse~sments part of the asset replacement p l ~ i n process. asset ~usinessrisk analysis considers all areas, including network perfo~ance,finance, commercial (e.g. use of system income), contractual and regulation. Potential risks in each area are identified and probabilities and consequences determined. Fin measures and appropriate actions to control the risks identified are establish d distribution businesses, particularly where there is n supply, the largest risks are often associated with the income streams owing to the complexities o f the data acquisition and ag and the number of different parties involved. However, network risks must not be ignored. Historic control measures exist through planning and construction standards such as the UKs Engineering Recom~~ndation PU5. In planning individual i n ~ e s ~ e n trisk assessments are normally con s, likely ~a~~~~~ mode f ~ i etc. Major nee ~ ~ failures such as that ~ ~ ~ ~ rk Auckland, New Zealand, and the recent weather-related i n c ~ d ~ nCanada and France in ~ have prompted further debate on the appropriateness of existing design standards and the cost and be~efit c ~ ~ these, n g of ~

4.~.8

ills and

ince the privatisation 0%: d ~ ~ ~ bin the o ~ there has been angain the u t ~ ~educe costs. This has ~ e v i t a b ~ y resulte in a very signi~cant e d ~ c t ~ o n r in
up asset m a n a g e ~ ~ o r ~ ~ n ~ s a t ithese have a nt ori~ ng of the n ~ t w o r ~ It. is e ~ i ~ e n t s incipal activiti~s, new c o n n e c ~ and ~ s ~~ en separated, the practical i m of ~ E the staf~ng these org of es a differ~n~ of coi~petenciesthan set

it levels of various c ~ m ~ a n ipl s ~ orn the d o ~ s i z i n g under~ken ibt one can no Ion

12

Power System K

s and Deregulationc ~ ~

hig~y quali~ed able technicians has been es~ablished.The p~anning but skills of the more expe~enced staff are gradually being transferred to the less experienced team members and the lost competencies being replaced. Whilst it can be argued that these skills have been r e ~ i n e d some of those utiiities by rt to best practice, the skills gap is being gradual~y redressed. With ing of competition in connections design and provision, the area of will be to ~ ~ ~ ~ n t adevelop the i n f r a s ~ c ~planning skills necessary to review the and i n re overall network successfully and d e t e ~ i n e where action will be required to m a i n ~ j n and ~ ~ p r existing levels of service. This is probably one of the areas most under pressure at o v ~ the present time, especialiy with the increasing c o m p ~ e x of systems such as remote i~ control and automat~o~ being introduced and the increasing asset-manag~nient-derived workload. The use of expert systems to capture experience and make it widely available process charts has not yet been widely adopted but is an obvious opportunity to suppleme~t in more complex and/or less routine operations.

4.3.9

~Designr ~

There are three elements to network planning that need to be conside~ed~ being the these connection of new load, the reinforcement of the system and improvements to meet quality of supply targets,
f new connections is driven by the regulato~ requirement to offer the lowest cost connection and the need to meet larger customers needs. The former of these has given rise to a conflict with some aspects of network desi to meet ~ u a l of ~ i supply targets. For example, the simplest design to connect a voltage load of less than 1 NW to the system is to create a new substation and connect it to the existing network via a tee off xisting circuit. If a large number of customers are supplied from this single source, such as a large housing development, then ideally the substation should be connected so as to be ~ o o into e ~existing circuit, as shown in Figure 4.3, in order to lessen the ri ~ the repair time outage.

.3 Tee vs. loop connections

D~s~but~on in a Deregulated Market

127

ecision as to whether to fund this out of quality of supply monies will depend on the number of customers, the distance from the main circuit and the additiona~e n e r ~ losses incurred. The advent of competition in connection services would further compl~cate this issue. The network manager will have either to pay the contractor to hstall the additiona~cable at the same time or retrofit the additional cable at a later date. The customer will not be expected to pay for the additional costs related to the quality of s ~ p p l y as part of his connec~on charge. This c o n ~ will also apply to the installation of spurs to feed a number of ~ ~ m customers at low voltage (LV) where no alternative back-feed arrangements from o&er n ~ ~ oare ~ s r available or where the installation of remote terminal units for SCA remote control may be desirab~e. Evid~ntly becomes easier to manage as the size of the this load increases and the number of connection requests decreases. e ~ Genernl load growth and the connection of new load drive the need for n reinforcement. Typically the impact affects the thermal ratings of the network appara~s, security of supply or the voltage p e r f o ~ a n c e the networks, but recently greater of is having to be given to managing power quality issues, particularly harmonics. In most estab~ishednetworks the general growth of load is relatively low. In c e ~ a i n areas, p a ~ i c u l ~ lhighly urbanised areas, redevelopment has seen prospective loads y increase owing to new office developments and the associated IT-related loads. At the time of writing this would seem to be a developing trend, the forecasting of which represents a significan~ challenge. The management of reinforcement with the connection of new load has become the most s i ~ i f i ~ achallenge. The management of the new connections process is b~coming nt progressively more detached and this is likely to lead to an increased need for manager to monitor connections activity and identify reinforcement requirements and implement them in an appropriate time scale. The failure of this process will ultimately impact upon a distributors ability to meet a customers connection requir$ments within its schedule. In large urban areas this may have not simply a financial impact on the distributor but also an economic one, The present regulatory process in the UK which involves five-yearly reviews to fix income for the following five-year period increases the risk of increased r e i n f o r c ~ ~ e n t exp$ndi~re affecting other capital programmes,

As discussed in the previous section distribution automation in its simplest form has begun to be used to ~ m ~ r o v e quality of supply. At this level the automation inst~lIed c~nists of auto reclosers and auto change-over devices. The ins~allation of remote terminal units provides the basis for a dist~buted c o I ~ ~ u n i c a ~ i system that could be used to implement some degree of automa~io~. ons For the convenienc~of the readers, an appendix is included below to detail ~ i s ~ b u t ~ o n automation and comm~~nication systems under a competitive env~onment.

Power System ~ e s t ~ and ~ e r e ~ l a ~ i o n ~ ~ ~ n g

Two levels of automa~on exist:

Via cen~ral o n ~ Qsystems c 1 Via e ~ b e d d e d systems.

bedded automation systems suc as auto reclosers ge-over sytems are probably the easiest dis~ibution autom~t ement. No ~ i g ~ - s p c Q ~ n m ~ i ~ ~ tsystems are required as the ee r iQn rn of c o ~ n ~ u n i c a ttooinfarm the central control room or system i ~ e but not essential LO realis bene~ts. systems have grea~er ilities if h~~h-peed local C Q m ~ u ~ ~ c asystems can be ~ m p l e m ~ ~ ~ e d . tioi~ ~oss~bilities could include on of f a ~ ~ c i r ~ i t all~wing e s ~ ne e ~ o oper~tiarn ~ t the o ~ ~ ~ed s ~ d r ~ w ~ ctional protection s c h e ~ e sor unit ~ r o t e c ~ o n he hi . ~ornmu~~~cations could be achieved by a ~ ~ m boef means i n ~ ~ ~ ~ i n g : requir~d r

s, Id produce many of the Same b e ~ e ~ tbut it WO ickly. The c o ~ ~ i c a t i o path and c e n t r ~ ~ n info~ation tralTc from the entire n rocess several scenarios simul~neouslyHowever, such s . or changes in n e ~ o ~ k c e can be ~ a i n t ~ i n e d system. r the following benefits:

e ~ u ~ cO ~ ~~I on a ~ r o control engineer,

data and the presentation ofuseful information to the control engineer as to the actions that have been taken by the system. Improvements in the speed of restorat~onor securing of fault may in fume allow increase asset utiiisat~onby supplies f o ~ ~ o w ~ g a netw permitting higher short-time loading levels as the duration automatically. 'This will of G Q U ~ S ~ depend upon the network configuration, but it increases the potenti~~ bene~ts f r n o v ~ n ~ o towards ~ e s h e d network operation in the m e d i u ~ on^ to term. A reduction in the need to carry out manual switching has a significant safety benefit, itchgear, as an operative does not need to be in particularly with ageing oilby ~ ~ ~vicinity. d This is ~ ~ ed ~ the possibilities for local cond~tionm~nitor e i and rcmote indication of alarms 1e:elatingto possible hazardous conditions.

4.3.16

Autor~ation Case Study - Remote Control in London Electricity

se study considers the planning issues concerned with the 10 term d ~ v e ~ o p mof~ t e London ~ ~ e c t r i c i ~ ' ~ p a ~ ~ c u ~the ~ y networks, a r changes m d e to i ve qua~ity u ~ p l ~ . of The ~ ~ ~ o d uof a remote control and data acquiition system has been c c t ~ 5 ~ ~ to ~ lectricity's development lans or its secondary (MV and LV) networks over the

This case s ~ d y consid~rsthe p~ilo$ophybehind the ~ r Q g the ~ e ~ ~ deployed, the ~ d v a n t a g ~ ~ London believes these offer over alternative system performance d e ~ ~ vto date.~ er~
review of secondary syst m m e was brought to th control review in 1 9 9 4 / ~ when the re lator's focus on quality 06 supply ~ ~ p r ~ v increased. The remote o ~ e r a t i o ~network ~ w ~ t ~allows s w i ~ c ~ i n go of hes to an engineer can reach the a ~ ~ e c t area, often in excess of an hour i ed reducing the intemplion time seen by a large number of aEected cust ~ ~ o g rwas ~ ~ e tar eted to ~ e d u c u s ~ o ~~ irn u t e lost from am a therefore ~e e s to a targct level o f 40 in 2000. all asset ~ a n a ~ e r n e plan required that the remote nt to deliver data ~cquis~tion ~ ~ ~ e ~ l i oni it or in^ and gent the basic control necessities. This approach has proved well foun as will. be discussed later. et performance improve men^ a ~ ~ r e e - $ approach was ~ge s across the 6.6 kV and I I kV ~ e ~ o r k ~ . approach a i ~ e to d e l i v ~ ~much benefit as possible in the initial phase. d as The first stage was aime targeting one in every four ring mail1 units in ~ e r f o ~~ e~~ go rTh s . networks in London E ~ ~ c ~ i c i tsyste ~ y's groups of about four circ ese groups are run radially with a nu between them, e f f e c ~ ~ ~ e ~ y an open four-feeder ring. However, creating d i v ~ d ~ d two er ~ a t ~ g o ~~i e se ~ on ~ n ~ ~ s s o~ i a t e ~ into w~ether n the c

13

Power System Restructuring and ~ ~ r e ~ l a t i o n

operated radially or interconnected, i.e. operated as a mesh. The meshed LV systems are typical of the centre of London and assist in coping with the hi ~ e t ~ i n s tand the City of London. er The greatest initial benefit in quality of supply performance was to be gained fiom ~ r g e ~ i n g areas where the LV networks are operated radially (the radial areas) the no ~ u p p in ~ event of an MV fault, which is a characteristi~of the in~erconnected o the LV system. The feeder groups supplying thc radial areas were ranked in order of their e over the pervious years, bearing in mind any major asset repla~ment to correct high fault rates. U installation programme was then targeted in these networks at open points urth ring main unit which offered suitable switching point. In order to achieve the switching ~ n c t i o n in the existin ring main units a p r o g r ~ m e retrofit ~i~ of actuator solutions was developed to mitigate the ed to replace switchgear. Initially this e ~ units was t a r g e ~ e ~modern SF, ring main units and some of the more m o ~ oi~-fil~ed at which were deemed suitable. This resulted in remote switching being ava~lab~e an open at point and at the approximate mid point of each circuit. A fault passage indicator with provision for remote indication was fitted with each ins~al~ation. This would allow 50% approx~matel~ of each feeder to be restored by remote switching, The second stage of the programme extended the provision of remote control facilities to ~pproximately in two ring main units, again with the initial concen one on the w o r s t - p e ~ o ~ i n g feeder groups, In turn this would allow up to 75% of be restored by remote switching. The third stage extended these facilities to those ne interconn~ctedLV systems. This is a more complex task as ea equipped with an LV air circuit breaker (ACB). This is installed to prevent network collapse in the event of an MV feeder fault, due to either a fault infeed or resulting network overloading (it being preferable for the ACB to op network fuses which then have to be identified). It is operationally desirable for th to be con~olled reduce the number o f site visits by e to ers in the event of a while a ~ e m p t i n ~ secure to supply. It is also necessary to know the status of the s u ~ ~ ~ i ~ sa fault, so remote indication had to be prov~ded. following A one-in-two strategy was adopted as this was felt to be the m i n i ~ u ~ ~ s s to ~ ne a e the degree of control required to secure supplies remotely without the need for an eng~neer be present in the field. to
f 1999, London Electricity had equipped 3000 MVLV substations with emote control facilities as part of stages I and 2 of the ~ r o ~ a described m ~ e 3 was ~nitiatedin late 1999 and would begin to take effect in the least we interco~nected networks during 2000. The majority of these, 2000 of them, 1999. The performance of the programme has been excellent with customer minutes lost visibly reducing with the numbers of units in commission. Supplies are now restored to all customers within 1 hour for over 50% of all M Y network faults. Most pleasing of all has been the n ~ b e of routine switching operations that were soon being carried oat using r the system. Figure 4.4 shows the theoretical performance estimates made when the project was co~ceived.The t ~ curve shows the predicted p e ~ o ~ a against the b o t t o ~ p n ~ e curve,

~ution B in

2000

4000

BOO0 8000 RTU P O P U L A ~ I Q ~

10000

'I2000

24000

. _ . - _ _ . (HV) trend.

."-.-ITrend. (Overall)

estorafion performance

The original vision for the development of the initial remote control system was to create an n e ~ o ~ ~ a g e m esystem. The advance , e x ~ a n d a b and to a l~rnited r ~ nt l~ lal of ent RTUs were chosen ta facilitate this deve ment. The ~ ~ i i te~ e m e n ~ the ans &realready being i m p l e ~ ~ n t e d . auto change-over ~ ~ e c h a has been An ~~sm i m p l e ~ e n t e ~the e in s logic to allow supplies at open poi to be r e s t o ~ in~1 1 ~ ~ ufo~~owing t e ~ ~ ~ fault.r This de~iversan o k 1 as the customer minutes lost. ated res~orationo f expanded to deliver There are still many to be o v e r c o ~ e inc location logic and c o ~ ~ ~ ~ i c a t i Thesneed t on . unicate to a ~ ~ m b than ~ n c in less than a minu~e pose a s i g ~ i ~ c achallen e will nt There are, howe~er, other aspects of network ana age R W was specified to cope d ~ o n i t o ~ n g con the LV s y s t e ~ ~ d ~ ~ t i o n and via to inte~ace with the e developed to include discharge levels in cables and v ~ r ~ ~ i n ~ ~ 6 a ~of rthe c o n ~ i ~ i o n switchge~ o s of and r n o ~ i t o ~ n g the LV load on a s~ngle-phase of s even the location of faults.

e of the main reaon for uti~~ties advance a u t o ~ a t i ~ n ~ to of

~ s ~ mice. ~ e r e ~ u l a t i o n evolving to establish some is o penalise utilities in case o f ~ o w - ~ ua ~ iic~h e e. cy will grow, and high peak prices fo cast load control will help manage the risk associ

ion auto~ation ~ o v i theeability to c o ~ u ~ i c avital in ~ ~ s te gives the ability to monitor and control that information from a central location. In sho the s y t e ~ could tell whose e l e c ~ r i c ~out before anyone calls to ~ o ~ ~ ~ a i 1n . is ~ And could save money by retori~g power sooner than ever before. itribution a u ~ o ~ ~ t i o allows ~ o ~ t ~ ~ o n ~ ~ ~ tot provide ~ g ~ ~o s~ the real-time ~ ~ w ~ needed ~to eo p ~ ~ i s e d can ~ a x i m i s ecustomer satjs~ac~ion with
~

ns with remote e ~ech~ology require

134

structuring and ~ ~ ~ ~ ~ l a t i

improving revenues and reducing costs. ~istributionautomation i s a complex subject g the following major coi~ponents: remote terminal units (KTUs); A master station (open systems design, full ~ p h i c s ) ; ~nctionality(feeder sectionalisa~ion,cold load p i c ~ p topology processor, , voltage/var control, graphic feeder tracing, switching order preparation, special reports, automatic meter reading, etc.); operations and maintenance procedures (safety, tagging, pe its, c~earances,work orders, preventative, routine and restorative practices, spare parts, service ~greemeiits~~ syste~ integration, design and management; and c o ~ ~ ~ c a t i o(e.g. cellular phone, radio, power line carrier, ~ ~ ~ p ~ e ) . system ~

4.52

emote mina^ Units

C o n s t ~ t ~involved with improvements in RTCT technology are things such as the y develop men^ of ladd~r/sequence logic/PID algorithm ca~abili~ies, multiple serial interfaces to a c c o ~ o d a t esmart meters and relays, peer-to-peer rotocols arid direct ~A~ For d i s ~ b ~ i t i o n automation purposes, small, low-power, w of, c o ~ p aRTUs ~t are available. These come in a variety of enclosure packages, fically cons~ained points counts, direct CTNT inputs, AC analyser modules to give a variety of calcu~ated i n f o ~ a ~ i o and more. The units can p e ~ data ~ n, o logging to m ~ i m ~ the need for se constant polling via the communications system, In some applications, peer-to-peer com~unications have been utilised to facilitate independen~ islands of automation ( volta~e/var control) that do not rely on the master stat~on decisio~ a ~ i and for ~ n g control actions. initiated repo~-by-exceptjonprotocols are being utilised by sorne vendors to keep power draw (from constant co~m~nications the master stat~on)to a with ~olar-poweredunits are in common usage. Compact, ~ow-mainte er i s also available. With the advent of two-way commun~cat~on its, a great future lies ahead for dis~butionautomation and manage~ent app~ications the customer level for functions such as remote at selective control of customer loads, surveillance of customer installations, choice of electricity rates.

The d e of modem open systems SCADA c o n ~ ~ a t ~ makes use of consid~~able ~ ~ ~ ons communic~~ons c ~ o l o g y spread the risk that a single f a i ~ will wipe out or ~ s a b ~ te to ~e technology permits hi a mission-c~tical system. odern ~~~A~ processing and achievem of graceful degradation upon failure hics d~pictions system assets, of works~ations personal computers give users ful and very ex^^^^ win~owinto the often in proper ~ ~ o g r a p ~ c orient~ti~n, prov and systems they are controlling. The dissem~nation computing elements and the of ~ e x i b i l ~of full graphics interfaces have in~reased b ~ r d e n ty the upon the system

Risti~bu~io~i ~ e r e ~ ~ a Market in a ted

135

these numerous features. The control system ~ i e ~ a r c h y the whole o f for must be flexible, with its topology adaptable to meet the c h ~ ~ i n g da~bases need to be kept synchronised so that all users view must be c o n s ~ c t e d a manner that makes operator na~igation in nition simple under the most stressful situations. These items, if can lead to poor operator acceptance of the new tool. system architec~re now be dynamic, allowing change and enha~cement can over time as both user needs and technology change. Relational database ~ a n a g ~ ~ e n t systems have facilitated easier, more functional interchange of data with other c o ~ o r a t e sys~e~s (accQ~~ting, custonier records, maintenance m a n a g e ~ ~ nwork dispatc~,etc.). t, Compact, high-de~sity storage media have simplified the tasks of lar b a c ~ pkeeping , historical data and managing archives. Disk shadowing pro hot standby data req~irements key operational areas. for Distribution ~ u t o m a ~ functionality in the ~ C A must work with the actions io~ ~ A reactions of the distribution system protectiQn equipment. Actions taken by the logic or of s c o n ~ o ~ g o r i t h ~ s both $ y s t e ~ (e.g. protection and SCADA) must not compete with a~ r to cause additional roblems. Those applying distribution a~tomat~on to wer systems must ensu that all protection schemes and systems are thorough^^ and catered for. One needs to have consid~rable expe~ence with protect~on schemes involving:

smart relays which f e a ~ r ~ u ~ t i pse~ings c o ~ u n i c a t i o n s e Ie and inte~ace capabilit~es; relay, recIoser and tap/transfo~er fuse coordination; and lel opera~~ons between buses or substations.
~~C

ddit

standard power system SCA

feeder load shedding - c o o r d ~ a ~ manual, rotational and under frequency schemes; ed processor - provides up to the moment topology and energisation status; cedure generation and management^ dis~bution power flow; -load p i c ~ estimation; p former load ~ a n a g e ~ e n t ; supply interruption reporting and outage management; fault ~ o ~ a ~ i a n ; t~ansfer o~timisat~on transfer and recon~guration a p a b i ~ i ~ ) ; (load c automated feeder r e c o n ~ ~ r a t i and service restoration; on voltage/var control - t r a n s f o ~ e tap and sw~tched-capacitor ~ a g e ~ ~ n t ; r m dis~ibut~on short-circuit analysi~; d e ~ ~ d - s i manage~~ent management and time of use strategies; de - load aphics capability to ide schematic display, switch posi~ionm a r ~ i n lemetere~), feeder c tivity status, and energisation status info in real-time an the operators VDUs; md training $imulato~s.

4.5.4

Softwui-e F ~ n ~ ~ i o n a l i ~

1st the ~ a ~ d of a Se C ~ system is of gr w ~ ~ A primarily in system and applications software. The lity, s u p p o ~ b i i and mainta i~ to accepted odem systems buil~ inte~ationaiiy Windows e n v ~ r o n ~ e n t ~ r ease of pro~ramming p ~ ~ a b i l i ~ ; and t any language to e-critical and comput~~gompete for co~puting ase co~nection allow easy passing of real-ti~e ~ i s t o ~ ~ a l to and database and system t o p o ~ - assists w i ~ h of s o~ ease es ~ o p o l o ~ yo b l e ~ much easier; and pr s that are based on tried and proven 8 n have significant co~sequen~es and gorous design ~ h e cv e r i ~ ~ a ~i o ~ ~ ~ tproced~es, ,

~b

4.5.5
~ u n i c a t i osystem for ~ ~ s ~ b auto~ationis ~ u t ~ o ~ s~i~ers, rece~vers data links. The s y s t e ~ h o u be~desi and s ~ will ~ersonnel have to b will nt~nance be as easy as possib~~. involved and new tools will need to be purchased (the o f a pote~tial system). ent will s ~ ~ i ~ c a ni ~lpy o v e t r use of s~andardisedcomponen ~ o ~ not d $ only allow better compati~i~ity existing communicatio with will also i ~ c ~ the~likelihood that the s y s t e ~ remain u e and a ~ ~ o m ae~~i u i~ mdeveloped in the future. This o p ~~t ~ ~ i n ~ e ~costsc ethe u t i i i ~ . a n to deve~op approp~ate 0 k managem~~~ analysi roached by each u ~ i i ~ .

~ i ~ ~ r i b u tinoanDeregulated Market i

There are several aspects of O& include:

for distribution automation to be considere bution automation installed (who does what, why,

ion automat~on u i ~ m e n t . ~
ation equipment, software, d a ~ b a s e an ( ~ o n ~ g u r a tmanag~ment~ parts holding^ service contracts~~ io~ spare Training to suppor~ accepted p~losophieso f operations and ma~ntenance both the cl~ssroom style and using simulator scenarios.

int-to-poin~w ~ ~ between the ng and impossible to solution i s needed addi~ion, inexp an emote monito~ng control. and

into fbture techo

nications ports with n-line con~guration. real ~ d l i a large number of points while ~ a i n t a i n i ~ g n ~ ion of SCADA s o ~ a r efield equipment, system integr ion, commun~ca~ons , has au~omation to be on of an integrat~d system with both high-voltage sub smissio~ networks feeders. This would help to optimise operations requirin rew working at d~fferent voltage levels. of power n ~ ~ o diagrams, plant data and teleme r k ntrol (remote or manu ltiple ~ a t a b a s ~and s

01s for p~anning o~timiat~on and studies. faces to fault maiiagem~nt and custom~ri n f o ~ a t i Q n
and map h an age men^ systenis. io s Systems ~ n ~ g r a t isocritical to the success o f any ~ e ~ e c o m m ~ ~ i c a tandnn ~ ~ ~ o r k ~ n i ~ i n i t ~ a t ~ Since most sy~tems not developed in a vacuum, ~ntegrationo f ex is^^^ or ~e. are essed. This ~ntegration must be r ~ ~ u n ~ c a t i level, which ensures that ex ons of working in the new system to e n s ~ integr e

applica~~ons level, which ensures that ~ n f o ~ a t ~ o n genera~ed an a p p l ~ c a can ~ accessed by another application. 0th levels are critic~l the success of ~ o be to the system and the organisations ope~ations.Access and a v a ~ ~ a b iolfi fflformat~on a ~ in timely~ accurate and user-fiiendly manner are necessary for the system to be a success. The develop men^ and i m ~ l e m e n ~ ~ i o n any t e l e c o ~ u n i c a t i 5 ~ of system will affect o ~ ~ ~ ~ s a t ~ o The ~ l operations. ~ success of any project i s a direct result of the a~ention to detail given to system specification, design and i ~ s ~ l l a t i oThis ~nc~udes ~i. ~erificat~on that what was specified and procured has been delivered, testing of system co~ponentsand a p ~ ~ ~ c a ~ ~ oensuring that the system satisfies ~ ~ n p l e ~ ~ t ~ ~ u ~ r~ n i eandt s and n s ~ ratio e ~i r e ~ l a t guidelines. o~ ana age men^ i n f o ~ a t i o n systems (MIS) are becoming an ~ n c r e ~ i n g l y~ p ~ ~tooln t i a in the daily operations of electric ut~iities.The i n f o ~ a t ~ o n system is more a col~ec~or, e p o s i ~ o and transpo~ ~ r ~ e c for~ i n f~ ~ ~ a ~ i oA . w~ o i ~n d i n f o ~ a ~ i system is a combination of hardware, software and c o ~ n ~ ~ c a t i~ n s ~ a b j on o a rnis the foundation of efficient opera~ions dec~sion ~ ~ i ~ ~ . and m ode^ ~ntegrate~ network management s~stem used to control is remotely and to supervise manual operations on MV distribution equipment. The system au~omaticaliy processes topology and highlights d~-ener~ised feeders when devices change state after telemetry input or manual dressing. System Alterations and s w i t c h i ~ ~ sc~edules a~ are prepared in advance and operations can be a ~ t ~ n i a t i ~ ch l y d ~ ~ safety ales. Power analysis functions can ~ a l y s e n e ~ the n e ~ o or ~ r individual distribution feeders. One of the major ben world-map schematic diagrams, plant parameters and network CO one co~sis~ent system. Data is held at a variety of levels of de analys~s detailed device operation. and twork operation functions are those functions which enable control an dis~~ution network facilities and inc~ude control, mon~toring,fault erating statistics. ~perational planning functions are facilities to de optimise the sequence of operations required for carrying out maintenance work on the system and include network s ~ u l a tand switch action ~ c ~ e d u[IO,1g i~~ l ~ 13. The primary purpose of a network management system for network operations is to patch o f field crew (people) to ~ a i n and r ~ the network, safely and ~ i whose primary ~ u r p o s ~ differs from an energy management s y s t e ~ ( is the dispatch of power (MW and MVAr}. The modem ~ o m p e t ~ t ~ v e emphasises market that utilities need to monitor and improve levels of customer satisfac~ionas well as o p t ~ ~ s i network ~ p ~ r a t i o and controlling operationa~ ng ns costs. ion creates a new wave of electronic brokering as electricity is bought and odities market, Tracking of these ~ a n s a ~ t i o ws~ t h a given utility should n i~ be m a ~ a ~ e a b lh o w ~ v emost of these ~ ~ s a c t i owill span mul~ple o ~ p ~ i e s order e; ~, ns c In . to achieve interoperability, implement of a common information el has a data structure that is c , The common information S p r o ~ r ~ esystems. ta~ Most infornaation networks wil! be connected to the EMS to provide accurate real data to stipport the available transfer c a p a b i ~ (ATC) calcu~a~~ons.~ e r mar e ~ ~ i~ ~ t ~ L ) to ge ~ ~ T will be used to present i n f o ~ a t i o n customers. for customers to use to request d by the transmission services i i used for data col ( ~ T T Ps ~ ~urchasesfrom a provider. The

Distribution in a ~ e r ~ ~ l a t e d

- x

then: IED on the n e ~ o ~ k .

increa~ingly o ~ ~ e t i ~ c

ovide m e a ~ o~ de~~ m i security to allow the system f a c

A will allow ~ t a b i ~ i t y - c o n s ~utilities safely to inc~ease loadin a~ed the s reliability, will also allow ~ i ~ e l y can also i ~ p r o v e y s t e ~ essment of the security impact of ~ a n s ~ ~ ~ ~ o n s lt af open axess to the

that a p r e ~ i ~ i d e ~ o n s ~ a ~ usi n na~ io has resulted in a p o t e n ~ savings of ~l ove enefit of the p ~ o d ~ c t ~ o n ~ version i be a~5 %~inc~eas~ t in t r a ~ s ~ i s s capacity across a cons io~ grease^ capacity could be used on

integrat~on process should drive all utilit~es towards the standardisatioi~ data ~ ~ o d e l s of c o ~ m ~ i c a protocols. ~~on ay an ~ncreainglyimportant role in the daily o ~ ~ a of ~ o n ~ ust a means of ~roviding connectivity b e ~ ~ one person and e n teleco~unicat~~n systems are the c o ~ i e r ~ ~ o fn e ing b e ~ coin~unication, only b e ~ e e n ~ p ~ o ~ e e s ~ r not e recent ~ h a ~ g in s teleco e the

r~l~~ionsh~~s. ~ o ~ ~ u n ~requires ~ ao sn~ i s i channels, which ~ a t ~ n on

services from the carriers who

c o r n ~ a ~ ~ ~ sthemselves with campus-wide EANs capabl~o f ~ f ~ c i e n ~ n ~ ~ ~ n found ha~y y com~arison, data the and not well s u i ~ e ~computer~~o-co to

e early 199Os, ~

a began ~

s, lower delay and lower CO ment at each end, much as is s users, because they concen~ate traffic fkom m links from their premises to the carriers centra the c a ~ a c of~fiber. Fiber not o i sion of c a p a c i ~ ~ m p ~ y i n s ~ l l i ~ g s by more by businesses for ~ber-basedaccess has i
and an a ~ ~ e ~ a t e

ase s ~ t i o n a cell served by another, the wire~essaccess link is automatical~y to to the new base station.

~in a Deregulated Market b u t ~ ~ ~

services digital networ~s whicb bring common channel si alling right to the ~ t h e ~ was chQsen as the d a b link layer because of its predominance in the et e subsequent availability of low-cost imp~ementationsand assoc~ated s b ~ d g e s routers). In addition, the scalability o and i i ~ p ~ e m e n t a ~being fairly common and 1Gb Eth ons its way. ~ r o c e are av~i~abIe ~o~ tooday with multiple 10 Mb Ethernet the chip, and next-generation d e s i ~ are planned with 100 s device, two solutions As it was d e e m e ~ desirab~eto be able to access data : Transmission Control P r o ~ o c o l / I n t ~ ~ e t PrQtOcQi n t e r c o ~ e c (OS). t TCPlIP is a networ ational ~ ~ d ~ d ~ s a[l4,15], was t i o n it e I S 0 network layers. These layers have robust flow control ery useful on a busy subta~ion LAN. th network layers s u ~ p the~ o to hear. This f e a ~ r e very is ng a message for all devices on the s such as data capture triggering, time s ~ c h ~ o n i s a t iand , even o~ eel models [ 16,171 are used because they can easily ay makes measurements of voltage, current and The m e a ~ m e n t s made by the re~aycan be conta~ingall the elements mentioned above. If r quality and power factor are added at a later date, the ori~inal model i s easily expanded to ~ c o ~ m o d athis data. te Fully in~~ractive co~munication systems provide a full range of voiceldata transfer, remote access and controj, entertainment and e d u ~ a ~ ~ o nd ~ e d ~ . c o ~ ~ u n ~ c a t ~ o~ s , o capabili~ services may also have an impact on the s t a f ~ n n n~ r k and Qr~anis~tional of the organisation. An evaluation of the existing staff, roles needs r~spo~s~bilitie is necessary to determine if the required capabilities exist or if new s staff are requir~d. ith the con~ntlychangin ~e~ecommunications n v i r o ~ e and ~ nt capa~iiities almost any ~ ~ ~ a n i s ato o n ~ ffer t e ~ e c o ~ u n i c a t i o n s c o ~ ~ ~ r ~ the llegal issues related to a system must be evaluated at ia ~y, the organisation can address these early in the development process. power distribution systems requires the use of an effective and co~unica~ion system to trmsniit control and data signals between control c e n ~ e s a large number o f ~ e ~ o t e ~ y devices. Since there are a wide range of available located c o m ~ ~ ~ i ~ cta tc~ o o ~ ~ gcapable o f performing this task, selecting tbe appro~r~ate e h~n ies co~munication system requi~es thorough understand~ng the s ~ e n ~ and weaknesses a of hs of each com~unication ~ ~ o l o g ~resently, single communication techno~ogyhas t y. no been de~onstrated as being best suited for all distribution auto~ationneeds. Each dis~butio~ automa~iQn scheme has ~ n i q u e o ~ u n i c a ~ requirements, and t h ~ r ~ f o a e c on r ~ o ~ m u n ~ c a t i o e c ~ i q u e d~stributionautomation must be chosen based on those t ns for unique r~quirements. e shared with others. Fo owes on a monitored hr

~~~~~t~~ eats The c o ~ m u n ~ c ~ t iro n ~ ~ r e m e ~ ~ distribution automation depend on the size, eq for s complexity and d e ~ r e e au~omationof the d ~ s ~ b u t i o n of system. In general, it is deirab~e

ower System ~ e s ~ c ~ ~ n

nt and

re data rate r ~ q ~ i ~ e r n ~ ~ ~ s .

ishibution in a ~ ~ r e ~ l a t e ~

There is no i ~ ~ e r ~ ~ t

to the further dev ations. It can be

the isolate^ area.

tec~olo~y provides near-instantaneous ~ n f o ~ a t i o n of a single household. It supports rapid, report netwo d to optimise network loading for reduced e~ergylosses in effec~, e~ . A facilities for the lower levels of the d ~ s ~ b u ~iiio n o r k And ~ecause ogy can monitor deviations from establishe f possib~et a ~ p e ~ n Variable rates can be g. f debts ( t ~ o u g flexible p r e p a ~ e n can be e h t~ an empty b ~ i l ~ i nremote disco~ection take place with complete c e ~ a i ~ ~ , g, can ~ u ~ hnew tariffs can be quickly and easily p r o ~ ~ intoeany ~ ~ s t 0 ~ eete9 s er ~ d r er down the wires whenever required. The data can be ~ a n s f e ~ e d inte~activel~ throu~h the e l e c ~ ~dc~is~ i b u t ~ o n to the dis~ibutors ~ system o supplier and custo~er.~ i n a ~ c iapp~ications,suc al b e ~ ~ stores and finance organisations, can bec e n could use the existing e l e c ~ ~ c i ~ txnd supplier. As a result, no s ~ p ~ acarrier media. Two-way data ~ ~ s ~ i s s i o n te not only on LV n e ~ o r ~ s ,

2233 that a circularly $7 linder in free space. And a e, by the early 1960s ther ion in what was then c

and ~~~k~ 124 ised that the losses ties. They ~ o a paper tlz ~ e into accoun~ repe~ter costs [25]. This set the stage for the commercial devel and i n d i ~ a to~the telepho~e t ~ companies in ~ a r t i c u ~ a ~way to the b e n e ~ ~ c oratio. For a ~elephone st appiica~on, economics are most the two conditions: are e b e ~ ~ rep~aters e n should be maximised~ eat~rs expen$ive nd the fewer the better. idth of the channel should be m a x ~ ~ i s eIn. this way the ~ a x i ~ u d be routed on a given channel, and the cost shared ~ ~ o ~n g s n y ~ Because of these factors, the first widespread use of fiber optics for c o ~ u n ~ c a t i o was ns trunk lines of the telepho~e o ~ p ~ i eThe s e s. the ~ongdistance to ~ ~ ~ r o v e ~in the ~ e ~ o ~ a of theefiber, to the exte ents n c rs are usable over large distances. At the same t h e , the cost to the point where it is co~parable,on a l e n ~ h - ~ o r ~ ~ or. The i ~ ~ ~ ~ cof theseodeve~opments that fo a~i n is er optics can be used to replace copper trunk cables, ne optic~l cables could c

le of an ~ u ~ s ~ n a ~ i c ~~ ~
bm-way c Q ~ ~ u n i ~ a t i Q nthis case fault detectors must c o ~ m ~ i c wi~ e In s . a

~ ~q

~c

cisntrol centre so that the fault location cm be d e t ~ ~ ithene signals must ~ ~ ,

automation will be e ~ ~ a s to ~ e u adverse

flashes, ~aults switc or

Free Space Free Space Optical Fiber

External
Yes
Yes

o f the ~ u r n o f us ~ b~

lation

The scheme uses local i n t e l ~ ~ g ~ ne ~ a m i ~ e d ~ tot see if there is ~ to c ~ local ~

roblern, b e c a u ~each local set of ~ nctions such as feeder d e ~ ~ ~ y r ns n t e

for less than $3000 per km.

i s ~ ~ ~yst~m, i~Qr e ~ ~ tw e tr ~ energy is very close, ~~r~ is

n is r e q u ~ ~ d , is usually n it from Scratch, For example,

to add ~

w feeder monito

Dis~bution a Deregu~ated in

Q V any Qb~tacles ~ that might be p r e s e ~ t ~ d the c o ~ v ~ ~ t i o n a l by media. Fiber allows the c Q ~ u n ~ c engineer to design a s ati~~ ~ that will meet all the ~ s ~ ~ and worst-case require ents, that can acce as many locations as n e c e s s a ~ can handle the

ee
~ e p a ~ a t i o n bMsinesses: proposals and cons~tation.Office of Gas and E l e c ~ i c i ~ of

.N. Allan, A~sessmen~ customer outage costs due to ~ l e c ~ ~ c of s e ~ ~ c e i ~ t ~r e s i ~~ ~ t~a~ s : IEE Proceedings - ~eneration,Transmi.~sion and ~ p e i i ~ sector, I 1996, pp.163-170. N.Allan, Eva~uationof reliability worth and value of lost load, ZEE ~ r o c e e ~ i n g ~eneration, r a n s m i . ~ s ao ~ ~ ~ s t r i b u t iVol.,143, 1996, pp. 171-180, s ~ i n~ on ~ ~ f o ~ a t iIncentives Project: Defining output measures and incentive regimes for PES and o ~ dis~~ihutioi~ businesses Up~ate, Office of Gas and E l c ~ ~~~~e~~( O f g e ~ ) arc^ 2000. ~ c i ~ , ~ a ~ y sand evaluation of five s h o r t - t e ~ is load f o ~ c a ~ t i n g asactinns on Power Systems, vo1.4, No.$, October 1989, ~ ~ . ~ 4 8 4 - ~ 4 9 ~ P. Van Olinda, N o n p ~ a m e t r e ~ e s s based ~ ~ o ~ - ~ e r ~c ~o~ ons on Power Systems, Vo1.13, No.3, August 1998,
~

i. T.L.Lu, A. Abaye, M. Davis, and D.J. M ANNSTL~: neu~ai-network-based A electric load forecasting system, IEEE T r ~ n s a c ~ ~ on s on Neural Networks, Vo1.8, No.4, July 1997, pp.835-846. .L. Ring and R. Luck, Very short term load forecasting a l g o ~ ~ ~ s , E l e c f ~ ~ ~ i l i E~~ c orec casting in an Era of Deregulation Conference, Dallas, TX, November 1996. Wiktor Gharytoniuk and MO-Shing Chen, Very short-term load ~ o r e c ~ s t using a ~ ~ ~ c i a l in~ on ~ a ~ neural n e ~ o r k IEEE Transact~ons Power Systems, Vol.15, No.1, ~ e b 2000, pp.263s~~ 268. ED Ad-Hoc W o r ~ Group 2, Distribution Automation: hnctions and data, CI ~g

structuring and ~ e r e ~ l ~ ~ ~

IEG 61968 System Interfaces for ~istribution anagenient - Part 1: Interface A r c ~ i t e c ~and General R~quiremen~, 1999. re IEG Cauley, Peter Hirsch, Ali Vojdani, Terry Saxton, and Frames C l e v e ~ ~ I, n ~ o ~ a ~ i o n d n e ~ o sru~ ~ oopen access, IEEE Camputer ~ ~ ~ l i c a tPower, 1996, ~ ~ . 1 2 - ~ 9 . p ~s in i o ~ [131 Peter Hirsch and Stephen Lee, Security applications and a r c h ~ t e c ~ for an open mar~et, re E~ ~ p p l ~ c~ t i o ~Power, July t1999, pp.2~~31. A a in ~ ~ r A ~ ~ and ~ a l l ka m ~ i i Premerlani, ata c o ~ u ~ i c a t y oin sa d ~ ~ e ~ ~nvironrnen~, n u ~ a ~ ~ d ~ p ~ l i c u t i ainsPower, July 1999, pp.36-39. n 11188-3: I994 ~ f o ~ a ~~i eocn n o ~ ~ n t e ~ a ~ i o Stan h o~ nal ~ o ~ TJppern o Layer equirernents Part 3: ~ ~ n i n iOSI al aha and W. P r ~ ~ e ~Object ,Oriented Mode l a ~ [I61 tions, Prentice Wall, 1998. est M ~ t ~ ~ o d o i o ~ i e s , and Result ~ o c u ~ e n ~ a t i o n ~ S ~ o n s o r ~ d Setup, EPRI hernet for Protection CO ersion 1.O,May 1997. EE ~ o r ~ i i Group on ig ution Auto~ation(Edited) Tutorial Course 8 8 ~ ~ 0 2 8 0 - 81988. ~ , -~~

Vo1.82, 1910, pp.4

e on Electric Utility Power Lines

Power System Restruc

eals to ~ h ~ s i c a 1 ~ansfers,this risk i s e x ~ e ~ e h y l f ~ a n c i atools that can be of help. l of b i ~ a ~ contracts (and various other ~nancialdeals on the ra~ P faces not only an increase in o~era~ional~ f ~ c u l withe s d ~~ ~ ~ as far ore also a c o n ~ indplannin~ the market need ission system can evolve. This has serious ences in ~ e ~ i as~ eviden~edby ~ b ~ ~ i recent system-wi~e blackouts. T the subse~uent~ections n below, we present a p a ~ ~ c u l a r market structure that equips the TP with ~ a r k e t ~ , b a s e ~ solutions to conducti~ as energy m a ~ k e ~ a large umber of bilateral ~ a ~ ~ a c t i o n s . with to become actively involv allowing the TP t~ pupsue em can also be solved in an ~ f ~ c i eway as inten nt with the in~Qduction compet~tion. of

i s ~s ~ ~ ~ ~ e~ The e ~ ~ ~~ s ~~ system isi one of the most complex c o n s ~ c t system. c to tbe e ~ t e ~ a lt ie~~ i from the opera~ion the ~ a n s m i s ~ ~ o n imple s n ~ of system, the market mechanisni to the ~ n d u re~uires fair level of u n d e r s ~ n d ~ f not s ~ a on~ cial and r e ~ u l a t o ~ aspects but also the ~ n g i n e ~ r i ~ g consequences of
~ i ~ u5.1 shows the evo~ution the role of the TP in the industry (as at the time of re of writing).

~ ~ o ~ofu ~role of tbe TP the i o ~

In the dependent phase the TP functions as a part of the vertically integrated utility. In the ~ u phase the TP stands alone and oversees overall market activities, The ark et ~ ~ ~ Y ~ pa~icipants ~equired submit their intended use of the system to the TP and based on are to that i n f o ~ a t i o n TF allocates transmission capacities foIlowing strict ru'les set the e TP assumes no ~ n a n c ~respo~sibilities has mi~imal al and interac~~Q

ants. As shown in Figure 5.1 there are three differ nt s ~ c ~ rof the TP e s phase the TP ~ a ~ c i p a t e s every ~ ~ of a ~ e in market nction of the TP in this phase can be c a t e ~ o ~ s e d that of marke~ as m s e ~ i ~ r o v ~ d eOf ~ e s two only the function of market ~e r. e As a service ~ r o v ~ dthe TP assumes full financial l i ~ b i l ~ ~ er We will disc~ss role of the TP in each phase in deta the

the TP exists only as a part of a v e ~ i c a ~ ~ y ~nte~rated~ i l iThe~ u ~ ity owns and operates a ~ ~ ~ 5 i d e r ~ ~ ~

e utility is a an teed to ~ e ~ o v e ning of the system by lem of short-term generation sc n to b ~ l a ~ ~ edemand devi~tio load and to do this at the lowes 0 of this problem is given in [ 11: ~ ~ ~ ~ ~

Trans~ission Expansion in the New E n v i r o ~ e n t

I57

where e a m o u ~o ~ i n s ~ l l generation capacity at node i and tec t ed

a

,? :
1 ; '
1
fa

the ~ ~ o uof ~ n s t a transm~ssion nt ~~e~ capacity for line 1

the rate of i n v e s ~ e nin generation capacity using t e c ~ o ~ o (I y t g

( i ) ,( i~ ,I~ :~ cost of invest men^ using techno~ogy at node i ) ) the a

: the cost i n v e s ~ e in~ I n line

logy a at node i, exc~u

(t),PL~ t ) )the flow on line 1 as a function of system :

) : the ~ a x i m ~ m a~~owable on line 1 as a function of the a ~ o u nof ~ n s ~ ~ l e flow t ~t ~ ~ i s ~ c a p a c ~owing to secure c o n s ~ ~&max s << K, on ~;
rresponding cons~ain~. The o p t ~ ~ ~ ~ ~r o dT~in ~ r o b l (%I)*is the longer of two time ~ n ~ e ~ov I s pe ~ a t~ o ~ e~ a lion or ~ ~ s ~ i i s~ s e ~o~ ~ n ~ v ~ e are valued. As the syste ides the level of production and the rate of investment on ~ e ~ e ~ a ~ ~ and tra~sm~ssion, P,Jt), d a r serve as control variables in this fo for the status of the system o ~ ~ r a tcm be accw i~n ciated by ~ x a ~ ~ i nthese variables. ing

This ~ o ~ ~ ~ ~many iwell-&own trade-offs relevant for the e ~ ~ c of~the n c captures t o ~ ~ the r e ~ a t ~ ~ n sbemeen the i n v e s t ~ timing and the balance o f the costs hlp e~~ er time, the value of different ~ e c ~ o l o g i ats e produce powerl and C o i ~ ~ ~ e m e n ~ a~ e ~ ~ capacity and ~ o ~ K~ e r a t i ~ ~ There are two n ~ ~ ~ c features ~~ n s i ~ ethei operation eab~ o ~ ~g by the TP (as a p a t o f the v e ~ c ia~ t e g ~~ utility) as the ~ ~ ~ted problem: the apparent compiexity of the problem (5.1) and the G on ~ ~ based on costs e .,ag 6J,Tand e,,',, Owing to ~ ~ o n~ ~ lthe x j ~ ~ ~ ~ the is t~ s o ~ u t i tonthe p r o b l e ~ not readily available, and thus the actual o p ~ ~ aand o ~ ~ m are performed s u b ~ p ~ i min l ~ y cases. Further, since the rate ~ many nt is d e ~ ~ r based on e ~ the o p t ~condition of ithe fom ~ ~ n costs, ~ ~ ~ ~ limited to concern [fa 1 and e:(t). Nevertheless, problem (5.1) is B : ark in studying the e f ~ c i oe the ~ ~ f ~ industry as the r e s ~ c takes~ r ~ ~ ~ place.

15

structuring and Dere

ln the passive phase the TP exists as final authority in dist~~bution sectors act~v~tiese ~ ~ afiom the ~eneration s te market env~ronmen~. newly cre A , manages the system in order to ens cai~ied by the TP are tailor^ out

, both existing and eveloping, is highly ~ o n - ~ i f o ~ . reg~onal characteri~ics some markets admit cen~alise for whoIesa~e trad~ng a r e a ~ - t i ~ e and ene ne or two centralised markets and still a~icipants with no centra~isedmarke e USA can be represented by one multilateral transaction model, the mandatory systena operatQr model and as shown in Figure 5.1. model is based on bi~ateral~ ~ s a c t i o n $ among arke et the proposed structure of the Midw n model. The model consists of transactions. Firstly, ~ d i v i d ~buyers and sellers make bil al ~ i t h disclosing the o ~ ~ i ~ ~ l e m ~ ~ The o ~ . t i ~ h ~ t h or rnot to allo e constra~ts. If the proposed transactions do not violate any cons~aints,then they are without any modi~cations. This is the most esired case. If the ns result in violation of co~straints, then the T accepts none or a p ansactions and suggests necessary mo ion called loading vector [2]. a new set of trades to satisfy the limits. Figure 5.2 shows the interaction among various market p ~ ~ c i pfor the ~ o d e l . ~ t s In this model, the function of the TP is limited to ~ e w ~ ~ ~roposed a n~ a c ~ ~ g n s e ~ e~ ~ ~ s o will result in violation of system limits.

~ ~ i l a t ~ansaction e~a~ model

Tr~smis$ion Expansion in the New ~nvironment

Mandatory system operator model

~ i t i a ~ my ~ ep a ~ i c i p bid supply curves to the TP, although a l ~k t ~~~s in for be made to include elastic d e ~ a n d the f o ~ u l a t i o n ~ the rest of the the consumers' demand is inelastic since not much is lost in term the chapter^ The TP then simul~neo~$ly dispatches generators an capacity using an optimal power flow p r o g ~which determines the most ~conomica~ ~, mix of g ~ n e ~ t i ofor given load. The voluntary system operator model ns ports a m~1t~"~iered s ~ c ~ thate min~misesthe TP's ~ ~ ~ u e onc profits by m r n e acc~ptable levels of reliability. Figure 5.4 shows the basic schematic o model.

UlU

Y
~ o ~ usystem operator model ~ ~ r y

bilat~raland c e ~ ~ a l i s e r e s e ~ c ~ spot market ~ansact~ons desired b of is a l a ~ ~ f i ~ s ~ n t ~ supply swith u oe e ~ u i n d ~ swhile direct access and custo~er ~,

~andato~ system operator model lead to an e q u i l ~ b ~ usolution of the m f o ~ l o wo ~ ~i ~ ~ s a tr io~ n e ~ : i t ~ bi

(5.1 1)
i,o

The ~ ~ ~ ~ ~ defined tini (5.8) i $ a o ~ . The result of solving the

(5.12)

~ r ~ ~ i ~ i o n in the New Environment Expansion

141

tive economic e n t in ~ e energy market before such a prw ~

tion sector so that any r e ~ u l a t o ~ pendence based on the reasons given. of f ~ c i ~opera~iQn the ~ s m i s nt than ~ u l t i p lgrids serving c ~ to the high degree of the econ

ng a wide area o f the

v ~ ~~ a n s a ~ t i owhich c o ~ s ns as well as system users ben tamers w h o s ~~ e n e r a ~ i o ~ t amQu~t syste~-w of For instance, it is easy v ~ o loads issfar s ~ a l l e r ~ ~

on of the TP, especially at the time of scarci

ent to say that the s u ~ ~ e s s ss work9 so that the t m

Power System Restruc

TP ta ~dd. Therefore, the ~ a n ~ ~ i level the rate of re^^ reg~la~iQn, m o ~ ~the, TP sets the bundled energy and tranmission price that ~ ~ n ~ ~ i s e l the o ~ ~ i sthe system load at each given instant. The ~ a n s ~ ~ s srevenue i ~ i n ~ iQn first cut is specifie to consumers and to sup and the c o ~ ~ u t e uage charges a s i ~ e d In the ~ o ~ u n system operator model the ta~

t market for the rest.

market and is subject to ng the ~ e c e s ~ ~ s ~ s as a service provider, As a service p e charged to each bilate

under strict r e g ~ a ~ othere is n,

act more custQ~ers.

ssion line in (5.9, For ~ ~ a r n ~ l e , b etter control d e ~ the ~ n can e ~ 1TC

c o ~ i ~ i to any major transmiss~on ng prQjec~ the

e 5.1. In the wti

~ i s s ~ o y $ t e cong~~tion when th $n ~ only e ~ ~ cost g the ~ of investment. As ~ a

structuring and Dere

ystern because of the ineffici high, some users will choose

EQ

total cost of ~ i s ~ b ~ t ~ d

TP and the TTC lies in the clus us ion of the ~ ~ n ~ ~ n v e s ~ $in the s h o ~ - ~ nt ime-scale ~ n c t i o n s becom C in i ~ p l ~ ~bilatera~ i ~ ~ $ n es are create^ BS part of

maker.

5.3.I

I ~ c e ~ RGalte Des ~~ve

ows and thus r

Transmissioii Expansion in the New ~ n v i r o ~ ~ ~ t

lator of the ITCs profit

ITC for a higher ~ ~ c in~ ~ a ~ e efficiency.

The ark et- base^ usage charges are commonly referred to as conget~o~ charges, The zonal pricing met~ods two widely used metho~s are s. The nodal pricing method computes the ~ansm~sio (5.8). For a given time instant 1, the problem gian function of the form

L'
i

(5.13)

where , ,f 0 if and only if FXP,, PL) = F;"'". For si u u t ~ g flows on each line the in the system. ix notation are written as

icity, we use DG power Raw in e DC power flow equations in (5.14)

where &isthe voltage angle vector, Taking the first derivative of L with respect to Pi,, and it equal to zero yields
4-

&(t) A ( t ) t =
I

(5.15)

Suppoe the generation cost of supplier i, ciPa, a quadratic function ofthe ou is (5.16) Then, under the perfectly competitive market condition, the optimal s ~ p p l y i, b,,, is the marginal cost bid given by

(5.17)
~ a t c h thegsolution in (5.15) and the supply bid in (5.17) the system ~ price at node i, p, and the dispatch amount, P,r,,as

(5.18)
Finally, the ~ a ~ s ~ i s s i is set by the difference in the , , i.e. =q -4. rate o ~ q , The zonal pricing method consists of two steps: (I) aggregation of i n d i v i d ~ ~ ~ nodes into zones and (2) compu~tion zonal prices. The system is first divide^ i of of smaller markets by a ~ g r e g a t i ~ g individual nodes into zones w ~ e n e c t a t ~ Q ~ ~ n g e s ~ within each market. The ~ a n s m i s s ~ rate is of c ~on an so~ving similar optlmisation prQblem as given in (5.8); the cost C,,@'~,~) n a the average cost of generation in zone i. The line Row constraints are now ~ i t e ~ a flow limit c ~ n s ~ a i ni,e.sthe ower flow on any line I along on^^ the ~ ~ ~ g e s t ce ~ ,

Transmission Expansion in the Mew Environment

U interfaces is within the m imum rating o f the line. The transmission rate is , ] resent zones rat he^ than nodes. ophistication may be requ~red order to i ~ p ~ e m e in ective, a sign^^^^^ reduction in computat~Qn rice~cap e ~ ~ a t i o n only a small r since rather than many nodal prices as is ricing. Further, there is a greater advanta~e be gained in ~ m p l e m e ~ i ~ to t the section. ccQm~odat~ng b~latera~ a d as issi ~ ~ u s ~ aine d su~sequent ~ ~ The a6cess fees are intended to recover the fixed part of the costs and are thus ~ndependentof actual usage. However, usage-ind~penden~ charging for the access fees is impractical and may result in improp~rincentives for the ETC. In order to s t ~ ~ ua l ~ t ~ m e a n i n g ~~ l h m e c h ~ i m~ ~ some measure g base-load capacity needs to be ~ v e n . , ~ of practical approach is to compute the access charges based on a coincidental peak of o n n s u ~ p ~ ~ foloads. The 12-CP method [3] i s one such approach. The p o ~ i o n a1 access fees is computed as

where S,(t> is the load is share of system coincident peak, and LXt} is the load in month I at peak load~ng con~ition each day. As the total r ~ v e n u of charge is equal to the product of access charge and the coincidental peak o approach provides the ITC with incentives to increase individual base-load ca heref fore, price-cap r e ~ ~ a t i o n the rate design consisting of and es and regulator-approved access fees o ver the ~ v e s ~ ewith some incen~iv~s improvement in ~ ~ c i e n c y , nt for H o ~ e v e r 9 resul~ingrate structure does not i ~ e ~ ~ a tyieldy prop~rincen~~ves the el for transmision ex~anding.In the subsequent section, a market mechanism called the pr~ority in price-cap regulation i o n i ~ s u r a ~ service is d ~ s c u s s e ~terns of compl~menting ce ~rovide right set o f incent~ves e ~ a n c the t r ~ s m i ~ s i s y s ~ e ~ , the to e on

market The driving forces of dere~lation to establish a more c o m p e t ~ ~ ~ v ~ in aim achieve lower rates for consumers and higher ~ f ~ c i e for suppliers. T ~ o u g h nc~ trades, consume^ can establih various service ntracts with any supplier in order to obtain the lowest rate and most desirable service. lateral contracts s p e c i ~ i the a ~ o u n t n~ of power9 the time and duration of the servic d the associated rate and compensation are n ed and agreed upon between the suppliers and 6ons~mer tition is directly related to the bilateral trades which allow e, the success of the market is dependent on the ETGs abi

Since the t r a n ~ m i s s ~ o ~ is a physical system, the 1TC is able to honour and e x ~ ~ ~ I ~ grid these bilateral c o n ~ a c ~ far as the system design and opera tin^ condit~on as Unlike in the spot m 1: the ITG is not allowed to pa~icipate directly in re~dispatchin Thus, the ITG relieves ~ ~ n s m ~ 1 trades or by 6reating counter ~ Q W S in

168

Power System R e s ~ c ~ and Deregulation ~ n g

systematically adjusting the rate structure. All bilateral on^^^^ are the replacement resources in case of ~ n t e ~ p ~ die to either the ons contingencies, ent or ~e~erator-re~ated W ~ t ~loss of genemlity all bilateral contracts consist ofthe fofbwing s o~t q ~ n t ~of y ~ e r g y te transfer ~~ injection point and the c o ~ e s p o n zoneg

J,z : the w i ~ h ~ point ~ ~ the c o ~ e ~ p o n d zone a w and ~ng

enalty payment by generator i for generator~relatedcontin ante.

e ~ a t purc~ased the spot market of zon ~o~ in

ovcr the p ~ r ~ o d T = it,, 4. t E c ~ n g ~ s t ithenload is respons ~ ,

ex ante for each time the tr

robability of be in^ c u ~ a ~ l e d the upper bound g~ven ~~~. with as

In r e a l - ~ i ~ e oper~tion~ ITG determi the relieve ~ a n ~ ~ i s con~estion ion along with

s creates an a ~ a c t i v e incentive far as long as the market can take it. ss~on y s t as ~ subs~ntial ~ e a effort by the ITC is expected in order to i T base for priority insurance service. The advantage of this method is tha of the spot arke et^ which is under strict regulation, the w~liin~ness take the ITCs profit is well capped, Over time, the sho to the spot market or bi~a~eral is e x ~ e c ~ e dlev trade to meet the c ~ ~ g needs ~ the market. The I i n of t t mark~t n evolution is likely to have a ~ e ~ a ~ v~e l y g level ~ priority insurance service and to enjoy profits from b u s ~ e s we discuss the effect of reduced r e g u l a t o ~ unce insurance services on transmiss~on x p ~ s i o n . e

in

5.3.3

T r a ~ ~ ~ ~ s s ia~n~s i ~ ~ i ~p

The ~ e w a r k e ~ ~ org e s c ~ ~ ~ e the ~ e g i ~ of ~thn g at d ~ ~ ~ n d a n ~ $ ~ t a~ for s ~ s t e m a t~~ s r n ~ expansion. This ta se~ lng i ~ s~on Qf ~sed ITG ~ c ~ r A .fo~ard-look in^ ~ a n s ~ s s i o n e S t of its c u s ~ o ~ ebased on ~reuency r n a ~ i ~ of e r and d its ~ a ~ ~ ~ ~ s s i o n system, tools n e c e s s ~ yfor e rovides a basis for su e n ~ a ~ c and~ ex ~ t e ~ of these ~ n h ~ c e ~ e ~ t

elopment of new market tools for operating the ~ansm~ssion s t e ~ sy b as the ITC moves into the active phase of m ~ a g e ~ e n t this phase In ~ to make complex business decisions over a wide r a n ~ e time scales: long-te of deal with ex~ansi d to ~omputing i the c o ~ s ~ a i n t s makin~ and system reinforceme~ts order to meet this in roposed ~ a n s ~ ~ s rate o n s ~ design that the i n v e s ~ e cost tis ~~ on rent on the spot market owing to the r invest~en~ decision is required for the Even when there is s ~ ~ i ~c o na ~ s tti o n c ~ ~ sustain needed for relieving this congestion is ing the performance of the ITC, since rate lies wit^ the r e ~ i a t o and not the ITC. The a r ed prioriv insurance s

on the h i s t ~ ~ i c p l a ~ ~ of ~ s a e users ority insurance services nt in a new efficie~t gen t for i ~ p ~ e m e nbilateral rrad t~g The better the projection that the new market the ITC makes and subs The s h o ~ ~dec~sions t e ~ deal with the most ~ i f ~ task for the ITC c u ~ ~ s on the ITC's ability to funct three aspects to consider in the pr~cing.The first is ~ e ~ ~ i n g s from the long-term m v ~ l ~ m e r n ~ o ~ in n t is i ~ making investrne proj~ctiona the lo~ational temp~ral and n, Over time, the market f the costs by ~ x ~ a ~ ~ l a t ~

s the vahation of insurance services given the s p e c ~ ~ c a t i o nasb ~ ~ a t ~ r a l ~f d in Section 5.3. The ITC has a menu o f p r In this ~ o ~ u l a ~thenre~iabilityis explic o , i n ~ ~ ~ ~ p xq bynthc ITC over the contra tio s valuation and may be solved us spect of pricing is ~ e l a t i ~ g the activities. Because the mount of ~ c t ~ bc e as well as the rices at the spot ~ ~ kthere ~ , l,~ e

es

Transmission Qpen Access

173

e either set or ~egulatedin ac

~ r e a s o ~ ~ b I efair prooft ~ a r gabove its cost. or q i~ r e ~ u to operate in a manner that m i n ~ m i s ~odv ~ r a r ~ v e ~ u ~ ~ r ~ le

~~~e~c

~ the ~~~~~~0~ ~ serve~ ~ to was often m s concept was usually r e p ~ a c eby g ~

174 -----._.__

Power System Restructuring and Deregulation

_ _ I

~ove~ment-owned ~ e ~indus~y n c o u r a ~ e e ~ c i~ ~ es not have to be part of a r e s ~ c ~ r i effort. I ng early 3990s several Western governments were e the do a ~ e ~job rof ~ n n i n g power ~ n d u s t ~ , r e d u c t i ~ ~ labo~r in could be achieved by p ise rates and have a greater interest in e l i n ~ ~ power ~ ~ g ~a~ lace i n e ~ ~ c ~ e n c ~ e s . countries either Qwnersh~p In other or to cooperative or to p r i v a ~ ~r ~ ~ ~ s a tor o ~new types of o i to s ~ ions or ~uasi-gov~rn~ental entities ts, ~ w n e r s h ~ ~~nctionalre5 and 1 invo~~enient private capit of d as private sector p ~ ~ ~ c i p ut b e c o ~ more ~ o l ~ ~ i l e . e also a serious conb: . Compe~i~on imov breeds ism. A competitive powe use of new technologi ~ o n o ~ o s c h e ~ e unable to ~rovide n c e n ~ ly was i tiva~ion use new ideas and ~ e c ~ o l o g ~ e to ework. Lack of compe~~tion gave also in c~untries such as India and Chin very low. A more b : o ~ ~ e r cethos could be h ia~ ~u~to~~rs.

.1.3

~ n ~ ~ n d~~ e nng e ~T ~ a n s~~ ~hznd is^^^^^^^^ i ~ t i i ~~s ~ ~ n

the variatio~sdis~ussedab amms in certain respects: (I) s e l e c t ~ o ~~ n e r sources, rangi of ~y cost r ~ s o u r ~ ~others with low capital and hi to s econo~ies scale or n ~ ~ monopo~yf e a ~ r e s ~ of r a ~ electric ~ o t e n are not~an i ~ p ~ to~ ~ e n ~ t~~ ~ clear e c o n Q ~ i e ~ scale, but there is a of ref fore some form ofregula her unbundled into (a) a wires ides facilities fox e l e ~ ~d c ~ ~ ~and (b) ~ ~ ~ i i v lectric e n e r ~ end consu~ers, The tr to (3). i the ~ c o n o ~thecgeographic and the b c n ~ , ~ h ~ r e f o must ~ o n ~ to f ~u~ e c ~ oan i n ~ e ~ r aand~re re ~ ~ i as n t$ dion in the gen~ration ret and mission system and ensure e q ~ ~ t a b ~ e to all power basis ~ ~ ~theofocus of attention ~ e s field, and the rules for managing access by ~ ~ s ~ r i m Thisa t ~ ~ focuses on this c i ~ cha~ter . ~ subject, ~ ~ ~ a

nal, state, provincial or independent generators coexist. In these cases the ~ e c h n i inte~e~ationshi~smurky and are in a process of rapid ev~lution. c~ are

rate and transfer BOT; {or build, operate and own) plant of ing, ~ s u a ~ I y t ~ o n a~, ~ ~ i t~ Ieay ~a l i an on in many f a s t - ~ ~ n g systems. T r a c ~ e~ ~ e e ~ force as an economic incentive to investors. ~ e are often in ~

n s i b i i i ~ the dis~butionside as in a ~ a ~ i t i o n a ~ on s ~ ~ r e g u l is t that Discos may now be restrict a ~~~

scos a d ~ ~ o ~ ~ l j ed ~~ n sales~ ~ t ~ e e ~ o countries is~ sell to an ~nvestor~ to coxp p ~ ~ to or em so that ~ ~ v e s ~ m for t reinforceme~tcan be en o p ~ r ~ tprac~ices m ~ ~ e ~ e ~ ~ e ~ . i~g ~

netwo was state owned before r e s ~ ~ ~ o~ n g , Where the trans~~ssion i n t ~ g will ~ r ~ ~ n and a d ~ s ~ i n e ~ o n r ~ be e d between owner and operator is r SA, f o ~ e e ~ e c ~ ~t c ~may sell off ~ ~ other assets r ~ i ~ their s ~ Q r n h~ basic ~pr~mise~ f open ~ a n s ~ ~ ~ ~ccessi s that ~ ~ s o sion trans~iss~o~ operat~rs treat lalt users on a non-discriminato~ basis i use of services. This re~uirement cannot be ensured if transmission y generation or supply. A requirement, therefore, is ~~~~~~~~e~~ s t e ~ $~ at^^ to Q ~ e r a t ~t r ~ s ~ ~ s s i ~ n the system,

markets are e s s ~ n ~ a ls y o ~ - t forward ~arkeEs lh e~ i serve toad and loads bid for the opportu c ~ two ~ ~ t i n ~ ~ k eday s : ~ s c~ ~ ~ ahead ~ t ~ e ~ ~of s24~ ~~ a r ad s ~ u a ~ ~ t~~ o n ~ , s ~ ~ te ~ i ansmission costs, constraint management or congestio bidders may bid. as a single generator or as a ~ o ~ f ~ l ~ o n ~ ~ ~ t Q a unit may of i e hQwe~er, ; ~ Iy one p ~ t h o ~ a ~hj d ~~~y ~ ~ ~ er s ~ m ~b l ~~ i ~ ~ ~e ~ ~ o ~ ~bids. f n there is conges~i5nthe CalPX sets a ~ a x ~ price m buyers may su ~ u and rnand bids for ~ Q n - c ~ i loads; ~ ~ ~ a b auction ~ o ~ a single i c ~ ~ d ~ d~~~~~~~~ a ~ ~This occas~on r o v i ~ ~ s ~ ~ ~ ~ t i t i ~ ~ ~ eg, p ac g~n$ra~ors adjust their day~aheadsched~Ies the lig ta in s ~ ~load forecasts md ~ status. ~ - ~ unit ~ n

as well as the o ~ i ~ r s h la the new ~ ~ k

151.

Transmission Open Access

1 the new ~ a d i n g ~ c ~ rinto a few alte e s

ion system is ~ ~ n ~ a ~ l y

T r a ~ s ~ i s s ~ o n Access Open

ower System Restruc

lation

ostage stamp ra~e, ~ h e are no i ~ ~ e ~charges~ n a l is ~ and ~e ~ ~ if power in the ~ n g e s ~ zone when con ed E" usem to sei1 or buy ~~~~sare a d j ~ ~ ~ b

the flow ~ a in a ~ e ~e owill de n r ~ s a c ~ o at s ~v ~ tms i e~ . ~ cb line I;a meet the n, the load of tine j

For each transaction, the rel~ab~Iity ~ ~ ~ s m i swith o n lines of s ~ all but linej in $ e ~ ~ care, first calculate^. The r e ~ i a b i b ~ n e ~RJ:Ti e le~ t ~ a n ~ c T,~ oc~lculated the i n ~ r c ~ e int ~ a n s ~ fai~ure o ~ ~ is n as n ~ ~ i a ~ s e n of~the line. Similar ~ r o ~ ~ ~ are~ ia t~i ce~s ~ a respect o c ~ c in t e ~ ect to line j . The e ~ b e d d e d of the ~ r ~ s r n i s line j , ~ cost s ~ o all based on ~eliability e n e ~ oniy is now d e ~ n e d b ~s as:

and 61. where P, is rRe m a ~ n i ~ o fe~ n s a c ~ ~ o n E;. is the same as in ( . ) The s ~ e c i ~ c d is in itself not c e n ~ a ~this to r n e ~ ~ o d to c o ~ p u t e r o ~ a b i l of ~ansaction used p i~ ction may simply be taken as example, the failure probability o f ility that a path will not exist from the t r ~ s a ~ ~si e ~ d ~ n on This ~ ~ p r o a cto failure c ~ l c u l a t iis ~ e a ~ ~ l ~ h ~ r ut becomes c o m ~ ~ ~ c aand v i ~ a l unworkable i ted ~y e ~ ~ r circuits, a cut set eth hod [Is] or B ~ o ~ d ~ pr ~ o ~ a ~ ~ e d t le for ca~culat~ng a v a ~ l a b ~ ~ i ~ . this

efits in a ratio which has to of ~ s n~ specified e x ~ ~ e n ~ and ~ y u depends on the j u ~ ~ e m e n the ~ ~ ~ s r np i~ a n~ ~ r ,~ n ace, the c o r n ~ o charge is set at ~~e

a
i

It ~ ~ ube d l noted that e ~ b ~ ~ ~ ae ~ ~ ~ costs i o ~ to ~ n c ~ u d e c ~ ~ isue e d d i s s Rave ~a ~i ers, ~ ~ s ~ a te o n i p m switch~ear and shun~eries acitors in additio~ i~u ~~t c to ~ a n s ~ i s s i o n and cables. lines and d~~ferent ~ ~ ~ r d s m n o ed

us^^ ~ i f ~ e r ern n ~ t h hence, ~ t o~~

ewices, as i o the case in s d with time of use, g ~ o g ~ p h ~uantj~ative customer~ c ~ ~ , and s ~ c ~ ~ ~ a c i o ins~ ~ n d . vi ~ t n

f17] in this rovide~ A brief ~ ~ s of the ~ansm~ssion ~~ ~ n ~ the n c ~ ~ ~p r c in g NCC, subsection. to cover the costs of its assets but the ~ o s t s of The NCC i s altow cO~~m~~~ is the price quoted by e nlo~e ~ p ~ n s ~ ~ dis~atchduring each half-hourly time slot w ~ e n generator which is ac - simple u n c o ~ s t r a ~ e d dispatch, transm~ss~on constraints dc ~flassof load p r o b~ a ~ ~i ~ ~ ~ 9 ~ ~ ~ ~ is c a ~ c ~ i l aby c o ~ n ~ ~eixn~g c t ~ d e ~ with the c a ~ a expected to be a t~d e d ~ d c ~ ~ order to encourage capcity offers from generators the pool purchase pmce this e yw~~ ~ ~ by a u g ~ e n ~~ n g ~ with ~ ~ ~ ~ b ad b ~ ~ ~ t ~verage.IF g h ~ ~ d ~ t S ~ s ~ e n ~ ~is alseady s e tl e ~ ~ ~ d the u ~ c o ~ s ~ i a ~ a but preve ~ ~ t o ~ a e in ~ s n t~ ~ c enerating owing to u ~ n ~ i s sconstraints or other factors the generator io~ , This p a ~ e n consists o f the ~ ~ ~ ~ $ s e n c e t n compe~lsato~ pay

hand, same ~ ~ c o n go n~ r~ ~ o ~ are n e e a cwho called u ~ o n g ~ ~ ~~swa ~~n e~ a n s r n i $ ~ ~ o to to g bid price, which is h~gher than the puev a . This is, e~ect~vely, of-merit g e ~ e ~ a t o r ~pera~ion. Constrain ts, out-of-merit paym ges, ~ ~ n s ~ i losses, start up ~ ~ s ~ s s ~ ~ o n and ancillary sewices c~arges passed on to c o n s ~ ~in the ~~~~. are ~e~s The ~ ~ s t o m side of the market is simpler: a11 energy is puscha$ed at the pool selling eu SP), All of the extra costs of energy above the PPP are simply 1 EzjY and s ~ oversall ~ ~ is by ~ u s t o t~ e ~o~the calcar. ~ ~ ~ g ~ h a l ~ - ~co ~ s ul ~~e r ~ c e ~ o ~
~ ~ ~ ~ ~ ~ + ~ ~ l l

~ ~ c t in^^ t ~ e ~ e ~the~ e , is fixed on a r e v e n ~ ~ ~c o ~ ~ basis; t~~ a is, Po ~ l y o PSP r e ~ ~ t~ the e l e c ~ sold is made equal to payment to generators p ~ others 60 ~ c ~ ~ ~ ce, the costs o ~ t r ~ s m i s slosses~ also rolled into i o ~ are

poiiy p o ~ ~albeit~ , ~ o regu~a~ed, the ta ~ r o v i ~ e aaequat~ srnission access are ~ o ~ s ~ ~ e rthis. ~eaon Fur s md since average ~ 1 ~ ~ c a t ofQ n s ~ upl ~h~~~~to d ~ ~ users, ~ ~ 11% been the prima^ focus of con e n ~ share the costs of o ~ e ~ a the system and bear not t~g but an ~ ~ e ofr the OS& ~ n c ~ by a ~ g i ~ all r is ~ ~ - e these ~ o b l ~~~ s ~ ~ n~ ~ n t ~ y x r ~ and r ~
~~~~~

T~ansmission Open Access

is ap~roachcan work in a market s ~ c whereethe organ~sa~on ~ e for pro cur in^ a n ~ i l l a ~ services is also respoxisible for opera~~ng e n e r ~ the amples of this include New Zealand and New England. llary s e ~ ~ c separate from the energy m ~ ~ eis , ~ ~ e r es~ tb n l ~ s ~ ~~ ~where the IS0 is se~arate c t~ ~ s from the PX, as is the case i ~ c services which the ~ a ~~ f o r nIS0 is responsible for p r Q c ~ ~ incl i ~ l ia ~ ng inning reserves, AGC, replacement reserves, voltage supp ompet~tive auc~ons start. The first four services can be procured by the ESQ through d to ~ a n d a ~ # ~ or or be s e ~ ~ - ~ r o byi ~ e d ~ ~ w e s~lf~provision li ~ users, ~ e r ~ is c o ~ ~ c~ ~ n g e m k e ~use ~ all. anci~~ary ~a l The ~ of services, incfud the exclus~ve e s p o n s ~ b of~ i ~ TSQ. ~ l a c k ~ capabili~ reac r ~ the ta~ and must be provided or purchased by tbe ISO. In some e ~ e c ~ markets, both the mandatory and m a r k e ~ ~ b a ~ e d c ~ t ~ approach~sare . For e ~ ~ ~ Spain,, the ~ Q ~ c a ~ l e ~ reserves~service is ~ ~a ~for ~ ~ in l e ~ ~ ~ ~ m ~ rs, All plant must be ~ ~ u i with a ~ ~ p p governor and there is no r ~ ~ ~ e r ~ of frequency deviations ~ ~ ~o~ n g associated. This is intended to reduce e the required primary r e s e it m ~ s t ~~ power i ~ ~ a ~ a n c ea generator can If s . procure~ent AGC service is from other ge~~era~ors. the othke On of ~ o ~ a ~ c t~~ o~n ~ p e t ~ ~ m ~ ~ ~ ~ ~ ~

.7
~ o n g e s ~ i o n is not a new prob~emin power s y ~ o~ ~ r ~ t ~ o n was a r o ~ t ~ e [21] p e ~ and ~ r o b ~ e m the ~ y t e ~ e r a ~ oin the t r a d i ~ o nsystem. In for op ~ ~ e n v ~ r o ~ ~ ehowever, pre~~ously n~s, established practices for dea~ing w no longer be relied on since coo~eration between market p ~ i ~ i pcannot be ~ a ~ n ~ e e d . ~ t s Any control ~ e a s u r e s adopted by the system o~erator eliminate c o n g ~ s t i o ~ not ta must ody be t e c ~ ~ ~ s ~ ~a~ but also ~ fair to users and c o ~ e r c~ia n s ~ ~ ~ u t a b ~ ~ be ~ 1 ~ ~ p some e ~ ~ ~ i c with bilateral and multi~a~era~ ~ a c~ ~ s ~ c t ithisnps ~ o b is e ~ markets i ~ con t o ~ more d ~ f ~ c u l tsolve since these contract transactions introduce additional c~nstra~nts to on the system o ~ e ~ t o For example, c u ~ a i l ~ ~ a ~ r. of n ~ilateral ~ ~ s a c t i o~equires n s i ~ u l ~ e o and equal reduction at the entry and exit points, All this makes CO us ~ a n a ~ e ~ae ~ hta l l e n g ~ ~ o ~ ~ e ~ ~equiresa comb~ationof ~ n p r l b and o pri ~ ~ c o p ~ ~ ~ respo~se$. i s perhaps the t h o r n ~issue in t r ~ ~ ~ i sope~ation. o n a ~ It ~~t s~on

Boot md c o ~ ~ amodels are s e ~ ~ r a t addressed first and an app~oach reconcile h t h ct e~y to

ma~agement issues without C o n s ~ d e ~ ~ tof Q n ~ models i s then explored. Conges~i~n e c o ~ ~ n g e n c y / s e c uproblems are discussed in this subsection. A fbller ~ e a ~ of n ~ ri~ topics can be found in [22], tion given beIow assumes ~ ~ c e - b a s e d dispatch built on spot p ~ theory ~ [I I] and in its simplest terms, ~ e g l e c t i n ~ elasticity effects md the signific price location, the dispatch a ~ g omay be ~ ~ as: ~ t stated ~

subject to:

~ c G and D a ~ their ~ ~ ~s e ~ e r ~ ~ ~ ~ n s ~ c o n s u ~ ~ and ~ o r ~o offer (bid)c ~ and ~ ~ r c h~a s ~ ~ u t ~ ~~ i ~ ~~ n ~ ~ prise e n ~ ~ we g~venby C and B, respectively. Tltc single load balance constraint will later be ~ e ~ ~ ~ a l i s e d of a ~ g ~ ~ nload d to a set t e flow equations. L is a ~ ~ s m i s s loss n ~ ~ t i o n , ~o ~ Gi.ma g ~ n ~ a tio r a ~ and 2, the ktfi o~erat~ng ~ s ~ ~ n~t . b(6.2) leads to the e a ~ ~ ~ co ~ o l e ~ s o l u t ~ and ~ ~ ~ ~ o n d ~ t i o~ ~ :c ~ e ~ o~ e - T ~

ere i andj are the set of ~ r o d ~ cand ~ e~s

Mi

af y ~ i a bon ~ c l the nt above is the $tipu~ation t . The demand-price elasticity issue, which was y

I [25-271 is d e s i g ~ ~ aas power ~ i ~in ~ s a t ~ te~ a b ~ l ~ and e ~ a ~ ~ a n s ~ i s s i o no ~ ~A c ~ . ~ ~ s a s t i o n ~ multilateral c bilateral Disco pair while a m ~ l ~ i ~transaction ~ 2ibp extens a t e ~ ~ is s, such as broken or ~ o ~ a K d CO
~ a ~ s ~ be ~ ~ o I n there is no con ~ provided. f d i s ~ a t c h all r e q ~ e ~ansactions makes ~s s ~ ~ ~ and

Transmission Open Access

~ ~ o ~ ~ t a ~ ~~ n ~ ~ . ~ o ~ s i ad p~ o ~ system r ~ r ~ Q s i t ~ Qis r e s e ~ ~ d 1 n for ission losses. (There ISQ pur~hases power to ed with any one or m aenG0 and Disc y

As

ik

z' E I,; i f

subject ta:

i s the desired or target YaIue of

a u g ~ e n ~ e d a set of contracted tram by ~ n e ~ ~ a lc t y s ~ i ~ ins (6.4) are an extension of the ion t c o n s ~ ~ ~augmented by additional inequalities for the up nts led e~amples the method with d ~ ~ fc e r ~ i~~ ~ n ~ of u~a e ewed as a p o i ~ t - t o - ~ o ~ n ~ s ~ ~ a b iil a lt e ~ ~ tract^ transfer to ~ ont

is the total number of bilatera~muitilat~r~i~ s a c t and ~ s the Mh ~ ~ o Tk

bifaterallmultilaterl t ~ n s a c ~ i o n , and PpL,i

owe^ ~

,j

are bus i pool g e n ~ a t ~ and bus j pool on

~ o n s u ~ p t ~ro~ ~ ~ e c t iPT., land BTkJare, r ~ ~ ~ c ~powere~~ y e~ tato ~ i Etnd n, v~ ~. i v ~ j c i bus

~at bas j ~ er ~ a ~ soa c t i ~,n PLT, is ~ nu ~ i ~Tk , ;

bilaterallmultilat~~al pa~icipants make good transmissio~ to Section 6.6.4). In actual ope~a~ion power systems the ~esponsibili~ of d ~ s t r i ~ u ~ ~ ~ all dispatched ~ansactions. Twa between ~d~~~~~ in [29] but for s i m ~ ~ i ~ i ~ on by pool ~ ~ nis c ~ ~ s ~ dhere,~ d o ~ ~ ~ te r ~
T*,i

=o

idG; kE

and the IS0 will dispatch pool power to make good t r ~ s ~ ~ slosses, ~ s i o kncludin

Transmission Open Access

:The n o ~ condi~ion when all pool demand and all bila a ~ is ns me dispatched without system security violations. ~ a n s ~ c t ~wills s ~ ~at ~ ir des~red o n be c e ~ value and the I S only ~ i e e to s SO ~ op ~ i s ~ aand a ~ ~ ice^. ~ cea s ~ ~ g~~ t ~ d ~ ~ d ~e ~ ~o n 1 ~ t~h ~ l a ~ o y a ~ OPF ~ 0 ~

0 ~ ~ :

subject to:

PPL

T PPPL

(6.6)

where

is a c

o vector with~typical element pppL,i ~ ~ ~ ,which is the

i s a vector of

and bid price for this pool power;

~~~~~~

pool powers with e ~ e ~ e ~ t s PPLI

~ v ~ n b ~of s ~ ~~ ~ ~~ ~ e ~ ; a ~ this p e values of pool ~ o n s ~ n ~ and ibilaterailm ~~ on~ arrd e x ~ ~ c ~ i o n ~~h tors o f r e a ~ t ~ ~ e a l o ~ elements DpL,i, Pq ,i and ,?Iq , respectively~ ,j ~ ~ ~ e s The ~ ~ w ebus v o l ~ m e a ~ ~ and ~~~e~~r~s~ectiyely. ftrst ~ o ~ s ~ ~ n t r, (6.6) is the c o n v e ~ t i o ~ a ~ flow equation set plus the set of n o ~ power load a~ second c o n $ ~ a i n ~a set o f ineq~lities, is incl~iding limits on pool p~~~~ an rating cons^^^^ such as bus voltage levels and line overloads.
~ ~ s a c t i in ~ s would result in the violat~on operational cons~a~nts. f o ~ l ~ w i ~ o full of The dispatch ~ r o b is now~f ~ ~ u i a ~ e d : ~ e

we the c

subject to:

T)=

pPT a columi vector of elements is

yo,, i s a c
~ e s ~value~of re
(w,,,,,
pL,j

e first tern, within brackets, in the above objective r$pres~nts net pool w ~ ~ f a r ~ the ,the ~ a ~ s m i s charge~for d e ~ ~ v PTkj; ~ s~o e r ~
~ vector of e~ e ~ ~nn t s ~ ~ I =(D:L,i
. ~ ~ L ,where i ~

woPLJ is a w ~ l ~ i n ~ ~ ~ s ~
i s the

- D P L J ) ,the pool customer shortfall, w h ~ D & j ~e

is also a willingness-to~pa~ factor

and s a t i s ~ ~ s 5 B& ; y4. is a c DPL,]

wher~ whs

o v ~ ~~ of e~ ~r e ~ ~ ~ ~ o ~
,i

AP<,~ 1

, [

and satisfies F$;,, 5 P; !

,i

It is worth mentioning that willin~ess"to-pay factors, which have been ~ n ~ 5 d u c en id the above c o n ~ a cmodel a ~ ~ ~ m the interests of ~ t ~ o d a ~ o and bila~erallmulsitaterd f p ~ c ~~~~n~c o ~ g~e s t ~ That is, any p ~ ~ ~ ~ j ~be w ~ l ~ i n g make ex^^ ~ p ~~ n . a n t to ~ ato avoid c u ~ ~ ~ m e n t .a ~ ~ ~ g ehas to ~ t ~ g r e with the IS0 in a d v ~ c e ~ ~ This ~ a t ~ e be e~ and the 1S0 will d e t e ~ i m ~ g n i ~ d for the w i l l ~ ~ e s s - t o ~ ~e es ay factors in order to ration ~ a n s ~ ~ s saccess accordingly. ion The first c o n s ~ in rob^^^ (6.7) is ~ ~ t ~to the 5rst ~ ~ a ~ 6 with ~ in ~ but ) 9 r

,r ~ s ~ ~ ~ t ~ v ~ c o .~ ~in~ ~ n t The second ~ y (6.7)

b a ~ a equations and ~~e ntract model. Th bilat~r~l/~ultilatera~ c ~ pin advance. The i ~~~ ants ~ ~ t e ~ of ~ o i n e ~ u a ~ x ~ r e s ~ ~(6.6), obtai s the n ~ip in ~ n

die c o ~ ~ e s ~ ~o~ ~ a g e problem tin d ~ ~ e g u l power systems whic i n ~ $ n a~e~ pool and ~ o n ~ at c ~ ~ a c t i o n s ~ rt

.%3

~~~~~~~~~~~~

~~~~~

~~~~~

The e bus system o f Figure 6.9 is used here to ~ l ~ u stheaira ~ ~ t discussed above. For simplicity only the i actor is examined. ~ y s t data i n c ~ ~ d e ~ found in the A p ~ ~ n d ~ x ~ e g ~ ~ ~ r a t ~ 1 and 2 bid into the pool and the 80 at buses r ~ 5 at pool prices. The 200 1 load at bus 4 is ~ i ~ into two~ d ~ d ne-half takes power from the pool and the other enters into a g e n e ~ a t atrbus 3. The re~uits a pow ~ of buses 4 and S are c o ~ ~ ~ e~~~ p yp l ~ e ~ el fuft, line 2-5 it; ~ ~ e r ~ o ~ ~ ehd . ~ ~ ~ ~ o od of ~ r o b l (6.7). The s o ~ u ~ o insw ~ i c ~ e~ n ~ wit hi^ ~ ~are giv$n ini Table 6.1. 9 ~ ~
~~

Example system

Case 1 ~ s u ~~ ~ i n ~ i e s s - tfactorsa ~the pool d e o - ~ of e at b ~ same as that of the ~ ~ ~ a~t ne s~~ ae ~ 3 to 4? namely 20 $1 from r ~ ~ ~ - actors of ~ a ~ ~ e n ~ we d s u b while ~ o - all pool ~ ~o ~e~ unchanged. As expected, the pool d ~ ~ a n at d buses 4 m d 5 case 2 ~ h a n case I and the bilateral transfer from 3 to 4 was curta consumers were willing to pay more.

Pool ~ e n ~ r a ~ ~ o n1 at bus Pool generation at bus 2 Pool demand at bus 4 Pool demand at bus 5 Transfer from bus 3 to 4

54.6 119.1

56.1 119.5 95.2 1 ' 75.2 1 ' 94.3 -k

94.5 73.8
96-8

The ~ e ~ a ~~ o ~~i ~ entsvand w~ ~ ~ ~ i n ~~~ s s - t o - ~ ~ ~ ~ ~ e r n a ~ ~ i 6.10 is ~ b t a i n~e ~ g ~ as t ~ ~ i n ~ ~ s ~ - t of the b ~ ~ a transfer o-~a i varied fiom 0.0 to 60.0 $ /MW2 h In 10 $ /MW2 h steps while other factors are r e t ~ the ~ ~ n same as case 1. The n o n - l i ~ ~curve in Figure 6.10 shows that the more the w i ~ I i n ~ ~ s ~ - t ~ - pless , ar the a y the c ~ ~ ~ ~ r that when it becomes larger the bilateral transfer tends to tb and n e ~ t . It is i m ~ and ~ ing to ~ ~ ~ h athat iwilli ~ t ~ e Iment of its own ~ s a c t ~ i ~ ~~ m ~ u~e the~ e r e on ~ ~ ~of other loads and ~ aln s ~ c t i ~ R s . i ~ ~ ~
I

105

100

95
90

85
80
0.0 10.0 20.0

30.0

40.0

50.0
~

60.0
~ ~
I

W ~iI ~ ~ ~ s s - ~ o -~~ a ~ I ( y
_.
_ I _ _

__

67.4

Static $ ~ c u ~ i ~ - c o ~ ~ t ~ ~ i ~ ~ d

doIogy E301 to reschedu~e pool and b i ~ a ~ e~ansact~ons inp: account of s y s ~ e ~ ra~ t which may be helpful in ~ ~ o v i d i n g insight into the security c ~ a l I e ~faced by an ~es the context of system der~gulatio~l resented next. is

~esched~ling 1,321 is the ~ r e v e n ~ ~ v ~ [3 a ~ a ~ g e r o p es~ a t ~ o ~ ~ i t i o and b~inging w o~ cn~ ns state. This is an ~ d t5 on-line ~ ~ ~ c ~ o n u g Qand GO ~ ~ ~~ r ng ~ ~ i m ~ ~ ~ eonlytwhen the s y s t e ~ found to be in a ~ ~ n e r a state. n e ~ is b~e It is r e c o ~ ~ s from [33] that transaction o ~ ~ - c ~ n t ~c~ ~ e c ~ i c a p a b ~will ~ ed o~ n c y e v l ~ be ~ e l p f5r le l ~ ~ a t i c o ~ s ~ a~ n ~~ a tBoth ~ o ~ t - c o ~ ~ ~ n ~ ~ n control mdv ~ ~ ng i o ~o~. ~ ~ ~ ecc t ~ y p r e ~ e n t control are, therefo~, ~~e taken into accoun~ here. The aim o f the method is to m i n ~ ~ i s e v ~ a ~ ~ o n s ~ a n s ~ s~c ih ~ ~ u ~ ~ ~ e d from e nwh ~ es to enswe s~~~~ tive and ~ ~ s t - c Q n ~ n g e ~ c y corrce;ctive ~ for the case ofpre~entive c ~ i ~ on the o s ~ u ~ ~ t ~ o n ~ d ~ l e d~ ~ s a c ~ iso the most ~ i n c ~ ~ control,~the ~ ~ ~ $is to reduce benefit loss of the ~ e v i o ~ s ~ y ~ e ~ ~ ~ e conisidertition $c l ~ ~ s ~ cwhen ao o ~~ ~ g e o c y ~ . ~ i ~n t n c
Cd

ion to the case where the may be out o f sus der ~ i i ~ e ~ con t ons and deals wi o ~ ~~e reschedu~~ngf pool ~ ~ ~ rand demand as~well as bilateral transactions. A new o a t i ~ nota~ion i ~ ~ o d here. e d is ~ ~

ieNG

!END

ifNT

and AFT{ we: ~ r e ~ e nc~ ia~ e in s~ a ~ ~ .PG~c ~ ~ o n ~ n~e ~ where QG,, pool to ~ u s t o sales~ a n s a c t ~ o n md b~latera~ ~ s a c PE, resp ~e ~ PDi ~ ~ ~ o n and NT are the total ~ ~ ~ o fbt r ~ ~ s~ c ~ i o n the e a s fs
pGi and pw are ~

a prices r pool~ ~ s ~ a cPGi ~ ~ ~ of ~ t~ ~

~ ~ ~ e ~ i e f ~ ~ta tsi ~ n price n o in respect of bilateral transacti The Q ~ j e c ~ i~ e c t i for the klh line-outage con~i~gencytaken to be: v~ on is

ieNG

ieND

ieNT

the ~

~ pcj, p& am~ pTi$ U1 ~ c rd s u b ~ i~ i f f e prices for n o ~ states and for con~ingen~ n ~ i ~ 5 depen t ~e~~ a ~ co ns aversion to occasional s h ~ ~ ~ i ~ tie ~ p ei o n or c ~ a i ~ m e n t s . n m t s ltiple o b ~ e c ~ ~ v~ h e dprobliern isn ~ f o ~ u l aas folfows: e ~ l ~ now t~

Min F = W O.Fo f
RER

(6.8)

where "0 is a weight attached to PO and satisfies

pdce at bus m (the calculation of pool price i s outside the scope of this c [233/); 2) pTj,n set equal to pTj,m the ~ a n 5 ~ ~ 5 i oof later^^ ~ ~ a c Pn , ~ o is plus price ~ ~ The prices p;f under ~on~ingency be obtained in a simiiar way to pR can .
~~~~~$~ ~reventive and pos~-c~n~ing~ncy G onse~ation power in the pool, A s s ~ that ~ ~ transact of ~ only ~ g ide system regulation the associated generatQrbus can be ch to say, the slack bus power a ~ j u s ~ emust balance the c h ~ g e in ~ nt s e and load power with due regard for ~ ~ s ~ i fosses. A linear pool power b a ~ ~ c e s ~ Q ~ equ~tion the or^^^ state can then be written as in

where rGi, rDi and rn are sensitivities o ~ ~ a n s a c ~ ~@ nI), PDi and BTi with ~ ~ ~ ~ e PO, o ~ .

to slack bus power

in the n ~ state. ~ a ~ any ~ Q contingency a d~~ i t i o n ~ ~ S Ateratio ~ ~ ~ ~ ~ y ~ o s ~ ~ c o n ~ ~ o ~ ec yi Q n linear power b a ~ ~ c e c e n ~ t the equatiQ~ n d e ~ ~ ~can be witten as ~ ~ ~ n ~ ~ ~

w: The flow of power in a line c

since c u ~ ~c r a ~ be allo i ~ o ~

limits,

021 I I ; ~

~IE ~ ~ ~ z ,
t ~ ~

The c h ~ of~ e flow in the normal state ~ ~ u~s t ~ line ~

where sGj,sni and sTI are sensitivities of the c o ~ e ~ p o ~ rda ~ ~ ~ ~ to ~ Qsn ~ of e n n s ~ ~ the q ~ the c ~ ~ in~line En ~ normal state. e in the

Transmission Open Access

Similarly, the changes of line flow under contingencies must satisfy

2 0 ~

Power System R e s ~ c t ~ and D ~ ~ ~ l a ~ i o n ng

as a h e out^^^^ could c a ~ s generator to lose ~ ~ c ~ rthen the o s ~ , e ~ n ~ reventiive action to modify the operating state, Hence, d y n ~ se c ~ resc~edu~ing the context of both pool and lateral dispa~chis also a very i ~ p o ~ a n t in issue. An erati tin^ state can be ~ ~ d in~many ~ ~ fd e r e ways, and the operator ~ e f nt ~ h ~ the a~tion o ~ e which will not only ensure s ~ s t e m s ~ b ~ ~ ~ ~ e q ~ in an a ~~ n - ~ ~ cenviron~ent. ~ r ~ s i eener ~ e a ess ~ ~ A ~ ~ n t ~ described in this section. The TEF is a Lyapunov-like huncti oint (UEP) or a particular fault is the most c ~ point on ~ t ~ ~ ~ state spase of generator angles. The transient energy m ~ g i (TE n d i ~ ~ r e between the ~ n energy of ~ t n~e ~ ~ the sys ~ ~ of ~ ~ c u~ ~~ and its value at the ~ o n ~ r o UEP, %e s ~ t~n ~ ~ g n l~~n~ ~ o ~ e s ~ oto the d i n p~~~-disturbance and t o ~ l o ~ , ~ ~ find ~ system the tran~~ent energy is less than the potential energy Cone the system possesses transient stability for the fault in que The chief a ~ a c ~ i a n a TEN method Is that it lends itself very ~ o n v e ~ e n t ty a of lo s e n s i t i ~ ~ ~ - b~a s e ~ r [34].~The ~ ~ p o c sensitivities~ ~ ~ r ~ a ~t e~ s ~ ithe~ ~ ~ af~ ~ s ~ are c h n c EM with r e s ~ e to t ~ ~ d ~ g v ~ i e d a~a o w 0 r ~ In the eve ~ ~ e ~ ~ ~ ~~ t ~ ~ ~ . d i s ~ a t c ~ n ~ ~ u r a posesses d ~ ~ a security riskscs, most co t~o~ ~ i c the available to the IS0 is to ~ ~ d ~ generator power h ~ a ~ ~ outputs so as ~ e ~ s~ i~ tf o ~~a ~ o na clear signal o f the most ~ provi~es ~ ~ he~e, The a ~ p d e s c ~ b e ~ ~ to use the sensi ~ o here is ~ pe in ~enera~ion critical generators to non-c~tica~ from genera to^. -based methods we available, ine~~iding ethod [XI, the c o n ~ o l ~ i n g s ~ b l e un equ ~ e t h can ~ s ~ be used to ~ o ~ pthe UEP, and thw EM u t ~ and the s~~sitivities be obtained then. A eth hod E 9 can 3 c Q ~ ~ ar ~ s~ h e d u l ~ n ~ ce d is resented next in which the ~ o s s ~ ~many ~ v ~ n ~[40].~ e s se a

P,,,, Gii Ei

= ~echanical power input

= dr~ving point c o n d u c ~ c e
I -

consta~t o l ~ behind direct axis transient reactance v ~e

MY,w

y s

-cl -cl @cr ' m8ys

of the critical generators and the r e m a ~ n i ~ g gene~a~ors, res~ective~y = speed o f inertial centres of the critical generators and the r e ~ ~ n i n g generators, respectively, at the instant when the fault is cleare
= inertia constants

~ u p e r ~ c rpr' p ~ i stands for tbe values of variables in the final post-fault system confi~ration. The a p ~ r o x i ~contro~~ing at~ unstable e q u i l i b r ~ ~ ~ (8) is c a ~ ~ u ~ ausing a point ' ted method which is used as s ~ r t ioint ~ solving the post-fault system equ ~ for ~ e r i v a t ~ ofthese results can be found in [42$ on

where AEM = Eit4""" - E ' The sign of qi-+j~ n ~ ~ cthe~ e s M. a direction in which g e n ~ ~ ~ is tar be s ~ to en~ance e ~ ~ the EM. The m a g n i ~ ~ e s e n s ~ t ci o ~ e ~ ~ o ~ d i n ~ of ~~ change in the ~eneration from the most a d v ~ critical generator to tbe least c ~ ilical) ~ ~ ~ e ~ a tbe high and, hence, the best c~ndidate the ~ ~ c h e d u ~ ~ ~ l g will o r ~ for er ~ ~ ~ e ~ tthe ~ r nt i c a ~ ~ o n ~ c r ~ t i c a i of i a i and ~enerators ~ o ubed as ~ l set

Transmission O ~ Access ~ n

a, ~ h o o s e contingency from the given set. ;a btain the optima^ dispatch using equation (6.2) (enskng post-fault system static b, of this p ~ o b l e ~ ) . corre~onding (eq~ation c. EM (6.23)). c d. If EM is positive, then go to step a and select the next c o n ~ i n g e ~If ~ . go to step e. ute the n u m e ~ ~sens~t;vities,qiY9for the set o f system g al e. dicussed above. For computation of new energy margin for ch i g e n e ~ t ~ o n ~enerator toj, the base loading 6r has been used from to It to get the new UEP c o ~ e s p o n d i n ~the change in the gen~ation. is fa rbatiQnin power gives the best result. als; c o ~ p u t ethe c o n s ~ ~ n t s on f. the sens~~~vities m ~ k e tprice by ~en~ratQrs; red~spatc~ ~ ~ n e r a t in ~ s a the o pairs m If all critical contin encies we tested, then stop, Otherwise:go to step a. g ~ e ~ i l nu~erical ~ d i reveal that: ed s ~
f cr~~ica~non-cri~cal generator buses is r e d u c e ~ i n ~ r e as e g n ; ~ c ~ ~ l y i~

~ y n a m ~ ~ incre~sesspot prices at the buyers bus but the ~ n c r e ~ s s not sec~rity ie e p r e s ~ c of b~latera~ e contracts er increases the spot prices at the

than discused s

systems become more 11 entail a more comple S S U ~ S relation to con in

d price e i a s ~ i issue [23,2 c~~

oraneo~s price but also ral price d e p e n d ~ ~ ofe c ory and is central to pool d ~ s ~ a t cThe fo h. of elasticity are ~ ~ ~ o d u c e ~ :

the conve:ntio~~~ elasticity o f demand and price 2 e ~ ~ sof~ d ~ m a in The a ~ ~ i t i o nsubsc~pt on e c ~. ~ ;a~ j

10

Power System Resestructuring and

elasticity and the pool demand, denotes each p ~ c h a sepa~ately~ t is an e ~ e m o f~ ~ s~~ p e a me-dependent price vector p (for e x ~ 24~ ~ ~ ep r i c ~ ) . ~0~~~pod The follow~n~ ~ ~ ~ T u conditions can be d e ~ from e ~ ~u cker ~ the pool

where: C md C me ~ r ~ offer price c ~ ~ d ~ and power sets of matrices of dual variables, at: time b, on the set of

respect~ve~y, as
I c

tr

- Eet r., G$r.2

3

)* * 9

et,,

where J i s the n ~ ~o f~ e loads (load busbars). pool r The ~ ~ s p a t c h o ~ ~ dwould begin with a fore~asE the d ~ y s ~r ure of prices, say a%halfh~~~~~ n ~and~ c ~ ~ ~ expecte~ oof ~~~~d ~~ c t oThe s ~ ~of the t ~ ~ the ~ a , ~ set ~ d e ~ ~. ~ lem as well as (6.25) will provide an a I t ~ ~ a ~ set eof iv rchatxaser expec~tio~s,these match the If m i s solved. Tf they do nrot, the exp ~ Qusing the eiat~~~ties ~ i in~(6.24) and the p~ ~ ~ e v i~ t ~ o ~ ~ c a ain. The p ~ o c e is repeated till c~nver~ence b ~ ~ i ~ ~ ~ ~~~e o p r ~ ~ ~ d are ~r e o ~ini[23].e ~ ~K r ~

Transmission Open Access

under a normal cQndi~~on e ~ e ~by defini d a La~rangianA and fin is d i ~ ~ its derivativ~ res ect E all the v ~ a b l e s : with o
~~~~~~

is the matrix whose elements are s e n s ~ refations ~~ e ~ e e n ~ ~ v ~ and when ~ ~ r ~ ~3 ~ 8 ~ a~ o f i n c r e ~ e transactions A ,this also satis~es e for n set n~~~ ~ ~ . where the e ~ e ~of~vector s ~ t er than or eqml to zero, whose values d ~ p ~ ond the state A. Inequ n o ~ set ~ dition that an ~ d ~ t~ i ~ s ~ ~ t AT as^^ at state for the next interval, is in a feasible d i ~ e c t ~ ~ n . nce E257 ~ ~ ~ andv ~ ~e t [QJ~ theo ~ n i lineara ~~ ~ ~ ~ ~ ~c an
~~~~~

subset o Z ( A ) of constraints in state A , w ich are on limit, If

(6%)

The e ~ a ~ ~~ ~ I ee~ ~ s ~ dhere e ~&-ke same as Figure 6.9 ~ s t e ~ e r is line 2-3 now has its square o f the set shown as ~ ~ x e d + A d ~ i t ~~ansact~on
W at bus 5 is Genco at bus 3, for c o ~ ~ ~ rreasons,l is ~ e s ~ Q ~ s forl sup c ~ a ib e ~ e ~ r e s e by~~ansactionTA (78 MW initially fiom bus 3 to 5), ~ ed atch. How ~ o o ~ ~ n a ~ ~ o n e ~ a~ r p ~ ~~ t ~ t a ~

~ n ~

Power System ~

~;;andDere c ~

s ~ ~ ~ ~ ~ e cc i~ ~ a l~ now i ~ ~ u s ~ aThe d .x ~ s pool ~ ~ ~ a n a ~ ~ ~ t is y h s c ~e e ~~n e and the ~ i ~ a ~~ansaction e r a ~ fkom 3 to 4 are given oricy in the fWo they are ~ s to have ~ b ~ i prior~~ ~ u n e ~ ~ ofrom the ISO. ~ ~ i

us 3 Genco s u ~ ~ the ~~eds i t ~ ~ er~ TA alone md only bus I i s ~ na ~ ~ ~ e ~ i s pn ~to~ e ~ l up the ~ ~ ~ s ~losses c ~s ~bysthe d~ r ~ a ch make ~ ~ ~ ~ o n e 3 ~ e n c o v ~ t bus 2 Genco to join in the ~ran~ction ~ e$ r making good extra lasses. ~ e is w ~ ~ not~onlygto ~ o o ~ d ~w ~ t e s 2 ~ e ~ but odso to n ~ n n c pool ~ ~ ~ s a c~~~~o o thehISO. un s g ispatch results of cases 1-3 are given in Table 6.2, Case 1 is the *nomase md new ~ ~ s a T", which i s ~ i~ a ~ e(r f r~Qbus 3 t l 5) in c ~ ~ o i a ~ dt is h ~ c u~ ~ ~Case ~yshows c o Q ~ d i n a twitbin ~ ~ s ~ ~w~~~~~ o w ~~ 2 e ~ . ~o~ Td, t i o ~ ~ u l t i l a ~ ~since both t r a ~3 and 2 supply the ex ral s 5. Since the l o a d ~ ~ g s ~ n s i t of v ~ ~ with respect to the ~ a ~ s ffrom ~ line 2-3 er the ~ e ~ $ i r~ ~ ip e~ ~ the ~ s ~EFom 3 to 5 is with e c ~ ~ to e r ~ ~ some ~ o o r ~ n a t i o n ~ u a ~ ~~ ~ where both ~ a n s f e ~ o (eq (6.38)) ~ Q e we

case I, not only is the ~ ~ sf?om 3 tor5 ~ ~ e u less in cme ~ ~ ~ ~ d in TA transfer is s a ~ i s ~ e d fbll. That is, ~ansacE~on is c o r n p ~ ~ ~ e ~ y
of c ~ ~ r ~ i n a t ii l~ n s ~ ainecase 3. hen the a d d ~ 70 ~ ~ is l ~ t ~ ~ -5 is ~0~~ to be close to its c a ~ ~ c i a s i the~ a n s f e ~ s ~ ~ eref fore inore expensive power at bus I can be s h ~ ~ to d 2 e bus ~ h to bus 2, the less the~ o a ~of pro ~ ~ e ~ in~ bus 3 ~ e n c os to p ~ o a smaller share i ~ i ~ ~ a i l ~ e nto ~anac~ion Overall ~ e ~are improve^.s t TA, e ~ ~

Tramxtion

Fixed+ Case 1 ~ d d ~ ~ i o ~ a ~
38.8
39.8

Case 2
40,6 t

GaEe 3

Poo1 gen. at bus1 Pool gen. at bus2 001 demand at bus4 ~ i i a t ~ rfrom 3 to 4 al from 3 to 5 Lateral from 2 to 5
~~~~~

75.0
100.0

10.0
80.0 70.0

75.0 ~00.0 10.0 80.0 38.1

""

75.0 100.0 10.0 80-0 47.3 22.7

29.2 146.8 f ~00.0

10.0

80.0
49.0

2n.o
1

-- No data
apprQachestowards ~ ~ s m i s s i o n system operation in power ~ ~ r k ew s~ r ~ in n gopea t ~ an

skied ~

u u ~ Prmedikre~ ~ ~ ~ ~ ~ d i

price ~ ~ ~ s d i c u~ ~ e Section~6.8.1 i s based on the ass issue t ~ c ~ able to respond p r o p e ~ ~ y and ~ i ~ aare ~ e r ~ e c trational ~ t s ly ~ o w e v ed , e m elastic~~~e$ ~ s t o ~ c r s ~ ~ ~ of c range from h ~ ~ elastic to h ~ ~ h ~ y e ~~ ~~s ~ ~ m~e r ~ c elastic~~~es b h ~ y l o with shigh . will s e ~ stoi power ~ ~ ~ prices while to tom er^ who are more ~ n ~ ~ a s t be~inert to will i prices and fail to react in time. ~ r a n a ~~.Q o r~ ~ n a ias d e ~ a n s ~ a t e d V ~ explores an a ~ t e ~ a t a v e r o to c ~ ~ t~ d i~n &Q ~p ~ ~ ameliorate c o ~ g e s ~ o n provides useful ~ u i d e l ~ n e ~ and for market pa~ic~pants n ~ ~ ~ to puwer e x c h ~ n ~that avoid ~ ~ n ~ e s t i learn to d e ~ e on~geo es and o ~ n h ~ c da ~ ~ ~~ ~ s ~ ~~~~rs u ~ ~(and d ~ m ~ ~ o ~ f o ~ ~ ~ ~ a d . ly nd~ ~~o t An ~ n ~ ~ o n ~ e m ~~a g~e r ~ ~ ~o~ c [45]as~ ~ ~ in ~i~~ ~ ~ g as ~ e ~ ~ n e d $ o orates the ~ b o v e issues into the wiil~ngnes$~to-~a~ ~ a ate two ~~$ tch describe^. ~ # ~ i ~ e~0~~~ o n s~~
R

t ~ ~ e ~ tby o n IS i the

e arket response ~ ~ r ~ procedure for congestion relief ~ n a ~ ~ o ~ sent a short time ~ e ~ which id divided in ~ o s ~ e~ E need ~not be ~equal to each ~ ~ ~ y s t e er at ion conge~ion found e~ is i n ~ o ~ ~ a i iwhich may on, o p ~ r a t i nstatus i n ~ l u ~ ~ n ~
~ $
U

(6.7) during i n t e ~ a l

operation time ~omain. procedure must iterate in the whole ~ansi~ission This i n t e g r a t ~ ~ ~ r d ~ n a ~procedure can be seen as a practical aliemat~~ec a co ion to rig~ts, which are defined in a airwise manner l46] or as rights on i n ~ i v i ~lineslt47J. ~a

e s ~ c of ~ rpower ~ the ~ in& last two decades and up to now about 20 countries have r e s ~ c ~ r their systems and ed others are ac~~vely~ s u i n gsimilar paths. One of the mo p c~~~~ efforts is the t r ~ s ~ opensaccess and this has ~ ~ ~ o ~ c ~ a p ~ ~ ~ , Firstly, this chapte~ ~ s ~ ~ ~ h $ r ~ ~ t of ~ $ ~ ~ ~ s~ d bea e Uie ~ d ~ ~

and the necessity of open ~ ~ ~ ~accesss to sf a~~ ~ ~ ~ t ~ t e i o disc~ssion e l e c ~ i market s ~ c t and asso ~ of c~~ ~ ~ e c ~ ~ p has been provided. The fiinc~ion~ r e s ~ ~ n s i b ~ ~ i ~ ~ ~ ~ ~ ~ e ~ ~ s and rns have been d ~ s c ~and disc i ~ e ~ sion open ~ c ~ e si,e. costs of ~ ~ ~ s r n i s s ~ o n s, ~ ~ e briefly.~~ n nthisec l ~ l ~ ~ ~ ~ ~ ~ nal issues in the e ~ e raz~ ~ ~ g ment and effects of security c o n s ~ d ~ ~ a t i ~ ~ s o h ~ all been isc cussed from the o~e~-accessi e w ~ o and ~ , ~ e v ~~ of this c h a p t ~ rMost o f the discussion is based ~

, a s~~~~

T~nsmission Open Access

17

80.0
Bilateral Contract

IO.OCI,L,,
Delivery Price $k
4.WF .3

20.0

Transfer MW
100.0

~ i l ~ ~ n (w)n e ~ g
$/MW 2h

80.0

I
2

1.02

__

1-04

_-

3
4 4
- No data

1 .OS

-20.0 20.0

** **

** Voltages are kept within the range of0.95-f.05.

21

Power System ~ e s ~ c ~ r D e r e~ I a ~ i o n and i n ~

Transmission Open Access

239

.David and R.S.Pang, S e c u ~ ~ ~ ar~cheduling ~ r ~ ~ a c ~ini a d s r e ~ l pQwer d sed o on~ a~~ system, IEE Proceedings - Generstion, Transmission and Distribution, Vol. 146> No. 1, January 1999, pp.13-18, J.G. ~ a ~ t e n b a c h L.P. Hajdu, Q t i i a l corrective re-scheduling for power system security, and r E E Trsnsac#~ons Power ~ p ~ a r andr~~ y ~ V~ l ~ P A S -s , ~ 1971, p p , $ ~ 3 - 1.~ ~ on a o e ~ No.2, ~ a A. T ~ ~ ~ k a c an l a m Tudor, ~ p r e s c ~ ~ d ~ ~power for s y ~ ~~ ~e ~ a ~ j l ~ ~ ~ ~ of 1 n g ~ ~ IEEE ~ r a ~ s a c ~ ~onF i s ~ ~ ~ aundsvs~ems, o r a ~ s Vol.PAS 71, 1971, pp.2~86-2~92. A. Monticelli, M.V.F, Pcreira and S. Granville, S e c u r i ~ ~ o n soptimal d ~ ~ n ~ power flow with post-con~~n~ency co~ective reschedu~ing~, T r Q ~ # c ~ i o n s IEEE on Power S y ~ ~ e mV01.2, No, 1, s, February 1987, pp.175-182. Davivid and R.S. Fang, ~ ~ i ~ ~ c a n $issues in open access ~ y s ~ ~ s , ~ operational ~ ~ srch C o ~ hop, paper ~resen~edU n i ~ e ro f ~ e s t A ~ s ~Jufy~~ a 9 ~ . n ~ ~ ~ at s~~ e ~ l 9 ~ M,Kakimoto, Y. Ohsawa and M. Hayasbi, Transient stability anal~sisof electric power Lyapunov hnction, Part I and 11, IEE Japan, VoI.98, 1978, pp.62-79. re and S. Virmani, A practical ~e~~~ of direct analysis o f ~ransient stab^^^^', iEEE Tram. on Power ~ p p a r s and Systems, Vo1.98, 1979, ~ ~ . 5 7 ~ ~ 5 $ 4 . ~~s Y. Xue, T.V. GuEsen and M. Pavella, Reai time analytic s ~ ~ s ~ i ~ ~~e v ~ ot dy t ~ for ~ sec^^^ a ~ s e s s i ~and ~ r ~ v e n t i control, IEE P ~ o c e e ~ iPart ,@, Vol. 135,No.2, I e~t ve ~g H.D, Chiang, F.F. Wu and P.P. Varaiya, Foundations of direct methods of power $ y $ ~ ~ ~ ~analysis, ZEEE Transffctions Circuits and Systems, Vu1.34, No.2, 1987. a ~ i ~on ~ ~ S.N. S~nghand A.K. David, Dynamic security constrained congestion ~ a ~ a g c ~ in n t e c o m ~ ~ ~ e c~ ~ ~~ ri Proceedings af ~ IEEE PES ZOO0 ~~~~e~ ~ ~ v ~ ~ ~ ~ e the S~ngapore, January 2000, , On-line A l g o ~ for s ~ Transient S~ability assess men^ and Security Control, P Thesis, Hong Kong Polytechnic University, 1995. B.M. Anderson and A.A. Fouad, Power System Control and ~ t u Iowa State ~ n i ~ e r~s i ~ ~ ~ v , Press, 1977. P.W. Sauer md MA. Pai, POMW~ y s g ~ ~ y n and ~~ ~ uPrentice Hall, Mew ~ , e a ~ ~ b ~ ~ ~ Jersey, 1998. S. Sterling, &LA, Pai and P.W. Sauer, A ~ e t h o d o l o ~secure and 0 of ~ opera~on~ a ~ ~ of power system for dynamic contingencies, Electric Machines and Power Systems, Vol. 19, 1991, p~.6396~5. H. ~ l and F. a Alvarado, ~ ~ a~n a ~ of ~ e n u~c ~ n g ~ s r e ~ n d ip ~ ~~n ~ ~ ~n d ~ ~ e ~ ~ ~ ~ ~ cd o ~ in ~ ration of a power system, IEEE ~ ~ u n s a c5n~Power ~ y s Vo1.13, No.3, ~ t o~ ~ e ~ ~ ~ ~ 2998, p p . ~ ~ ~ ~ - ~ O 1 9 . .S. Fang and A.K. David, I i ~ ~ e congestion ~ & ~ a t manage men^ strategy for real-time system operation,IEEE Power ~ n g i n e e r ~ ~ g Vo1.19, No.5, May 1999, pp.52-54. Review, W,W, Nogan, ~ o n ~ r anetworks for electric power ~ ~ ~ s s iJ oo i ~~o~ ~~ ~ e ct f a ~ ~ oV01.4, 1992, p@f1-242, ~ ~ ~ ~ ~ s , .P. Chao aid S.G. Peck, A market m ~ h a n i for electsic power ~ ~ ~ ~ ~ Ji os ~ ~f o f~ ~~ s~ s o f i La8~0ry ECOPZOP~~CS, 1996, pp.25-59. Vol. 10,
~~~~~~~~

XYan ~ i a o T o U~~ ~ v e r s i ~ n China

Dr Loi Lei Lai City Universi~ Lon

UK

Since China ~ n ~ its first e c o~n oe~ ~ c ~ o in s 1978, e ~ ~ a r~ e ~ jate ~ c oe ~ s u has ~ ~ ~ ~ ~ ~ oss don~e$~icr ~ d ~ c t ~ e ~ e r c yo ~ s ~ ~ ~ ~ ~ n ~ prices have p ~ ~ y e ~ ears or so. Before thaf strict but e ~ f ~ c ~ ~ h e l ~ hold ~ n e d e y in check, and until r e ~ ~ te~l ye, c ~s ~ i ~ ~ e s e~ ~ ~ ~ ~ ~ d ho~ rion. Now that the market larg~ly e t e ~ i n e ~e~~ price d s ~ e n planing~has matured, economic forces are I ~ r ~

~with a~~ o ~ c~ i ~oe grants~and n u ~ s ~ d ~ s e i a ~ ~ o s f from provincial and local utilities. In 1985, the d to set tariffs to recover inve ed ~ o ~ s ia c ~ ~ ~ ~ oa v ~ ~ c ~ ss r ~ l ~ e s ~ ~ ~new~ s h e to c r ~ ~at e ~ policies ~

. Power ~

in the power sector d u ~ n g late 1 ~ 9 ~ s the ~ r a ~ r ~ e a w~~ ~i define how ~ u p c ~ c e ~ ~ ~ s , c ~ er plant, are not being ~ o ~ o u r~e ~ . ~ ~

cording to ~ a r g i n cost; that is, old plants usually sell the most power sin a~ ady paid off their c ~ casts and need to cover only fuel, p ~ ~ ~

ent of ~ h i ~electric power i n ~ u has ~ a ~ s gone t ~ o u g h ~ e r y a that is, the power i n d u s ~ gradua~lyc is et economy c h ~ a c ~ e ~ s tandthe ic i s also ~ h a from the stle side ~ ~ n ~ as the r~~~~ of the electric power ~ n d u goes on, the de s ~ will have a great in~uence1p the f u ~ r e 0 a ectriciy sector i s cha~ging great ~ v ~ ~ oofpChinasnelectric ~ ~ t in effect and the e a v ~ o costs~of e ~ ~ ~ d for. These factors must energy use are not yet even p ~ i a l l y ricing s c ~ to promote the s ~ ~ $ ~ a ~ n a bof energy 13-61. ~ m ~ ~ use l e tranpare~cy and legal r ~ ~ will e n s ~ e ~ u ~ that c o ~ ~ a are: s ~ n o ~ ~ ~ d e c~ h g is s ~ ~ a i ~ ands the dde~i~oa-mar~ingu ~ isoclear. ~ ~ e ~ a ~ needs to be coni~ered that true kast 60 so e c o ~ o ~cost of pollutio~ ic made. Chinas e c a n ~ ~eifc ~ i e n and e~vironmental ~ cy quality ~ e p e n d on ~ ~ ~ o ~ s . The ~ l ~ ~ c w ~~c r din ~ h ~~ hasaalread~ o ~ ~ n t ~ gone ~ hata~y ~ ~c ~ g past ~ e ~ ~At ~ .r e ~ ~~ ta n s i t ~ o ~ a p l a ~~ o~ o~~ yn d e its , c n to under way. On 16th 19 of Electric Power w s e m ~ ~ State ~u ~ C ~ ~ n e~ ~ e~r e s ~ o~ s ~ ~ ~w i t i e s ~ o ~ n ~ search. ~ i K grid man e
~~~~

reale a m e n ~ cred~tab~e ~ e service a ard bgal r ~ ~ ~ t s e s t ~ ~ ~ of ~ n v The ~ s t a b ~ ~ $of ~ e n t Power ~ o ~ o r a ~ ~ om ~ (SP) n ~ the ~ r er i n ~ u as it entered a new stage [7-161, Pilot bi s ~ ~ u n ~ c i p a~l i~~ e ~~ ih a ~ d~~ rno~ ~ n and,s ~ a n o v c~ s in ~~~~, ~ a ~ i o by 2005. e and thea n ~ ~ An and order1~ e n e r a t mg ~ ~will be full ~ ~ e t ~ o ~h ~ d r o s plant will allow a wi ~ epower The reform of Chinas e l e c powe~ ~~ of r e f o and a satooth ~

~ %hat e ~will e

~ of ~

e ~ e c ~~ c Q i W d ~ o~ ~ ~ u economy presents problems that demand further exploration and confro~ta~ion; many s ~ e to ~ sa~s~actorily be a ~ ~ reso~ved~ from basic theory to ~ o n ~~ a ~ ~~i ~~a r c

This c h a ~ will ~ ~ ~ o the u c ~ t~ d

and ~ a ~ a g e m ~ t of system plan. The p r o b l e ~ and obstac s of e l ~ c ~~ ~ c c ~ ~ ~n g and ~ e v ~case ~ t ~ ~ ~ e s ra $

Electric Power Industry ~ e s ~ c ~ in China n n g

The ~ ~ s ~ i of power network service areas and their installed g e ~ ~ r a ~ ~ ~ u ~ o n 7.1 and are shown in Table e 7.2. A c ~ a ~ l the f i t four ~ ~ t e r ~ ~ ~ o ~ i n c y, shown in Table 7.1 an ins~a~led capacity in excess of 30 CW e ina I n ~ e r c ~ n ~ Nefwork with capacity of over 45 GW has be ec~e~ i n ~ e r c o ~ e the ~ ~ ct uangxi, Gu~zhouand Y u ~ four ~ n HNPG is just below and has not been shown in Figure 7.2.
~~~~~ ~~~~

~isribution power network sewice areas of

Installed capacity Network &c ~ e ~ i o n North China Power Net. (NCPN) Northeast Power Net. ("JEPN) East China Power Net. (EC Central China Power Net. (CCPN) Northwest Power Net. (NWPN) ~ ~ ~ n d Provincial Grid (SDPC) ong Fujian Provincial Grid (PJPG) ~ ~ a n g d Provincial on~ G) Guangxi P r o ~ ~ n c i a i G ~ Chongqing Power Grid (CQPG) S ~ ~ h u Power Grid (SCPG) an

Electricity ~ e n ~ r ~ ~ ~ o n

Total

Hydro 15.96 5.94 9.62 30.60 36.28 0.27 58.28 18.99

58.32

Total
(TWh)
(%)

(m) 4"w
34312.1 37186.6 46121.0 40749.3 19275.1 17380.1 8008.0 29027.7 5645.0 315'7.0 11942.3

141.15 178.93 211.45 160.37 69.60 84.06 32.19

103.85

9.93 57.14

22.78 12.64
44.37

5.62 1.36 5.40 28.70 28.33 0.09 57.41 0.09 56.94 9.37 49.94

Year

Society
tot&

Share o f ~ n d u (%) SIiare s~

Of

~~~) ~

~ h Heavy Light ~ ture ~ l

Share of Share of Share of ~ ~ ~ s ~ ~ ~ ~ c~ k;C, nual urban i p r ~ tation etc. ~ c ~ ~~ ~ 1r ~ c ~ ~ e

@) . $

~ ~~

<%I
4.8 5.1 5.1
5.3

~
5.5

s ~

C%)
I987 49Q,27 8f.Q 1988 535.87 80.3 1989 576.20 79.8 1990 6 ~ ~ . 678.7 0 1991 669.63 77.8 1992 745.54 77.1 1993 820.11 76.7 1994 904.65 75.4 1995 988.64 74.8 1996 i0~7.03 74.1 1997 1103.91 73.0 1993 1134.73 72.0 64.5 64.1 64.0 62.6 61.8 61.2 61.2 60.3 59.8 59.3 58.3 58.0

16.5
16.2 15.8 16.1 16.0 15.9

7.1
7.0

15.5
15.1

15.0 14.8 14.6 14.0

7.0 6.8 63 6.8 6.3 6.3 6.2 6.1 62 4.0

1.6 1.6 1.7 I .7 I .7 1.8 1.8 1.9 1.8 1.9 1.9 2.0

6.0

5.6 5.8 6.3 63 6.9 7.2 7.6 10.0

6.4 7.5 7.9 8.5 8.9 9.7 10.2 10.7

113

12.0

Municipal and Coinrnercial 10%

\Heavy Others 10%

~~u~~~ 58%
Coal

Chemical Products

an ~

x large ~~ ~ ~ e~ -e o ~ ~ ~ r ~ e~assetseof ~ 8 . 2 ~ yi ~ ~ ~ o n ~ has ~~s ,x

t role in the fbture ~ e v e l o p ~ ofn~hinas~ o w e in e ~ r ng and ~ a ~ a g i n g assets well or not. In two y e w 9 pract~cemd its e SP has set its deveiopment objective o f creating a ~ r s ~ ~ ~ tl ea~~ris s e e n ~ the wor~din terns of h o ~ d ~ nstock and g r o ~ ~ agement, and this is a ~~~e~ g rn de~elopment the of policy of ~ o ~ o ~ t irs e~ s ~ c ~ ~ g ~ d ~~gali~d ~~a~~~ Thus, the SP has made a strategic ~~~~ for fhe fiime d~velo~ment ~ h i n a electric ~ o w e in of ~s r
(1) The Erst step, from January 1997 to
~~~~

1998

~ s ~ ~the~ SP~and the d i s ~n~ n~ l theg ini is^ of Ekctr s ~ ~ in transfer of government functions and p~ofessiona1 a n a g e ~ e n t ~ c o ~ ~ ~ r u cat i ~ g ~ e c i s ~ o ~ system a k~~ ~ g in coo ~ ~ l ~ with~ a ~ o c i a l ~ s ~ new ~~~ ~ ~ e w m k an m ~ r ~~e c o ~ ~ ~ n ~ y ; t

() The second step, from 1998 to ~ 0 0 0 2

Insisting on the policy of separating the gov etions and taking the ~ ~ o v i n c e s entities as ~ o ~ p l the ~ ~e n s ~ in the SP system; ~ ~ ~ g c ~ ~ n

the genera~o~ rn

) The fourth step, after 2010

Upon the es~~b~ishment SP, the ~ n c t i o n ~ m i n g the s of the of ise ~ a ~ a g e m formerly ~ ~ d e ~ by e n e~t k SP. It ~ o $ s ~ snoe~ o v e ~ ~ e n s ~ s u p e ~ ~ i ~ from related gov ion
its ~ n a budget is a~located ~ c ~ ~ directly from n The ~ r g a n ~ ~is shornnin Figure 7.4 belo ~t~o , n a ~ e l y o ~ h e aNorth China ~ s~, a Power ~ ~ o andp ~ o ~ h w ~ s t u Gs5up and Gezhouba ~ n ~ ~ n ~ e r i as ~ Group, n w d su~si~io ~es ~

~ Power J u ~ n ~ - ~ ~eo~~ ~ r a t iw ~ ,~ are all exclusive~yowned s ~ ~ s i d i a r i e ~ e i ~ c o ~ oh ~h

Electric Power Industry Restructuringin China

ese state~owne~ assets, held by the Armed Police Hy under the SPC. Co~st~ction Troops (also as Anneng Corp.), belong to the SPs ~ ~ a g e m e n t . Other c o m p ~under~the i~ ~ i of Electric Power are the SPs s ~ ~ ~ wholly ow ~ s~bsidiari~s, holding or jointly shared companies according to their property n s ~ c ~ r e s . cQrporatiQns ins~i~tions the SP include the fol~Qwing: These and under

( I

China ~ u a d i a n Power Plant En~~neering General Corp. China Anneng Construction Corp. L Q n ~ ~Electric Power Group Corp. an ~ h o n ~ e Power Tech. ~evelopment Ltd ng Co. China Fllecbnc Power Trust & Investment Co. Ltd China ~ ~ e cPowercTechnology Import & Export Corp. ~ i China Fulin Wind Energy ~ e v ~ l o p ~Corp. ent China Power Investment Co. Led China Power Investment Holding Corp. ~ h o n g ~ Electric Power Industry ~evelopment ~ng Corp. National E1ectrh.i~ Power China Extra High Voltage Trans, & ~ ~ b s t a t i o n Construction Corp. lectric Power Fuel Corp. Other e n t e ~ ~understhe m a n a g e ~ of~ ~ SP. s~ e the

Engi~eerin~ Institute ing & Design General Institute Natio~al Power Control Centre of China China Electric Power Information Centre Electric Power Research Institute Thermal Power Research Institute Najing A u ~ o ~ a t i o n Research Institute Wuhan High Voltage Research Institute North China Electric Power University China Electric Power News China Electric Power Press

22

Power System ~ e ~ ~ ~ c t u r i fel~~ ~ M l a t i o f l and ~ ~

The o p ~ r a ~ i o n a ~manager~alfunctions of the SPC niainly include: and ~ u n n ~ n g e x ~ l u s ~ owrted subsidia~ the ve~~ compan~es E e h ~ l ~or jno~ n h a~ d and h i ~ t~ ~ ~ o ~ p aand the sia~~"owned r ~ ~ in their a f ~ l i a ~ units ~ ~ ~to state law, ~ ~ ~ i e ~ stock h ~ s ed s u a ~ ~ g u l a t policy and s ~ t ~ ~ y . ~on~ funds within the financing scope approved by the state to finance and invest in ~aising power projects and related enterprises; the income from investment and assets property transfer will be used for capital reinvestment ~ u ~ u to the~ a n regulation; taking charge of national power network int~~connect~ons. Running and managing the large power stations connected to regional i ~ e ~ o r k s or t r a n s ~ ~ butk~ power across regions and the n e c e s s 8 ~peak~ngand f r ~ u ~ n ~ y t~ ~g r e ~ u ~ a ~power stations. ing plan^^^^^ and ~ ~ s p a tthe ~ ~ a power network s u p e ~ ~ s ~n g stable, e ~ o n o m ~ c c ~ ~ ~ ~ ~ ~ i safe, a ~ and h ~ g ~ ~ ~ u ~ i ~ a ~ oftoalf ~ o ~ w ~ ~in~ cormtry. ~ o a e r t y~ n the ~ r ~ s ~ x e r c ~ ~power n e ~ o dr~~ ~ a t c h ~ n g ing s m~nagemen~ the na~iona~ on power network and the related generation, ~ a n s m ~ s s ~ o n~ i s t r i b u ~ o ~ e ~ ~basedson s ~ e g u l a ~ i o n and en~ ~ ~ e the of Power System ~ ~ s p a t c l ~ i n g . The restructuring within the SP, separating generation from transmission and dis~ribution, promoting the na~ionwidepower network interconnec~ionand speeding up rural power ~ n s t ~ ~ t i oreform are the current focuses of electric power industry r e f o and are listed nal ~ as foflows:

(1) To ~ ~ othe ~ ~ a~ a ~~~0~~ n ~ r n ~ a of d i ~ e r ievels in the r ~ ~i ~s c ~ h ~ ~ ~ ~ s n e~~ In ~ ~ c ~ ~with8the r~ ee u ~ ~of s e ~ ~~n sa mode~ised n ~ e ~~ s e ~ 5Ps d n ~ ~ upg e ~ the is ~ g a m u ~ ~ ~ -el ~ v e ~ ~ ~ entity s a n/ a ~ e system. ~ r ~ ~ a t i o n ~ ~ ~ r i ~ ~ ~ ~ ~~e a The n ~ and its s ~ b ~ i is an equal. one in law among ~ n ~ ~ p e npersons, and it d ~ a ~ ~ den~ is a capital link ~ e ~ a ~ ~ o nin h i p s property between the investor and the e ~ i t e ~ r i invested. se The pilot project was ~ ~ i i ~ ~byt e d Northeast Power Group Company WPGC). The a the NPGC was ~ e ~ r g a n ~8s an af~li8ted sed entity of the SE",being an agency of the SP in s Northeast China. The three provincial power c o ~ p 8 n ~ eIn Liao~ing, Jilm and Heilongjiang provinces, formerly affiliated to the NPGC were reorganised as companies with ~ n ~ e p e ~ d e n ~qual~~cation, legal having c ~ ~ p ~ ee ~ ~ ~ rights. n i n ~ ~ ~ e ~ n The basic p ~ n c i for~ e o r ~ a ~ ~ ~to i n ~ one p r o ~ c power c o ~ p ~ for edc ~ r is s set up ~ a ~ ny its r ~ s p ~ n s j b i s ito ~ ~ p l ~ rthe e ~ t l ~ n and ~ ~ ao ~ ~ ~ ~ we^ n e t w o ~ The a ~ m ~ n i ~ ~~a tn~ v et ~ ~ n ferred to the s ~. c ~ m ~ ~ a g e m ed e p a ~ e o f ~ local g o v e ~ ~ ~ ~ ~ . nt n the
~~~~~~

(2) To promote s e ~ a r a of~ ~ n~ ~ ~ a t i o~na n ~ ~ ~ s i s ~ ~ ~ ~ t i o n ~the ~ g~ fiom and d ~ n ~ntroduce compe~ition e ~ ~ a build a n ~ ~ a l ipso ~ ~ market. ~ and n i o ~ w r The launch on the ~ ~ i l d ~ n g market was d ~ ~ in eDecember 1997. For ~ power ~ ~ n ~ to establishing a ~ o ~ ower market, a step-by-step method was adopted. ~ c c o r d i n ~ ~ l i ~ ~ the policy, 'power plants can be run by multi~atera~s, power networks must be managed by the State'; the current objective is to separate genera~ion from ~ a n s m ~ $ s and n ~ s ~ i b u ~ o ~o d and to build the & e n e ~ t ~ o n - spower market. It has been d e ~ e ~ ~ to einitiate pilot i~e n d ~ o a n ~ projects in five ~ r o ~ ~ and ~ s city, Le, ~ h e j ~ a n~~e~n d ~ ~ ~ , o Jifin, ~ ~ n c one ~ e ~ ~ pro~inces ~ h ~a g~ e c ~ u s~of .the ~ ~ ~ p ~~~ ~ ~~i o~ n s ' ~ d ~ ~ n ~ ~ ~ and n ~ aa e s i and ~ t issues, the c o ~ c r a p~ e o ~ c hofsthese power companies are d ~ f f e ~In a ~~ ~ owith ~ ~ ~ ~r e e~ . ~ the r e q u i ~ e ~ c of~ SP, the follow in^ ~rinciples n the should bc ~ o m p l with: ~~d

Electric Power Industry ~ e s t ~ cin~China n ~ r ~ equaI competition high ~ansparency sharing benefit lowest cost opera~ion laws and reg~la~ions by subject to supe~ision.

ion The concre~e practice is to separate generation from t r ~ n s ~ ~ i s s first, reorganise several generation group companies, and adopt a hid price ~ e c h a n i s ~ genera~ionfor the in generating companies, but a few power plants, such as peak regulating units rhsrmal units mainly used for s u p p ~ y i n ~ to the local area, are temporarily not included. For the sake heat of transition, the electricity genera~ioncould be divided into two categories: one is the basic part o f electricity generation, the account of which is sertled according to the current electricity ~~neratioii cons~deringthe repayment of principal with interest far newly price built power plants; and the other is the competitive part of electricity genera~io~~, is which detemiined by the bidding price. As time goes on, the bidding part should be increased gradually. Finally, the principle o f an equal electricity price for the same network and the same quality of electricity should be carried out.
( 3 ) To promote the implementation of the nationwide power network interconnection and realise the o p t i ~ a disposition of resources. Owing to the distribution of energy ~ources l and loads in ~ h i n a ,implemen~ingthe nationwide power network interconnec~~~n and realising the optimal disposition of resources is an inevitable option. The construction o f the e x ~ r e m ~large Three Gorges hydro power station and its ~ a n s m system ~ ~ ~y ~ s ~ motes the f o ~ a t ~ ofn nat~~nwide o the power network interco~nection.It is p~aff~ed that inte~cannec~~on between the Northeast and North China power networks will be acc~mplis~ed 2 ~ 0 0 the in~erco~nec~ion in , between the Fujian provincial power network and the East China power n e ~ o r k bc accompl~shedin 200 1 , and the inF~rconn~c~ion will between the Shantong provincial power network and the North China power network will be accomp~i~hed 2003, the ~ n ~ e r c o ~ e c ~ i o n the Sichuan p r o v ~ n c ~ ~ ~ in between power network and the N o ~ h w ~power network will be accomplished in 2004. Three crossst regional. interconnected power networks in northern, middls and southern China will be basically ~ Q around 2010. The ~ ~ i interconnec~edpower network of the whole ~ ~ d ~ e d will c o u n ~ ~ be achieved between 2010 arid 2020. The decisions for the above large engineer~ng projects are all made on the basis of detailed preliminary feasibility studies of the ~ e i i e f i ~ s effect~vene~s ~n~ereonn~ction. f o ~ n a ~ i of~the nat~onwi~e and of The o i power network in~erconnec~~on ~ ~ f i n ~accelera~e future develo will ~ e l y &he industry more e~Qnomica1 effective way. and

r n a ~ ai ~ s t~i ~~~ ~~ o ~ at~ ~ ~ n l ~ Q ~ . I ~ p i e ~ e n rural ~ ~in ~ a n a ~ ~ m~ nns tt i ~ ~ i oreform, technically r e n ~ v ~ ~ ~ n g e nal rural power ncnvorks and reali~ing unified electricity price for urban and rural areas in the a of same power n e ~ o r k with the same q u a l i ~ electricity arc the current objectives of rural power system deveiopmen~.It will take three to five years. The task o f this r e f o ~s i mainly to s i m ~ ~ i f y ~ ~ a n a g e structure and to solve the chaos in rural e l e c ~ ~ c i ~ the n~e~~~ pricing, targeted at realising unified maIiagement, unified a c ~ o u n t i nand a u n i ~ e d ~~ electricity price for urban and rural power networks. Technical renovation of the rural power network aim to e the losses of lines and transformers. The estimated inves~men~180 bill~on is art. The line loss rate will be reduced to below IS % from

(4) To s~~~~ up mra

Q~~anisation SP ofthe

gy of power ~ d de~e~oprnent, SP will o ~ s ~ ~ e ~ sthe ~ le d e v e l o p ~ ~ n relying on technical progress, mher d e e p e n ~ n ~ by ~ r ~ f and ~ d e n ~ open policy. o ~ ng In additio~ focusin n ~ d ~ eresearch and staff t r a i n ~ n ~ ~ ha to n ~ l the SP echnology pilot projects, namely clean coal power g y c o i i s ~ ~ a t i o n e ~ e c t saving, e and ~ c ~ ~ as well as a ~ o ~ ~ u ~ e informati ~ised the $16 has focused on bath international omestic ~ n ~ c i sources. ng s power i n d u s ~ still m ~ u o task. s r n ~ t i g a tin~ ~ is ~ ~~e i d ~ ~ ~ c to the increase in electri due ~ l t in 1997 in China was only 0.21 kW, e i e c ~ i consu~ption c c o ~ t e ~ c~~ a world average. It i s planned that the nations total installed capaci W in 2010, the na~ionwide power ne ect being at the centre. In order to achieve the goals, SP will ~ u8 ~ policy of

change that must take place is that the electric power sector ented to the market rnechanism. The pr~vides good o p p o ~ for ~ ~power sector to make 8 n the itself. These ~nclude: should be worked out i accQ~d~nce n wit course of economic d e v e ~ o p ~ e inste nt

e x ~ a n s i o f~s r n a l ~ ~ sci ~ e~ d ~ n s i ~ h e~ ~power plants. o n ~ p a~ i ~ ~ r ~ ~ g the h o nn~ ~ ~ c g othe ~ e ~ With r ~ ~ c~ t n ~ n of o the rapid dev ~1~~~~ the c o ~ ~ s ~ c t the ~ e ~ oincluding the facilities from of i o r ~ , lines to rnediurn~ l o w - v o l ~ a ~ s ~ b u t i n ~ ~ o r lags beh~nd and di~ oe ~s~

.4
o ~ ~ e ~ists o ~~ ~ ~ la e~ ~~ ~~ ~ e oa d ~ i s~ ~ ~ e ~ and u %awhere conflicts are enc~unteredbetween on and d ~ r e ~ l ~ ~ b e ~ ~ e n value and controlled profit, and b e ~ e %~ o v e ~ ~ e n n local and p ~ v a t ~ ~ ~ t i a t iThes . f ~ e i a d ~anager the vikpiaus levels U e v~ o ~~ at necessity and i ~ ~ of transition to~market ~ C Q ~ Q but they are not well i o ~ e ~ Y , about the ~ e c ~ and approache$ to realise the ~ ~ s ~7% ~ o ~ . ~ ~ s ~ s t
~~~~~

cing reform lies at the heart of Chinas response to

Electric Power Industry ~ ~ ~ ~ ~in c ~ r i n g China

33

~ ~ w e v none, of these has been st~dardisedas ~ ~ t i o n ao~ ~ ~ c ~ ~r p inev~tab~e~ however9 there is a gr~wingrealisation that the establis p~ic~ng ~ ~ has become vital to the ~eve~opment a s ~ ~ t a ~ ene ~ e c ~ e of ab Since Ehe mid ~ ~ an ~ 0 s n u ~ b of enterprises, ~ ~ ~ c ~ l a r ~ y ~ncreasin~ ~r joint v ado~te~ cost-pI~~$ r ~ c si n ~c ~that s ~ ~ e base the price of e n e product on ~ ~ d ~ c t i o n ~ ~ ~ costs ( i ~ c l u d i ~ i ~recovery of c o n t ~ c t i ~ n the capital and interest, o p e ~ t i o ncosts and labour costs), tax aid to the government, and profit. This is a considerable j ~ p ~ v ~ over the a ~ i n j $ ~ r a t i v efixed price, but it still results in several amb ly how to c a l c ~ ~ costs in an e n v ~ ~where ~~ ~ ~~ t often t~ o ~ob l~ a~e ~ n is ~ i regulate the profits of enterprises. pricing was i n ~ o d ~ c e d 1987, along with $ e a s o ~ a ~ in er is a mjar compo~ientof base load. H o w e ~ e the ~, to d e c o~w ~ to ~ ~ ~nabi~ity rates to cover ri n~ the ~ of ~ c ~ to ecap^^ pricing differences, i ~ v e s ~ e ~ t v ~ rto s m ~ ~ ~ ~ s n~ s i o a lm capacity~ the inability to collect user fees. and The regional and ectldcity tariffs, which are jointly fixed by the state, inre a ~ ~ i n by the ~ ~ ~ ofdPower% ~ ~ s The ~o f united~ r ~ c c n ~ ~of ~ ~ s t ~ p f ~ ~ th grid prices and outes which arc: managed by the ~ ~ o f Power i $ ~ ~ r o v i respectively. The prices of mid- to small-size power plants man ~ c ~ ~ and counties are fixed by local ~ o v ~ ~ m echecked and r a t i ~ e dby nt, r e s ~ o n i for p ~ as welf as the, p~~~~ ~ u r e a Tbe w ~ o ~ e s prices of ~~e ~ ~ ~. a~e r p ~ which are priced by the state are checked and ~ a t ~ f i e d ~ ~ $ d p r o v ~ c ~ power b ~ ~ a respec~~vely. base price reflects al ux The rice, md has no relationship to ~onsum~tion. c ~ r c ~ ~ aprice g ~ ~ o r The t~n ~ the v ~ ~ r ~~~ ~ c~t i o n ~~~~c~~~tariff s ~ c is ~ ~ i e aix c a ~ e ~ o ~ ~ $ , ~ cost. The ~ ~ e d into ~ t b w d on uses and v o ~ ~ ~ g e s .cate~or~es The include:
~~~

electricity rates for ~ ~ g h ~ n g ; md o r ~ ~ ~ n n d ~ ~ s ~ ~ e ~ e c ~ i crates for the larger ~ n d u $ ~ ; ~ty electricity rates for agriculture ~ r Q d u c ~ ~ o n ;

rirnarily becaus~ nationalis~dand ~ ~ d ~ d ielectricity pricing po~ic~es not been sed have $ ~ e n t ethe, c l a s s ~ ~ c a ~ofoelectricity tariffs does not reflect the ~ ~ a r a c ~ e ~ s ~ i c ~ i n t e ~ e ~ ~~ ~~ i ~ y ~ pfor ~ o n ; e ~ ~ c rates cin i s~~~ ~~e~ (e.g. t u t example, ~ ~ ~ o ~ ~~~~~~~s ~ o~t e ~ontinue be subsidised~ are the p r e f ~ r e n t ~~ e r and ~ c ~ s ~ to as i ~ sent, tariffs fixed by the .e. electricity prices are b be r a ~ i o ~ a l ~and d~ner~ased ~e 9 power es have offset revenue s ~ e froni~ ~ m ~ ~ h a the ~ with s y s ~ e ~ - weffects of the resulting ~ n a n c ~ a ~ i~e

~ s t a b ~ i ~ h iR g o w market in China will in~oducea m ~ ~ e t - o ~ e c~ t e ~ y , n~ ~ r e on~ promot~ngs ~ b s t ~ t development in the power i n d u s ~ ~is ~ x p ~ to ~ ~ d the ia~ Tt c sollve
1. Power resource location problem of the electric power the s ~ ~ a t i o n an electric power shortage>the main issue ~ n d u s must face is to speed up c o n s ~ c t ~ o new power plants. Divversi t~ of ~ ~ n v e ~ charnels md ownership of power p h t s will help to achieve the e ~ e n ~ ~ o a ~At .the same time, however, it will also bring ~ r o ~sucheas~ ~i n a p ~ s l the we^ mix ~ c air~~ o ~ ~ u and o n ~ i ~ s y n c ~ r o n oo s s ~ c o f ~ o ~ ~ w e r e ~ t ~ no c ~~ t the ne~orks. In tbc past, the above p ~ b ~ were cs o n ~ ~by l ~ power s ~ o ~ sg~ e a t i o ~ . e ~ a the ~ hen power supply exceeds d e m a n ~ ~ p r o b ~ e b e c o ~ e ~ a i cons~d~~ation. these ~s the n Afier establishing the power market, power projects are to be decided a c c o ~ i n g to ~~~e~ ema and, not adm~nis~ative order. Under r e ~ l a t i o n f the ~~~e~ m e ~ h a n i s ~ o p ~ w eresources allocation will be more e f ~ c ~ and stable. r en~

2. Low a ~ i n i s ~ a t i efficiency on ~ u ~ the gpast 20 years, r e f Q of the Chinese economy has u ~ ~ ~ r a rapi e n ~ g o ~ ~e a b ~ d while prices ~ t ~ de~e~opment. Supplies o f c o ~ o d i t have~become no effort to i To de~~eased. compete in the market, manu ever, Chi~a's a ~ ~ n ~ sand ~ ~ o ~ their e e ~ ~ ~ e ~ a t i o t s ~ i n d ~ does not face such p~ssure. still o p ~ a ~ a csc o r d ~ n ~ ~ l a ~ ~ n ~ ~ ~ s ~ lt e to 0 ~ o d u ~and has a ~ ~ n oelectric p ~ win selling. es ~ ~ l y ~ r The gene ratio^ cost has been ~ ~ c ~ e a year by year. The g ~ e r a ~ o n si~g and ~ r ~ ~ ~ i sindicesnare very low: for ~ n s ~ n the na~~onal ~ o n s u ~ rate is o n sio c~, net ~~~ about 400 ~ W (standard coal); the line loss rate is a b o 7%. These ~ n ~ i c are fw h ~~ es b e h i n ~ world's average level. the

3. ~ c i p r ~ b ~ e m ~ g monopoli~s s ~ ~ s, Under the ~ a d ~ t i o ~ ~ a ~ of the power i n ~ u to gain more b e ~ e ~ t the o p e ~ ~ ~strived to ~ a i n t aaj higher rate o f e ~ e ~ ~ At the same time, the cen ors ~ ici~. ~ o v e ~ ~encourag~d ent ~ ~ vin the power plant by s ~ o t ~ s i ~ s~u ~ h~ ~ e ~ ~ ~ ~ goiices t as 'anew p~~~~l ~ m rate', 'QW p ~ ~ one rate'. "bus the e ~ e rate ~ ~o ~ ~ ~~ n u nt c ~ ~ i n ~ ~ ~every year with new power plants pat into as~d average rate i an areas was about 0.47 ~a~~~ n 0.67 ~ ~ ~ o r n ~ with the~average ~ncome .~ h ~ n epeop p ~ d h of se other c o m ~ ~ d ~ t thesprice of electricity in China is ie , If the power shortage was an obstacle to develop the electricity rate gradually became a new barrier to the growth of China's ~ c Q ~ o ~ To maintain a sustainable development of the national economy thorough reform ofthe electric power i n d ~is urgently needed. s ~

To ~mp~emen~ing reform, the SP has set forth a four~s~ep s ~ c ~ r ~ n ~ e w The~ ~ . re ia m ~ period from the e s t a b l i s ~ e n o f the SP in 1997 to the t e ~ ~ ~ a of the n t ~io Electric Power was the first step in ~ e a l corporatenr ~ s ~ c ~ i n 19 , ~ ~ ~ ~ From ~ the SP will c o n t ~ n ~ e i n t e n s i ~ ~ s ~ ~ ~ w n period,~ to ~ ~ ~ g c the v e ~ m e n~ n c t ~ o from those of e n t e ~ ~ sas s o ~ ~ o ~ s ~ t ns ef
~~~~~

2.

3.

4.

5.

In
to

ower plants, and a w e l l - r e ~ l a t ~ d , e c ~ i ~ a ~ ~ ~ t wifl be open to all power plants. The SP and a1 11 r~tionswill run the power n ~ ~ o r k r i s ~ / l e person and e c o n o ~ i e ~~l after 2020, the f o ~ step of the reform, the Chinese power indus h will t~~~ a p p r ~ ~ i thea t ~ ational a ~ v a n e e ~ ~ o ~ i n g ~ level, ~ a t i ~ topalevel. n ~

7.4.3

~bstacles2 ~ ~ t ~ b l the ~ h i ~ ~ i p i Power

ow to acceIe~te pace of reform and smoothly make the ~ ~ s ~ t fkom n ~ i s t ~ n g the i o e ~ o n d ~to a ~ ~ k e ~ - o ereetric power i n ~ u are~ q u ~ s t of o ~ ~ The t ~ ~ ~ s ~ e ~ ~ e d s the ~ today. ~ achieve the ~~0~ goals are as foI~ows" ~ b s ~ athat must be r e ~ o v to d c~e~ plants are not real comp~n~es.fact, they m just s In e of their necessary powers held by other higher e ~ o n g ~ gthe SP+Thus many of the key ~ n c t ~ w ~ s to o run d i r ~ c t ~ y ~ ~ ~ ~ e cthel SP and its s ~ b s i d i ~ ~ e or by t y t cannot be estab~~shed*e c a ~ ~ ~ e b it ~ ~ ~ e d ~ ~ ~ ~ ~and r ~ ~ o n a b l ~ n e ~ . jn g ,ce Here we face two major problems. The first one is the rope^ right' issue i s based on the observable fact that un the e n t e ~ r i ~ s the power i n a ~ must be ~ ~ v o ~ v in s ~ a I l o c ~ t ~ o ~ ~ e ~ their property. In fact, it is a p~oblem how the ~n~~~~~~ and ~ of t i ~ n of will be able to manage and operate itself. The second one i s the ~ r Q b of eparatin ~ e ~ a t and e n t e ~ ~~ e~ c ~Up to now, the t~~aitionald ~ i n i s ~ ~ t ~ v e s i o n ~ ~ s basically u n c h ~ ~ e although the SP was establish d, wer was t e ~ ~ n a t e C. ~ e ~ with ~such d ly p e the s t ~ c of ~e ~ o rights, ~ ~ ~ t o i ~m ~~ ~ ~ s a ~ ~ ~ 1also r e ~ unr~solv~d ~ n [I]. the ~ l e c ~ price~ is quite c ~ n ~ s e c i . ~ ~e$onomic reform began in ~ ~ i ~ a , c e s has been ~plementea. the e ~ e c ~ ~ ~ ~ But e ~ o v e ~ b~ c an the electric i n ~ u i s consi ~e ~se ~ s ~ a ~ ~ the cOv~rall e c o ~ and s t ~ d a ~ d living. T h e ~ e ~ ~ r ~ ~ ~ t ~ ~ y of r e ~ o ~ a t i o n the power market is rigorously l ~ ~ to the genea of ~ ~ e f a ~ v e r s i ~ ni v e ~ ~ e ndifferent ~ ~ s t, hnts can be economicallycla

4. Small hydro power or thermal power p ~ a n constructed by focal g o v e ~ m e n t They are ~s s~ u s u a ~ ~ y by local power ~ o m p ~andesell electricity a c c o ~ d i ~ ~the price audite mn ~ s to g by local gove~ments.

5,

a1 power p ~ a sold to f o r e ~ ~ n ~ e ~ r ~ getefurads to ~ o ~ n ~ c t n ~ e ~ Ta s ~ . in solme regions, several t h e ~ a ~ power plant8 have been sold to the agreement of sale regional power companies tee that this kind o f ~ e ~powerl plant will sell a certain amount of e i e c ~ ~ cto tthe grid a ~ y each year at a 6 e ~ i price. n

Prices for e ~ e c power varied co~siderablyacross p r o v i ~ c ~ ~even withk $ ~ a ~~c and chase agreements, which define how much e ~ e that the ~ ~ c ~ m the power plant, are not being honoured. Old pXants ~ s u ~se1 l y ~ most power since they need to cover only 5x1, operatio~ m a ~ n ~ costs and ~ e and ~ n ~ nee not pay their c a ~ cost, a ~ ~ ~ From the above classification of power plants one can see that the price system 0x1 ge~ieration is very omplica~ed it is very difficult to form a n o ~ a ~ i s c o m ~ e t i ~ v e side and ed of n 28 ower Law ap~rovcdby the Peoples Cong~ess ~ h j on ~ f date. It i s almost useless in r e s ~ c ~~h n n~a ~J power ~ ~ ~ ~ l~shmen~ i ~ ~ r o v e m e n ~ electric power m ~ k e t u t and of the ~ be ed by a complete legal f r a ~ ~ w oThere~ore, r~. new ~ e ~ i s l almust ~ t~o dition or the neces reformation of the electric power. be dealt wilh are:
1. prop^^ owne~hip:This subject occupies a very important and critical p o s i t ~ o ~ in Chinas electric power ~ n d reform. Without a thorough ~ ~ a r ~ fandcfia ~ ~ ~ ~ s ~ i ~ e f i n ~ o n~c o ~the property right of regional, p r o v ~ cpower c ~ ~ e in~ i~~ i n ~ ~ ~ ~e o ~w d~ e ~ the ~ a n s ~ to a~ true ~power m ~ ~ e t ~~~~~ r ~ ~ s o ~

l a ~ i ~ nIn ~todays SP lmanagement system, temp s a d m ~ ~ ~ s ~ a t i v ~ still the main measures used to manage orders are ~ ~ ~This ~ r ~~ . a ~ the ~o ~ ~ ~ h n ~ ~ ~ ~ t e s ~ i ~~ s a s ~ shows ~ of ~ ~~~0~ must be d e f i n as~ basic p ~ ~ c i p ~ ~ ~ the

and p r o ~ ~ power ~ o ~ o ~ a t i o n ~ ind c i ~ c they often show more concern a ~ o u their t ing ~ i $ ~ b u t ~ o social ben^^^ is an i of n t of the ~ o ~market. e r
In s ~ mChinas,e l ~ power industry is at its initial stage of r e f o ~ a ~ ~ o ~are ~ ~ ~ c . many c h a l l ~ ~to s over~ome establish a fair and efficient power market. e be to
~~~~

The characte~~stics of ~ r n of g ~e ~ ~ ~~ a t o ~ s u ~ t a ~for ~ h ~ n a le

iy ~ ~ 6 ~ x 1 g originated from the r e ~ u ~ r e mo f~ t1 t in China ea g f ~ and ~ ~ v e s ~ eThe . Ps used in the u ( are not n ~ nt f do~og~es beea $~ggested d e s ~~~c~~~~~ have to ~ ~ price

23

Power System R e t ~ c ~ and ~ e r e ~ l ~ ~ i o u~~~g

~ t e ~~ s ~ ca two-pm p r ~ c ~ n g s ~ eThis section will discuss a one ~ l u ~ ~ s ~ ~ ~~ y " ~ ~that cm cope with the above rob^^^. ~ e ~ ~ o t of e l ~ c t r ~include o ~ e ~ costs md inves s ci~ ~ o n ~ ~ of e ~~ ~costs involves n~ ~~ c i a ~ ause operation optimisation is the basis of r e ~ ~ a ib ~ ~ basis~ of determining capacity i R v e s ~ e n t s the i ~ prod~c~on simulation of the power system becomes one o p r e ~ i e ~ e c ~ ccost "71. l i~

In order to analyse e l e c ~ i ~ i costs, we should mn a ~ r o b a b ~ l ~~ tr~ Q d u s ci r~n ~ ~ ~ ~ Q R ty s c ~ ~ y hour. Then we can obtain fuel costs F(d) and loss of load ~ r o b a b i l i td; ~ (t = ~,2;.*,~760) - This data is the basis for cdculati Variable costs of electricity consist of fuel costs be re~reen~ed by

where

e7ti., : ~ e ~ ee ar~ a c i~i ~~ ~ load ofthe s y s ~ e ~ for base ~

: ~ e n e ~ ~ci a n a for ~ ~ load of the s y s ~ e ~ o ~ c peak

K, : a n ~ ratea ~ ~ per-unit capacity for base load

K , : annual rate per-unit capacity for peak load

~
$

dicting generat~oncosts for each hour, the annual rate of evenly d i s ~ ~ bamong 8760 h, while, the ~ ut~ u rateaof ~ ~ ~ r the ~ S of h be o~ ~ ~ s ~ ~ cb o to ~ ~ i n ~ or e&ch h o u~~ h e ( e f ~~G O~ ~~ ) ~ ~ u ~ ~ ~ ~ for hour t is ~ c ~ ~ ~ ~ ~ ~

where

F ( t ) : fuel cost ofthe power system in hour t ( t ):~ ~ ~ the risk t ) in lmur 8 ~ ( level ,

R A : the risk level in the investigated year

8760

where P(2) is the system load at hour t. The ~ a ~ cost p(t) of e a ~ ~ c for hour~ is ~ ~ n e ~ c t ~

Electric Power Industry ~

s in China c ~

39

~ u ~ s~ ~~u a ~i (72) t ~thenabove equation, we have t o ~ into n ~

find the second tern of equation (7.51, we can use the follow in^ two methQds.
I. ~ ~ i ~ tga ~ ~ e r a ~ ~ o n ky, u ~ ~ h a and g ~ , I unit load for each hour, ei n capaciv ~ increase ~ ~ ~ o b a ~ i ~ i p t io d ~ ~ t i o n sr c s~mulation this situation, ~ in

~ ( 0

in equation (7.5) can be found by running a probabilistic production s i ~ ~ l a ~To o n , ~

~ ~ c ~peak load c a p a ~ kt/,. ~ a s e i~ Because it is d i ~ ~ u l get the cost of loss load, the second way is ~ r e ~ e ~ e d . to t U above ~ o n ~ e ~ u a o (7.5) can be r e ~ ~ a as g ~ ~ ~ ~on n n

5can be ap

~ i ~ a t e found by the following ~ ~ o c e as ~ e ly d in Fi ~ ~ ( t ) LDC in the ~~~~e is the load ~ u r curve t formed from ~ ~ ~~ ) n. a n ~ ~ ~ ~ After
~~~~

The risk level o f ~ whole year, LOLPA,i s determined by tbe abscissa W, i ~ e ~ ~ 7.5 is the ~ duration curve formed by P(t) -E- hp ;here AP is an inc g load ~ e
duration cuwe become C , With the same L O P A we can nd a point in ELDC, the abscissa of which is erefore, the section of line A r e ~ r e ~ e the sc a ~ ~t AW e n t ~ t o ~ ~ g ~ ~ ~ ~ e i ~ Thus we can s ~ ~ s tthe f~ ~ e~ I equa~~on
I

a ~ ~ to r~ a ~ the n e c ei s s nc ~ a c reserve an e ~ ~ ~ i ~ in[: ~ ~ ~ ~ a r i o nwe can draw up ~ ~ n ~withc ~ s capaci~, a ~ a p aof the system is not eno ~ ~ t ~ ; in ~e~~ these ~ o n s will ~ ~ ~ u s af c o n ~ ~ r n e ~ s ~ e n e ~ cost s~ ~ ~ not inch the, a ~ o o ~ l ~ cost b e ~ ~ ~ e ,

ises have their own power units and ~ o i n ~ u s e~ a l r they do not GO respective reserve, their electricity e q (7.8) ~ ~ so ~~ e ~~ q~ ~ ~ ~ ~ ~ n ~ a (7.6). o

Electric Power Industry Restructuring in China

11

0.9 1

0
1

9 10 11 12 13 14 15 16 I7 18 19 20 21 22 23 24

(a)

September

Xn order to supervise the market price o f electricity for the ~ o v e ~ m easily, we can en~ calculate several characteristic costs (or prices) for an interval o f a certain time, say one week, one month of: one year. the f ~ to ~ ~e ~the c ~ ~~ a ~~ ~ e ~aat~i n ~ ~ of one n ~ ~ i casts e r ~ for ~ t e ~ ~c ~ ~
is 27, and the set of s h o u ~ load~time i s T, . The n u ~ b of~h ~e e
r e ~ ~ e c tand~ ~ ~ y , ~
1, -t- I,, -t t, = 8760

~ are~ t , , t, ~ r an

~ and : o s ~~ o n ~ in the peak, ~ h o ~ l ~ ~ f valley load ~ ~ r i are ~A,, A, an c s ~i ~ ~ ~ s e

r ~ s p e c ~ i ~and y , calculated as follows: e ~ are

242
I _ - I -

._.

Power System Restructuring and Deregulation ___-

If the cost of e ~ e c ~ igenera~~onthe peak, s ~ o ~ i and e ~ load p e r i ~ is s , Cs ci~ in ~ d valley ~ Cp

and C, ,res~ect~vely, they can be found from equation (7.2) as then

(7.10)
Mp i, d
tETV

ence we can d ~ t ~ ~the n e i average cost of electricity for the peak, s h ~ u l ~and valley er load p e ~ ~ as ~ s o

The ~ v e cost of ~~ l ~ ~ e

e for ~ year is thus the ~ c ~

(4.13)
ra

and i , are average marginal costs or the p s,

s respectively, and are c a l ~ ~from e q~ a ~ ~ o n The a ~ e time used l a ~ ~ ~ (7.6). ~ ~ e costs u ~ ~ ~ e ca realcpower system are s ~ ~ in Table 7.3. for ~ i ~ w n

Peak load 0.402 1

Shoulder load
0,2014

Valley load 0,1133

7.5.3

~ ~ e c ~~ ~ i ~ ~ i ~ ~ ~ ~ ~~w~~~Q~~~~ r ~ ~ ~ i i ~ e~
7 the ~ ~ t i ~ electric ~~~e~ shortage which last ~ w ~ d e

As a c ~ ~ s e q ~many power plants suffered a 1 ~~ce, first t h e . T h e ~ f ~ the income and ~ re ~ of the plants were n e ~ ~ of m a ~ the ~ ~ v ~ n cp oa~ e c o ~ ~ r ~ ~ ~ o n p ~ l r s and ~ ~dispat~h, ~ p ~ e ~ flows alon i ihe e ~ r lly died off. Owing cap the emph

This operation obviously The cause of such a p e ~ o ~ is~due to the pr c e a m ~~ r Q v i ~ c ~ s . ~ g Let us i ~ ~ u s this~~t re b ~ eby a real ex^^^^ of the ~ o ~ hp w e ~ s sy ts ~ In ~ ~ ~ o m ~ r e
resource^.

~ China, w ~ s t power s y ~ e ~ s ~n~erco~nected. ~ four ~rov~ncial are These ~ ~ o v i n c e s

Electiic Power Industry ~

~in China ~ c

in~lud~ ~~n~~~ ~ ~ n s~ui ,n ~ xand i n ~ ~ ~ ~ i ~ j ~ a n g ~ o ~~ e s ~ e m ia The i . ~~~~~c y r is an isolated system. The ~ o source mix of the: n o ~ h power~ ~ iat the end of 19 w ~ ~ w ~ system shown in Table 7.4 and F i ~ 7.7. ~ e can see that in Shaanxi a d ~ i ~ ~ ~ ~ x ~ ~ cae s ~ We r ~ n electricity is mainly s~~~~~~~ c o a ~ - ~power plants; in Gansu and ~ ~ n ~~ hr a~ i v ~ n ~ by re~ more than half the electricity is supplied by hydro power plants. Therefore9 u ~ ~ disp~~chiRg the n ~ ~ power e ~ can make a significant profit. in w system ~

40%

(a) ~ e r ~power a l

(b) Hydro power

re 7.7 Weight of we^ ~

ai n s ~ ~ in ~ ~~provinces a ~ fourd ~

la 7,%Power source mix in the northwest power system (~~~ Province Thermal power Hydro power 988 2285 2080
17.5% Total

~ ~ a a 4025 i ~ Gansu In@& 2668 400 9017

44.6%

5013 4953 2224 14671

34.2% 33.7%
I&9%

29.7% 4.4% 100%

40.4% 5.3%

3 ~ * ~ % 2480

~
Total

n x 1924 ~ 21.3%

~ 302 ~
5455

15.2%
100%

100%

e 75 ~ .

nbenefits ~ f interco~ection~ ~ o i ~
Separate Operation 63568 ~ ~ 6 D O 32 3,26887 Interconnected Operation ~ 3 5 ~ 8 8 ~ 4 5 ~ 17890 4.34856

Load ~~e~~
S ~ a a Exchange Energy ~ ~
~~~~~~0~ cost

Gamu

ia

Total

~ ~ ~ ~ i a n g ~ 0 Energy ~ ~ @OSc e ~3 . 4 ~~ ~ 7 ~ ~ 9.71239 Fixed Cost Lmd E n e r ~ I8747 ~ e n ~ r a tEnergy in~ x 8747 ~~ x~Energy ~ a~ 0 ~ ~ ~ ~ ~ e r ~ tCostn ;o 1,04226 3.37173 Fixed Cost Load Energy 30079 3095 I G e ~ e ~Energy ~ a t ~ E x ~ h a ~ Energy ge 872 ~ ~ e rCost t ~ o ~ I . ~ ~ ~ ~ Fixed Cost 4.27124 Totat ~ ~ ~ ~ t i o 35,59297 Cost n ~ n ~ ~Benefits o ~ e c ~ ~ ~ 0

39318 -24821 1.78287 Q ~ ~ ~ ~ ~ ~ f 8747 8~49 e-10078 0.19944 1,19632 30079 47088 17009 ~ ~ 3 D ~ ? ~ ~ 6 ~ . ~ 9 8 ~ 4 33.294~4 2.29884-

5 -

Electric Power Industry R e ~ t ~ incChina~ n ~ ~

Effects of prices on interconnecting benefit d i s ~ i b ~ ~ i ~ n

Gansu of change shaanx~ ~ ~ W h ~ 0.35 1.82291 -1.47891 0.34 1.64401 -1.23070 0.33 3.46511 -0.98249 Q.32 1,28621 -0.73428 0.31 1.10731 -0.48607 0.30 0.92841 -0.23786 0.29 0.7495 1 0,01035 0.28 0.57061 0.25856 0.39171 0.50677 0.27 0.2~ 0.21281 0.75498 0.25 0.03391 1.00319 0. 1.25140 0. 1.49961 0. -0.502~9 1.74782 0. -0.68169 1.99603 0.20 -0.86059 2.24424

Qinghai

~ingxia

-0.005 17 0.09561 0.19639 0.29717 0.39795 0.49873 0.5995 1 ~.70029 0.80107 0,90185 1.00263 1.30497
1.40575

1.50653

1.96001 1,78992 1.61983 1.44974 1.27965 1.10956 0.93947 0.76938 0.59929 0.42~20 0.25911 0.08902 -0.08 107 -0.25 1 16 -0.42125 -0.59134

Transmission of electricity is becoming a separate industry ayer. A viable ~ ~ s ~ i bus~nessis critical to a s ~ ~ c c e s compet~t~ve s~l electric ~ ~ k In the ~ e t past, the i n a ~ p r o ~ ~ a ~ e of ~rnphasisinggeneration, i ~ o ~ansmissjon~ the el ends ~ n ~ in power industry ~f China made adequacy ~ ~ s r n i s very o oor. Since the basic business s~ ~ of the SP and its ~ubsidiariesis ~ansmissionthey hav a duty to prov~de~ ~ o u g h ~ a n s ~ ~ s s capacity to satisfy the requirernen~of the power t ark et, This is a massive ion ~ n d e ~ that ~ ~ cost billions of yuans. Where will the money come from? ~ will n g The r e f o ~ the power industry brings ~ ~ s ~ i s pricing into a new of s ~ o n there is a g r o ~ ~ need to identify the costs of ~ a n s r n ~ s ssie ~~ c e sIn such a ng Qi , one s h ~ answerdquestions such as how much i s this g~nerator load making um of ~ ~ or this ~ a n s ~ ~ s line? n what p~o~ortion the n ~ ~ losses i s~ allocate^ to this s ~ o Or of o r gene~a~or load) ? olutions of these prob~emsare very i (or services provided by transmission systems, and hm a direct hfluen of This section presents a comprehensive inves~igation load fl c o s ~ i Two. current d e ~ o ~ ~ o s i t axioms are first i n ~ o ~ u c e d the f ~ d a m ~ of ~ ~ s ~~ ion as n load flow analysis in wheeling costing. Then rigorous math cal models of ihe are To dist~~bution faGtor problem and loss allocation p ~ o b l e ~ e s ~ b l i s h e ~ . solve these p r o ~ l e ~we i ~ ~ o d u a series of theorems based on graph theory and a very simple and s, ce e f ~ c a l e o r ~ ~ ~developed. Finally, case studies are introduced to ~ ~ l u s ~ the e ~ g ~ i is at u ~ ~ ~ l n e the ~ r o ~ otheory and algorithrn [ 181. of s s se~

Electric Power industry Restructuring in China

7.6.I

Current Decomposition Axioms

~ar~et-driven transactions have become the new independent decision variables d e ~ n i n g the behaviour of the power system. Understanding the impact of bilateral transactions on system losses is important in order to aliocate a c o r r ~ s p o n ~ n g co~ponent each loss to ~ndividua~ ~ n ~ a and improve econom~cefficiency. One essentia~ piece of ~ c ~ i o ~ ~ n f o ~ a t ~ o nthe biI~tera~ that market needs in order to improve economic e ~ c i e n c ~ is k n o w ~ e o f~the ~ ~ n s m ~ s 5 ~ o nassociated with each proposed b ~ ~ a~~ ~ s a a l i o ~ . ~ e losses ~n ~ c~ This k ~ o w ~ e pernits buyers and $ e ~to~~ ~ c~ r ~ o r ~ t e and cost of Iosses into d~e o s the level their n e ~ o t i a i i o The, essence o f the pro~osed ~~ loss aI~ocati~n e t ish ~given a path, ~ that ~ along which the ~ ~ a i ~ s a ~ i o nwith time, it is p o ~ s i b ~ e find for each ~ ~ ~ ~ ~ ~ e s vary s to i n ~ ~ e m e n~ ar~a n ~ ~an ~ st s onc ~~~~~~e 5 e ~ a r foss ~ ~ ~ ~This lea ~ e ~ ~ t c~ ~ a~e~ and a~~ o ~ o to a loss ~ l l o c ~ c ~oo n ~ for each ~ n n s a c tAi n ~~, ~ ofb c ~u r~ ~n r ~ ~ ~ for 5 a ~ ~ ~ o ~ ~ ~ ~ ~ o c ~ ~ ca s s ~ ~~~~~ o end t~ ~ tosses ~ a ~ u i ~t ~ ~ c haye been ~ ~ ~ ~ f 19-24]. ~~~n ~ o n s ~ ~ o e d cos< to e the ~ r o ~ I o f w n e ~ I i n ~ we need to identify the power (or c u ~ e n c ~ ~ ~ o n of n ~ ~r h~ each branch and allocate the effects such as losses to its componen~s~ solve this kind of To pro^^^^ i t is not enough to use onIy Kirchhofls laws of electric circuits. ~ h e ~ e f o rin ,this e section, we introduce two axioms. Assume the current o f branch k, consists of L current compo~ents
1 ~ ~ ) , ( 1 l ~ , ..,L)supplied by L generators, = .
L

(7.14)
/=I

where I(,) and I(,), are the effective or r.m.s. values of the currents, which can be either active or reactive components. Similarly, in the following description, the term p~wer can also be replaced by either active power or reactivepower @5]. The coiiipon~nts f current in a branch are conservative. o I,[ The axiom states that each co~ponent { ) is the same at the initial and terminal node of a branch,

(7.15)

~ ~ s ~ ~factors areo n same at the two nodes of a ~ r ~ n c ~ . u ~ i the is obvious when we define f C k j f cments as shown In ~~~a~~~~ by ~ because both I , ! and IWt ~ a ~ nthe same values at the two nodes o f ~ ~ k~ c h () ~ a i ~ ,

~ o w e ~in power s ~ s ~ e m a ~ ywe u ~ u a ~ use power instead of c u ~ Thas~we~ ~ er~ a~ s~s Iy e ~ i op~~l ~ this s ~ ~ ~is also true when we use power to defme d i s ~ i ~ u tfactors. ~v e ~ ~ e n t i~n ~ s s u m the v o l ~ g e at the initial and terminal nodes of branch k are U, and U , . Thus e s the r ~ s ~ e c t i powers are ve

47-16)
Tlie powers at the W O nodes supplied by source I are

Power System Reshucturing and Deregulation

This corrcludes our proof.

e ~ r ~ of ~ c ~ i ~~on~theebasisio fo ema an^ s q u a ~ ~ d also sug toss ~ ~ ~ a ~ ~ was 271, i.e. the loss a l ~ o c ato~ ~ t component current I(,,, should be calculated a6cordi~g to

The current components in the outgoing lines of an i ~ J cunene at ~ node ~ e ~ ba ~ are ~ ~ o ~ o to the c u r r ~ n ofthe going ~ ~ n e s . ~ o n a ~ ~s ~ s s u that ~ n ~ u n ~n~ected nodei i s Ii, this a x ~ s ~ ~ thatswhen the ~ total ~ e ~ ~ at o ~ e h e k is

~ t current ~ n ~ by generator 1 ~ node i is IiZ its ~ o ~ ~c o ~ e ~ in ~ ~ ~ n ~ ~ o e c ~ ~ at ~

where

"xi#)

is called a ~ l ~ ~ a ~ of# ~ k, faclor i line

Qi{k)

= ~~k~~~~

~7.~3

The whole loss caused by t r a n s m ~ ~ energy from ~eneratorsto a node is in~ called loss ofthe node. We will denote the loss of node i by Pi

rs, the loss of node i, d is equal to the total loss of these ~ncoming ! $ lines. To the outgoing lines of node i we have the f o l ~ o w ~ ~ ~ corollary.

The factor of n o ~ e a ~ l Q c ato ~ ~ ou~going is equal to its ~ ~ ~ o c a t ~ o n loss t an line factor.

Assume that node i hasLi incoming lines all directly cQnnec~e~ w ~ ~ n ~then the loss o f rn ~ i~~e ~ ~ ~ s is
L

i ~ lines of node i are not all c g

~to the g e n e ~ t o~ $ ~ ~ c t e ~ ~

the r ~ ~ s i rv a s o ~ n ee

As ~ c n ~ above, there are rkvo ~ ~ o b l e m $ ~ ~ n e ~ re~atedto load flow a n ~ ~ y ~ ~ s , namely the ~ i s ~ i bfactor~problem and the loss ~llocatio~ ~ t ~ n probl the ~ i s ~ ~factor ~ ~~ i b5 ln e ~ . ~ ~ For a s p ~ ~o i~ ~e e~ cao ~ ~ ~gQ a ~ Q w e~ y ~one can o , ~the t ~ n ~ of n r ~ e ~ ~ ~ Ihe or ~ ~ by a loa s ~ ~ e d i s ~ ~ ~ ~ t i Q n each g ~ ~ ~ r afor e factors of tor s N nodes, N , gene~at5rs N, branc and o . ctars d e ~ n byde q ~ t i ~ 7~ 1 $ ~ , ~ &E the ~ ~o~erat~ng ~ n ~~ i e ~ ~~ ~ c ~ o ~ ~ e ~1a ~~Q r r k i s ~ for ~ c ~ e~ ~ c o ~ ~ o nee in ~n ~ n o~tgoing s ~ lines at their c ~ ~ ~ n ~ s in equa~~on as shown , (7.22). vo~tage node i yields at

e n e r a 1 can be c a l c ~ ~ ~ ~ e d ~~~ ation (7.21). To do

Power System ~

5 and ~ Dere ~

(7.26)

where = [PiG,P? >. ,P G f' *. ,

is the vector o f ~eneratQr powers and

= E 9 Pz 9 *.*, P, I' S

is the vector o f total node injee elements of which are defined by

(~.27)
0
otherwise

r, (i)

is the set o f the outgoin

b r a ~ is ~ Q W hence the eIeme~ts e~ ~ ; us i l l ~ ~ ~this with a simple p ate have the f Q l ~ Q w ~ g relationship:

ove ~ a t h e ~ a t ~ c a l is ~ ~ o r Q u s , does need not to ~ ~ the ase model and v l~ssless branch as adopted in [25].

(7.28)

A circuit ~ ~ a g r a m simple power systems for

Electric Power Industry R ~ ~ c in~China g ~ n

equation (7.26~ can obtain the c o n ~ b ~ t i o neach generator to the total we f r at each node from the following equation: (~.2~) B", = -1

Thus the con~ibution factors can be readily calculated by equation (7.25). After getting f ( k ) iwe can further allocate the loss of the transmission network t each , o generator by the f o l l o w i ~ ~ equation according to equation (7.2 1): (7.30)
k=l

is the loss allocated to generator 2. where ~ Q w e v ethe loss allocation robleni can be an independent problem. ~ h ~ r e f ~ r~ need a ~athematical model for problem to allocate loss to each load or each gen To allocate the loss to each load, the key step is to calculate the losses of ~ j ( j ~ 1 , 2 , . . . , N ) . consists of two parts, as follows:

Firstly, the sum o f loss APg in the incoming line i j E

( j ), where

r- ( j )denotes the
(9) . Tbe loss
(7.31)

set of the in~oming lines of node j . S~cond~y, loss of @ allocated "CO line ij the ,

which can be calculated according to equation (7.24). Note that k balance equations are as follows:

($

i j E l?-

where ai(k)is the al~ocation factor d e ~ n e d equation (7.23). For cQnve~~ence can use in we the following form to determine
:

Here E";:L is the load power at node i . Equation (7.3 1) is a linear equation system including N unknown variables o q , which be solved by a conventiona~ a l g o ~ t ~ . After so equa%ion (7.31) for ( i = 1,2,... N) loss allocation to the load at node j is then
13 I.

(7.33~

We can use a similar approach to foimulate the problem of allocating the loss to generators. Based on the discussion above, we may conclude that to solve the di factor or loss allocation pro~lem,we should first build and solve the linear equation (7.26) or equation (7.3 1). However, this approach is not ef~cient not flexible, and We will develop a very simple and efficient algorithm by means o f graph theory in the next section.

25

Power System ~ e ~ ~ c ~~ e r e ~n l ~ t i o ~ and r i u a

graph is a directe graph. At this stage, the direction of each the direction of its ctive power flow. Each b r ~ c has its initial h while each node has its outgoing lines and ~ n c Q n ~ i n ~ The lines. number of outgoing lines at node i is denoted by d+(i),the n ~~entioned above^ the set of outg~ing lines is den lines by r-(i). A directed path is formed along the direction of d terminal node o f a directe are identical, we to denote the resistance, r ~ a ~ ~ a n c e , er flow of branch k, and If the

follow in^ reIationship holds for each branch alon

T in a load flow ~~~h~

then there exists no directed circuit in the graph. e use the methodo~og reduction to absurdi~. the~e If exists a follo~ving relations
dB(k, = 0
keC

(7.~4~

where AB(,, i s the phase angle ~fference e ~ e the~ nodes of bran~h and can be b e two k,

equation (7.35) take the values at the terminal node of branc

k ) , then

(~.35)

b6,k) > 0, and

exist in this situation. ns. In case there i ch is certainly negl When a directed graph has no dir~cted circuit, there are at 1 tidy d+(i)= 0,and d- ( j )= 0 respectively. ~ s s d, (i) ~ 0e holds for all nodes, i.e. each no e has at least one out ~ > out from any node q , we can travel to the n ~ x n t from n2 we can travel further to n3 by similar reasonin Thus there are only two p Q s ~ ~ b l e outcomes: one is that we ~ a v in e ~ m p o s s i ~fore a finite graph; the other is that there exist dire ~ the c ~ ~ d i tof o ~ ~ e o r e m . i the

Electric Power Industry R e ~ t ~ c in China g ~ ~ n

larly, we can prove the other half o f the t~eorem. o m b ~ i n g ~

h, there exists at least one node without an outgoin and one node without an i n c o ~ line. ~g

e i is a node with d-(i) = 0 on a load flow gra~hs.The ~rocessof d its out go in^ lines r+i ) is called the e l i ~ ~ ~ ~ a ~ i n ~ p ~ ( for no
ow graph, a1 branches can be eliminated t ~ o u a recu~sive 11 ~ h

raph by Y, and the b r ~ ~ h at least exists one node i, i process~for node i l , we get $ubgraph El'( ~ a out an e l i ~~ n a t i n ~ ~ n cted circuit. Hence, there exists at can carry out a el~mination n proce so on. Thus we can e ~ ~ m i ~ all e a t branches by a finite (less than elimination ~rocess. lain the e~imination pr~cess a simple example, as by raph has no directed circuit, and d - (1) = lines 1, 2 and 3. A ~ eliminatin e ~ 7.9b, in which d"-(2) = 0. The e l i m i n ~ node 2 and its out t~
and its out go in^ line 5, and thus w the above e~iminat~on proc cessively e l ~ r n ~ ~ m e s s can also be carried out by $uc~ess~ve~y eiim~ating node with d+(i)= 0 the its ~ n c o lines ~ g The co~esponing d e ~ n i t i o n ~ t h e o r ~ m ~ s i m i ~ a ~ the ~ ~ and are to discussion above.

e(i).

~ r o b ~of load Raw anaiysi e~s below, we will use PDF and P location problem respec~ively~

Power System ~ e s ~ c ~andn g r e ~ ~ ~ t i i ~ e

i by equation (7.25).

LA: Calculate loss allocation to the load of node i by e ~ ~ a (7.33). n ~ ~ o Do the follow^^ for all j , ij E (i). F: Transfer the power of each generator at node i to nodej

r+

bji is defined by equation (7.27).

the loss of node j , Pj,according to Equation (7.3 1). indicating that the node has been eliminated. . Search for the next node without ~ c o m lines, until all ~ ~ g are ~limina~ed. can imil~ly in~oduce a l g o ~based~on e ~ i ~ i n a t i n g ~ o m i n g In this case, an t ~ ~n lines. cal~ulated results for PDF are the d i s ~ i b u t i ~ n factors of ~ r a n c ~ used by loads; for es losses are allocated to generators. is by ~e~ no~hwest power n e ~ o r k calcu~ated the ~ r o p o aigori cost. The data used in the case study is real exchange p i provinces dated I6 January 1998 as shown in Figure 7.10 a, The n in T ~ ~7.7 e the wheeling cost paid by Cansu province as l and Figure 7.10 b. The calculation results are the wheeling cost paid shown in Table 7.7 and Figure 7.10 b. In Table 7.7, sum of wheel y in the table refers to the energy loss cost, Capaci erator capacity to compensate power loss, while Line9refers to ~ a n s ~ i s s i o n , The average wheeling cost of the day is 0.0247 yuanlktlrh.

. 7
This chapter has described the Chinese power market that is an embryo which the state retains ownership of the generator and some of i n f ~ s ~ cbut is ~pening the market to limited c ~ ~ p e t i t iEle . ~ ~ e , up ~n transmission loss methods have been proposed and examples of a simplified Chinese power system have been used to demons~ate advantages derived from such ~ e t h o d s . the

s
uppo~ed the ey Project of ~ a t i o n a ~ by ~cience ~oundation of China. The authors would also like to thank IEEE for granting permission to reproduce the ~ a t ~ r i aclo ~ t a ~ n indreference [ 181. e

Electric Power ~ n d u s structuring in China ~

%e Wheeling cost for Shaanxi and Qinghai power exchange 7.7

Hour
1 2 3 4
5

Exchange Power
CMW) 273 339 279

Loss of Wheeling
WW> 10.29 13.29 7.68 11.63 11.83 14.80 7.52 0.1 1 3.37 5.58 5.25 5.84 1.71 3.34 2.15 2.66 7.46 8.29 0.83 0.00 1.88 3.00 0.00 0.75

Line Using Cost (Pan> 4410 4510 2410 3630 4200 5640 2920 1080 2160 2170 1870 3760 2370 2660 2400 3280 4090 3130 420 0 I220 2700 0 1100

m e l i n g Cost ( p a n I kWh)
Energy 0.01 1 0.012 0.008 0.01 I 0.01 1 0.013 0.008 0.001 0.008 0.007 0.009 0.007 0.003 0.005
0.00s

Capacity
0.006 0,005 0.004

Line
0.016 0.013 0.009
0.011

Sum

6 7 8 9 10
11

12 13 14
15

33 1 325 335 268 101 122 -226 -172 -260 -165 -189
-143

0.004 0.005 0.006 0.004

0.001

0.013 0.0 I7
0.011 0.0 17

0.033 0.030 0,021 0.026 0.029 0.036 0.023

0,019

16
17

18 19 20 21 22 23 24

-197 -293 -305 - 30 0 -116 -210 0 154

0.004 0,008 0.008 0.008 0.000 0.005 0.004 0.000 0.001

0.004 0.003 0,004 0.003 0.002 0.003 0.001 0.002 0.003 0.004 0.004 0.000 0.002 0.002 0.000 0.001

0.018 0.010 0.01I 0.014 0.0 14 0.014 0.017 0.017 0.014 0.010 0.014 0.000 0.01 1 0.013 0.000 0.007

0.830 0.020 0.024 0.024

0.019

~ . ~ 2 2 0.023 0.023 0.025 0.022 0.026 0.000 0.018 0.019 0.000 0.009

[I] [2] [3]

[4]

S.Q. Gao and P.L. Chi, Several Issws Arising During the Retracking of the Chinese Economy, Foreign Language Press, 1997, J.P. Sun, Electric Power Industry in China 1999, China Electric Power Information Center. W. Sweet and M. Hood, Can China consume less coal?, IEEE Spectrum, Vol.36, No.11, November 1999, pp.39-47. M Hood and W Sweet, Energy policy and politics in China, IEEE Spectrum, J01.36, No. 1 1, November 1999, pp.34-38.

. .-

0.04

0.03

0.0

0.01

0
~

9 10 11 12 13- . 15- 16 17 1 14 - - .

~ e e l ~ n g for $ ~ a ~ andi cost x

[S]

the Electric P o w e ~ I ~ d ~ s t ~ ,p . ~ ~ 6 " 1 4 1 ~ 1998, p Shi Yubo, 'Take vigorous action to promote power industry's reform and ~ ~ v e ~ o p ~ ~ ~ i PowerfE ~ ~ e~ ~Q ~ ~ ~ Qs No.1, 1999, pp.7-8. ~ ~ f g e ~ e ~ ~ e

Electric Power I n d u s ~ e $ ~ ~ c ~ rChina in i n g

[lO] Zhang Shaoxian, Clear up reform i as and initiate a new chapter o f p ~ f e s s i o n a ~ ~ ~ a g e m e n t , Power Enterprise ~ a n a g e ~ e n t , 1 1, 1998, pp.4-5. China No. [ l l ] Ciao Uan, On the second step reform o f the State Power Corporation o f China, China Enferpp~~e n a ~ e ~ e n ~ , pp.4-5. ~a N0.2, 1998, [12] Lu Yanchan~,A ~ e ~ ~ d e ~ tabout~ n simulated power market practice, Chinina a n the g Ente~prise a n a ~ e ~ e n ~ , pp.8-9. ~ No.4, 1998, [I31 Wang Yoii~ian, Strive to accomplish two reform in thee years and basidly feaIize equal China Power Enterprise ~ i n a n a g ~ ~ No. 12, 1998, pp.16-18. ent, books on energy pricing, IEEE Spectrum, Vo1.36, N0.12, ~ ~ c ~ m b e r 1999, pp.59-63. sector decision making in China, IEEE Winter Power ~ e ~ t ~ n

rprise ~ ~ n a g e ~ 1, 1999, pp. 16-18. No. z ~ ~ ~ ,

[21]

pp.~405-1413. CXgiRE Task Force 38.04.03, ethods and tools for transmission costs, Elech, No. 174, ~ c t o b e 1997. r services by the end user Case n p r o ~ d i nge r c o ~ e c t e ~ ~ t opera~ions tioopral Science ~ o u n ~ a t ~ o n Workshop,Nove~ber 1996. aliana and Mark Phelan, Al~oca~ion transmission losses to of in a ~mpetitive enviro~ent, IEEE Transac~ions Power stem^, Vol. 15, No. 1, ~ on ~ 2000, pp.143-150. Tomas G o ~ a l e zGarc~a,and er losses, IEEE Xra~saction on nd load distflb~tionfactors for supple me^^ c h a r ~ e ons Vol. a l l ~ a t i o n ~ ~ s ~ i s sopennaccess, IEEE ~ r a n s a ~ t ~ on Power S y s t ~ ~ s , 12, No.3, in io 1997, pp.l189-1193. L.L. Lai, J.T. Ma, N.~ a j ~A.~ a~ ~ and , ~ d ,a to ~ompu~~tional efficient a l g o ~ ~ h mfor ~ a ~ s m i s s i o10s s n s, ~ n ~ ~ r n a t i ,Iournal afElectric Power and Enerm Systems, Elsevier Science Ltd, Novem~er ona~

Prof. Vijay K. Sood Canada

In recent years, major changes have been introduced into the s ~ c ~ofr electric power e utilities all over the world. The reason for this was to improve ef~ciency the in the power system by means of deregulating industry and opening it e~tion. This is a global trend and similar ctural changes have o c ~ u ~ el~ewhere ed in other industries, i.e. in the teleco~unications air~ine ~ s p o r t a ~indus~ies. and ~ ion The net effect of such changes will mean that the ~ansmissi5n~ generation and dis~ibution syst~ms must now adapt to a new set of rules dictated by open r n ~ ~ eIn s . ~ trans~~ssion sector of the power utility, this adaptation may require th ~ o d i ~ c a ~ iof ninterconnections between regions and countries. further more^ the o ptation to new generation patterns will also necessitate a ~ p ~ t i and require in~reased on xibility and availability o f the transmission system. Addin to these problems has been the growing env~ronmen~al concern and constraint upon he righ~s-of-way for new i n $ ~ l a t i ~ and facil~ties. further d e m ~ d are c o n t ~ u a lbeing made upon u t ~ ~t i ~ ~ e n Yet l~ supply increased loads, improve reliability, delivery energy at with ~ ~ ~ power ~ v The d ~ quality. e power industry has respon the ~ e c ~ o l o ~ flexible AC ~ansmission systems or of y e n c o ~ ~ ~ sa whole family of ower electronic controll se$ achieved maturity within the industry whilst some others are as yet in the design stage. FACTS have been d e ~ n e d the IEEE [4] as: by

Flexible AC Transmission Systems (FACTS)

A power efectroiiic based system and other static equipment that provide control of one or more ac

transmission system parameters to enhance con~ol~abi~ityincrease power transfer capability. and For m a ~ ~ u f a c ~ rof relectrical equipment, this challenge provides an o p p o ~ n i t y build e s to equipment that is reliable, flexible and relocatable since planners now d e m ~ d r adaptation to c h a n g ~ g syste FACTS rely, to a large upon advances made in power electronics (PE) and microprocessors. The PE tec ,well known in low-power industrial applications, has now migrate^ to hi~h~power utility applications because of the economical availability of reliable high-power switching devices (i.e. thyristors, GTOs and IGBTs). Note that developmen~sin other related areas such as communication systems (using fiber-o etc.), super conducting materials for energy storagc and metal oxides for surge arrestors will also play important roles in the continuing growth of FACTS applications. This t e c ~ o l o g y impact on all aspects ofpower system operations, for example, in: will generation systems (i.e. from hydro, thermal, wind or photovoltaic means), storage systems (Le, by conversion of energy from AC to DC, DC to AC, transmission systems (i.e. by the rapid control of system parameters such as voltage, current, imp~dance phase angle), and dist~butionsystems (i.e. by the rapid circuit or current i ~ t e ~ p t i o n for purposes), and consumer systems (i.e. by the power conditioning of consumable energy). F a ~ i c u l ~for transmission systems, FACTS technology offers the f o ~ l o w i n ~ ly ~ossibilit~es:
e

6p

Greater control of power, so that it flows on the prescribed ~ ~ ~ s m i s sroutes. ion Secure loading (but not overloading) of transmission lines to levels nearer their thermal limits. Greater ability to ~ r ~ ~powerr between controlled areas, so that the f e reserve margin typically 18% may be reduced to 15% or less. Preve~t~oncascading outages by limiting the ef3ects of faults and equip men^ f a i l ~ e . of ampi in^ of power system oscillations.
~

Static var compensators (SVC) is an example of a mature FACTS applica~io~. Other more novel ap~lications(i.e. STATCOM, UPFC) are being developed and tested to provid~ increased flexibility, enhance stability arid transmission capacity in the operation of power systems. The present environment of deregulation and constraints on building of more tra~smiss~on ~aci~ities provide compelling reasons to develop FACTS c o n t r o ~ ~ ~ ~ s ~ The ~ p r o v e m e n tof a deteriorating power quality will be an additional focus for FACTS controllers of the future,

8.1.1

Benefits o FACTS Technology f

The two main objec~ves FACTS controllers are: of

to i n c r e a ~ ~ power transfer c a p a b of tr~smission the ~~~~ networks, and

260

Power System Restmcturing and ~ ~ r ~ ~ l a

ravide direct control of power flow over des~gnated r ~ s m i s s routes, ~ ~on ible AC system owes its tighter transmiss~oncontrol to its ability to m ated parameters that constrain todays AC systems, ~ ~ c l u d i ns g e, phase angle and the ~ c ~ ~of~ n c e at various ~ e q u e n c ~below the osc~~~ations es rated ~ e ~ u e n c y .

[4]: Power flow over a transmission system is limited by one or more o f the f o ~ l o w i n ~

system stability, loop flows, vol~age limits, 1 limits of either lines or terminal equi hart circuit level limits. itations on power transfer are primarily inter re~atede ~ e c ~ parameters including vo ca~ reactive and ~ t i v power. ~igh-speed e control of any one or more of these parame~ers with E controllers will enhance the value o f AC transmission assets. liminary studies of several ~ y s t e have shown that FACTS controllers can provide economic sol~tions ~s to some of these p ~ o ~ ~ e m $discussion of each of the above-~entio~ed A . iimi~tions is provide^ next.

This r e q u ~ e s power system to retain a margin o the ~ystemand still main~ains ~ c ~ o n iSin~ . s nd are able to eontrol the for avoiding the addition ofne traints [4] could be hrther spli i ~ i t ~ few seconds after a major p al rove the performance by the use of, s exci~ation systems and the implementation t ~ m p i concerns the ability of a n ~ ns once initiated by a small disturb include power system st er system to ~ a i n t asi y n c ~ o ~ i s m ~ for ion. A n u ~ b e r e~ample of lled series capacitors, high

it describes the situation when the next i n ~ e ~ of load e ~ t causes a voltage collapse in the power system. This v o l ~ g e reduc~onis g occu~ingover time periods ranging from many secands that are used to improve VSL, include operator action, a rs ~ o ~ p e n s a t i ogenera to^ or sync nous ~ o n d e n s ~and n,

Flexible AC T~ansmission Systems (FACTS)

-sync~onousresonance (SSR) is due to interactions b e ~ e e nthe seriescompensat~d power ~ansmission AG system and torsion v i b ~ t i o n g e n e ~ t o runits. This issue is dealt with by cons~ainin that desired for c o ~ ~ ~ n s a t~ ~i ~ to dsafe limits; usually this level is pe e i ~ system security. A p p r o ~ h e s are used to improve SSR condi that of series capacitors d u r i n ~ unsafe operation^ passive series blo tor exci~ation SVC on the generator bus. Ge or lied to c o ~ any u n e ~ p ~ c t contin~enci~s. e~ ed

8.2.2

Loop Flows

ows occur as an unwanted result of the operation of the interconnected ~ a n s m ~ s s ~ o n are dictated by e l e c ~ i c a ~ circuit laws (i.e. Ohms and ~ r c h h o f laws). These ~s at steady state where the undesired loading affects the v n of thermal or stability limits, These effects are address or by series capacitors. The new FACTS c o n ~ o ~ l e r s ver, since speed of opera~~onnot a major c o n c e in this is ~ problem, c o n ~ o ~ ~ e r sbe justified onIy if .frequent a d j u s ~ e n are require will ~s

~ o ~ by of reactive V o ~ t a c eo ~ is accomplis~ed a c o ~ b i n a t ~ o n genera~or ~ ent, fixed or mechanica~ly s w ~ ~ c ~ e d reac~o~s~ca~acitors m e c ~ a ~ ~ c a ~ and On ~ a n s f ~ ~ e~~~t reactive equipment is used for coarse control while the ~ e n e ~ ~ ~ o r rs. prov~de e ~ i con~ol. v e~

Thermal limits are inherent in ~ansmission systems owing to both line c o ~ d u c ~ o ~ ~ series equipment (i.e. ~ a n s f o ~ e r s , reactors and series capacitors). Trans~ission lines ope~ated below these limits to provide s e c u in the event of a ~ ~ role of FACTS c o n ~ o ~ ~ e r sbe to use this inherent thermal capacity in a more e f ~ c ~ $ n t will and secure manne~.

8.2.5

High ~ ~ o r t - ~ i ~ Limits t Level c ~ ~

The p r o ~ ~ eof exce$sive s h o ~ - c i r c u ~ ~ can be quite difficult and expenive to c o ~ e c ~ m level dition is made to the ~ a n s m i s s i ~ n system. This can result in sho~-ci~cuit levefs c r ~ e ~ i up in sub-~ansmiss~on ng equipment.

262

Power System Restructuring and

Y
The IEEE definition of a FACTS controller is:
A power electronic based system and other static equipment that provides control of one or more ac transmission system parameters.

The technology concerning FACTS is well known in the low-power industrial applications field, but is relatively less well known in the utility power field. This technology is intimately concerned with developments in the follow~ng areas [S]: two Power electronic switching devices and pulse width modulated (PWM) converters. Control methods using digital signal processor (DSP) and ~icroprocessor technology. Developments in both areas are advancing rapidly, and need to occur further before a~plications the power utility field appear econo~cally in attractive. App~ications PE in of the power utility field still need further research in the following areas: active harmonic filtering and reactive/active power support, single-node or area-wide application, c~mpensation non-linear loads, and of transient performance of the controller.

8.3. I

Power Switching Devices and P WM Inverter

Of the switching devices presently and potentially available within the near future (next >, gate turn-off (GTO) thyristor and IGBT are the most promising. However, the in the longer future (10 years), competition for these switching devices will occur from o ~ ~ S c o n ~ othyristor WCT) devices. A ~ m p a ~ s ofnthe various ~ o w e r - s w ~ ~ h i n g 1~ed devices is presented in Table 8.1. wever, owing to the higher switching losses in G devices, the ~ a x ~ e, ng frequency operation is limited to less than about 1 z. F u ~ e ~ o rowing to the switching and drive characteristics of the device, it has been feasible to operate devices in parallel for high power applications. Some limited success in the series op~ration devices has been reported, but again this remains a l~mitation~ of r increasing the rating capability of a FACTS converter on appears to be the use of several converters op hing frequency presente~ the total filter can als to shifting the switching functions of individual inverters, and by converter ~ a n s f o ~ e r s new possibility exists with the use of ~ulti-level A, converters.

Flexible AC Transmission Systems (FACTS)

Max. voltage rating (V) Max. current

rating (A) Voltage blocking Gating Conduction drop 0') Switching frequency

8000
4000

Th~~~st~r 6000 1700

ThyristQ~ 2500 3000

800

1000
100

6000
Sym./ Asym. Current 2.5

800 Asym. Voltage 3

400 Sym./ Asym. Voltage

1 .a

Sym./ Asym. pulse 1.2

1

Asym. Current 4 20

Asym. Vo~~ge Resistive

100

20

20

(kw
~evelopment target max. voltage rating
(V)

10000

10000

3500

5000

5000

2000

Development target max. current rating

8000

8000

2000

2000

2000

200

GTO IGBT SI MCT MOSFET

: Gate Turn-off thyristor

: Insulated Gale Bipolar Transistor : Static Induction thyristor : MOS-controlled Transistor : MQS Field-effect Transistor.

Two versions of switching converters are feasible depend storage device utilised is an inductor or a capacitor. When the storage device is an inductor, the converter is called 8 current source converter (CSC); when the storage device is a capacitor then the conve~eri s called a voltage source conve~er(VSC). A n~ticeable change in converter topology usage will be the increasing use of VSCs instead of CSCs used in traditional HVDC transmission. The VSC will find applications in advanced static var co~pensators (ASVCs), active filters, S T A T C Q ~ etc. The main reasons for this ~, change are that VSCs are smaller and less expensive than CSCs; ~ ~ h e ~ o r e ,are VSGs expandable in parallel for increased rating. A brief comparison between VSCs and CSGs is given in Table 8.2.

264

Power System Restructuring and Deregulation

le 8.2 Comparison of current source versus voltage source converters

Current source converters Use inductor L for DC-side energy storage Cons~ant current Fast accurate control Higher losses Larger and more expensive More fault tolerant and more reliable Simpler controls Not easily expandable in series

Voltage source converters Use capacitor C for DC-side energy storage Constant voltage Slower control More efftcient Smaller and less expensive Less fault tolerant and less reliable Complexity of control system is increased Easily expanded in parallel for increased rating

T r a ~ ~ ~ ~powerlconverters used line-commuta~ed ona thyristors as their active switch~ng elements, but next-generation converters will exploit self-commutated CTO thyristors in the near-term future, and will probably exploit lGBT and/or MCT devices in the long- re^ future. The basic PE building blocks will comprise either the:

anti-paraIIe1 thyristors which will be used to control irtduclivelcapacitive i ~ p e d a n ~ e s , or six-pulse CSC or VSC unit, employing multi-level operation (with or without multihase ~ ~ s ~ ~ increase the pulse number (up to 48 pulses), to reduce ~ a ~ o n i c to ~ e r s ) ~eneration.The basic switching elements will be the anti-parallel G ~ ~ ~ ~or o d e i IGBT-diode unit,

Control ~ e ~ and Do P~ ~ ~c r ~ ~ r ~ c e s s o r h ~ / i Technology

Control eth hods based on either the time or freque~cy domain are feasible. These ~ e q ~ i $ e for i n s ~ n ~ n e o monitoring techniques and complex computation of switching ~ n c t i o n s us the firing of the converter switches. A comparison of the control methods in the two d o ~ a i is ~ n made in Table 8-3.
Comparison of time domain versus frequency domain comp~nsation

~ r e q u e ~d~main cy
Fast response

Easy to implement Computa~ional burden is low Ignores past periodic characteristics

Slower response Complex measu~ements analysis and Computational burden is high Depends on periodic characteristics of d i 5 ~ 0 ~ i o n

wing to the complex switching functions required and the c o ~ ~ ~ ~ ~ t i o n a l burden necessa~, exten~ive of DSPs and microprocessor technology will be required in a use power system environment. Utilities have some experience with HVDC ~ e c ~ o l oSVCs g~, rotection relays which use microprocessor-based controls. However, the application of FACTS devices is likely to be at a greater level of complexity than anything

Flexible AC ~ r a ~ ~ ~ i s s i o n (FACTS) Systems known previously within the utility environment. This will require careful considera~ions of r e l ~ a b i land ease of use within the utility environment. i~

8.3.3

F ~ e s ~ ~ ~ on ~ e t ACT^ Activities ~ ~ u

EPRI of the USA has been promoting a program (EPH Project 3022) on FACTS for some years [ 11. A number of special conferences on this topic have been o r g ~ i ~ by E ed these conferences comprise, by far, the largest effort on FACTS-related literature. Since the last five years or so, IEEE and CIGRE working groups have also become involved and pub~~cations being reported in their literature also. are FACTS have been with the power industry for many decades in the form of SVC and other applications. However, it is only recently that these applications have become classified under the b ~ ~ a d - bheading of FACTS controllers o f the power system. as~~ FACTS technology is not a single, high-power electronic controller, but rather a collection of controllers, which can be applied individually or collectively in a specific power system to control the intenelated parameters that constrain today's systems. The thyristor (either line or sclf commutated) is their basic switching element; however, in one particular application called the interphase power controller, no active switching device is used.

8.4.P

n Concepts ofa~~ansmission ~ ~ ~ e

A simplified example of power flow in a loss-less transmission line, with inductive impedance X,, c o ~ n e ~ ~two g systems with voltages V , and V, is shown in F i g ~ r e i n ac 8.1. The transmi~ed power P is given by equation (8.1) and also shown in the figure. From equation (8.1) it is evident that power flow can be controlled by varying 5, Y,, X, or the angles 6, and 6 , : P = (V,. VJX,) sin(&,- 6) , (8.1)

.1 F u ~ ~ d ~ r n e n ACspower transmission of ~ l

Transmitted power P can be regulated by control of any system parameter by a FACTS controller, or any combination o f controllers, as indicated in Table 8.4.

66

Power System Restructuring and Deregulatbn

.4 Control of system parametersby FACTS controllers

Voltages V, and V, ~mpedanc~ X, Angles 6 , and 6,

Shunt Series Phase angle regulator

SVC, STATCOM
TCSC, IPC

TCPAR

The FACTS app~ica~ion been split into the fo~~owing have categories d their mode of operation: Control~ers which act in shunt to the ~ a n s ~ s s i system. on Controllers which act in series to the tra~smiss~on system. Controllers which act in a s e ~ e / s ~ ucombination. nt Controllers which alter the phase angle between voltage an A special category which encompasses HVDC controllers and any remaining controllers. Details of these various c a ~ g g o are provided in the following sections. ~~s

8.4.2

Shunt Controllers

reactive power com~ensation since the mid t for arc furnace flicker compensation and then in power ~ansmission systems first 40 MVAr SVCs was installed at the Shannon Substation o f the ~ i n n e o t ystem in 1978. At present some 300 SVGs with an installed capacity of 4~,000 s are in service all over the world. The SVC results in the ~ o ~ ~ o b e inn ~ [S]: w e~t~ voltage support, and transient s ~ b ~ lim~rovement, ~ty power system oscillation damping. Al~~ough many versions of SVCs exist [9] (i.e. variants are TSR, TG common one (Figure 8.2a) usually employs (either thyristor or mec~a~ically) switch capacitors and ~ ~ ~ s t o r - c o nreactors e ~ ~ o l ~ (TCRs). With an appro the capacitor switching and reactor control (Figure 8.2b), the var continuo~sl~ rapidly ~ e ~ ~apacitive/inductivevalues. It maintains the steady state and ~ e n and dynamic voltage at a bus within bounds, and has some ability to control stabili~, but not much to control active power flow.

Flexible AC Transmission Systems (FACTS)

267

%=Capacitive

Ratlng

Conanuous Inductive R%ng

(a)
fig^^^ 8.2 (a) The SVC and (b) its V-I characteristic

(b)

S ~ a t ~ cQ n ~ ~ (ST s ~ t o ~ e ~ The S T A ~ aC ~ ~ ~ voltage source inverter coupled with a transformer, is tied to solid-state a transmission line. A STATCOM injects an almost sinusoidal current, of variable m a ~ i t u d eat the point of connection. This injected current is almost in quadrarure with the , line voltage, thereby e ~ u l a t i ~ g inductive or a capacitive reactance at the point of an connection with the transmission line. The hnctionality of the S ~ A T C O ~ model is verified by regulating the reactive current flow through it. This is useh1 for r e g u l a ~ ~ n ~ the fine voltage. An advanced static var compensator (ASVC) [ 101 using a voltage source inverter (VST) is shown in Figure 8.3a and its V-i characteristic is shown in Fi 8.3b. The VSI is storage capacitor to generate an output AC voltage V,. When V, equals AC bus, the VSX draws no current; when Vo > V, the current drawn by the leakage impedance of the transformer is purely capacitive. On the other hand, when V, < V then the c ~ e ndrawn is purely inductive. The ~ n c t ~ o npae ~ o ~ a n o f e A t l c the superior to the t r ~ d ~ t i o n a ~ SVC.
Tran smmion 1ine
Couptiiig *amformer

pu Voltage

Tram

ive Rating

DC storage capacitor

(a)

Figure 8.3 (a) STATCOM application and (b) its I/-I characteristic

Power System ~

~ and ~ e r ~ ~ ~ a ~ i o n c ~ n l

The ~

~ isV C also superior to the conventional SVC for the fo~lowing reasons:

eduction in outdoor area requirement, since it replaces the ~ o l u r n ~ ~ o ~ i s capacitor/reactor banks associated with a conventio~al SVC. roved dynamic p e r ~ o ~ andc enha~ceds ~ b ~ l ito~its a ~ ~to i~ n ~~r e a s ~ ~ e due i siently tbe var generation. roved p e r f o ~ a n c e low operating vo~~ages to at down by t r ~ $ f o ~leakage). er Reduced need for AC filters. ve r e f ~ e d the ~ ~ O - ~ system as to a s ~ d functional operation of this device is, howe ous condenser, but without the slow response t i n e ~ i aand so it was briefly own as the Static Sync ent practice is to refer to these as STATC generates a three-phase volt a reactance. When the AC (lower) than the bus voltage, the current flow is cause eS how ~ u c h u ~ flows. ~ ~ e n This allows the control of

on and to prod~ce pra~tically sinus0 is s h o ~8.3b.Tlie ~ ~ STATC i ~

re effective than the SVC in providing voltage support

FIexibIe AC ~ ~ s m i s s i Systems (FACTS) on

269

Acts as a voltage source behind a reactance

Insensitive to transmission system harmonic resonance Was a larger dynamic range Lower generation of harmonics Faster response (within ms) and better performance during transients Both inductive and capacitive regions of operation possible Can maintain a stable voltage even with a very weak AC system Can be used for small amounts o f energy storage Temporary overload capability translates into i m u ~ o ~ e d voltaae stabilih,

Acts as a variable susceptance Sensitive to transmission system harmonic resonance Was a smaller dynamic range Higher generation of harmonics Somewhat slower response Mostly capacitive region of operation Has difficulty operating with a very weak
AC system

,based on IGBT switches, and capable of operating at s w i ~ c ~ i n g

container with a exchangers, air-c Mvar per converter i s availab~e~ case of increased rating, multiple units can be operated in in parallel. The modular design makes it easily relocatable to another site when desired to meet hanging s y s t e ~ ~ The response time of this unit i s very fast (about o n e - ~ u ~ e r needs. cycle). As a result of its high switching frequency, the plant can operate without h a ~ o n ~ c filters, or may only require a small high-pass filter. The risk for resonant condit~onsis heref fore negligible. ~ u r t h e ~ o rthe possibility of active filtering of h a ~ o n i c s e, already p~esei~t the network makes this an attractive choice. on been developed. The core parts o f the plant, compris~n s, control system and the valve cooling system, are fitted into a of 10x20 rn. The outdoor equipment i s limited to heat utation reactors and the power transformer. A rating o f rl: 100

mat~hing ~ ~ r ~ i the mechanical power and the generator electrical power during system faults. This can be either done by i n t r o d u c ~ ~ ~ a series or shunt braking resistor. Shunt resistors are p r ~ ~ e r a b ~ e because they are less expensiv~ easier to coordinate in a system with any and and lines. Moreover, a hun~-connecte~ thyristor-controlled resistor with a radial transm~ssionline can be used effec~~ve~y to damp power swing oscillations [13] in a transmission system. These systems are esigned to provide post-fault AC system speed control by compensatin~ fault accelerating power by dissipation in a shunt resistor. A pair ofbackfor to-back ~ y ~(Figures8.4) does the application of the shunt resistor, The application of ~ ~ o ~ braking resistors should take place as soon as possible after fault detection and they should not be switched out until the derivative of the swing curve becomes negative. The ~ating of

70

Power System R ~ s ~ and D c ~~l a n i o n ~ ~ t ~

the resistor should be such that the kinetic energy injected by the fault sho~ld be before the generators slip the first pole.

-&
.4 Dynamic brake application

The ~eliabilityand effectiveness of braking resistors have been demons different projects:

PA's Chief Joseph substation, 1400 MW, 3 seconds, 230 kV system; C Hydro's G.M. Shrum substation, 600 MW, 20 seconds, 138 kV sys~em; 3. Argentina El Chocon Project.
asically LT changers regulate the output voltage when subjected to variations in the input voltage due to c h ~ g i n g system conditions. M e c h ~ i c a ~ versions were used widely in the i n d ~ for ~ s many years. These mechanically operated load-tap hanging transfo now have t h ~ ~ o r - o p e r a ~ e d switches (Figure 8.5) to do the same function faster [14]. This permits the improvement of system stability and damping of the power system osci~l~tions.

High speed static tap changer

use a super conducting coil acts as a b ~ f f e r between the power generation and load consum~tionand aids in the load levellin~and matching (within a few cycles) of the two, enabling a greater control and flexibili power system [IS]. The benefits o f energy storage systems are offset by the losses of s t o ~ n g energy. The round-trip efficiency of a SMES system is claimed to be 90%. The SMES coil is fed by a current source GTO inverter h m the AC n required, the SMES can supply transient active or reactive p o w e ~ the AC to supply to support it. The technology holds promise for improved en 9 d flexibility to meet peak utility system loads. A multi-temi P to act as a power flow control device also [6,7]. A fairly rec

Flexible AC Transmission Systems (FACTS)

71

suggested the use of a SMES system for SSR damping of turbine generator units. A SMES unit has been in com~ercial on the BPA system. use

I Superconducting
Coil
~ i ~ M 8.6 SMES operating principles re

imilar to a large uninte~ptible power s~pply. A VSC connects the DC battery to the AC system. Such applications provide load-levelling benefits and act as a spinning reserve on islanded networks. Modulation o f the 10 MW BESS at Chino has increased the transfer capability from Arizona to California by several hundred megawa~s. Battery storage has been applied at a number of locations including: an 85 ~ ~ / minute system in ~ e ~in~1986, 3 0 i n a 10 MW/4 hour station commissioned in Chino, S . California, in 1988 [17], and a 20 MWI4 hour station commissio~ed Puerto Rico, in

8.4.3

Series C o ~ t r ~ l l e ~ ~

g AC lines for increasing line loa~bility has been known for a long time. Adding a isto tor-controlled series capacitor ( however, is a more recent pheno and provides greater flexibility in ission line impedance continuously ~ a n s ~ i s s i oA .TCSC can vary the n below and up to the lines natural to force power flow along a contract path. The advantages of the TCSC are: ability to mitigate sub-sync~onous resonance (SSR), ability to balance three-p~~se power flow, ability to control power flow flexibly, ability to reduce short-circuit currents by rapidly controlling the capacitive to ~nductive impedance, and ability to damp power system oscillations. The controlled series compensat~oninstallation will likely have two key componen~ (Figure 8.7). One element will be the mechanically switched portion, and the second will be the thyr~stor-con~rolled portion. The relative sizes of the fixed and c o n ~ o l ~ e d mode portions will vary with appl~cation.The TGSG portion i s made up of a number of small series-connected modules. Each module is either inserted (with the thyristors blocked) or b ~ ~ (with e ~ y r i t o ~ s conducting). In this manner, a stepwise ~ o n ~ is l s the fully o

27

Power System ~ e ~ t ~ ~ ~ Deregulation and r i n g

ach~eved with minimal losses and harmonics. There also exists the possibi~ityof op~ra~ing in a vernier mode where partial conduction of the lhyristor path during each-kalf-cycle is used to circulate inductive current through the capacitor and boost its effective ohmic value. One advantage of such small-signal ~ o d u ~ a ~is o n control of S i the
Transmission line
5% sections

Breaker switched

.7Thyristor-controlled series capacitor

A new control scheme with a TCSC [IS] indicates that a method of modula~ingthe firing angle can be used to boost the series capacitor voltage and virtually eliminate the possibil~~y SSR oscillations. A phase-locked loop (PLL) is used for synchron~s~ng of the thyristor firing with the line current rather than capacitor voltage for a more stable operation.
~~~~~

~ ~ n t (I r ~ ~ ~ e ~ IPC [19,20] does conlain any PE equipment, it is included here as a FACTS device that can aid in the ma~agemcfltof power flow between two synchronous t~ s s y s ~ e ~The basic IPG consists of a series-connected device c o ~ ~ r i s itwo g u s c e ~ ~ n c e s , s. one inductive and the other capacitive, subjected to properly ~ h a s e - s h ~ ~ e d voltages. Thus, whatever the angle 6 at the TPC terminals, some of the cQmponentsare always subjected to voltage. By adjuting the value of these compo~en~s,is always ~ o s s i bto~force it l t in each of the networks even if the a n ~ I e the t e ~ i n a ~ szero. When all at is t are energised, the ampIi~de phase angle of the c u ~ e nare set in one o f and s to wh~ch IPC is coniiected. This current contro~ en the thus d reactive power through the device. any types of IPC are possible and each type can have d i f f e ~ ~con~gurations~ one nt In type cai~ed IPC 120 (Figure 8 . Q the voltage phase shifts are achieve^ with a crossthe connection between phases using an inverting transformer to reduce the voltage ~ a g t ~ ~ ~ d applied to the reactive compQnents.One practical appl~cat~on such an ~ n s ~ l ~ a has o n of ~i appeared in ~ e ~ oUSA. ~ n t

group of three-phase reactors and c a p ~ c i t oeac , ~ ~ s ~inl series d ~~ ~ e between two AC systems. The IPC is different from other series corn nsation devices in the way the series elements are connected. For exa of the s ~ n end system i ~ connected to phases ~ i ~ s Thus, whatever the angle B a IPC t e ~ ~ ~ a I s , of the ~ o ~ p o n e nare always some ts adjusting the value of these components, it is always subjected to a certain voltage. pos~b~e force a current in to ystem even if the angle is zero. ~ e all n o ~ p o n e n ~ s c are. ener~ised amplitude and phase angle of the current are set in one of two buses to the which the IPG is connected. This current control thus enables the power carrie to be set, as well as the reactive power ~bsorbed generated at one ofthe buses, or

Flexible AG Transmission Systems (FACTS)

73

VCS

.8 Three-phase diagram of the IPC 120

The SSSC, a solid-state voltage source inverter [21,43,44], coupled with a transfornm, i s connected in series with a transmission line. An SSSC (Figure 8.9) injects an almost e sinusoidal voltage, o f variable m a g n ~ ~ din ,series with a transmission line. This injected voltage is almost in quadrature with the line current, thereby emulating an inductive or capacitive reactance in series with the transmission line. This emulated variable reactance, inserted by the injected voltage source, influences the electric power flow in the transmission line.

dc bus

.9 Static synchronous series compensator

er c o ~ ~ r o ~ l e r cu~ently use is the ~ in ~ ampe~ 2 ] to ~ o ~ n t e r ~[2 ~ S S was first o b s ~ ~ at d $quare utte ~roject. e the SSR ins~bilities at. times an are side effect of us~ng mec~anical~y controIled series capacitors to a t r ~ n s m i s s ~ ~ ~ r , ~ ~ The ~ e n e of a ~ ~series ca~acitors to lower the lines i m p ~ ~~ ~ cc ~ ~e oa w ~ r ~ ~ s i ~ g are
sists of baclc-to-~a~k thyristors connected in series with a ss the series capacitor (Figure 8.10). The operat~onof the damper is based on two principles. ne is to fire the switch 8.33 ms after each zero crossover of the capacitors vol e, or half a cycle (or 180 degrees) at 60 13%.But if the voltage wave contains other frequencies9some half-cycles will be longer than 8.33 ms. In this case, the valve firing at 8.33 ms causes some current to flow during the exten~ed part of the half-cycle and damps the oscillations. The second principle is to fire the switch somewhat earlier tlxan 8.33 ms or less than 180 degrees following the voltage zero

274

Power System Restructuring and Deregulation

crossover. Earlier firing causes the impedance of the combined circuit to be more negative than that with the capacitor alone, thus de-tuning the circuit. F u r t h e ~ o r e ~ b~modulation of the firing angle, the impedance can have a powerful damping effect at any unwanted frequency below the main frequency. Similar effects can be achieved with HVDC controls. A l ~ e ~ a t i v e l ~ , filters can also be used. active
Transm

- time set
resonance damper

S controller for using a TCSC to damp out SSR-related problems was presented in [1 87. The new method controls the amount of voltage boost of the TCSC that makes it exhibit a virtually inductive impedance in the frequencies from 15 to 45 Hz where SSR problems may exist. Basically, the TCSC firing angle is modulated to provide damping at SSR frequencies.

he team at the Kayenta ASC [24] showed similar results that the TCSC exhibits an inductive impedance at sub-synchronous frequencies~ the danger from SSR and problems was alleviated. However, the main SSR danger resulted from the unco~troiled portion of the series capacitance in the transmission tine.

PE switches (either thyristors or GTO thyistors) can be used to interrupt AC currents. The thyristor depends on current interruption at the natural zero crossover point of the fault current, whereas the GTO thyristor may intempt at a specified current setting (which is below its interruption capability). Such static switches have been applied mainly to distribution systems where the switch ratings are lower [25]. The static breaker can have two parts in it, one a static switch and another a current limiter (Figure 8.1 1). When a fault is experienced, the c~rrent-~imiting switch is firstly triggered to take over the fault current, and the main static switch is opened. This forces the fault cment into the current-limiting path owing to the series inductive element. The non-linear arrestor across the static switch is used to contain the overvoltages [26].
arrestor

F i ~ ~ 8.1 1 Solid-state breaker and current limiter re

Flexible AC Transmission Systems (FACTS)

275

It is possible to consider the switching capability of thyristors to use as c u ~ e n limiters t in the application of TSCS in the future [27]. The increasing interest in FAC in paI~icularseems to indicate that fault-current-limiting functions can be economically added onto TSCS units. F u r t h e ~ o r e , these additional features lend themselves to be retrofitted to existing facilities.

8.4.4

Combined Series/Shunk Controllers

rh the transmitted real power and, in~e~ende~itiy, the reactive power flows at the sending and receiving ends of the transmission line. The UPFC consists of two GTO-based converters connected together by a DC link having a storage capacitor. This arrangement functions as an ideal AC to AC power converter in which real power can flow in either direction. Each converter can either generate or absorb reactive power at its own AC terminal. Converter 2 of the UPFC (Figure 8.22a) injects an AC voltage Vm of variable magnitude and angle in series with the line voltage thereby allowing the control of the phase angle between the resultant voltage and the line current. This injected voltage can be considered as a synchronous AC voltage source. The line current flows through this voltage source exchanging real and reactive power between it and the AC system. The real power exchanged is inverted into DC power and is stored in the DC link. The reactive power exchanged is generated internally by the converter. Converter 1 supplies or absorbs the real power required by converter 2 through the link. Inverter I can also generate or absorb reactive power as a shunt device from the line. Converter 1 can be operated independently of converter 2.

Parallel lransformer

V V

I
h

.I2 Unified power flow controller (UPFC)

The operation of the UPFC can fulfil the multiple functions of reactive shunt com~ensation, series compensation and phase shifting by ~nject~ng voltage Yw with a appropriate ampiitude and phase angle (Figure 8.12b). Comparisons between the UPFC and TCSC, and between the UPFC and TCFAR, are made in (281. Results from transient network ana~yser (TNA) simu~ations computer studies are also shown. An application and of this technique is presently underway at WAPA, located at Mead, and is rated for I060 NIVA (series injection) and 475 MVA (shunt compensation) capabiIi~,

276

Power System ~ ~ s t ~and Derenulation ~ c ~ u ~ n

concept (301 for the compensat~on power flow mana~ement multi-line transmission systems. In its general form, the IPFC of employs a number of converters with a common DC li each to ~rovideseries ~nsation a selected line of the ~ransmiss~on for system. cause of the c o ~ m DC o~ link, any inverter within the IPFC is able to transfer real power to my other and thereby faciiita~ereal power transfer among the lines of the transmission system. Since each is inve~er also able to provide reactive compensation, the IPFC is able to cany out an overall real and reactive power compensation of the total ~ a n s m i s s ~ ~ n system. This ~ a p a b i makes it possible to equalise both real and reactive power fl l~~ lines, ~ a n s f e power from overloaded to under loaded lines, c o m ~ ~ n s a t e r rops and the corresponding reactive line power, and to increase ng system against dynamic disturbances. In its simplest form, the IPFC

line I

.13 I ~ ~ ~ r ~ flow controller (IPFC) power i ~ e

fS

A s c h e n i ~ t i ~ a g r aof a phase shifter 1311 is sho ~~ m

a ~ c o r n p l by~adding or subtracting a variable vol ~ h~~

fkom a o ~ e is o~tained n~ have voltages p r ~ p ~ ~ i oto a l n be included or e x ~ ~ u d e ~ ' and 9 - along with the plus or e range of -13 to +13, thus gi var~able i g h ~ ~ control of the p e ~ e ~ d i ~ u l a r c o ~ p o n e n ~ . h pe~~ voltage

Flexible AC Transmission Systems (FACTS) VB

4 - -

77

V'

V'

V - Input voltage
i - Linecurrent

The principles of a pliase-shifting transformer (Figure 8.14a) with a thyristor tapchanger are discussed in [31]. Similar to a conventional phase~shifterwith a mechai~~cal switch, a c o n ~ ~ n u o ~ s l y variable, quadra~revoltage is injected in series with the transmiss~online v o ~ ~ (F'I ge 1. It uses three ~ i ~ f e r etnrta n s f o ~ e r wind~ng (in 3:9), with switch arrangements that can by-pass a winding or reverse its oduce a total of 27 steps using only 12 thyristors (of 3 different volta , There is no thyrisgor"con~o~1ed phase shifter in service ifter does not have the ability either to gener~te ~bsosb or reactive wer it absorbs or supplies must be suppl~ed absorbed or c a n s ~ o ~mustrbe locatea close to a ~eneration ~e to reactive power transfer. ~innesota Bower has deve~opeda novel and P single core/single tank &bangeconom~cversion o bang' %ype TCPAR which ical and thyristor switches. An advance^ phase sh ng voltage source inverters (VSIs) using 6 shown in Figure 8.12 in an earlier section. The converter 2 is used to inject v o ~ V,, in e ~ ~ series with the line. The phase relation~h~p this voltage V, to the line vol of a r b i ~ aas shown in the phasor d i a g r a ~Thus the injected voltage can be used fo ~, . ulat~on both. ~ u r t h e ~ o rthe VSI can itself generate or a ~ s o r b or e, all ompensating voltage injection. On the 0th must be provided by the AC sourc available). ~ w i t c h ~ n ~ converter 1 supp~~es or abs to dc link capacitor the real power involved in the overall compensation. Since CO handles only real ower, and as its AC side is in shunt with the transmis largely i~nmunefrom the effects of surge currents during any line faults. C o n ~ e r ~ e r 2, however, has to handle its total injection FA as well as any surge currents during faults. Consequen~iy, rating of converter I is smaller than converter 2. The phase shi~ter the of this type is econo~ical a total angle variation of 120 degrees. Above this value, the to rating of the injection converter becomes larger than the power transmitted through the line. In such a case, it might be economical to consider the approach of the HVDG back-to-

Power System Restructuring and Deregulation back c o n f i ~ ~ t i considered in Section 8.4.6. The advanced phase s h i ~ ehas the ability on r to control all three parameters affecting power ~ansmission:phase angle, voltage and edance. For this reason, it has also been called u n i ~ e d power flow contro~ler~ ~ P F C ) Il28l.

Strictly speaking, HVDC transmission does not fit in with the definition provided for ACTS controllers. However, HVDC systems have been a dominant player for such a long time in the usage of PE controllers for transmission that their role in promoting high PE c o n ~ o ~ l ecannot be overlooked. With the latest developments in PE t e c ~ o l H V ~ C rs o ~ sys~ems will play an even greater role embedded in AC systems. Trad~tiona~ly, HV ~ r ~ s m i s s i o nused only for special situations and applications: is ~ong-distance bulk power ~anmission where it was cheaper than the AC a l ~ e ~ a t i v e ~ back~~o-back asynchronous interconnections, and in~~rconnect~ons a submarine (or underground) cabie, using

ace ~ a f i s ~ ~ ~ s i ~ ~ iona transmission, power is electronically controlled, and hence an ~~~C line can be used to its fill thermal c e converters are adequate~y rated. line can help a p ~ a l ~AC line to el F u ~ h ~ ~ o r e , to its high-speed control, owing maintain stability (as long as the E'NDC con not sustain ~ ~ u ~ failures). o a ~ C ~ n s m i s s i o n used only for is ~ o w e v e r owing to its expensive impleme , special situations and appiications. An alternative a ~ ~ g e m with~a con~olledseries en capacitor in an owing transmission line may provide similar advantages at a lower cost. ~ o w e v ein ,i n t e ~ a AC-DC systems, it is now possible to have a DC link in parallel ~ ~d an ac link, Ln such systems, and there are a n ~ ~ b of r e such instances (i.e. Intertie, C h ~ d r ~ p u r - P ~ d ~ h e h e DC link can be used to increase the power tie, etc.), ~ a n s ~ i over the AC system and provide additional d ~ p i n when requ~red stability ~ed g for
ith the availability of GTO/IGBT converters, it is feasible to conside inverters feeding into very weak and even dead AC systems [34], which have no s ~ c h r o n o machines at all. Some of the problems previous~yassoc~atedw ~s terminal HVDC systems using conventional thyrigtors may now also be addressed with parallel taps using f o r c e ~ c o ~ u t a t e d converters. This means th consider multi~term~al C systems more sympathetica~~y. G systems can materialise, however, one additional device ects for this are excellent. opmen~ be the HVDC breaker; the will The practical d ~ f ~ c o f l impleme~tin~ T ~ - ~ a conve~ers for high u ~ ~ sed a p p l ~ c ~ ~ has n s the problem of operating GTQ devices in series. Some tec ~ o been by een suggested to build up the high voltage required for DC t r ~ s m ~ s s i o n using ~ ~ l t ~ - ~ n v e rin eseries [353, or the use o f mul~~-level t rs converters; in either case, capacitors are used to equalise the voltages across the ~ u ~ t i - c o n ~ e ~Thes economic er . vi~bi$i~ysuch t~chniques h i g h " v o ~ ~ app~ications far from clear at present. of for ge is

Flexible AC Transmission Systems (FACTS)

79

ac~-~o~ ~ ~ v ~ ~ e ~ s Up rill now both converters have been line-cominu~tedand therefore havs had control only over the direction of active power flow. With the use of self-commutated GTO converters (Figure 8.15), reactive and active power flow can now be controlted in any one of four ~uadrants, since there is no restriction &om the commutation voltage of the valves. Additionally, use of PWM techniques will assist in the minimisation of harmonics generated by the converters and lowering the overall cost of the terminal equipment. We can expect further applications o f BB ties at Iower cost and improved performance.

AC systm1 I

Active and reactive power can flow in either direction

AC system 2

.I5 Force-commutafed BB link

In this respect, two recent deve~opi~ents will have significant reper~uss~ons that for future ties are: capacitor commu~ated converters (CCC) [36], and controlled series capacitor converters (CSCC) 1373.
Both these t e c ~ i q u e s on utilising capacitors in series with the converter wit rely effect that the reactive power demande~ the converter is effectively compensat by the series capacitors. This i s a ~ u n d ~ e n tdeparture from the previous HVDC converter al practice o f empIoying shunt capacitors for reactive power compensation. The beneficial impacts o f the series capacitor are as follows:

The capacitor voltage assists in the commutation voltage for the converter which allows operation with a very weak AC system. Since the reactive power flow through the converter t r a n s f o ~ e ris reduc~d,the d~mension$ the converter t r a n s f o ~ ecan be reduced. of r The valve short circuit current is reduced to about 50% when ~omparedwith a c o n v ~ n ~ o nconverter. al Since the AC filter is reduced in size, the load rejection overvolfages are much smaller. Coupled with these trends, ~ a n u f a c ~ r eare now offering more efficient, cont~nuously rs tuned AC filters, active AC and DC filters, compact and modular outdoor valves and fully digital controls. These new concepts are going to reduce the cost of converters and improve reliability. A new g e n ~ r a t ~ ~DC cables is available based on polymeric i ~ s u ~ a tmater~a~ of n i n ~ instead of the classic paper-oil insulation. The mechanical strength, flexibility and low weight of the cables make them suitable for severe installation conditions. The cables use copper conductors for submarine usage and aluminium conductors for land usage. Land cables

be inst~lled under~ound plough~ngtec iques or go overhea by elopment of IGBT valves c the use of newly designed DC c to new app~ications, Usin es with switching f~equenc~es e new IGBT-based, VSCs are ~e1f"~omrnutated can c o n ~ o l and active and er flow. This reduces the size of co~ponentsrequired a ~ p r ~ c i ers are c o n s ~ c ~ e d a modular concept and are e n c l o s ~ ~ in i ng range can vary from 7- 60 over distances of 0- 1 lications scenarios are envis ith this concept:

ulk power ~ ~ i s ~ i s s ~ o n . eacctive li er controller, coupled wiek an active dilteri l-scale genera~ionfrom w i ~ d ,
ding of new r i ~ ~ ~ ~ omay w ~be ava~labIe. f - not y quaii~ control by iso~a~ing dis~rbing Ioads such as smelters. of appl~cat~ons a ~ r e a ~ y ~ ~ p with this ~ od c e p ~ have been Q ~ c ~ (T future pr~spects excellent. are

2 Gotland

50

i80

65

Async~~~ou ~terco~~6~ion

active and reacti

Flexible AC Transmission Systems (FACTS)

8.4.7

Other Controllers

These can comprise

(a) T~zyr~stor o ~ ~ r o -c

ected in series with a part o f a In this application a arrestor to lower the voltage limiting level dyn~mically.
(h) ~ ~ i y r i s t ~ ~ - ~ ~ ~ t r o ~ i e

This could be a regular t r a n s f o ~ e rwith a thy~s~or-controlled p - c h a ~ ~ or with a ta er thyristor-controlled AC-AG voltage converter of variable AC voltage, in series with the line. Such a reiatively low cost contro~ler be used for controlling the flow o f reactive can power between two AC systems.

s
8.5.1

svc

Northern States Power Co. ( ~ S o ~ ~ )i ~ n e s oUSA, has installed an SVC in i f ta~ power tr~smission network, a part of the ~anitoba-~innesota Trans~issi Project, the purpose of which is to increase the power i ~ ~ e r c h a n Wi~nipeg and the Twin Cities on existing transmis~~on lines. This solu~~on instead of build in^ a new line as it was found to be supeRor with respect to in utilisation as well as minimised e ~ v ~ ~ o n m eimpact. The main nta~ eneration and ~ a n s ~ i s s i osystems d y n a m ~response to ~ e ~ o r k n ~ also provides improv~ment during steady-s~ateconditio adequate reactive power support. Wi the SVC in operation, the po capabiIi~ f the y s t e ~ increase y some 200 MW. W i ~ o th t o has ~ would be evere~y1 ~ansrn~ssion a ~ a of the~ ~S~ n e ~ o r k ~ c i excessive voltage ~ u c ~ a t ~ following certain fault situations ons system, or to severe overvoi~a~es loss o f feeding power from at ~a~~ito~a. The system has a d y n ~ ~range of 450 MVAr inductive to 1000 ic 500 kV, r n a ~ i ~ g of the largest of its kind in the world. It consi it one chan~callyswitched capacitor banks required to control the ovewoltage e n o ~ h end~of the 500 kV line, The SVC consists of f x o t h ~ r i ~ t o r e sw~t~hed reactors ( T ~ ~and three ~yris~or-switch~d s) ca~acitors (TSCs). ratings are utilised only during severe d i s ~ r b a n c ~the 500 kV networ in ~ the SVC has been d~signed withs~nd to overvoltages up to 150 % of rated v o ~ ~ a g e for short periods (< 200 ms).

Power System ~

s and Deregulation~ ~ ~

essee Valley Authority teamed up with ~ e s t i n ~ ~ oto s e u install a 100 at TVAs Sullivan 500 kV s u b s ~ t ~ o n l ~ , l ~~o ]~ City. This ~ in on trated in 1995. The selection of this site was made to:

Test the full range of reactive power of the STATCON. Aid in damping the oscil~ations the TVA system fed in from the n e i g h b o ~ n g in AEP bus voltage during the daily load bu~ld-up that the 500/16 kV so 1 m e r bank can be used less often. bus at Sullivan during off-peak periods.
are c o ~ s i d e r ~ n ~ STATCON a p p ~ ~ c aonithe~C Q ~ O ~ W ~ ~ o d Electric Co. Some cost evaluations have been reported at 3 ~onference 121. [

8.5.3

TCS

i ~ a n u f a c ~ r e r s resently being tested in North are In 6991, AEP of Columbus, Ohio, with the ~ ~ u f a c ~ ~ e ~ k ~ r o t o switch of a single-~hase series capacitor b ~ at ~ e er sub~tion W. Virginia. Fo~~owing c c e s tests, a 788 in s~ s~~ A, 42 ohm series three-phase capacitor bank was installed. Each p consists of two p l a t f o ~ s one with both a 10% (7 , the other with the remain in^ 30% (21 ohm) s e ~ ~ e Power A u t h o r i ~( e first t~ee-phase TCSC 230 kV, 33 in Arizona [40]. For the requirement of inc ~ a n s i ~ i s s linen e ~ e e n ~o b Shiprock Subs~a~ion and Siemens~okia jointly agreed t yenta substation. In addition to the benefit of adjastable i ~ p e d a n c e ~ the ed reactor can provide high-speed pro~ectionof the 15 ohm capacitor section. ith n ~ a n u f a ~ ~GB e r ~ r successfully managed the install ptember 1993 on a 500 kV line at Slatt subs~tion the of TCSC consists of six series capacitor modules. Each modu~e has ohms at 60 Hz, in parallel with a ~~yr~sto~*control~ed of 0. inductor of the ~ o d ~isiachieved by firing angle control. e

Flexible AC Transmission Systems (FACTS)

Z$~

UPFC application was commissioned in mid 1998 at the Inez station of Kentucky for voltage support and power flow control. regulates the substation 138 kV bus voltage by controlling six capacitor banks Ars to reduce daily and seasonal voltage fluc~ations within acceptab~e to limits. The controllable rea~tive power range of the shunt converter is from -160 to t-160 ~ V A r s to Compensate for dynamic system disturbances. The PFC is maintained at a level of 300 N W on the line between ig Sandy and Inez to minimise system losses. Under severe contingency conditions, the UPFC controlle~ i s line capable of ~ a n s f e 950 MVA. ~n~ In order to increase the system reliability and provide flexibility changes, the UPFC installa~ion allows the operation of the shunt ~ d e ~ e n d e n tT A T ~ ~and the series converter as an independent S M ible to couple both converters together either in shunt or series over a double control

Each GTO converter is rated at I- 160MVA. The converter output is a t~ee-phas set of nearly sinu$oidal (48-pulse) quality. Each converter feeds an in transformer that is coupled to the transmission line via a conventional thr transformer is 50 % of the main Iran transformer. The rating of the i n t e ~ e ~ a t e The converters are c o n s ~ c t e d from three-level poles, each c o ~ p o s e d four valves. of This a~angement assists in waveform construction to facilitate harmonic elimination. Each converter employs 48 valves in 12 three-level poles with a nominal dc voltage o f + 12kV and -1 2 kV with respect to the mid point. The mid point voltage is maintained by ~ e a of ~ n a split capacitor and diode arrangement.

lation of the power i n d u s ~ [42], FACTS controllers will be r $ ~ u ~ r e d by power systems to ana age power flow to utilise transmission lines nearer to their t limits. The ability to transmit at higher transfer limits will necessitate to balance reliability and economy of operation of the power sys adoption of FACTS controllers, the following concerns o f the power industry ~ ~ toebed addressed: Transient ove~oltages. System restoration. Generator torsion behaviour. Power quality. Economic ~onsidera~ions cost benefits. and

ower System ~ e s t ~ c and n g ~

e ~ o n c e ~ study tools are require^ to test. the FACTS con~o~lers s, as c o n c e p ~ ~ ~ prototypes or before the er c o ~ ~ e service), The r ~ ~ a ~ ) and the red-time power on ~ l e c ~ o m a ~ e t i c transient pro ly available. Noweve these c o n ~ o l l e r s still are
Owing to the capital costs involved, FACTS d e s ~ ~ ewill seek to add featur rs FACT^ c o n ~ o ~ l e ~viable, such as the feature of fault c ~ ~ l ie ~ t i~with more mn n~ FOP the a p ~ ~ ~ c a t of n ~ A T ~ O N ~ , i o ST value may be % ~ d if fd a ~ r e s ~ e such ondition~ng(I.e. h a ~ i ~ n cancellation) can also be provided along with ic ower.

The author pays tribute to the many pioneers whose vision o f the FA led to the rapid evolution of the power industry. Although it i o f them i n d i v i d ~ a l ~ y ~c o n ~ ~ b ~ t iofn s N, ~ i n ~ o ~ ~ i o Drs The author also than s wife Vinay for her considerabIe this ~ a ~ ~ s c r i ~ ~ .

i, FACTS - flexible ac ~ansmission systems, IEE ~ n f e r n a ~ i ~Conference on nal wer Transmission, 1991, pp.1-7. mgorani and L. Gyugyi, ~ n ~ e ~ s t a n ~ i n ~ FACTS - Concepts and Techno AG T r a n s m ~ s Systems, IEEE Press, 2000 ~o~ L.Gyugyi, Solid-state control of electric power in AC ~ m i s s i systems, Interiiational o ~ ~ ~ m p ~on Electric Energy Converters in Power Systems, Invited Paper No. T-IP. 4, Capsi, s i u ~ Italy, 1989, PACTS Overview, XEEE PES Working Group Report and CIGRE ~ n f ~ r n a t iConference on on~ Large High voltage Electric Systems, Chairmen: E.Lassen and T. Weaver, April 1995 T V.K. Sood, Position Paper on FACTS T e c l ~ o l o ~Canadian Electrical Aociation~ o n ~ c t y, C CEA ST-460, March 1995. A. Erinmez, Ed, Static Var Compensators, Working Croup 38-01, Task Force N o 2 on SVC,
undamentals of thyristor controlled static var compensators in electric power system app~i~ations, Special pub~ication 7 ~ 0 1 $ 7 - ~ e- ~~n in 1987. EEE ~ p ~ e d, ~ ~ A. ~ a ~ a A ~, l y s of~power system s ~ a ~ ~ ~ n c ~ m by static var compena~o~s~ d i e i l ~ e en~ IEEE Transactions on Power Systems, Vol.PwRs-1, No.4, November 1986. . Machur, S u p p l e ~ ~tota b ~ b l i o ~ a p h ~ VAR co~pensa~ors n for static (SVC) and r e ~ a ~ flexible ac transmission system (FACTS~ ed devices [ 1988-19941. C.Schauder et al., ~ e ~ e l o p m ~a~100 MVAr static condenser for voltage control of of t ~ a n s ~ ~ s s ~ toen~ s IEEE ~~ansactjons Power Delivery, Vol. 10, No.3, July 1995, ~i , on pp. 1486- 1496. . Mehta, et al., Static condenser for flexible ac transmission aystems3 EPRi FACTS ~ ~ n ~ e 2: Tn 101784, ~ e e t i n g May 1992, Procee ~ Rc e in

Flexible AC Transmission Systems (FACTS)

1121 A. Ekstrom et al., Studies of the performance of an advanced static Var compensator, STATCON, as compared with the conventional SVC - EPFU Project ~ - 3 0 2 3 EPRI ~ ~ FACTS3 Confere~ce, Baltimore, ~ a ~ l a nOctober 1994. d. ittlestadt, Four methods of power system damping, B E E T r a n s ~ t ono Power ~ ~ Apparatus and Systems, Vol.PAS-89,NOS, May 1968. [141 P. woo^, Study of impro~ed Ioad-tap-changing for ~ r ~ ~ f o ~ e r s damping improvement [l4] C. Wu and U. Lee, Applica~ionof simultaneous active and reactive power modula~ionof super~condiicting magnetic energy storage unit to damp turbine-gene~torsu~sync~onous osci~lat~ons, Transactions on Emrgy Conversion, Vo1.8, No. 1, March 1993, IEEE ava and G. Dishaw, A~plication an energy source power system stabilizer on the of battery energy storage system at Chino substation, IEEE Trunsact~o~s Power on Vo1.13, No.1, February 1998 A [ 181 L. Angquist, 6. Ingesbrorn, and H. Othman, Synchronous voltage reversal new control method for thyristor controlled series capacitors, E P FA ~ ore, aryland. October 1994. nl by [ 191 M. Gavrilovic, 6. Robcrge, P. Pelletier, J-C. Soumagne, Reactive and acti means of variable reactances, 11th Pan-Amerjean Congress (COP1 treal, Nove~ber 1987, P, Pelletier, F. Beauregard and 6. MO&, hterphase power controller r m ~ a g i n power flow w~thin networks, IEEE Transuc~ions Power g ac on Vo1.9,N0.2, Apfil 1994, ~ ~ . 8 3 3 - ~ 4 1 . [a I] K.R. Sen, S T A T C - Static synchronous compensator: Theory, modeling a d applica~j~ns, ~~ i IEEE PES Winter Meeting, 1999, pp.1177-1183. E221 N.G. ~ ~ n g o rA new scheme of sub-synchronous ~ s o n a n c e ~i, damping of ~orsiona~ oscillations and transient torque - Parts I and U, IEEE Transmtions on PO $yst@ms, Vo~.PAS-~ N0.4, April 1981, and IEEE PE$ Summer ~ e e t ~ n g 00,

/23] J.W. Ballance and S. Goldberg, ~ubsynchro~ous resonance in series c ~ m p ~ i s ~ ~ e d transmission lines, IEEE Trunsu~tions Power ~ p p a r a and Systems, Vol. on t~ rolled series compensstion to avoid

[25] T. Ueda et al., Solid state current limiter for power d i s ~ b u t ~ system, l E E ~ransactions on ~ an Power Delivery, Vol.$, No.4, 1993, pp.1994-1801 . Saarkwzi, E.J. Stacey, J.J. Bank and N. t261 dis~ribu~ion current limiter and circuit breaker: Application requiremen~s lE## Transactionson Power &divery, IIo1.8, No.3, July 1993, pp.1155-1 arady, Co~ceptof a ~ m b i ~ e d circuit limiter and series c o ~ p e ~ s a t ofEEE short ~, ~ 7 3 ~ r a n s a ~ ~ i on Pawer Delivery, Vol.6, No.3, July 1991, pp.103~-1037. ans [28] L. Gyugyi et al., The unified power flow control controller for i n ~ e p e n d e ~and P ~ control in. transm~ssion systems, FACTS3, Baltimore, M ~ l a n d~ c t o b e 1994. , r

286

Power System Restructufing and Deregulation

[30]

[32]

[33]

1361

[37]

[38]
E391
[40]

[41]

[44]

.K. Sen and E. Stacey, UPFC - Unified power flow controller: Theory, odel ling and applications, IEEE Transactions on Power Delivery, Vol. 13, No.4, October 1998, pp.14531460. L. Gyugyi, K. Sen and C. Schauder, Thc interline power flow controller concept: A new approach to power flow management in transmission systems, IEEE Transactions on Power Delivery, Vol.14, No.3, July 1999, pp.1115-1123 asati, A thyristor controlled static phase shifter for ac power transmission, E E I i Transactions on Power Apparatus and Systems, Vol.PAS-~OO, No.5, May 1981, pp.2~50-265~. R. Baker, 6. Guth, W. Egli and P. Elgin, Control algorithm far a static phase shifting transformer to enhance transient and dynamic stability o f large power systems, IEEE Transactions on Power Apparatus and System, Vol.PAS-101, No.9, S e p ~ e ~ b1982. er J. Kappenman et al., Thyristor controlled phase angle regulator applications and concepts for the Minneso~-Ontario Interconnections, EPH FACTS3 Conference, Baltimore, M a r y ~ a n ~ Oct 1994. ood, Position paper for Canadian Electrical Association on Artificially ~ o ~ u t a ~ e d Inverters, March 1989, Contract No. ST-174B. ng, J. Kuang, X. Wang and B. Ooi, force-commutated NNDC and SVC based on phase-shifted multi-converter modules, IEEE Transactions on Poww Delivery,Vo1.8, N0.2, April 1993, pp.712-718. T. Jonsson and P. Bjorklund, Capacitor Commutated Converters for HVDC, Paper SPT PE 02-03-0366, IEEE/KTH Stockholm Power Tech Conference,Stockholm, Sweden, June 1995. K. Sadek, M. Pereira, D. Brandt. A. Gole and A. Daneshpooy, Capacitor c o ~ u ~ a t e d converter circuit c o n ~ ~ r a t i o n s DC transmission, IEEE Transactions on Power DeZivery, for Vo1.13, No.4, October 1998, pp.1259-1264. J. Vithaya~hil, Bjorklund and W. Mittlestadt, DC systems with t ~ n s f o ~ e r l econverters, P. ss IEEE Transactions on Power Delivery, Vol.10, No.3, July 1995, p~.1499-15~4. A. Keri, A. Mehrbahn and P. Halvarsson, AEP expenence with the 788 Mvas series capaca n d . itors and the controlled thyristor switch, EPRI FACTS3, ~ a I t i ~ o r~e , ~ ~ aOctober 1994. N.Christl, ct al., Advanced series compensation with variable impedance, EPRl Conferen~e I on FACTS, Cincinnati, Ohio, November 1990. Proc. March 1992, EPN TR-100504, Project 3022, J.Urbank et al., Thyristor controlled series compensation prototype installation at the Slatt 500 substation, IEEE Transactions on Power Deliwy, Vo1.8, No.3, July 1993, pp. 1460-1469. enderson, Operating issues for FACTS devices An operations p l ~ i n p e ~ ~ e c ~ i v e , g EPN FACTS3, Baltimore, Maryland. October 1994. Sen, SSSC Static Synchronous Series Compensator: Theory, modeling and applications,IEEE Transactions on Power Delivery, Vol. 13, No. 1, January 1998. L. Gyugyi, 6. Schauder and K. Sen, Static synchronous series compensator: A solid state approach to the series compensation of transmission lines, IEEE Transactions on Power Delivery, V01.12, No.1, July 1997,pp.406-417.
~ ~

Kevin Morton London Electricity Group UK

Cliff Walton London Electricity Group UK

Asset management has been one of the most debated topics over the past decade, yet ofien those words are used to label some very different processes. Asset management can range from the ma~ntenanc~ renewal regime associated with a specific indiv~dual group of and or assets to the management of a multi-billion-pound international portfolio of networks of assets spanning a range of industries. This introduction explores the drivers of the development of asset m ~ a g ~ m e n ~ a UK electricity distribution ~erspective.The from drivers for change have most often arisen from regulatory initiatives or from the ~nancial position of new owners, with asset management evolving to meet each new challenge. U n d e r s ~ d i n g drivers gives an insight as to why asset manage men^ means ~ ~ f f e r e n t the things to different players depending on where they are in the resmchtring of their business.

In the years i~mediatelybefore privatisation, the electricity indushy 's finances and investments were very much Treasury driven to meet the public sector borrowing requirements. Compet~ng demands for government investment meant that most e l ~ c ~ i c i ~ companies were required to curtail capital investment and were given annual targets to return cash to the Treasury. At this stage of developm~n~ management was normally considered synon asset with time-based planned maintenance. However, the constraint on the capital expendi~re (Capex) investment meant that as little in the way of reinforcement or renewal was possible assets were and this brought about a focus of improving asset utilisation. U n s a t i s f a ~ t o ~

lation

removed and wherev~r possib~e replaced, whilst ~ d e ~ ~ i l i s e ~ recov~re not p~ant was reloca~ed meet load ~ o ~ h . to onal areas with local olicies a n ~ o inte retation of policy rn r su~tingin ~ i d e ~ y Is, unit costs and performance of networks. en business o~erating units was used to drive lowe utilisation but the availa~ilityof c rmance proved to be a limitation a b ~ the ac~uracy the statisticsbetween rivals. u~ of

~ r i ~ a ~ i s ~ t i o~n a gho ~ e ~s~ e nto ~ v~ t realise the c o ~ s i d ~ cap ~ ~ ab at the same time free industries from the cons ~euiremen~s. Prices in the UR were initially set vi rec~iving ~ o ~ t i v e ~ h e r ~ b y a b l ~ ~ perceiv~d a x, en the nts to be hnded by the new investors. ut the new sha~eholdersbrought about a strong ~ r o d~ i ~ e r staff num r t for fall, which in turn b ~ o about ~ u ~

Asset ~ a m a ~ ~ r l s eprovider business models beg^ to be a d o ~ ~ e ~ice but in a variety o f ~ o ~Often initi~~ly service level a g r e e ~ e n s . with ~al relatively small asset ~ ~ a g group~and i nn~ e~ semi provider conb-actors, some e ~ a ~ i moved to adopt ~ o ~ c a n1~ a c b se ~ e the~p ies and ou~ource ~ ~ s o ~ e non~core s a c ~ ~ v i ~e x t e ~ c~mpanies. b e n e ~ t were seen to be: to i ~ s a ~ g ~ p e r a ~ i n g p e n d i ~( e ~x r rent ~ v e sdeci ~ t ~ ecisions from the doing, ed a d~~ferent set f ~ o m ~xecut~on. skill the changes in pract~ces an g to be contracted out b the ~ ~ o $ t fied gets done (or

These chan~esmeant that comp

to acquire additional s ision making enabled a i d expertise enabling Iarg

t e c ~ i c astaff. l The asset manager/servi~eprovider model has met with mixed su drivers o f the service provider not neces become ~onfron~ationa~ with those of the asset m 0th sides need experts, one to specify and o

d successive year-on-ye
o f unspeci~ed pena~ties an

e achievement of (c~mp~y- set^ per World class studies, bench~arking b~siness and process re-en~ineenng. Considera~ion a whole life approach towards vestment. of Org~~isatio~s moving towards a three-layer model as they begin to s e ~ a ~ ~ a~ership from o~erationa~ ~ a g ~ m e n ~ : m a Strategy b Asset m ~ a g e m e n t c Service provide^ A more accountable set of relat~onshi~s specifying what needs the doing to the a c c o u n ~ unit.e ~~ ~ ~ a t e g asset ~ a n a g e m ~ approacl~to u n d e r s ~ d i n gwhere value is c r e ~ ~ e ic nt destroyed, s ~ ~ r n ~in thed estion - where best to invest the next poun~? s e cenario ~ a ~ y to ~ s s i n v e s ~ e n tstrategies that are most i r ~ ~ u ~and t o ~ ~ ~ a l a c x ~

The second half of the 1390s

Power System ~

~ and c

Data mining, fault causation analysis and targeting of worst-s customers and most ve to operate n e ~ o r k s . dition monitoring to inforni selective refurbishment or renewal. a b i ~ i ~ - c e n ~ e d engineer~ng mainten~ce. design, and ing dormant and problem assets and imprQvingasset y capital project management for smaller and smatle ~ a l u e - b a ~ procL~remen~. ed ovation in technology and processes.

for past i n v e s ~ e n t an some 9 m o n t ~ s ahead end of the five year review period. At the same time indications of future income caps and ~ e r f o ~ a ntargets were published with 50% of the savings from mergers clawed back. ce The im~ediate reaction by PESs to the regulators initial tho~ghts depen~ed upon the robustness of their asset management scenario planning and their long-term strategic intent. Some cQntinued much as before but overall the publication of the initial r~view results created a drama~~c in capital i n v e s ~ e n orders and in the asset replacement con~acts fall t
h limited rewards for excellent p e r f o ~ a n c e and p ~ d ~ capital i n v e ~ ~ e nthe nt t, switched fixed resources onto those targets they saw as ~ a v ~ n g a good ieving without additional investment, whilst ~ o ~ - p e ~on ~ ~ n g l those that require^ investment and additional resources.

prices cut by 20-35% per-unit from r 3% per-unit price reductions for 4 ency savings of 19%-29%.

PESs from April 2001

and aggregation costs ~ a n s f e ~ to d e supply. The role of dis~ibution redefined and almost all customer service costs transferred to al~owed of return (good asset m ~ a ~ e mcan~deliver more). rate e t A metering ~ ~ ~ p e t ~ t ~ o ~ from April 2000. Agreeme~t a business separation comp~iance on plan. P e r ~ o ~ a ntargets set by the regu~ator. ce I n f ~ ~ a t i and incentives project to come. on ce savings whilst ~mprovingcustomer It is a major cha$~enge deliver the DPC to suggestion from the regulator is that service: with an uncertain incentive mechanis o r ~ companies will be placed within an incentive ~ ~ e wintended to mimic a competitive

Asset ~ a n a g e ~ ~ n t

91

inarket with Gompanies that do least well in meeting their agreed targets financially rew~ding those com~anies do best by an exchange of penalty payments. that The uncertainty posed by Ofgems Information and Incentives Project in terms of what will be incentivised, how p e r f o ~ a n c ewill be defined and measured has for many companies effectively extended the moratorium in investment. Companies need to consider how the required scale economies can be effected whilst at the same time d e ~ i v e ~improving p ~ r f o ~ ~Some. companies may choose to ~ e f e ~ i~g ce major new ~ n v e s ~ ~ commitments and perhaps org~isationalchanges until there is ent greater clarity about the rules of the next round of the regulatory game, but this brin own risks of failure to deliver required improve~ents sufficiently quickly. The u n c e ~ ~ n ~ high~i~hts need for a robust frameworks for modelling and valuing the impacts of the the various organisational and investment opportunities against a range of scenarios. The scope of asset management has developed with each previous sta r e s t r ~ c ~ r i n gthe d~stributio~ of business and is therefore set to do so again. For companies already recognised by the regulator as being frontier efEcient or as leaders in effective asset management, but still being presented with a very si in r~gula~ed income, a her radical change is essential to achieve the r change in results and still remain at the frontier. ~ o ~ b i n i the manage~ent the two power distribution networks ng of ven~re company (2~seven)is LES and TXUs innovative response ~ e r f o ~ challenge. Creating an outsourcing a ~ a n g e ~ with~ the tran ~ ~ c e en vehicles and tools, etc., allows the shaxing of expensive ~esou~ces, G ~ S U as offices, IT, control, s~ategicana~ys~s research, applying best practice and optimum solutions and delivering a range of services at best value for allowing each company to retain is ownership, distribution licence and to unique com~etitivearke et position should this be appropriate. Such an approach creates the driver for the next evolutionary phase of asset m ~ a g e m e n tand requires the separa~ingout and future comp~titive assignme~tof the responsibilit~es e ~ e e asset owner, asset governor, asset manager and operators. b n

The owner of major sets of utility assets, whether it be a gov~rnment,~ u ~ t ~ n a t i Q n a ~ co~oration,publicly quoted c o m p or ~ ~ i c i p a lcooperative, will n o ~ a l l y ~ m have a relatively small set of strategic objectives it is seeking to achieve by its ownership, e.g. ansion etc. It will not normally wish to concern itself with the detailed ~ ~ ~ c ~ a~ ~uor~ e c t~ im a n~ g ~ e nof the assets but mere~y s a ~ i s ~ at r i ,~ ~ oc ~ a a t to they are in the hands of an effective governor who can reliably deliver its i C objectives with Erontier ef~ciency effectiveness. and
ASS

nc

~ e p ~ a t i nout the respons~bilities of governance from those of o ~ e r s h g management and operations to an organ~$ationdedicated to the creation and release of value t ~ o u g h effective m ~ a g e m e nand exploitation of the assets. the t

92

ower System ~ e ~ ~ c ~ r ~ I i ~ ~ l a t i o ~ and i e r ~

The asset ~ o v e r n ~ concept provides for even a n o n ~ t e c ~ i corgan~sat~on ce al to from the ownership of a world class set of distribution assets and services with l~mi~ed d with a minimal stafX s new to the e ~ e c ~ cindustry but s ~ m ioppo ities exist in other ~ty l~ d ~ s see indus~es such as rail m a i ~ o where the own~rs the need to a1 ef~ciencyand returns s i g n ~ ~ c a n ~ yhave other major an but ial o p p o ~ i t i e to commit their ~ a ~ a g e m etime to. s nt ~ ~ ~ ~ l a t supply business satisfaction, income ~ a ~ i ~ i sandt value ~ compliance, o ~ a ~ o e~eration re~uire different skill set from the ~ a n a g e ~ eof t~ ~ d i v ~ sds uor s of a n ~ ~ ~ sets t

se, a v a i l ~ b i l i ~ , capacity and income ge~erationfrom

g and actively managing the portfolio of risks. developing network assets to match new ~ a r k e t sfor

sition with respect to frontier e ~ c i e n rc e ~ ~ a t o ~ ~

es arising from the removal of geo

~ompeti~ive cons~aints. allows economies of d maxim~s~ng returns from the

sibly unique arke et p~sition

ent and operations to be ~ o n ~ a cout to the mo te~

r r ~ c i ~role of the asset governor is ~ e ~ e f oasean al e ~ ~ e ~ tand e i v efficient in the g o v e ~ owill require ntier u ~ d e r s t ~ ~of: g r

vol~mesof servic lity of work done and the value add^^ s and s ~ n d a r neces ~s to evel lop and renew con~act

also discharge a ran of the owner that cann

Power System Reshucturina and D e r ~ ~ ~ a t i o n

As has been seen, asset manage men^ is given a wide variety of int industry and even within the electricity supply industry. Even with i n t e ~ r ~ t ~mayochange with time particularly as the com~any ~i n learn ~ypically,asset manage men^ has been seen as the core of the d being p~marily responsible for the strategy of the network and both are derived through teamwork and cooperation throughout main areas of focus are asset and network p e r f o ~ a n c e ~ policy and s t a n ~ ~ di s , e s ~ e n t nv work reduction and a v o i d ~ c ewith , and operating costs. The focus on the latter is t ~ o u g h the operational groups focusing on productivity issues.

Data is the essential ~ ~ ~ e dto e n ~ asset ma~agement.The asset man i effective process adds value by converting this data into decisions, which reduce the o v ~ ~ a l ~ ycle cost of the network. n service ~ifecyc~e can be ~ r o k e ~ into ~ r e ~ ~ s t i n areas: ~nstallation, costs down e ct However, one o f the major factors in operations & maintenance and d e c o ~ i s s i o n i n g ~ of the asset. ~ n s ~ l anda ~ ~ ~ d e ~ ~ i n i n g overall lifecycle cost is the actual the at the concep~alstage of a deco~~issioning cost ave adi it ion ally been evalu intenmce costs being considered over a fixed project, with operating gers today are faced with d ~ i s i o ons whe ~ p a ~ i c ~ asset. Asset ~ar

invest, but also have a responsibility for the much wider issue of the exisli For all these existing assets, decisions must be taken which reduce the CO asset in service and extending the period for which the ass& provides sati this i s the essence of asset m The i m ~ o r ~ aquestion Asset Managers must ask themselves is: nt

If the answer is yes then the task is s ~ a i g h t f o ~ a-r we simply record the age of our assets d and replace them at the correct time to prevent them becoming a safety hazard to staff, d i s ~ ~ ~ t i n ~ our customers, or becoming expensive to m a ~ n ~ a ~ , service to Life just isnt that simple. Assets age at different rates depend in^ on the nature o f the duty imposed on them, the environment which they inhabit, the way they were well as a whole host of other c o n ~ b u t factors. Even if we are able to no o~ ageing process it is still necessary to be able to predict the life span for each we are to avoid replacing plant too early, or allowing our service level to deteri Tools exist to enable us to d e t e ~ i n e condition of some of our the condition of the asset is far more i m p o ~ nthan its age. The present conditi t of how well the asset has aged over time.

Co~~dition o n i ~has ~come c o ~ o n p ~ a in e number of asset-inte ~ r g c a It has the potential for e ~ m p l i c a t e ~ information systems to capture pre about ~ a ~ i c u laspects of an assets p e r f o ~ a n e e present them in a us ar and to fac~l~tate decision m ~ i n g maintenance regimes and replacement on vides the opportunity for an operator to inspect visu on, a piece of equip men^ and report whether a n y ~ h i n ~ change since the last visit. has e ~ and Taken to its other e x ~ r e ~it ,could mean a fully auto~ated o n i t ~ r i n g r e ~ o ~ i n ~ system complete with e ~ ~ y - w ~ ai ln gs for an indication of wear or %heneed for m ma~ntenance. The degree of c ity is a major factor in whether the cost o f c can be ~ e c o v e r e ~ b ed m a ~ ~ t e n a costs, higher utilisation, ex nc~ manage men^ of risk here i s little point in just mo~itor~ng the t r a n s f o ~ e ron a re r basis, via expensi~eanalytical e ~ u i p oil sample will provide a more reliable i i ~ e x p e ~ ~ analysis s~ve wear or ~otentialfailure. If neither of these t e c ~ i ~ u e s enable accurate pred or in s fai~ure, reduc~ion main~enance,then we must question their u s e ~ ~ n e ins management process. tage of condition~~ased monitoring is that it allows the as ree o f con~dence how the assets are p e r f o ~ i n g in and le Eime-based preventative maintenance. In short, it provides the the cost of maintenance and extend the life of the asset. If re

Power System ~ e s ~ u c t and g ~n

it or in^ is carried out and records collated, a foo I for each item of established and trends monitored. This can be useful for predicting potential f a ~ l ~ ~ s correct~ve a i ~ ~ n ~ c e m Lace, which is normal~y expensive than less g a catas~ophic a i l ~ e . f ines for ~ n a c c ~ ~ tperformance are unavai~able, ~ble collati pu~ation enables Qut~iers be identi~ed e x a ~ i n e d to and ~ e g r e e comp~exityof the rnonito of remain %hesame - decide on the criteria for perfomm ind~catorof po&entialv ~ i a t i o n from this s ~ and ~ ~ d point in con~~nuousl or of wear is the time it take
ring equipmen% techni~ues ~ ~ e n availab~e the and are t ~ y to following sections detail a selection of some of those e

many aspects of a transformer which can be monitQ~ed. simple but e f f ~ t ~ v e One form this is ach~eved mon~tors the level of moisture in the insul i vis~ialiy inspect~ng colour of the silica the r e f ~ g e ~ b ~ e ~ ~ ~ e r s actively redu ~ed which , s if the ~ o i s t u r level should rapidly increase. e eing process can effectively be slowed ~o~ r. London Electricity has effectively employed level of m o ~ s t ~within the tram re A more d e ~ i ~ ~ d c ~of the condition e i r e out dissolved gas analysis (DGA) on a sampl sent and what activity is likely to h ite equip~ent provide a coarse i n d ~ c a ~ ibyn , to ~ carbon ~ n o n o ~ i d e monitor. This provides a$so~iated with overheating, elec set levels. This provides the opp lant arising and actual and moisture content tests can also of the c o n d ~ t i o ~ %he l ~ We can of p t ~

Asset ~ ~ a g e m e n t

not simply the num duty of the contacts

continuously loaded profile in Outer ~ o ~ ~ o n . trials are now in progress to s i ~ u ~ amany yews' w o ~ h te o onths. ~ n s p ~ of o n oil and contacts at various i n t ~ ~ ~ ~ the enable us to c o ~ our initial asse~ionand d i ~ ~ e ~ ~ within these trials s e t e ~ ~ n i ma~ntenance ng intervals for diffe~ently loaded ~ a n f o ~ ~ r ~ "

9.13.3
Apart from the routine oil condition tests mentioned ~ r e v i o u s l ~ , circuit breaker t~mers e arnoun~ wear on the o ~ e r a ~ imec~anism be ~ o n ~ t o r e~ .~ n d ~ n e c ~ i of n to d o ~ e se of a simple and inex~ensive ctronic timer when carrying out op

ry ins~ection (~ressure Vessel

9.13.
city makes e x t ~ s i v e of infrared detectors and t h e ~ o v i s ~ o n use c ts caused by loose c o ~ e c t i o n s worn c lings on exposed b ~ s ~ aors or r

Ith check nion~torsare used to check for excesive vi~rationmd h ~ n c e mon~tor e c h a n ~ c a l on th ~ ear ~ a n s f o ~cooling s y s t e ~ er s. The i ~ i ~ ~is~notoar vibration t truest sense since it is basi ic evice, w ~ i assi~iilates ~ h noise with wear. in~er~ereiice detectors are c monitor d ~ s c h a activi ta r~~ ~ o ~ a transient earth ~ o l (TEV) e b l ~ ~ ~ of the d i s c ~ a ra~ t~ v i ~ ,or c c i o sirnil~ ~ ~ ~ ion. ~ o ~ ~ n ~ m ou i~o r iis ~ u o n t ~ a1so availabl on it or 'leaky' ~ l a ~This can t.

compile a f o o ~ r i n t a particular substation. Where a high level of le for monito~ng equipment with pre-set a1 vels and potential failure.

Understand~~g Long-term Asset Costs

If we are to ~nders~and long-term costs of employing assets, then we must have a good the ~ d ~ r s ~ dof n g they perform in service and what t e c ~ i ~ u can be e ~ p ~ o y e d i how es to xtend asset life or reduce the level of main~enance required, to them in service. As ind~cated in the previous section, purely ti~e-basedmainten ent being ma~ntainedtoo early or too late. In both case unneces~e~ ~ ~ n d i ~ r e , ax therefore need to develop a data model of the asset, which can a c c ~ ~ t ereflect Its ly n, m a i n ~ e n ~requirements and life span. In many cases this can be ce wealth of historical data, coupled with on-line indication of performance. ~ n f o ~ a t e l y this is not a~ways case and we are left with the problem of developing a model based on the tions and very little feedback from the asset itself. toring of assets is not of the pop~ation, accessi sampling techniques to e n based on tests performed on ~ I e c t ~iscthe~ d e ~ g r co ~ d i ~

~ ~ d e ~ g Cables n d r ~ ~
V and 17500 km of LV under The s ~ ~ o n network consists of 8500 da~ cable. The e n v i r o ~ e nin which it exists makes it difficult to mon~tor, l n e r a b to e t ~ ~ ~hirdularly with the high level of excavation a c ~ vw i~~ i n i t Lon~on, and network account for nearly two-th~dsof the inte s ~ a ~ e g i c a ~ ~py o ~ to the com~any. im t d cables, investment must be targete r e a c ~ n the end of their useful life. g It is essential, therefore, that we are able to derive a meaure ~ n d i v ~circuits and even localised sections ~~al on a circuit has ~adi~ionally been accepted e f ~ ~ c t ~The assumption has been that the per v~~y. failures against asset life, or at least the middle this approach is owing when the particular asset has re f a i ~ ~ r ewithout the volume of these failures seriously s, need to consider the generic model of the ba focus on the bottom ~ o ~ of the curve. o n Figure 9.2 d e m Q ~ s ~ taeseries of curves with v a ~ i n g s rates of fai~ure their life span. The ideal situation would enable us t o ntifj small increases dicted by the latter as the b e g i ~ ~ n ga steep increase i the failure of n

~ ~ d i c a tthat the slope on many of the small va~ations s es is

10

;3 1

40

50

txl
How long?

ath tub curve p r e d ~ ~failure mode t~v~

entify some other means of in^ tanda~ds network of

edicting ~ a ~ lif wee are to a v o i ~ ~r

9.13.7

bles
lem is to analyse the fau~ts cable or joint being an to lead to similar failur s provides the crucial key d where they are most likely to occur. o ~ r ~ modes of failure: m a ~

t~geted con~ition monitoring t e c ~ i q u e s i tify i n ~ i ~ i d ucirc~its can al with of failure, Some of the condition m o n i t o ~ techniques includ~: ~g Tan 8 and delta tan 6 Zero sequence impedance P a ~ i ad i s c ~ ~ mapping l ge time domain reflectrometry.
E: Cable failure from overloading itself is rare but most f a i i ~ e c s to thermal runaway in the insulation ~ o i in ~ insu~a~on. a n u f a c ~ ~ n d the M c o m ~ a r a ~ i ~rare in the UK. Condit ely

Partial discharge mapping ~~~lectic Loss angle (Tan 6) ielectric Loss angle with voltage ( al imaging of t e ~ ~ a t i o n s onic aging and ~ i s c h a r detection ~e uted ~ e m ~ e r asensing using fiber optics ~re series of tests have pressure test as an indi re ~ x ~ ~ n stests h ive e ~ e a s u r e ~ ~The. Q ~ j e c ~ ofe these 0th nt v p e ~ f o ~ a n ofe the re~ainder the circuit, c of contin~i~y.

9.13.

.3 Partial discharge map of 1i kV circuit

es have been lo eloped at

the circuits in ~ o ~ ~ i s s ~ o n ~

302

Power System Restructuring and ~ere~ulation

.4 Zero sequence impedance values for 1 1 kV circuits

ers expectations for the reliability of e ~ e c ~supply have signi~cantly c i ~ increased these expec~tions, the in the last 30 years and this trend is likely to continue. Reflecti~g regulator monitors closely the performance of the electricity distribution companies and strongly encourages them to reduce the number and the duration o f service i n t e ~ p ~ i o ~ s . Some of these i n ~ ~ ~ pare theounavoi~ab~e t ~ ~ s consequence of essential m a i ~ ~ e ~ a n c e or repair work, A few results from operating errors while a significant number are caused by acciden~l intentional damage to the equipment. However, a large majority of these or outages is caused by ~quipinent failures. The rate of occurrence of intemptions caused by premature ageing or deterioration could be reduced if ail the installed equipment were replaced by new equipment.

Asset -~ ~ a g e m ~ n t

303

~ o n s i d e ~ n g enormous investment that such a replacement would represent and the the in the demand for electricity, this re~rbishment must be d of time, To optiinise this replacement pro~amme, is it in new equipment are likely to have the largest effect on the reliability of service, i.e. to know which equipment is most likely to fail soon and ought to be replaced first, If failures occurred on a purely random basis, rep~acing piece of equipment would any have the same effect on system reliability. On the other hand, if it was possible to show that a single factor (e. insulation used for cables) has a much stronger negative influence on the any other factor, the replacement policy would be simple: all cables ~nsulationshould be replaced first. A review of the existing literatu suggest that the actual situation is considerably more complex than either of these extremes, For example, while it is clear that cable failures do not occur on a purely r ~ ~ a number of factors seem to contribute to their probability of failure. These factors include age of the cable, the method of installa~on, type and the e cable is buried, the instantaneous and historical loading of the circuit and the previous o c c ~ e n c of faults in a particular cable section. e Faults are comparative~y given the asset base and have multip~e rare causes. As a resu~t, chance is the scourge of fault research. The same unsafe behaviour may in one shed yet in another result in a catastrophic fault. All sorts of external ce the outco~e:weather, co-workers, Ioading, mechanical failure, prediction of large amounts of variance in fault likelihood extremely difficult. Future research, having demonstrated a relationship between an unsafe b e h a v i o ~ and faults, should then focus on the inves~~gation factors that predict that unsafe behav~our. of This change of focus has ready happened to some extent in relation to driving acci It is well established that driving above the posted speed limit is predictive of road traffic acc~dentsin the long run. However, any attempt to demons~atea direct link between as measured in a single &udy and the occurrence of accidents within that study is to meet with success. Most speed in^ goes unpunished by negative consequences. wever, that does not mean that speeding is not ~ p o ~ in accident causation, n t Therefore, much research is now dedicated to determining the characteristics that are associated with this dangerous driving behaviour. This approach could also be a~opted in fault causation analysis. Cracking down on relatively small numbers of repetitive faults may have ted effectiveness in changing overall performance (though it i s vital in terms ing direc~edat the specific ~epet~tive failure targets). What i s required are co~termeasures whole population. Weather-related faults would appear to be such a group where the fault ot be located at the extremes of the normal distribution^ The problem of faults may require an approach which focuses on fault causa~ionmore broadly conceived, rather than maintaining a rather narrow interest in individual differences in fault liability. It is recommended that future research also consider this perspective So far, researchers into fault liability have focused almost exclusively on those factors that predict inc~usionin the fault group, which in most populations is much smal~er than

the no"fau1t ~ r o and subject to a high chance factor. Perha~s u ~ future research will also evote a~entiono those networks which manage over a long perio t and e the factors that promote fault ~ v o ~ ~ aIt would n~e, ink a i ~ at encoura~ing ~ d such factors. A n ~ t ~ ensi~le er shift the focus af ~ n t e ~ e ~towards the ~sitive ~ons benefits of av ative ~ f f e of'faults. c~

a m e s had been ~opularfor a n

d as the unit cost of' a

Asset ~ a ~ a g e m e n t

30

~ r ~ d u c t iLevel vi~

~~~~~e9.5 ~ e n c ~ m a r kperformance matrix for subsration m a i n t ~ n a n c ~ in~

9.14.2

Asset Lijecycle

~ a n a g ~ of e n ~ portfolio of assets also necessitates tbe ~ a f l a g ~ of ~ e ~ r ~ a large ~ risk. ~ ~ i s ~ o ~ c a lgrowth in usage of electricity has not been linear and we should not be the ~ y , Pised to find that our asset base has not been c o n s ~ c t e d a c o n t ~ ~ u o rate. at us 9.6 details the a ~ ~ r o x i age profile of London Electricitys major assets, i n d i ~ ~ ~a~e peaks of i n v ~ s ~ ~ f ~ t rthe 1960s. ~ l i ~ g

30

Power System R e s ~ c ~ andn g ~ Deregulation

Age-related replacement of assets will clearly lead to similar peaks in invest men^ in the future. Asset management techniques, such as condition based monitoring ( C ~ ~can ,be ) used to extend the life of individual assets - assuming that they are in good condition. C can similarly warn of the need for early repIacement without the need for failure to occur. Another useful technique which is available to companies with dynamic networks is to use other work as a driver for replacement. This is best illustrated by the following example. A typical substat~on constructed in the peak i ~ v e s ~ eperiod of the 1960s would be a 4x 15 MVA transformer site with 16 1 1 nt kQ feeders. Its modem-day equivalent would be a 3x60 MVA double secondary transformer site with 36 feeders. Reinforcement of one substation in an area can normally enabfe a hrthex two similar substations to be removed, thus avoiding the need for replacement. Extensive use of this technique normally requires an element of load growth. Even if we do opt for an age-related replacement programm~, need to plan for R we more gradual replacement programme. The easy option is to replace assets before they reach the end of their useful life. Our task as asset managers is to manage the risks associated with pushing assets closer towards the end of their usef~l by i n ~ o d ~ c i n g life alternative options, or devising ways of closely monitoring their performance. The actual life in service of assets may frequently be observed to be lower than the accoun~inglife of plant, as used for depreciation by compan~es,or the much higher assigned service life. This difference has normally been driven by reasons other than replacement needs such as: upgrade for load growth, faults, change of b ~ i l d ~ n g occupancy, diversions, etc Figures 9.7.and 9.8 show examples of actual life in service where this has been less than the assigned service life. The data represents all secondary transformers and secondary switchgear removed from the London network since 1991.

Actual life in service 5 e c ~ n d ~ransfor~er a~

36 (average age at ~ecQrnis~iQ~ingyears)

~ 9.7 Actual life in service - secondary transfomler ~ ~ ~ e

07

Actual life in service. secondary switchgear (average age a t decomissioning . 34 years)

10.0%

8.0%

6.0%
40%
2.~94

0.0%

43 48 37 34 31 28 25 22 19 16 13 10 7
ure 9.8 Actual life in service - secondary switchgear

Condition monitoring and assessment provides a very useful guide to the s that need a ~ e n t i o ~ the next review period but are less usefui at present within i n v e s ~ e np ~ a ~ i n g . t Several models have been used by London Electricity to assess possible asset rep~acementrequiremeiits in the long term (e,g, beyond the next rice review period). These use a number of tecliniues for projecting the current profile of assets using d~fferent replacement regimes. The most e l e ~ e n t a ~ replace~ent r o ~ l e p model is one that gets r e p ~ a c e m e ~ ~ o assets in the year they reach the end of the assigned service life. his will have the effect of recreating the same age profile curve as the present population The models used by London E l e c ~ c apply a spread of replacement ages c e n ~ ~ e d i~ around the ~ s i ~ n service life. This is ~ n t e ~ d e d rep~esent more r e a ~ ~ s t i ~ of the ed to a view range of ages at which assets will be replaced, caused by the impact of the widely v a ~ i n ~ drivers for rep~acement such as safety, obsolescence, eny~ronment an The shape of the replac~ment profile can be selected to represent how wide the variation from the average service life is likely to be. The most simplistic ap take a flat profile, which replaces an equal proportion o f the asset popula$~on over a given period of time. Figure 9.9 shows 7.5% of the population replaced each year over eriod. The effect o f this is to create a new profile of assets which is smoothe has a wider spread by I5 years.

Ex

31

Power System ~

~ ~ e ~ e ~ l a it i o n ~ and ~ c ~ n

~aintenance only one aspect o f effective asset ~anagement. is The ability to exten useful life o f an asset can be based on the amount and quality of the r n a ~ t e n ~ c e out, but it can e q u a ~ ~ y affected by the ability to b a ~ ~ b een e ~ ~ s ~ n costs in the be c ag s~ overall replace~entand investment strategy. ~ o l e s a l e replace men^ of assets is m expensive business and we need to ensure that our investment is always t ~ g e t e d those at areas which provide the most benefit. London Electricity has been deriving a methodology for devel ers in the c o r n p ~ y and p invest in order to m a x i ~ i s s assigning values to n o n - ~ o n e benefits as well as e s t i ~ t i n g o t e n t i acost t~~ ~ ~ involves c o n s ~ c t i n g model o f the project or a ~nfluen~e diagram to ensure that all internal and external influence in eyaIuatin~ benefits of a particular project and the way in which it is i~plemented. the .12 indica~esthe ~ u ~ u ~ a t c o s ~ ~ n e fana~ysisof a ive it Prom this we can judge which projects provide the nt and allow us to prioritise within budget or caqh flow GO

"12Cumulative c o s ~ e n eanalysis of project portfolio ~t

The steep slope at the beginning o f the curve indicates that the projects at this end efit to cost ratio, whilst those at the other end appear need to recognise the impoi~anc~ a less b ~ e ~ c ~ a l of her, more beneficial, project upon it. This is illus in the c m e .

Asset ~ a n a ~ e ~ e n t

11

Each of these individual projects can similarly be evaluated against a variety of such as: do more or ~ u ~ ~ k e rless or slower, do nothing, etc. This enables ev do a~tenance decis~ons be calculated as well as the to rep~ace~en~re of optimal rep1 t eh i Deferring rep~aceme~i~, refurbis ent QT maintenance always has a risk a ~ s o c ~ awt~ it. The use of a f Q ~ amethodotogy, which evaluates costs against bene~ts, 1 useful risk management tool for all the staff associated with and affected by the ~ecisiQns taken. The variabili~yof eleme~itswithin each project are also assessed for c r i t ~ ~ to ~ i ~ a eliminate statistical unce~ainty associated with those elements which do not sign~~cantly impact on the overall project. This allows us to concentrate on those elements where we need to be more accurate in a$sessingprobabili~~es variabilities. or

London Electricity has been developing a technology strategy to ensure that all pot~n~ial for the network are c o m p l e ~ e n t ~ each 0th to ogy strategy has been to ensure that state-of-tl~e-~ evaluated and potential operating cost savings are i d e ~ t ~ ~ e d . The various s t r ~ d of the t e c ~ o l o g y s strategy all need to build tow objective o f p r o v i d ~ ~ g degree of network p e r f o ~ a n c e the requi can be evaluated on its own merits but, in general, those projects eluded in the i n v e s ~ e npo~folio. t of the remote t e ~ i n aunit (RTU) ~ u ~ e n t ~ y l he 1 1 kV network. ~ d d i t i o n a ~ features have when been built into these units to facilitate the transfer of data from the LV s y s t e ~ n. s u ~ ~ bdev~ces ie have been ~ a n u f a c ~ r todobtain the required ~ n f o ~ a t i o This kin e specification would nob be possible without such a cohesive strategy. Much o f the monitoring experirnen~l it is already possible to install power but outage d i s ~ ~ a n c e sensors ) in the premises of a customer who has s ~ f f e r e ~ will contact the control centre in the event of a s failure via a telephone line. Fault passage ind~catorsinstalled at on the LV n e ~ o r k r ~ v ~ d e localised i n f o ~ a t i o nabout the positio p more which will eventually be relayed back to the office via the RTU. These RTUs also have the ability to ~rovideon-line loading and status information for the subs~tiQn, which can provide i n v a l ~ b l ~ n f o ~ a t to o n network planners and analysts. e ~ the Other work has c o n ~ e ~ t r aon ~ t e ensuring that many of the i n ~ e p e n d e ~ developed t~y i n f o ~ a t i o nsystems, for con~ol,n e ~ o r k design and analysis, etc., are able to share i n ~ o ~ a t i via a data hub. on A ~ ~ o ~major task has been the development o f a more proactive version of the partial her harge mapping ~ e c ~ i q mentioned previously. Continuous d i s c h ~ g e ue moni~orin and EHV f e e d e ~ economic and this, coupled with the ability to switch the is network remotely, could facilitate the isolation of potentially faulty sections without

re' injection of gas an silicone fluid into the circul cables to remove mo re and fill voids is esrablis core les can be re~rbishedfor ~ i c a l ~ y than a less w ~ e r e ~ect-la~d d ently most HV cables in the UM have generally be r e p l a c e ~ ~ cost. ~nt a sheaths which are u paper insulate^ with lead or c o ~ g a t e d l ~ n i u m t e c h ~ i q ~At prese~there are no v~able e ~ r b i s ~t e c ~ti q u e s e. r ~ for cables but p r e ~ ~ research work is under way to establish the ~ ~ n a ~ i s h ~ e no f oil and gas press~re t c f these circuits where t h e ~ a expansi l

'

~ for this

s and the ~ o v e m e n ~ of uce pressures and real yed. The presence of o s s ~ b i iof~limite i is extremely rare
conditions.

.16
assessment of the rel ~ ~ ewill tinclu n c relati~nscQnse~uences the who1 to iate risk control n~easures. For power s y s t ~ ~ s may be consi~e risk variables:

e its o w mix of the co~ponents ris ~ of nt.

f~~1tS risks o

. ~ ~ e c t i asset m ve
ts with higher that
1.1

witchgear reduces the risks o f failure. with timely r ~ ~ e ~ i a l action.

31

Power System Restructuring and

A u ~ o ~ a t esecurement and/or remote restorat~on of supplie with r e a l ~ t i ~ e d telemetry, which can significantly reduce the p o s s i b i l ~of overloading and ~ seconda~ failure which if sustained may cause far more exte~sive a ~ a than the d g~ erhaps simple, failure.

mising the number of customers affected through active risk m ~ a g e m e n desi t systems and the use of appropriate protection zones, advised. owing the s t a ~of the network and keeping cust~mer s viding restorat~on seconds or minutes, not hours. in g ~ e q ~supplies of spares and skilled resources. t e hing c o n ~ ~ n g e plans and r e ~ l a r l y n~y exerci~~ng them, Laying off some of the financial risks, contract exclusions and i n s ~ ~ c e . be i ~e loss Some events that may ~nitially cons~dered ~ p r o ~ a bsuch, as the c o ~ n c i d e n ~ ~o f ~ u ~ t i pindependen~ le circuits or of substations, may neve~he~es w be respect to the physical, political and economic environment. Some m their flight paths, failure of flood defence^, e a ~ h ~ u a k ete~orism, s, a1 disputes, computer viruses, etc., may when combined with s~pplies central business districts, CO to the n~edia9 security and transport services. Asset ~ a ~ a g e m e strategies for these si~ations nt might from outside the ~ n v i r o ~ e zones, fall-back or manned n~l generation or just a ~arge~ed of cont~ngen~y set them.

r ~ncid~nts f o ~ n a t e l comparative rare are y will account for around 10% of customer incidents often seem to arise from a unique set of circ o te types of events using large pop~~ations ~nderlying a ~ e ~ strends. Such analysi p proportion o f sue for e ~ ~ ~ p l e perhaps a h that , s and that even these are most often as ~ n ~ l l e d ~ a ~ n ~ ~or that a cerlai or ned9 u~tomers e i n g ~ e c t e d ~ a for ons can result in 1 # ~ ~ g forsi ~ s ~ e c t ~ann s e o times w h i ~repairs are e ~ e ~ ~ e d , ~t lar e ~ u i p m e n ~ r can ~s nt romised for prolonged p e ~ o with a i ~ n i ~ c aloss of r e s o ~ c e Erip testing is a key p e r f o ~ a n c e d ~ c a tthat the ~reaker ~ or will do so. With the increase in remote ~ ~ nfaeilio l ~ sec ~ ~ es ied out on both p ~ dm on^^ system^ from con^^^ ~ e n ~and

will inc~~asingly performed an reported automatically, rdeasing maintenance staff to be tackle other activities. Correct ~nstallationand c o ~ ~ i s s i o n i n g lant and equip men^ is critical to both life of cycle costs and system reliability: ro~ec~iQn e r a t i o ~ o ~ e ~ t i vmodi~cations circuit out o~ after e and Primary system and bwbar ~ o d ~ ~ c a t ipost-commissioning ins ons with t h e ~ and discharg~ ~ e y s . a ~ re Exercise MSS circuit breakers remote1~ larly, e.g. twice a year. 1 inspection o f outdoor i n ~ l l a t i ~and precautions against flying debris. ns mise repair time on first circuit outage.

9.163

Type ~ ~ i ~ u ~ ~ s

The economics of purchasing often meam that large ~uantitiesof the Same ty sw~~chgear, a n s f o or ea ~ c i ~ l a ~ ~ ~ n equipment are p u r c h ~ e ~ ~ n t a ~ ~ e d and in on or p r o x i m ~ ~ networks hat are being built, e x ~ e n d e ~ ref~rbishedat the Experience has shown that whilst the widespread catastrophic failure o equipment is rare, problems that could lead to longer term failure identi~ed cons~derab~y often. ~ e a ~and safety consid~rations more th m live operation o f the plant t be restricted until after it can o ection and modi~cation. e failures can present the operator with very e sections of networks could be rendered hop con~~tiQns. is This icularly the case with wholly ~ d e r ~ Q u n d e where the oppo~uni u n d e ~ k live line overhead work does not e Is0 be necessary to effect the necessary re repeated outages CO

e failure can be managed by:

~ e l e c ~ e q u i ~ m ~with roven excellent p e r f o ~ a n c e ng nt record. Actively maintaining a d sity of ~ a k e types and versions o f e q u i ~ ~ et n t ~ s~ networks so that a type failure of one e does not result in widesprea ne~orks. For new types of equipment and changes to existing desi m ~ u f a c ~ r tor participate in formal and independent failure e can ~ d e n tand addre$s the probabili~ consequ i~ and o ~

Common mode failure can occur where a single incident places a n component at risk at the same time. Typical causes o f common mode fai~~ires are: age to overhead lines. e c h a n ~ ~excavatQrdamage to several cables in the same ~ e n c h . al

Power ystem ~

t and ~

e from frre in a $ w i t c ~ ~

tive regimes that are increas liver r ~ ~ u ~levels of se red loss arising from IOSS rcial tower block coul be found liable for the

Asset ~ ~ is the key to effective asset ~~ n a g e m e n t ~ ~ o a a howev~r ~ ~ data to c a ~ ~ rhow often how to store it an then how to use it e f f ~ c ~ i ~ e e, or w i ~ ~ cost. t o~ too much data in appropriate^^ large costs in s y $ t e ~~ s ~ o ntoea st r s m a ~ ~ t ~ n ~ ~ ~ . There is a real cost to collect~~g ~ and i ~ ~ i n ~ ~

~ ~ m ~ time, in order to ted r factors can be a simpl

Power System ~ e s ~ c andm g ~

cally dis~ibution Q r n ~ ~ i e s a n u ~ e r o u asset r n ~ a ~ e m eITt s y ~ t ew s ~ c h c have s n ~~ aged effectively can exhibit ~ r o b l e in s f o ~ ~ o w areas: ~ the ~ng

unavai~ability data for strategic analysis and business reporting, and of ~ ~ lof~ ~dt os a t i o n cannot exchange information. a ~ that These ~ ~ Q b ~we rdue to the lack of a strategic integration architecture enabling the e n~ and the rocesses required to easy ~ e v ~ l o ~ mand texecution of electronic ~terfaces en on solid ate ~ n f o ~ a tfor strategic analysis and i~n The IEC 61968 series System Interfaces for on ~ a n a ~ ~ ~ eintended to is n t fac~litate inter-application integration of the various d i s ~ i ~ u t esoftware a ~ ~ l i c a ~ o n d orting the rn~agement utility efectrical ~ s ~ b u tnie~ n r k s ~ of ~o Figure 9.13 clarifies the scope of IEC 61968-1 graphically In terms of business ~ n ~ t ~ o n s shows a distribution m a n a g e ~ e nsystem with IEC-6 1 9 6 8 - c ~ ~ p l i a n ~ and ~ ~ n t ~ ~ f~ c h i t e c ~ r e . ace

Distribution ~ a n a g ~ msystem with IEC-61968-com~liant ~nt im~erface r c h i t ~ c ~ r ~ a

Asset ~ a n a g e ~ e n t

9.17. I

Asset ~

a~ ygs t e ~ s ~ ~

Asset management systems typically hold data, including ownership costs, on all the electrical assets, linking them together via parenuchild relationships. These s y s t e ~ s normally share a comprehensive power system model with other app~icationsso that operational and planni tools and data can be employed as part of asset manag~men~. scale of the data ~ n ~ e ~ r systems are mparatively new in many companies and at~d can a chance to prove collection va~idation be immense, SO many systems have not yet ment are as plant their full worth in monitoring lifecycle costs etc. Proven uses at th database and ma~n~enance schedulers Iising network analysis and continge~cy tools. ~ a r i a b l e ma~tenance g g e r c be set within the database and co~dition ~ s r inspection visits, and defects recorded from mainten The p e r f o ~ a n c e effective life of otherwise identical assets is largely driv and duty they are required to perform and the environment in which they operate. An benefit o f inte~ated n f o ~ a t i o n i systems is the ability to download large secti for off-line analysis and data mining to understand and exploit the re~ations~i p e r f o ~ a n c eduty and environmen~. ,

The data required by asset managers typically resides in several s te databases each of which has to be desi opulated and mainta~nedby an ve set of busi~ess pr~cesses. The equipment database contains information about the items of plant and circuits which make up the dis~ibut~on network. The volume of the assets and the varie about each and every type are very jar i n f o ~ a t i that i s a~ailable o~ are p a ~ c u l a r l ~ complex, ofcen requiring multiple spatial repre potential users of the data to access the i n f o ~ a t i o n they need manufac~rer, speci~cation, insta~lation age, method, condition, loading, electrical parameters, etc. The recording of costs again ard as cables are continuously being cut into n atabase will typically desc geo~ra~hical circuit location of the faults which have t and network over at least the last three years an customers. of estimatin~ number of custo~ers the widely from company to company, Tigh~er r e e l arrangements will require consistency o f reporting be ing o f end use custom a solution to this issue ase could be a major unde~akin c ~ n n e c t i vdown to indiv~dual i~ ckcuits and phases at LV with~n d ~ s ~ i b u tsystems the io~ ividual blocks of fiats and offices. The costs of such systems and their ma~~tenance not easily be j u s ~ ~ ~ e d the consistent applica~on simple e ~ t ~ ~ a t i o when of could well s u f ~ c e .

Power System ~

~ and t

at the most reliable data comes when it is c o i ~ in the field by ~ c ~ ~ ~ s of faiIure ~~d who the data co~~ection s and to the c o ~ ~ a ~ y . ce of accurate data collection e n ~ ~nlee r - r e ~ ~ - t i ~ e a a collection t e ~ ~ n aand radio te ls data with insta~t ~ ~of e a ~ ~ e~ e ~ u i n c e ~ d a t ~ q v ~ or ~ e ~of that
ime series data that is routinely requi t, s u as~t r a n s o ~ eand fee^^ ~ o a ~ terng , ~ r ~ is no longer cost effective in a t i g ~ t ~ y regul ngly s e c o n d a ~sub able to provid~ CO

once^^^^

the ~

~ in, t h r o ~ ~~hov e o or This will ~ s u a l ~ y inc

the ~ n v i ~ o n ~ e f l t ~u~ circuits and

21

~ubte~ai~
uilt e n v ~ r o ~ e n ~

idity, water table, s ~ n ~ s w e l l po~e~tial, resistivity, stability on, co~osion, vibration, tion, thermal s ~ ~ r c e s , da

y no ~ e a exhaustive. ~ s

ill also need to r n ~ the effect ~ ~ a ~ e, Pr the

material. patia~ n f Q ~ a ~ icoon c e ~ i n g Q n s ~ a ~ ~ t s i n c such as:
e

areas of o ~ t ~ t ~naturali beauty n d ~ ~

is also es~n~ial.

y people tend to include

e~oneousor ~ncompleterec

can also be subject to CO

Power System Restructuring and ~ ~ r e g u ~ a ~ i o

tier registration information, and yarticularIy information that wou~df a c ~ ~ i ~ a ~ c u s t o ~ esegmentation ana~ysis, r ust tom er c o n s ~ p t ~ data, and particularly half-ho~ly shapes. on load Advance information regarding the setting of future DUOSprices. ~ ~ f o ~about the c~r en ~ ~ - w o ~ hof e s s a t ~ d ~ suppliers. Asset ~ a ~ a gwill need to ensure that only those having a p p r o p ~ a rights and a ne e~s t~ ow can have access to, copy or export ~ f o ~ a t i that is to be regarde~ ~ o n ~ d e n t i a l , on as

As operating margins become smaller and further efficiencks becomes more difficult to ~ e ~~ ~ ~ r q~~ a , lsof~i n f o ~ a t ~ o n ~ ~ ~ $a i~ d becomes ever more essential for the eff~ctive
t For r e ~ l a t as ~ as asset m ~ a g e m e npurposes it is essentia~ o well

~ o m p a r a bacross companies l~ onsistent over time Collectable at reasonable cost. ata c o l ~ e c ~ d be used for asset r e g u ~ a t o ~ will c regimes, there will be a need to be able to demon and timeliness of the data. One way of managing q u a ~ m ~ n a ~ e ~ e n t cesses such as those QE the IS0 900 i a of audits that run s ~ c ~ e d sequenc~s data studies, ~ o ~ ~ results withgthose p~viously a ~ n obt for ~nvestiga~ion, also be used to s ~ ~ i ~ c a n t can adv

can None of the above examples indiv~dually provide the solution to the problem o f how we ana age our assets. A combination of all, or at least so^^^ of th s o l ~ t i ~which matches the point on the e v o ~ u t ~ o c a ~~ which L n, nu e at this moment in time. The only ~~~~~g is certain is that ' that overall model will continue to change as more information bec ome more e s ~ b l ~ s h e d more varied, or if p r ~ s s u r ~ or other s~keholders pushes investment decisions in a new is to eva~uatec Q n t i ~ ~ a l the b e n e ~ t sof in& iy inst the cost of installation and operation. We the principle of condition ~ o n i t o ~ and data collection, lest we forget to ng en~~ally cost associated with both the co~~ection an high and ~eaTing mind that the most effect~ve in way of i ~ e n t i ~ i when ng of a ~ a ~ u a l~ y ~ e n item of ~ ~ u ~ p msuch ~ , an isolator, requires m a i ~ t ~ n ais to~ l~ den e n as nc ask tbe last p~rson o ~ e r a ~ it.d who e

Asset Management

23

sis

Large power t r a n s f o ~ e r sare probabIy the most important equipment in an e ~ e c ~ c a l system. Correct diagnosis of their incipient faults is vital for the safety and ~ ~ I ~ a b ~ l i ~ of an in-service ~ a n s f o ~ is r e subject to electrical and the clec~ca~ netwo n the insulating materials and release gaseous which can bre products. Qverheat~g,partial d i s e h ~ g eand arcing are three primary causes of faultrelated gases. There are many i n t e ~ r e ~ a ~methods based on DGA to diagnose the nature ive of transfomer detcnoration, such as the IEC ratio codes which were developed from ions on gases generated from individual faults. has widely been used in the industry, in some cases, the conv~nt~onal osis incipient faults. This normally happens for those tran e 1ype of fault. Actually, the conventional d i a ~ o s ~me ic based on the ratio es generated from a single fault or from ~ u l t ~ faults p~e one of dominant nature in a transformer. When gases from more than one fault in a t r a ~ f o ~ are collected, the relation between different gases becomes too comp~ieated er ~ and may not match the pre-de~ned codes. For instance, the IEC codes are d ~ ~ frome d certain gas ratios. When the gas ratio increases across the defined limits (boun~aries), the code changes suddenly b e ~ e 0, 1 and 2. In fact, the gas ratio boundary may not be clear ~ n (i.e. fuzzy), especia~~y when more than one type of fault exists. there fore^ between different types of faults, the code should not change sharply across the boundaries, A new m e ~ ~ has been developed to employ fuzzy boundaries between differen~ codes. od IEC

9.19.1

The~~CD

, the IEG codes have been used for several decades and eonsiderable ~ x p e ~ e n c ~ a c c u ~ u I a ~ ethroughout the world to diagnose incipient faults in t r a n s f o ~ e d used to determine each ratio and its assigned limits are shown i s are then allocated according to the value obtained for each ratio corresponding fault characterised,
.19.2
The Fuzzy IEC Code - Key Gas Method

The fuzzy IEC code-key gas method (FIK) developed is a eomb~nationof diagnosis using IEC codes and key gases. This method produces nine fuzzy comp onents are related to the fault types as d e ~ ~ i ind e T

IEC codes

Fault c l a ~ s i ~ c a t~oc~c o r t n ~ E C Gas i ~ the o

1 or2
ischarges o f high energy Thermal fault of low t ~ ~ p ~ ~ a ~ ~ r e

1~0-330 power ~ a n s f o ~ ewere kV rs

with IEC me~hod,the FIK method also h es, 13 ~ a ~ s ~ ocould not ~ e r s method, as shown in Table 9.3 Its may be only at the early ive a s ~ o n g e indica~~on, r s

nspectian of anothei re d ~ due to e ~ a

charge o f high energy

Thermal fault { 1~0-300"~) Thermal fault ~300-700'~) Actual fauIt will be Thermal fault (>70QoC) checked during the next o v ~ r h ~ ~ ~ .

326

Power System Restructuring and Deremlation

F(0)=0.525 F( 1)=0.053
F~2)=0.231
I00

____

Normal ageing PD of low energy Discharge of low energy Discharge of high energy Thermal fault (450C) Thermal fault (150-300C) Thermal fault (30O-70O0C) Thermal fault (>700"C) Normal ageing PD of low energy PD of high energy Discharge of low energy Discharge of high energy Thermal fault (<150C) Thermal fault (150-300'C) Thermal fault (300-700C) Thermal fault (~700C)

IEC cannot diagnose

but FIK indicates a

No match

F(3)=0.045 F(4)=0.050 F(5)=0.000 F(6)=0.047 F(7)=0.000 F( S)=O .050 F(0)=0.005 F( 1)=0.052 F(2)=0.052 F(3)=0.000

which could be at an early stage.

121

No match

F(7)=0.161

Actual fault will be checked during the next overhaul. IEC cannot diagnose probably due to the e x ~ s ~ ~ n ofe more c than one fault. The fuzzy compo~ent of the early thermal fault indicated by FIK is useful for future trend analysis.

F(O)=0.007 F(1)=0.026 F(2)=0.026 F(3)=0.000 Thermal fault (300- F(44)=0.030 700'C) F(s)=o.ooo .003 ,477
.431

Actual fault was an arc damage to the core. IEC diagnoses Normal ~ e ~ ~ PD of low energy fault but actually PI3 of high energy Discharge of low energy both medium- and hi~-tempera~re faults existed as Thermal fault (cl50'C) Thermal fault ( 150-3OOOC) indicated by FIK. Thermal fault (300-700C) Two locations o) Thermal fault (>7OO0C) overheating damages were Jound due lo eddy currents and a bad cantact.

F(0)=0.479 F( 1)=0.005 Low values

No
diagnosis

F(4)=0.0 13 F(5)=0.000 F(q=o.ooo F(7)=0.000 F(S)=0.005

Normal PD of low energy PD of high energy Discharge of low energy Discharge of high energy Thermal fault (450C) Thermal fault (I 50-300C) Thermal fault (300-700'C) Thermal fault (>700"C)

Although the gas level is below the guide value, an early indication of low. energy discharge by FIK should be useful for trend analysis in the future. Actual fault will bc checked during the next overhaul.

Asset Mana~ement

9.19.4

~~e~~~ ~ u l y sqf s ~ d i v i ~ ~ ~ ~ u iI d a

In FIK ~agnosis, fault can be more accurately determiiied by its fuzzy component that a indicates the likelihood or dominance of the fault. Deterioration of the fault may eref fore be closely monitored from trend analysis. This technique has been used for a that was tested over a 15-month period. ermal faults of medium- and high (300-700C and >7OO"C) were diagnose y the FIK method and the fuzzy agaiiist the test time are plotted in Figure . The graph clearly shows the de each thermal fault in this t r ~ s f o ~ eIt ,can be seen that at the begi r o monitoring period, the medium ~ e m p e ~thermal fault F(7) was the main p r o b l e ~ f ~re this ~ a n s f o ~and the fi~zzy er component of the high-tempera~re therm mall, i.e. below 0.05. The high-tempera~re thermal fault F( 14 onwards and then become stable until Day 406 when the ssing, because the ~ ~ efaults remained, the fuzzy compo ~ a l went up again from Day 453. It took a few weeks for the gases to be re1 in the oil to a sufficient level for accurate diagnosis. A small fluctuation of F(8) was time recorded on Day 178, which might be due to the lighter load during the s p e c ~ ~ c period. mponent F(0) always It must be noted that if a transformer has no fault, th gives a large value in th anga of 0.6-1. For example, results for a hea~thy t r a n ~ f o ~ are (in ppm} er - 95, N2 - 73000, 0 - 11000, 2 - 25, C,H, 45 and C2H2 2. The fuzzy component o f no-fault ~ ( 0 ) ~ . $ 4 3 at no fault exists in the ~ansformer. IEC codes are 0, 0, 0, also i ~ d i c a ~ n g The no fault. From OUK experience^ when the value of F(0) is between 0.3 and 0.6, an inci fault may have occurred at earlier stage. When the fault is getting worse, F(0) will decrease to CO, 1.
~

0.6
0.5

+ .. =

0.4 0.3
0.2
0.1

0
1 114

147

178

191

218

406

413

453

469

471

a1 fault ~ 0 ~ ~ degree C 7 0 0

The trend of tv.70 types of thermal fault in a 330 kV transformer determined by the FI
methad

method developed has been succes ers in Au5~alia. has been proved that, using the It

costs of ~ ~ ~ f o With ethe aid of ~ ~ 5 . ~ e ~such ~ the FIK~method, the a5 ~ ~ ~ longer s c ~ ~ life could be achieved. ce

123

131

[SJ [6]

[7]

ario V.F. Pereira, Michael F. McCoy and Hyde BA. Merrilli, aging risk in the new power usiness, IEEE ComputerApplications in Power, Vol. 13, No.2, April 2000, pp. 18-24. Ceorge Anders, Robert Entriken and Puica Nib, Risk Assessment and Financial ~ a ~ a g e ~ e n ~ rial, IEEE Catalog Number 99TP137-0,1999. Gorenstin, N.M. Cam~donico, Costa and M.V.F. Pereira, Power systcm ~ l ~ i i ~ g J.P. under uncertainty, IEEE Transactions on Power Systems, February 1993, pp. 129-136. ofilo De la Torre, James W. Feltes, Tomas Gomez San Roman, Hydc M. M e ~ I ~ , i~atiza~ion, com~etition: and ~ansmission planning under ~ c e K ~~ ~E ~ ~~ E Transactions on Power Systems, May 1999, pp.469-465. J.C. Hull9Options, Futures and Other Derivatives, Prentice Hall, New Jersey, 1998. J. Schwager, A Complete Guide to the Futures: ~ ~ n d a ~ e nAnalysis, ~echnicalAnalysis~ tal Trading, Spreads, and O p t i ~ l lJohn Wiley & Sons, New York, 19%. ~, Price W~t~rhouse The CorporateRisk Management Handbook, Risk ~ublications* LLP, London,

1996, [S] P. Jorion, Vdue at Risk: The New Benchmarkfor Controlling Market Bisk, Irwin Professional Pub., Chicago, 1997. ouglas, A. A ~ ~ i aV., ~iemcyer, . Goldberg, and C. Claxk, ~ a ~ i g a t ~ n g ~ ~of ~ t n the c risk, IEEE Power Engineering Review, March 1998, pp.6- 10, [I01 D. Duffie and J. Pan, An overview of value at risk, Journal of De~vatives,~ s ~ i ~ t i o n a ~

en & Co., The JP M ~ r g a n / ~ r Andersen Guide to ~~ur cations, London, 1997. [123 G.L. ~ a s ~ i n e a u , ~ictionaryf Financia~ Management, Swiss Bank Corporation, New York, o Risk 1992. [I31 Eilron Capital Trade Resources, an aging Energy Price Risk, Risk ~ b l i c a t i o n s ~ Lon 1995. E 4 R.L. Nersesim, Computer Simulation in Financial Risk Manugernemt: A Guide for Bwiness 11 P l ~ n ~andr Stra~~gists, u o Books, New York, 1991, ~ s Q ~ ~ [ 151 Q. Su, 6. Mi, L.L. Lai and P. Austin, A fuzzy dissolved gas analysis method for the di of multiple incipient faults in a transformer, IEEE Transactions on Power Systems, 2000, ~ ~ . 5 9 3 - 5 9 8 ,

Prof. JQS ~ ~ ~ l a g a University of Canterbury New ~ealand

University of Canterb New Zealand

to deregulation, electricity has been generally sold from one supplier to th ownership ~ h a n ~ i n g at only one piiysical point. In con~ast, hands after it is expecte~ the product will be exchanged at several points along th that t~ansmi~s~on distribution systems and there will be power quality (PQ) i and 1 location where ownerhipis transferred. s, of course, an ~ b i ~ oterm which in its b r o ~ ~ esense is u s st quality including reliability of supply, waveform In a d e r e ~ ~ a t environme~t, ed only nationa~ and act on the i n f o ~ a t i o nnecessary to pro~idesystem secu position, the grids can be unreasonably d ~ ~ a n in ~ n ~ d ation plant. In the long term, however, the expec~tio will find s ~ ~c o~ p g t i ~i o ~ dis~ibuted ~ e t from r generation, bo micro-hydro, wind and solar) and non-renewable energy ~ i c r Q ~ r b i n e s fuel cells), the latter in the k i l o ~ rather and a~ logy used in these energy sources involves power is now commercia~lyavaila~leCO links and FACTS ~ ~ e x ACb ~ e ~ power devices. At the generation level, an increase i the connection of IPPs ( ~ n d e ~ ~ ~ d e n t n ~ Q ~ u c e rsuch as wind and gas"~e11ed ~ i c r o t ~ r ~ i n e s ) p~Qrlyc s with

Power Quality

sy~ic~onisation make PQ more difEcult to control. The increase in embedded will ~eneration cause ~ r t h e voltage ~ a g n i ~ variations as well as introduce additiona~ will r de voltage m a ~ i ~ steps [2]. Wind power is known to lead to an increase i d e severity. Solar power and the more advanced ways of connecting wind power wi an increase in h a ~ o n i c i s t o ~ o nAt the ~ a n s ~ ~ i s slevel, the need for ~ y s t e ~ d , ion to transmit power according to contracts between the requested locations is a ~ c e l e r a tthe d ~ ~ a for s ~ ~ ~ e s - c o FACTS e ~ ~ nd ~ e c ~ controllers. In the c o ~ p ~ n s a ~andn i o unified power flow controllers are expected to be used extensive~y once they are shown to offer better technical features at reasonable costs. m planning under deregulation will be more difficult owing to u n c e ~ a i n ~ in the gene~tion load locations, fast solutions will be needed to improve the o~erating and conditions and FACTS controllers can offer such solutions with short delivery installa~iontimes. The use of a s ~ c ~ o n o u s intercQ~ections, grid both national an i n t e ~ a t i o n is ~also likely to increase with dere~lation. The control1 ~ asynchronous ~ ~ e r c o ~ e c t is rcurrently limited by the switching restricti o s silicon-controlle~rectifier, which only permits two-quadrant converter direc~ionalactive power transfers, The a v a ~ l a b i l iof gate turn-off ~ permits four-quadr~t converter operation and considerable developan on to ~ m ~ r o the effic ve d power h~ndling capabili~ these d of of two~quadra~t f o u r - q u ~ ~ a n t or that w h e ~ e r in the ;lijynchronous link is be an important player in modern ~ a n s m ~ s s ~ o n systems ~ l ~ n andn gi ~ ~ a c eeds to be carefuIly exa~ined, ~ its Power elec~onic whether in the form of as~chronousinterco~ec~ors, FACTS or custom power, have the poten~al improve various aspects of to e ~ ~ ~ control~at cd i s ~ i b ~ t i o n may ~ i t i g a t e o n level voltage v ~ a t ~ o n s ~ voltage sags. But the increased use of ower electronic controllers may introdwce new erns like a ~ d ~ t i o n a ~ harmonic voltage distortion, especially in the form of higher order n a c o ~ p e t i t ~ environ ve t there will be reluctance to expand distribution sys~em, customer interaction, And, at the loads ~ h e m s e l ~ ~ ~ i costs will create an emphasis on local co~pensati or active coan~onents. Some of these changes tend to de loads of a cons~ant-powertype. more c u ~ ~wht n ltage drops causing additional vo use of Compensation equipment may even become t of these prob~ems not ex~~usivedere~ulation. In fact, there is a c ~ ~ t i n u i n g are to s, such as adjustable speed drives, office equip~ent, and ~gh-efficiency fluorescent lighting. At the same time, sensitive ~ n f o ~ a t ~ o n ment, such as PCs, continues to be dispersed into power locat~onsthat to previously were res~icted lights, motors and heaters. There is no reason to b e ~ ~ e v e this trend will reverse. ~ollowingderegulation, the power exchanges should be s~bjectedto close s c ~ ~ i onya continuous basis, This requires dynamic evaluation of the n ~ e n ~ s of and current waveforms, either by local ~ ~ a s ~ eexclusively or by a combina~on ~ e a s u r e i ~ e n ~ s sys~ems i ~ u l a ~ using h a ~ o n i c and io~ state estima~io~ tec~iques.The

latter should provide more intelligent an economical solutions for the control of the dito~ion r Q b l e on a system-wide basis. ~ e r e ~ ~ a t ~ o n p ~ clear, for the most part, that the utilir the customer. After ~eregulatio~, however, who i s responsible for the enerator? The e ~ e r g y lier? The d i s ~ ~ ~ t o r ? sup to con~sion, po~sibly an i n c r ~ a s ~ and to in d i ~ ~ t e s .

the quality ofpower has become e cts that help correct PQ problems

y local electric utilities have

from moiiitori une~pec~ed n e ~ t s be ta with ~ndividual~ those custo at

a d i $ ~ b a n c e s a temporary deviation from the steadyi In the con~exto Its of brief durat~on by sudden changes in or wavefo~ caused dis~rbancescon~ideredby the ~ n ~ e ~ a t i o~ l e c ~ o t e c ~ C c a ~ nal i age dips (sags), brief i n ~ e ~ p ~ i voltage increases (swells), o~s, oscillato~ a n s i ~ n ~ s . are illus~ated Figures 10.1 and 10.2. ~ These in

Voltage d ~ s ~ r b a n ~ e s

.2 Voltage transients

supply ~ e ~ o rThe main cau$e k.

xtinction of discharge 1 of control devices; speed variation or s ~ o p p i n ~motors; trippin of CQntactorS; c o ~ p u t e r system crash; or c o ~ ~ u t a tfail~re line commutated inve~ers. effect of a v o ~ ~ g e i o ~ in The

Power System Restructuring and ~ ~ r e ~ ~ a t i o n

dip on equipment depends on both its magnitude and its duration; in about 40% o f the cases observed to date, they are severe enough to exceed the tolerance standard ado~ted by er manufac~rers. Brief interruptions can be considered as voltage sags with 100% de. The cause may be a blown h s e or breaker opening and the effect an expensive s h u ~ d oFor a given system design and fault location, a certain number of c u s t o ~ ~wili ~. rs be ~ ~ e candethere i s no way to prevent this process without major system s ~ c ~ r a t ~ changes. I-lowever, i n t e ~ p t ~ o due to over~oad somewhat more ~redictab~e. ns are These include overload of the whole system (due to lack of generation) as well as ind~vidua~ and lines cables, Voltage collapse can also be view as an overload situation, but in this case load era, to shedding can alleviate it. In the pre-dere~lation load shedding took place accord~ng utility ides. ~ e r e ~ ~ a t aIlows utilities to offer i n t e ~ u p t i ~ l e non-inte~ptible ion and supply. During Limes of overload or overload risk, utilities may decide to increase the inc~ntive customers to be i n ~ e ~ u p ~ e d At present, this action only covers a very for [8,9]. s r n ~ fracti~n the ~ n t e ~ p t i o but this will obviously change if the congestion in the i~ of ns system increases, Voltage swells are brief increases in r.m,s. voltage that sometimes a c ~ o m p voltage ~y sags. They appear on the unfaulted phases of a three-phase circuit that has developed a single-p~aseshort circuit. They also occur following load rejection, Swells can upset electric controls and electric motor drives, pa~cularly adjus~b~e-speed the drives, which can trip because of their built-in protective circuitry. Swells may also stress delicate computer components and shorten their life. Voltage disturbances swells are classified as transients arid are caused by s u ~ d e n changes According to their duration, transient overvoltages can be di into sw~tching surges (du~ationin the range of ~ ~ ~ i i s e c o n dand ~mpuIsespikes s), ion in the range o f sing from power s y s t e ~ switchin microseconds), Surges are high-energy pulses ssociated with swit d i s ~ r b ~ c e s , directly or as a result o f resonating circ either capacitor s w ~ ~ h i n devices. They also occur during step load changes. In parti cause resonant oscillations leading to an o v e ~ o l somee ~ ~ three to four times the n o ~ i n a l ,causing tripping or even damaging protective devices and equipment. ~ l e c ~ o n i c a l l y based controls for ~ n d u s ~ a ~ are pa~icularly suscep~ibleto these ~ansients. motors Impulses result from direct or indirect lightning strikes, arcing, insulation b r e ~ ~ detc.~ , o

cw.

10.I . 3

Volta~e Sags

In Ehe present stage of deKegulation, no serious cons~deration @ven to is ~ a n s ~ i s s i o n distribution levels and, therefore, there i s little incenti and overall reduction in the f?equency of sags. Although there me indication will increase in the hture, some customers are likely to d e ~ a~reduction in their d nu~~eK. One option is to introduce power quality guarnntees whereby the customer receives ~ o ~ p e n s a t i ofor each event exceeding a certain severity (in ~ a ~ i t u d duration or n e, frequency). Such an additional service may be offered by the (monopo~ised)distri c o m p ~ ~ y , the supplier, or by any other pfayer in the market (e.g. an insurmce by c o ~ p ~ yA ~ t e ~ a t ~ va regulatory body may decide to enforce a basic compensation ), e~y,

Power Quality

scheme for all customers as part of the connection fee [I 11. However, some customers may not be satisfied with any compensation scheme, safety being their main consideration. The option in this case is for the utility to offer high-quality power to a small customers. These customers will experience less voltage sags than similar customers elsewhere. This special service will require the installation of m ~ ~ g a t i o n equipment, which may be offered by the dis~bution company, by the supplier, or by any other player in the market. Additio~a~ regulations are needed to guarantee a minimum level of ~ o m p a t i b i l ~ ~ between equ~pment supply: and R e ~ u i r e m e n for equipment immunity must be produced by standard-se~ng ~ organisations. The IEC is obviously the best platform for the development of such a like s~andard. the USA, the IEEE may take the lead. Standards for equipment test~ng, In IEC 6 1000-4-11 [ 121, are also needed to obtain and verify equipment immunity. As a complement to equipment immunity requirements, voltage characteristics for the supply must be made available to the customers. The E u r o p e ~ ~ d a r d 50160 s EN should be extended with voltage characteristics for voltage sags and other events. Equivalent documents should be written for other parts of the world as well as local s t ~ d ~for s d individ~dl countries [13]. latory bodies should pub~ishstatistics on the PQ performance of uti~~ties. a Such e is already in place in the UK for long i n ~ e ~ p t i o[14]. ns Voltage sag ch~acterisat~on an important basis for the above s ~ d ~ d is regulations. At the time of writing, standardisation on this issue is under develo both in the IEC [4] and in the IEEE [lSJ. However, current activities concen sags experienced by sin~le~phase equipment. A technique has been proposed for the characterisation of voltage sags [16] e x ~ e ~ e n c b d e three-phase equipment. It enables the characterisation through one complex vol wi~hout sign~ficant foss of information. The method is based on the decomposition o voltage phasors into symmetrical components. An additional characteristic is introduc e n ~ b l the exact recons~ction the three complex voltages. The m a ~ e ~ a t ibehind the e of cs method and additional examples is described in references [2,17-20]. The ITIC (Information Technology Industry Council) curve [21] shown in Figure 10.3 can be used to evaluate the voltage quality of a power system with respect to voltage i n t e ~ p t i o n ssags or unde~oltages swells or overvoltage. This curve was ori , and deline i the design of the power supply for computer and electronic n in the 60 Hz, 120 V distribution voltage system. By noting the changes of power supply voltage on the curve, it is ossible to assess if the supply is reliable for operating electronic equipment, which is generally the most susceptive equipment in the power system. The curve shows the m a g ~ i ~ and duration of voltage var~ations the power system. de on The region between the WO sides of the curve is the tolerance envelope within which electronic e ~ u i p m e n ~expected to operate reliably. Rather than noting a point on the plot is for every measured d i s ~ b ~ cthe,plot can be divided into small regions with a certain e range of magnitude and duration. The number o f occurrences within each small region can be record~d provide a reasonable indication of the quality of the system. to

33

Power System ~ e s t ~ c and n g ~

Percentage of nominal voltage (ms.of peak ~ q u i v ~ ~ e n t ~

90

110

0 Ims 3ms 2Oms

0.5s 1OS

Y
State

Fi

ETIG curve

elet ~ a n s f (WT) o~ c u ~ ~ wav nt f r ~ q u ~ re~ y n

ides a fast way of an the ~~~~~r ~ r a ~ ~

arly in the ~ r e s e n c ~ a of

(10.1)

Power Quality

A sample mother wavelet

(10.2)
he WT of a ~ o n t ~ u si ~ s Q

time e~~~~~ the w a v ~ ~ ~ t of

are ~ i $ c r e t i ~ ~ dnot the i but

Power System ~

~ and ~ e ~ ~ ~ l ~ t i o n ~ c a ~

and the discrete wavelet coefficients are given by

(10.6)

Although the ~ a n s f o ~ a t i isn o over continuous time, the wavelets represen~tion discrete is and the discrete wavelet coefficients represent the c o ~ e l a ~ i o n between the original signal and wavelets for different combinations ofm and n. The inverse DWT is given by:

= (A + B)/2, and A and B are the f i m e bounds (maximum values of a and b).

10.2.2

W a v Analysis ~ ~ ~ ~

lysis is normally implemented using ~ult~-resolut~on s h- and low-pass equivalent filters, h and g respectively, ana~ys~ng wavelet. The digital signal to be analysed is then decomposed (filtered) into smoothed and d e ~ i i e d versions at successive scales, as shown in ~ i g u r e 10.5 where (24) represe~~s a down sampling by half, Scale 1 i Figure 10.5 contains i n f o ~ a t ~ o n the Nyquis~~equeney n from (half the ains i n f o ~ a t i o n frequency) to o n e - ~ u ~ the sampling frequency, scale er -quarter to one-eighth the sampliing frequency and so on. at any scale, with the final smoothed is is one of the sirab able s, i.e. scales 8,16,32, if it is . The choice of mother wavelet has a nt effect on the results obtained. The o ~ h o ~ o n a l i ~ of wavelets ensures that the signal can be recQns its ~ ~ s coeffic~ents~ f Q [23]. Wavelets with s y ~ m e filter c o e ~ c i e n ~ s ~~ genera^^ l~near phase shift. A large wav~letfamily derived by Daubechies [2 ] covers the field of o ~ h o n o ~ a l wavelets. It includes embers ranging from highiy Daub6 wavelets ape the best choice for short and fa ~ a ~ s id e s ~ r b ~ cDaub8 and Daub10 are the mo i~t e~, of a mother wavelet without knowledge of the types simpler solution is the use of one type of mother wavelet in the wh de~ect~on localisation for all types of d i s ~ ~ ~ c e s . and

Power Quality

xi31

scale 2

scale

. I .

M u I ~ i ~ ~ ~ s osignal d e ~ o m p o s i ~ ~ o ~ lu~on implementation of wavelet analysis

In doing SO, higher scale signal decomposi~ionis needed. At the lowest scale the of mother wavelet is most localised in time and oscillates rapidly within a very short p e ~ o d time. As the wavele oes to ~ ~ g hscales, the analysing wavelets becom~ loc~lised er less in owing to the dilation nature of the WT analysis. As a result of time and oscillate 1 higher scale signal decomposition fast and short transient d i s ~ b a n c e s de~ectedat are lower scales, whereas slow and long transient d i s ~ b a n c e s will be detec~e scales.

10.2.3
Fig~re 10.6a shows a s ~ u e n c of voltage dis~rbances. remove the noise prese~t the e To in waveform, squared wavelet ~ a n s f coef~cients o~ (SWTCs) are used at scales rn = I 2 3 and 4, ~ ~ s p e c t ~ (v s ~ y in F eh o ~ 10,6b, c, d and e; these are analysed U wavelet. Figure 10.6a contains rapid oscillation disturbance (high fre time 30 ms, and is ~ o ~ l o wby a siow oscillation dis~rbance ed (low freque ms. The SWTCs at scales I, 2 and 3 catch these rapid oscillations, while scale 4 cat slow osci~latin~ s ~ r b a n which o c ~ u ~ after time 30 ms. Note that the h i ~ h di c~~ ed persist at the same t e ~ p o r alocation over scales 1 , 2 and 4. l It must be pointed out that the same technique can be used to det waveform distortion (like no~ches h a ~ o n ~ cand other and s) momen~aryinter~ptions,sags and surges. ~ o w e v e r rig must be developed for each stutbance for the WT to be accepted as au~omatic ~ a s s i ~ cof ~ o n ~ aP

Power System ~ e s t ~ c t u ~andg in

200

10

20

30

40

50

60

70

80

90

100

e Voltage disturbance signal (0 1996, iEEQ

10

20

30

40

50

60

70

80

90

100

The SWTCs at scale I (0 1996,Z

10

20

30

40

50

60

70

80

90

100

The S~~~~ at scale 2 (0 1 9 ~ 6 , IEEQ

10

20

30

40

50

40

70

80

90

100

42

Power System Restructuring and ~ e r e ~ ~ a t i o n

.3

istor

W a v e f o ~ ~ s t o ~ i o n generally disc~ssed terms of h ~ o n i c s which are s d is in , voltages or currents having frequencies that are w frequency at which the supply system is d e s i to operate (e.g. 50 ~ ~ the ~euencies of these voltages and currents are not an integer of they are termed

~ is ~t nic and interha~onic s t o ~ i o ngenerally caused by ~ u i p m e with non-linear voltage/c~ent characte~st~cs. general, distorting equ In harmonic currents which in turn cause harmonic voltage drops across the impedances of the network. Harmonic currents of the same frequency &om different sources add It ed vec~orially. is believed that, in general, harmonic levels tend to be i n ~ ~ e n c prima~ly by local and immediately adjacent conditions rather than wider zonal effects. The main de~imenta~ effects of h a ~ o n i c are [30]: s
maloperation of control devices, mains signalling systems and protective r ~ ~ a ~ s , losses in capacitors, ~ ~ s f o r m eand rotating ~achines, rs ional noise from motors and other apparatus, telephone interference, and e presence of power factor corr~ction a p a c i ~ o ~ cable capac~tancewhich can c and cause shunt and series resonances in the network roducing voltage ~ p ~ i ~ c aeveno n t~ oint from the distorting load.

As well as the above, i n t e r h a ~ o n ~ c s perturb ripple eantml sign& and at s can h a ~ o levels ccan cause flicker. To keep the harmonic voltage content within the ~ ~ recom~ended levels, the main solutions in c u ~ ~usetare: n

the use of high pulse recti~cation (e.g. smelters and R passive filters, either tuned to i n d i v i d ~ ~ &euencies active filters and conditioners.

I U,3. I

~ a ~ ~ o Sources nic

Lower order odd h ~ o n i c are the most proli~camong consumer e~ectronic$yste~s. s I~owever, third harmonic (of zero sequence) is usually p r ~ v e ~ t e d en~erin the from high voltage system by the use of appropriate transformer connections. The fifth harmonic (in the UK) has been identified as the harmonic order exhibit in^ the highest peak levels of high v o ~ ~ systems, with values between 2.5% and 3.0%at some locations. The fifth also ge most ~ e ~ ~ e n t l y the highest mean harmonic levels, a characteristic which has been presents found to be consistent both g e o ~ p h i c a l l y with time. and

Power Quality

-n

m
-7
r4
X
I

1.0

2 0.8

@)

a .g
5.

0.6
0.4

0.2
01
11 13

23 25

Frequency (x fundamental frequency)

igure 10.9 12-pulse converter current: (a) waveform, (b) harmonic spectrum

The t ~ d a c o ~ ~ g u r a t for ~i ~ ~ u s a~ i a ~ r~ io ations is the ~ 2 ~ ~ u l s e cQnve~er,shown in igure 10.8. The c~aracteristic ation are o~orders 12k-t-1 (of positive s e q ~ e n cand 1%~) a ~ ~ l i ~ areei n v ~ r ~ pyr o ~ o ~ to o ~ ~ ~ ~ o ~ i c d s l ~ the a a s ~ e c of ~ m 10.9b which c o ~ e s p o n d ~the time wavvefo ~ Figure to of course, ~ a ~ i 1 r 1s for ideal system conditions, n ~ e d ~ c e ~ s y s ~ e ~ a per~ectly flat direct c u ~ ~ (i.e. i ~ ~ n si~ to o t h i n g AC nt ~ en the AC system is weak and the o erfectly s y m m e ~ ~ a l ~ a r ~ o nappear. ~cs ile t~~ c~aracteristic ~ o n i c s h it is not e~onornica~ reduce in that way the un to

devic~s are, there and

~ o ~ common ex amp^^ of u n c ~ a r a c ~ h e ~

els with v ~ ~ o levels of c o ~ p l e x are app~aring us i~ 1 n o ~ - l i ~ e cQ~ponents, ar such as AC/DC converte harmonic Norton equivalents. They involve iterative harmonic analy in~e~action e ~ the conve~er the linear system. Further work is b e ~ and 1 ~ ~ e Q u s l y effect of multiple ~tercQnnected the non-li The system s ~ a state is $ub~ta~tially, not completely, desmib ~ y but ark. In many eases, it is a s s ~ e d there that the ~ n d a ~ ~ e n t a l frequenc~ its ~armQnic$. and

he equation set. cedwe used to solve the non-li~ear a set o f accurate non-linear e

Power System ~

~ and Dere ~ c ~

10.3.3

~ ~ r ~ o Flows (301 nic

In its simples~ form the frequency domain provides a direct solution of the effect of d in~ividua~ a ~ o ~ or c~ o n ~ h a ~ o~equency h i nic injec~~ons t~oughout linear a system, without explicit consideration of the harmonic interaction between the network and the n o n ~ l i c oe ~ ~ ~ e n ~ ( s ) . ~ mp The sources of h ~ ~ o ninjection, depending on the available info ic linear c ~ ~ p o n e n tcan be current sources or Norton or Thevenin harmonic ~ ~ u ~ v a l e n t ~ , s, A co~rn~n experience derived from harmonic field tests i s the asyrnme~ica1 a ~ r e the n of readin~s. justifies the need for three ,being the mle rather than tbe exc s. The basic compon~n~ a t h e of ~ ~ s m i s s line,nwhich can be accurate~yrepresented ~o as earth return, skin model, including mutual effects a other n e ~ opassive r ~ n line m o d ~ are then combi~ed ~s w co~pon~nts to obtain t~ee-phase equivalent h a ~ o n i i c The system harmonic voltages are calculated by direct solution oflhe linear equation

is a reduced system a d ~ ~ ~ a rn c ex of order equal to ( n n u ~ b of ~ e inject~on busbar,

coinponent. The most c o ~ m o n current waveforms often have an ape~iodic iodicity in the ~ a v ~ isf o ~ and i n t e r ~ ~ o con~ent~ nj~

also pro~ucesvoltage ~ ~ c ~ a t and l i ~ h t ~ c ~~ eor ~. e c t to o ~ i o n ~ ~ i the voltage level and the of series reactances .The conve~tiona~ P account the ~ p e r i o ~co~ponents. ic For example, the total h a ~ o n i c distortion ( D) is basically a ratio of the en~rgy c t a onics to that in the ~ n d a ~ e o ~ p o n e n It~is possible to d e ~ n e r the aperiodic case by defining the power f r e q u ~ ~ c y there (and I, component), and then using the ~ e m a i n i n ~ portion of the s nu~erator a ~ ~ - 1 i index [39]: of ke

Power Quality

where the power ~equency denoted as cooand E[.]denotes the calculation of the ener is of a time signal. The prime on th D indicates that this is not quite con~entional THD ca~cu~atiQn. Of e, TMD degenerates to TIID for the p e ~ o d i c case. With re~erenceto the flicker disturbance, the measurement and frequency windows in standards, mainly thro which flicker exists is d e ~ n e d inte~ational C). Generally, flicker i s limited to ~ l e c ~ r o ~ e cCommission ~ica~ fluctuations in the supply voltage. A proble~atic ~ ~of ~ r index is how the flicker is to be m sured. As an examp~e, f this e power frequency) be should the flicker energy (i.e. sideband energy in the vicinity of measured in root mean square a m p ~ i ~ d e ,zero to peak? or m e a n i n ~ to lintegra~e sideband energy over a ~ the latter appears to have less phys~ological implic mathemat~cal properties. Also, the integration of energy physiologic~~ weigh~~ng factor as specified by the IEC stand tranform, short-time Fourier transform, and Fourier linear combiner have been sugges~ed as possible solutions to the problem.

with the intent of s u m m a ~ s ~ rms of the active power loss distortion, and the ~n~er~erencetelephone and data communication ei on these indices have evolved from expe~ence with power systems, m i n ~ i t i v e ~ a s o n i n ~ r and from heuristics. However, with the advent of power electronics and 0th tronic devices, there are prob~ema~jc in the general app~ication cases of indices. For examp~e~ consid e use of the power factor index to minimi sys~em losses, with a ti load, such as a pulsating load on the s phase induction motor, become a source over part of the cyc stroke occurs fo~lowedby a re~e~erative period). Thus, the power ~nd~ctiona c ~ n e m load may go ~ e a ~ and lagging. In this case, th ng correct the power factor to minimise loss in the distribution supply intuitive result. The power factor index should be applied with caution in cases o f time v ~ a t ~ ounbalance and presence of on-powe~ frequency signals, n, The main ~ o t i v a ~ i o n using indices is the ease in calculation, th for tion of of the definition, the simple a p p ~ ~ c a t oo ~ indices (and the simplified i f the h ~ ~ c e sHowever, in some cases, indices should not be used at all. Instead, it ~ ~ gbe t ). the time waveshape of voltages and currents directly. ~ o m e ng definitions include sojourn time, wavelet spectrum, Liapunov The in dust^ needs to est~blish ~ i and complete P ~ f o ~ that d~~ can be compared (over location, over time, etc.) and such as IEC 61000-~-7,which cov 77A Work~ng r o 09 has made en ~ u ~ U ~ ~ l ~ ~ - o PQesn ~ e d r are ~ ~~da ds of s ~ n d a r d s be used to set a CO can

and they should create a ~ i ~ a m c u p~~ ~ of PQ. The c e level ~ ~ ean s ~ a ~ ~ ~~e d d y d a contains some we11"~e~ned margins for harmonic disto~ion ancl other variation^ le levels for events li WO&,~ ~ w e ~ e rneeds to be done to set acc still , and ~ ~ ~ ~ ~ p t i voltage characteristic The o n ~ . themselves are not e q ~ ~ p ~i e n t ~re ~ r ~ ~ e n tasmaxi i m i~ s i b ~umber of quip s ~ and ~ needs to be decided on. More work i s needed on PQ standards that can be used by equip~ent a n ~ ~ a c ~ r eIt s . m r is far less expensive to inform m ~ u f a c ~ r e~ s ~ theoreal~ t of r level t to improve the level of power quality. Some in sky, have already developed their own s ~ ~ n ~ t~ ility s t ~ will u ~ ~ i ~ t ~ li y i ~all $ ~ issues, i n c l u d ~ ~ o s e d ~ ~ e n i P

us effort is needed from $ ~ ~ a r d " e ~ i ~ lish require~entsfor equ

35

Power System R e s ~ c ~ r i and Dere~lation ng

[ 121 Voltage dips, short intemptions and voltage variations immunity tests, IEC Standard ~ocument 000-4- 11. 61 [ 131 Basnivo fdr elkvalitet, (Basic level for power quality, in Swedish), Gdtborg Energi Ndt AB,

[ 151

[l8]

[19]

[20]

221)

~ o t ~ e n b u rSweden, 1997. g, port on distribution and transmission system perfo~ance, pub~ished annually by Office of Electricity Regulation, Birmingham, UK. IEEE Project Group 1159.2: Power quality event characterization. llen, J. Svensson and L.D. Zhang, Testing of ~d-connectedpowere~ec~onics European Power Electronics for the effects of short circuits in the Confer~nce, Lausatme, Switzerland, 1999. . Bollen, A method for characterizing unbalanced voltage dips (sags) onents, IEEE Power Engineering Letters, July 1998. L.D. Zhang and M.H.J. Bollen, Characteristics of voltage dips (sags) in power systems, I n t e ~ a ~ ~ Conference on Harmonics and Quality o Power, Athens, Greece, October 1998. onu~ f M.H.J. Bollen, Characterization of voltage sags experienced by three-phase adjustable-speed drives, IEEE Transactions on Power Delivery, V01.12, No.4, 1997, pp.1666-1671. L.D. Zhang and M.H.J. Bollen, A method for characterisation of three-phase unbalanced dips EneW (sags) from recorded voltage waveshapes, International Telecon~municu~ions Conference ~ ~ T E ~ E C ) , Copenhagen, Denmark, June 1999. ITIC ( ~ ~ ~ o r Technology Industry Council, formerly known as the Co~puter siness ss ma~o~ & Equipment. Manufacturers Association), ITIC Curve Application Note, available at

[221

acharjee, Applicat~on wavelets to d e ~ e ~ i n e of motor drive performance during power system switching transients, Power ~ ~ a l i t y 1, A ~ ~ e r1994. , d ~ An Introduction to Wavelets,Academic Press, 1992,6-18. L231 [24] 1. Baubechics, Orthonormal bases of compactly supported wavelets, ~ ~ m r n u n ~ c a ~ i o n s in Pure and A ~ ~ ~ ~ e d ~ u ~ h @ m a t i1988, pp.909-996. Vo1.41, c s , [as] S . Santoso, E.J. Bowers, W.M. Grady and P. H o f ~ Power quality assessment via wavelet ~ , t ~ a ~mlysis IEEE Transactionson Power elivery, Vol.11, No.2, 1996, ~ p . 9 2 4 - ~ ~ 0 . ~ f o ~ egnevi~sky,Automated disturbance recognition in power systems, Power ~ n g ~ ~ e e Conference (AUPEC 98), Hobart, 1998, pp.593r~ng
597.

1271 P.F. Ribeiro and P. Ceiio, Advanced techniques for voltage quality analysis; ~ ~ ~ ~ e s sophistication or indispensable tools, Paper A-206, Power Quality assess men^, ~ ~ t e r d a i n , 1994. [28] L. Zadeh, Fuzzy sets, Info~at~on Control,Vol.8, No.3, 1965, pp.338-354. and Introduction to Fuzzy Logicfor ~ r a c t i c App~icati~ns, a~ Sp~nger, 1997. a, D. Bradky and P.S. Bodger, Power System ~ u r m o ~ ~ i c s , Wiley & Sons, John

ads and J. Arrillaga, HVDC converter ~ a n s f o ~core saturation instability: er A frequency domain analysis, IEE Proceedings - Generation, T r a n s ~ i s s ~Distribution, o~* V01.143, Ea0.1, 1996, pp.75-81. . Ainsworth, The p~ase-~ocked oscillator. A new control system for controlled static converters, IEEE Transactions on Power Apparatus and Systerrts, Vol.PAS-87, 1968, pp.859865.

Power Quality

liaga, N.R. Watson, J.F. Eggleston and C.D. Callaghan, Comparison of steady state and dynamic models for the calculation of a.c./d.c. system harmonics, IEE Proceed~ngs, I 34C, Vol. No.1, 1987, pp.31-37. R. ~ a c a m i n iand J.C. Oliveira, ~armonics multiple converter systems: a genera~~sed in approach, IEE Proceedings, V01.127, 1980, pp.96-106. 6. Carpinelli, et al., Gener sed converter models for iterative harmonic analysis in power systems, IEE Proceedings Generation, Transmission and Dis~ributi~n, 14 1, No.5, 1994, Vol. pp.445-45 1. C.D. Callaghan and J. Arrilla~a,A double iterative algorithm for the analysis of power and ~ a ~ flows at ac-dc converter terminals, 115%:Proceedings, Vol.136, No.6, 1989, o ~ c

. Smith et al., A Newton solution for the harmonic phasor analysis of ac-dc c o n ~ e ~ e r s , IEEE PES S ~ m ~Meeting 95, SM 379-8. er C.D. Callaghan and J. Arrillaga, Convergence criteria for iterative harmonic analysis and its application to static converters, ICHPS IV, Budapest, 1990, pp.38-43. G.T. Heydt, Problematic power quality indices, Panel Session on ~ ~ ~ t a n d a ~ dIEEE~ ~ s, Winter Power Meeting, Singapore, 2000. R. Ott (Chairman), IEC 77A Low Frequency Phenomena, Working Group 9, Power qua~ity Draft in progress, 1999. measuremen~s, ctric Power Distribution for Industrial Plants. IEEE 141:1986, Recommended Br IEEE 1159: 1995, lEEE R e c o ~ e n d e d Practice on Monitoring Electric Power IEC 61000-2-5: 1995, E l e c ~ o m a ~ eCompatibility (E~C), 2: E n v ~ o ~ e n t , ~ic Part $ection 5: Classifications o f ElectromagneticEnvironments. IEC 61000-2-1: 1990, Electroma~etic Compatibili~ (EMC), Part 2: E n v i r o ~ e n t Section 1: , D e s c ~ p ~ i o nthe E n v ~ o ~ e-nElectroma~etic of t Environment for Low-~requen~y Con~ucted Disturbances and Signalling in Public Power Supply Systems. IEC 61000-2-2: 1990, E l e c ~ m a ~ e tCompa~ibifity(EMC), Part 2: E n v i r o ~ e n t Sect~on ic , 2: Compa~~bility Levels for ~ow-~requency Conducted Disturbances md S i ~ a l I i n g Public in Power Supply Systems. AC IEEE c62.41: 1991, IEEE R e c o ~ e n d e d Practice on Surge Voltages in Low-Vo~~age Power Circuits. IEG 816: 1984, Guide on Methods of Measurement of Short Duration Transients on Low
to Measurements of Voltage Dips and Short ~ n t e ~ p ~ i o n s Occurring in Industrial Installations. Federal ~ n f o ~ a Processing Standards Publication 94: Guideiin~ E ~ e c ~ cPower for ~~on on al ADP ~n~tallation~, National Technical Information Service, 1983. D.L. Brooh, R.C. Dngan, M. Waclawiak and S. Sundaram, Indices for assessing utility system R.M.S. varialion ~ e r f o ~ a n cIEEE T r a n s a c ~ j o ~ ~, Power Delivery, PE-

IEEE 519: 1992, IEEE Recommended Practices and Requirements for Harmonic Control in Electric Power Systems (ANSI). IEC 61000-4-7, 1991, E ~ e c t r o m a ~ e ~ i c Compatibility (EMC), Part 4: Limits, Section 7: General p & on harmonics and inter-harmonics measurements and ~ ~ ~ ~ ~ u m e n power ~ o n , i for ~ a ~ supply systems and equipment c o ~ e ~ t thereto. ed

estructtaring and ~ e r e ~ l a ~ ~ Q n irectives conce~ingthe Protection of T ~ l e c o ~ m ~ i c aLines~against tio

Group, ~ n t e r - h a ~ Q n in Power Systems, January 1997. ics [571 Ec 868: 1986,F ~ ~ ~ k e-Functional and design spe~i~cations. ~et~T [58] IEC 868-0: 1992, Flickermeter - Evaluation of flicker severity, 4: Limits, Section 15:

ems and Equip~ent -

Relevant Standards. E631 lEEE 100:1992, IEEE Standard Dictionary ofEIecCrica1 and Electronics Te 1641 E 4 50160 1994, Voltage ~ h ~ a c t e ~ s tofc s l e c ~ i csupplied by Public T i E i~

1651 IBC 61000-3-2: 1994, E for ~ ~ o ncurrent em i c [66] IEC ~ 1 0 0 0 - 3 1994, E ~: armonic current emission 6~000-~-3: 1994, Elect ~ ~ i ~ tof Voltage ~ l u c ~ t i oand Flicker in LQw-volta~e i o n ns ~~~~1~ ~ y $ t for~~ ~ u i ~ ~ e Rated Current 1 16 A. C), Part 3: Limits, SectiQn 5: ~ ~ ~ iof ~ a ~ Fluc~a~ions Flicker in ~Qw~VoltagG Voltage i o ~ and $upp~y ystem for ~ q u i p m e ~ i ~ d Current gncata than 16

analysis in real-time,

Iowa State Univer~ty USA

University of'~ e t Australia e ~ A~t~lia

r Loi Lei Lai City ~ n ~ v e ~ ~t o .n d ~ n i y

UK

Power System ~

~ and D ~ r ~c~ l a t i o n ~ ~ ~

S o ~ a r agents have evolved from multi-agent ~ y s t e ~ s e three broad areas which fall under distributed artificial being dis~ibuted problem solving (DPS) and parallel arti ~ e ~ascwith ~ulti-agent ~ , systems, they i ~ e r i many t potential benefits. For example, s o h a r e agents inherit m o d u ~ a r i speed (due to parallelism) and reliability (due to redundancy). It also i ~ ~ r i t s ~, those due to A such as operation at the ~ o w ~ e d level, easier mainte~ance, e u s a b i ~ i ~ I ge r and p l a ~ f independence. The concept of an agent can be traced back to the early days of o~~ research into DAI in the 1970s. tudy of mu~t~ple collaborat~v~ agents includes intera~tion c o ~ ~ n i c a t i o n and be agents9 d~compositionand dis~butionof ta coordina~ionand cooperation, conflict resolution via negotiation. These resulted in work such as I planning and game ~ht:Qr~es [17]. s m a ~ e s s derives from the fact that the value gained from ~nd~vidual stan agents c o o r ~ ~ n a ~ ~ n gactions by working in coo~erutionis their greater than that gained from any individual agent. A p p ~ i ~ a ~ domains [ 1x1 in which ion agent solutions are being applied to or investigated include work~owmanagement, network management, a i r - ~ a f ~ c control, business process r e - e n g i n e e ~ ~ i n f o ~ a t i o n re~eval/management, electronic commerce, educat~on, perso ~sist~nts as), e-mail, digital l ~ b r ~ i e s ,o r n r n ~and ~ontrol, ~ m a ~ c ~ s~heduIing/dia~a n a ~ e ~ e n t , m etc. s are still ~ ~ m o n s ~ r ~ t ~ r s only: It is important to note that most agent-based e even greater cliallenges, some c Q n ~ e ~ ithem into real usable appiications would ng reseen. The essential ~ e s s ~ g e of wh~ch have been ant~cipated currently, many but, ity9their wide of this section is that agents are here to stay, not least because of thei r a n ~ e a ~ ~ ~ i c a and lthe broad spectrum of companies investing of bi i~

a component of software andfor hardware which i s capable of accomplish tasks on behalf of its user. here art: several

first^^, agents may be classified by their mobility, i.e. by their ability to move a ~ ~ ~ n some n e ~ o r kThis yields the classes of static or bile a~ents. . ~ e c o n ~they , may be classed m either ~ e ~ i b e r a or~ v e ~y ~ reactive. derive from the deliberative thinking p~adigm:that is, the agents and in symbolic, reasoning model and they engage in p l a ~ i n g neg~tiation order to achie~e with other agents. Work on reactive agents o r i ~ i n ~ t from research carrie es oks [19]. These agents on the contrary do not odds of their environment, and they act using a stimulus state of the env~onmentin whi that intelligent behaviour can olic re~resenta~~ons of traditional AI [21].

Information Technolonv A ~ ~ ~ i c a ~ i o n

355

Thirdly, agents may be classified along several ideals and pfimary attributes that agents should exhibit. At T Labs, three main attributes, namely autonomy, le cooperat~oi~, been ~ d e n t i ~ e~ . ~ ~ refers to the o ~ y have d o ~ princip~e agents can operate that on their own without the need for human guidance, even though this would sQmetimebe invaluable. Hence agents have individual internal states and goals, and they act in such a manner as to meet their goals on behalf of their user. A key element of their autonomy is activeness, i.e. their ability to take the initiative rather than acting s to their environme~~ Cooperation with other agents is paramoun~. [22], to cooperate, agents need to possess a social ability, i.e. the ability to interact agents and possibly humans via some communication language [22]. Having said this it is possible for agents to coordinate their actions without cooperation [23]. Lastly, fo systems to be truly smart, they would have to learn as they react and/or interact w external environment. Agents are (or should be) disembodied bits of intelligenc these three minimal es, Figure I 1.1 was used to derive four types o f agents, namely c~llaborative agents, collabo~ative leaming agents, interface agents and smart ~ ~ e ~ t ~ smart
\ /

Collabo~at~ve

agent^
1.1 A part view of an agent typology

Agents

It must be emphasised that these distinctions are not definitive. For ~ x ~ p l with e, ative agents, there is more emphasis on cooperation and au~onomy ; hence, it is not i ~ p ~ i e d collaborative agents never learn. Like that ere is more emphasis on autonomy and learning than o Ise which lies Q u ~ s ~the ~ntersecti~g de areas is not con most expert syste~nsare largely autonomous but,

may s ~ ~ e t i mbesc l ~ s i ~ bydtheir roles ~ r e f e r a b ~ y , e e odd Wide Web ( ~i n ~ Q ~ a t i agents. Again, info ) on

~ i ~ h ltwo or more age^^ ~hiloso~hies combined in a y, are ~ y ~agent. ~ r i There are Qther a ~ b u of agents, which we ~ ~ s already m e n t i ~ For~example, is an agen~ ~ ~. versatile (i.e. does it h in a variety of tas Is an agent benevolent or non-help Does an agent lie wingly or is it always ~ u t h f u ~ (&is Can you trust the agent enough to (risk) delegate task in contrast to failing ast tic ally at the b o ~ ~ ~Pe s ? e

Power System ~ e s ~ c t u and Dere ~ng

~esearc~ers also a ~ b u t ~ e ~ o ~ i o nattitudes to agents - do ~~~yget fed up are ng al to do the same thing time and time again? role does e ~ o t i o n have in c o n s ~ ~ c t believab~eagents [NI? In essence, agen in~ in a truly ~ u l t i - d i ~ e ~ ~ i ~ n a space. It is quite possible that agents may be in c o ~ p ~ t i t i o n one another, or per with stic towards each other. In agen~-ba involves high-level messages. The use of lower ~ ~ r n ~ ~ costs, easy~reimplementabi c a ~ o n d ~ o n c u ~ e nLastly, and p c~. most i ~ p o ~ tagent-based applicat~ons ~ y , op ally at the ~ o w l e ~ level [ ge

.l, collabo~tive agents emphasis^ a u t o n o ~ y and s) in order to p e r f o tasks for their o ~ eThey may le ~ ~ . rnphasis of their operation. In order to have a CO ey may have to ne~otiatein order to reach a ~ e e ~ e i ionssome matters t The ~ o t i v a for having c o ~ ~ a b o r a ~ ~ v e systems may include one or several of ~~~n agent the ~ o l l o w i n ~ ~ to solve probI~msthat are too large for a cen~al~sed single agent to do owin resource li~i~ations; to allow for the ~nterconnectingand interoperation of
so~utions i~herent~ys ~ b u t e d to di e solu~onswhich draw from

speed (due to p ~ a ~ ~ e ~ ~ s r n ~ h a r e a bof~ ~ ~ i resources); to re~earch other issues, e.g. understanding ~nteractions into asise autonomy and l e a r n ~ ~ g order to p e ~ o in subtle emphasis and distinction between c o ~ ~ a b o r a ~ i ~ a t ~ v~ ~ with c o ~ ~ a b o r awith ~ t ~ n other agents, as is the case with c o ~ ~ a ~ o r~gents. o ~ ~ a b o r a t i ~ g ay not requir~ explicit agent c o ~ m ~ i c a t i o a n ~ a g e one re~uired an ln as when ith other agents. Essentially, interface agents support and provide assis~nce system. The users agent lar app~icationsuch as 1 erface, learns new shortitors the actions taken acts as an assistant, better ways of doing the task. Thus, the users the erates with the user in ac~o~plishing task. As for Ily to assist their user better in the ~ ~ l ~ o wfour ways [26]: ing

o b s e ~ ~ and imitating the user (i.e. l e ~ n i n g ng h receiv~n~ posit~veand ~egative feedb

ctions from the ~ s e r

Information Technology A~~lication

other agents for advice (i.e. learni~g from peers). e Their c o o ~ e r ~ t i o n other agents, if any, is limited ically to asking for a d ~ ~ can, with ion deals with em, as is the case with c o ~ ~ a b o r a agen~s. ~ v e The ically by m e m o ~ - b a s elearning or other t e c ~ i ~ u e s as ~ such h are being in~oduced. An interface age^^ is a ~ u a s i - s m ~ where boring and laborious tasks could ith one or or^ computer appbica e tedium of ~ u m a n p e r f o operatio~s. s ~ ~ ~ ~

from a flight reservation to ~

aa t e l e ~io ~ m u n ~ c a t ~ o n s ~ n

s neither a necessary nor , ~ u ~ cc i ~ d ~ ~ifor a ~ ~ ~ t ~ a a e ~ t on

wn to other agents.

~ a ~[28] lists the ~ a j co a~ l e ~ g e s . ~ ~ c l u at e e r ~ l They d least the ~ o l ~ o w i ~ ~ :

o ~ thow does an ~ : ~move .From place to place? How does it ~ ~ ~ e ~ t

move?

Power System Restructuring and ~ e ~ e ~ I a t i o n

Au~hentication:how does the user ensure the agent is who it says it is, and that it is represent~ng who it claims to be represent in^? does the user know it has navi various networks without being infected by a v Secrecy: how does the user ensure that the agents maintain privacy? How does the user ensure someone else has not read the personal agent and executed it for their own gains? How does the user ensure that the agent is not killed? Security: how does the user protect against viruses? How does the user prevent an i~coming agent from entering an endless loop and c o n s ~ n all the CPU cycles? g Cash: how will the agent pay for services? How does the user ensure that it does not run up an outrageous bill on the users behalf? rmance issues: what would be the effect of having hundreds, thou$ands or millions f such agents on a WAN? Inte~operabi~i~/com~unication~rokeri~~g how does the user provide services: e~ng/directory~e services for locating engines andor s p e c i ~ ~ services? How the user publish QT subscribe to services, or support broadcasti~g necessary for some other coordina~~on approaches? The ~ ~ for developing ii f o ~ a t iv ~ i n t e r~ agents is simply ~a n e e ~~ d e for~ d ~ n o net ~ ~~ tools to manage such information explosion. Everyone on the WWW would benefit from ~~e~ agents are going to search the Intern~t, becaus matter how ~ u c h ernet may be organised, it cannot keep pace with the and the has (or prom~ses)its own stre~gths de~cienc~es, e strengths and minimise the de~ciencies the most rele of rpose. Frequently, one way of doing this is to ad together some of the s~engths both the de of hybrid agents refer to those whose cons~~tut~on i or more agent p ~ i Z o s o within ~ s ~ ~ ~ a singular agent. These philoso p h ~ ~ o s o ~an y ,t e r f a c e h~ agent philosophy~ collaborative agent for s i s ~ ~ The key ~ y p ~ ~ ~ e having h y b agents or ~ c ~ ~ t e c ~ applica~~ons, benefits accrued from having the combination of ~ h ~ l o s o within a s the ~~~e roved right; the ideal benefits hies, In such a case the reactive component, which would take precede~ceover the del~bera~ive brings about the following ~ e n e ~ t s ~ one, robustness, faster response times and adaptabil~ty, deliberative part of the agent would The term goa~-orientedissues. For ~ x ~ p lthere is e, agent by comb in in^ the interface agent and MO mobi~eagents to harness fea other co~b~nations. fer to an ~ n ~ e g setup~of at least two or more ra ~~ etero~eneou~ agent sy which belong to two or more different agent classes.

I n ~ o ~ a ~Technology Application ion

35

also contain one or more hybrid agents. ~enesereth Ketchpel 1291 a~iculate ~ e the ~ y and c ~ ~otivat~ori heterogeneous agent systems. The essential argument is that the wosl for abounds with a rich divessity of s o ~ ~ a~rre ~ u cproviding a wide range of services for a o ts s i ~ ~ l a wide range of d o ~ a i n s .hough these psograms work in ~sola~ion, r~y there i s an te increasing demand to have them i n t e ~ o p e ~ ~ hopefully, in such a manner that they provide added value as an ensemble than they do individually. A new domain called a ~ ~ ~ t -softwareee ~ g i n e ~ ~has g b a ~ n i ~ been invented in order to facilitate t%ie interoperation of misce~~aneous software agents. A key r e ~ u ~ e m e nfor interope~ation t nts is having an agent ~ o ~ m ~ i c a t language (ACL) via which the ion agents can comm~icate with each other. The potential ~ e for ~ having heterogeneous agent technology are several:
~

S~andaloneapplications can be made to provide value added services by enhancin~ in cooperative hetesogeneo~s s them in order to pa~icipate intero and orated because it could obv The legacy software problem may b new leases of life by costly s o ~ a r rewrites as agents e ~ntesopesate with other systems. At the very least, heterogeneous agent t e c ~ o l o g y may lessen the effect of routine s o h a r e maintenance, upgrade OS rewrites. Agent-based software engine~sing provides a radical new approach to so i~plementation mainte~ance gener~l, software i ~ ~ s o ~in e a~ cb~ li a ~ . ~ ~ and in and p ~ s ~ e n e s e r ~ tand Ketchpei [29] h e that agent-based sofeware engi ~ o ~ p a r e d object-oriented pro to ing in that an agent, like an Q ~esage-baed interface to its int a structures and algorithms. H ey distinction: in object-oriented p r ~ g r a ~ i may differ from object to object (this is the ~rinciple po of s o ~ a r enginee~ng, e agents use a common language with They h~ghligh~ three ~ m p o ~ questions raised by the new agen~-osi~nted o ~ w a e nt s e n ~ ~ n e e n n g r a d i gThey inciude: ~a ~.
priate agent co~mun~cation language? apable of c o ~ u n i c a t ~ ing c o n ~ ~ c t 1e d n this at commun~cation s c h ~ t e ~ ~ r econducive to cooperation. a are s

are availabl~, there a e two ssible ~ c ~ ~ e cto~choose r e s ents handle their own coord ation or another in which g can rely on special s y s ~ programs to achieve coordina~on.The d i s a ~ v ~ ~ ofgthe e~ a e former is that the c~mmun~cation overhead does not necessa~ requireme~tfor the re of a g ~ n ~As a consequence, the s.

various services. They also establish the connect~onacross the e ~ v ~ ~ oand ensure s ~ e ~ t c ~ ~ eco~versatio~ ct amongst agents~

Power System R e s ~ c ~ rand ~ in

Agent

Agent

I
1-2 A federated system (adapted from 1293)

General Issues and the Future of Agerzts

from t e c ~ i c issues, as mentioned earlier, there is also a a~ ~ r o b l ~ m s ~ are looming. They include the following: which
rivacy: how does the user ensure that a g ~ n ~ sa ~ n much n e e ~ e ~ ~ i n acting on the users behalt? Legal issues: ~magine agent offers some bad advice to other peer a ~ e n t r e s ~ ~ in ~ n g an s ~ ~ ~ a ~ i l i to e s people; who is r~sponsible? t i other Ethical issues: agents must limit their searches to appropriate servers, share info with o ~ e r and respect the authority placed on them by server o~erators. s

suppliers, electric generators and distributors will have to

adds to our experien~e helps us make the next market imp~ementat~on and work a little better and more competit~vely. is believed that to some degree, It ~rn~len~~ntation,i o commodity exchanges will play a key r ~~g na~ ele~trici~. This section assumes a ~ ~ e w o which has been described in r k 13 1,321. ~ o m p ~ ipresently having both generat~onand d ~ s ~ i b u t ~ o n ~es facilities would be d i v ~ ~ e d separa~e into profit and loss c ~ ~ ~ e s .is generated by generation co~panies Power ia tra~smission companies i s sold to energy service com city ~ e l i a b ~Council (N li~ antile associations ( E M S ) will e m e r ~ e in r e l i a ~ i l and s e c u ~ ~ i~ ill promote liquidity and as an i n t e ~ e ~ i a t e this co~petitive electri er to all mul~ilatera~ trades, they will provide assurance to traders, that they nee onry about trading because a defaulting contract partner. This framework allows for cash (consists of spot and forward markets), fbtures and 11.3, The spot market allows for trading power e p l a m~rkets. ~ ~~ g u r e ~ ~ See i other d ~ ~ a t i o e.g. 30 minutes) in the next 30 days. Forward contracts n, c i ~ traders to buy or sell firm e l e ~ ~contracts as specified in the contract from 1 to 18 months. The fittures ~ a r k allows trade^ to purchase a non-^^ electric^ e~ given ~ o n t h the future (e.g. 1 to 18 months). Futures contracts pro in electricity traders to manage their risk. The planning market is a 10 develop capi~al building large items like new plants and trans for
time horizon (in months)

13 Interconnection between the markets .

s (for both ~ t u r e and physicals) for electric energy are ex s comm~n will be an ~ m p omeans t mitigating risk, An and ~ ~ of ho~derthe r i ~ h to buy or sell w i ~ h o the o~ligation buy or sell. t ~t to holder must pay an u ~ - ~ o n t remium. The a ~ o u no f the premium shou t potential holders. The worth of an option may vary references, makeup f p o ~ o l i o s(collection of assets is, how does one etemine the value of d in many markets to value options. Its usage assumes many a1 commodity that may not be true about electricity.

362

Power System Restructuring and ~ ~ r e ~ ~ a

The approach taken in this research is to allow CO sed agents to d~velop their own valuation f o ~ u ~ as they p ~ i c i p a ~ ea s i ~ u l a option markets. ae in ~e~ er options valuation should achieve higher profit than do s. The computerised agents evolve in a genetic algo valuations are replaced with new agents that are based 011 the succes~l ideas of the better agents.

As mentioned previously, it is quite likely that regional c o ~ m o d exchanges in which i~ buyers and sellers pa~icipatein a double auction will soon exist. Such e x c h ~ g e s are utilised in other markets and are essentially an extension of the electricity market operating in California, A centralised exchange allows many and varied traders easily to trade a c o ~ o cn o ~ m and derivatives based on that CO o ~ ~ In the cash (spot and forward) market, indepen~ent contract a ~ i n i s ~ a t(TCA), who or . CENCOs and ESCOs cooperate with the IC that the energy transactions resulting from the matched bids do not overload or ren e l ~ ~ ~transmission system insecure. The ICA monitors and res~ondsto the ica~ s y ~ limits and transmission capacities. ~ e ~ The spot market is what we are most familiar with in the electrical and a buyer agree (either bilaterally or through an exchange) upon a ~ u ~ bof ~ e g a w a t tosbe delivered sometime in the near ture (e.g. 10 MW from 1.00 er ~ p.m. to 4.00 p.m. tomorrow). An aptions contract is a form of ins~rance gives the option that not the obliga~ion, to (sell) a contract at a given price. For e is someone writing the contract who, in return for a premium, is ce. See Figure 11.4. Both the options and the d e s i ~ e to minimise risk. A ~ t h o ~ provisions for ~ e ~ i exist, they are not d gh v e ~ (e.g. the delivery point is not located where you want it to be located). The trader ~lt~mately cancels hisher position in the futures market with either a sicals are then p ~ c h a s e d the spot market to meet d e ~ ~ wi n d on ~ een locked-in via the hhlres contract. Long ~enotes ownersh~~; go long to figure, long indicates that the trader has pu (call) or the right to sell but) the hture. A trader who write

Information Technology Ap~~cation

figure shows how the put works. The long trader pays a premium to lock-in a maxi^^^ . The short trader price (exercise price) that he/he will have prem~~imreturn for promising to sell the in

Price

Terminal Price

Using put and call options

value of the option has been the subject of some a e ~ a tA .c ~ and SchQieput together their formula which has been other commodity markets. Marshal1 [33] states tha r e ~ ~ ithat: ~ re ~ - t e ~ The ~ ~ Q interest rate is and constant. The una~rlying asset pays no as. The u n d ~ ~ ~ yasset is e ~ ~ c i ~priced.y ing nt~ The option is of the European type. ~ ~ c ~costs (for bwying and selling). i Q n of u ~ d e r l y asset value can be borrowed. ~g restrictions on, or penalties for short selling. holes e ~ u a t ~ for valuin on ut option is as follows [34]:
p = [x.ePip(-r. (T-PI). N(- d2)- s * N(- d l )

where:
2 = strike price

r = risk free rate

~ (= cumula~ive ) ~ ~ normal a i s ~ b u ~ i o n T = ~ x p i r a ~ date on t = c u ~ e ntime t

344

Power System Restructuring and

11.3.2

A g e n ~ - ~ a ~ e~ r n p ~ ~ ~ ~ ~ ~ n a l s ~

arket p a ~ i c i ~( ~ u s~ ~ ~ ~ e r s st comp~ex, h a n g i with time c ~~ modify their behaviour as time goes along, ~ o s ~ ~ i~o h o.u g h res A ~ ~ some m a r ~ e res~onses t using control theory, it is g

t~

with usin~ ~

is relatively smooth s are another search

~ n f o ~ t i Technology Applica~on on

iscrete po~nts the search ace and selects those gro in solve the ~ r o b l e ~ . The basic genetic a1 nithm, as d e s c r i ~ ~ d GoIdberg [35], can be Written as follows by a population and set the generation counter to zero. 2. Until done or out of time, do the following:
fitness o f each m e m ~ of~ popula~ion. e the

c r e ~ e nthe generation cou~ter go to step 2. t and

. Genetic a l g o r i to evolve a population of trading agents ~

~ p t i o n with Agents s

A simple electricity market with four generators that provide is modelled. ~ e n e r a ~ are d~spatched meet demand and a o~s to from the aggregate ~ ~ g i c a curves o f the dispatc~ed n ~ gene~tors and $34) are offered with valuatio prices of $15, $20, les and the ~ a r ~ e t data. ~A-based agents then buy and sell the o ~ ~ ~at n s o

3~6

Power System ~

5 and ~

lack-Scholes prices. Implicit in the ge~ieration buy and sell signals is a valua~on of of the put options by each of the agents. Hourly demand data for an extended period was prov~dedby a large lity and was used as a source of realistic load data in this s i ~ u ~ a t ~See . on arker price data: Before evolving strategies for ata was nee~ed with which the put option prices were calcul hourly demand data was used in conjunction with the gen~rator p e the ~ ~ kpricet in an iterative procedure re~iinicentof wite the suppliers has a unit that is ~ o d e l l e dwith a q u a ~ ~ ~ t i ( Cost = a + bP + cP2). See Table 1 1.1 for the values of the CO cients. The supplier uppliers m ~ n i m ~ rod~ces power as long as the market price does not fall below itial cost (which is determined by their minim^ product~on level).
1800

1700

1600

1500

1400

3350

20

40

60 Demand

Bo

100

120

140

ernand on vertical axis ( M W ) versus time (hours) Generator parameters Generator 1

2
3

a
100

b
6 7 9 8

pm
100

0.005
0.004

150 200 250

120 150

pm, 600 700

750

L, U
7.0

hmex
12.0

8.0
10.8 10.8

12.6
18.0

0.006

0.007

200

800

19.2
jl___

The marginal cost is found by taking the derivative of the cost curve ( A = b + 2cp). The m a ~ ~ i ncost curves for each generator are shown in ~ ~ g u 11e Note that each a$ r 7. genera to^ has both a minimum and a m ~ i m opera tin^ level. ( t a ~ p u ~ and s h u ~ d o ~ costs, ramp rates, and minimum up and down time constraints were not G this ~ i ~ ~ ~ a t i then market price is below the mini mu^ ~ ~ ~ i n a l If ~ . )

Information Technology Application

generator, that generator is removed from consideration and the market price recalculated. This process is repeated until demand is balanced by a set of genera~ors b~e v~ for whom it is p r o ~ ~ to produce at the discovered price. If price d ~ 5 c o does not occur after 20 iterations, the market price from the 20th iteration is taken as the ~~~~t price. (Under this simple scheduling scheme, it is possible that a unit could be forced CO produce below its minimum marginal cost but a check showed that this never
A brief c~ari~cation this point may be in order to prevent confusion in the use of at the term spot. The market price is referred to here as the ~ ~ ewith the terminology used in finance (i.e. options prices p i ~ ~ prices); this is not to imply that the hourly market here is the s market (i.e. the spot e l e c ~ cmarket as the real-time ele i~ price data for a typical week is shown in Figure 11.8. 3 . Standard deviation of spot price: The standard deviation (s oles formula. For a given hour, sigma is ca~cula~ed used when calculating the B 1 period hours prices. The s ~ n d a r d dev~ation the of using a window of the last market price is shown in Fi ut options price data: There are four put options, which c m be bought and sold, aving strike prices of $15, $20, $25 and $30. The market valuation (price) of each o f these is calculated using the lack-Scholes formula for put options, as pres~nted earlier. Note that the risk-free rate is taken to be constant t ~ o u g h o u the simulat~onand t that T-t is a constant 90 days. This was done to prevent having to roll over the options position because the expiration date was reached. ~aluations the put options are shown in Figure 1 1.10. ne can see that they go for up and down with swings in the underlying spot price of electricity and that the put options with higher strike prices have higher market valuations, as would be expected.
PP E

Each agent in the population buys andor sells the four put options. These agents act according to i n t e ~ a l ~ y gene~ated and sell signals. These signals are ~enerated s ~ a buy u g GA to vary the coe~cients a mQdified ~ ~ a c k - ~ c h ocalculation. ~ p t i o n in les could be traded only for peak periods on weekdays, i.e. Monday-Friday, 1l.OOa.~.-4.0O~.m. GA val~ation options and buyhell signals: The GA is of as a string of real number genes. The number of genes is determined by the c on being p e r f o ~ e d by the GA (described next). For these simulations each GA has eight genes, each of which is a real n ~ b e r , The equation currently used by the GA to generate a buy or sell signal is a modified ~ ~ a c ~ - S c h ovaluation. A signal to buy or sell an option will be generated if les the GA valuation minus the market valuation is greater than some tbes dl and d2 in the lack-~choles formula are recalculated using a modifi a where CT = (Gene2).CT and where LT is the standard calculation , deviation of the spot price. A buy signal is genera~ed if [Gene0 * X exp( --r * (2 - t ) ) N(- d1)- (Gene 1). S N(- d2)] + (Gene 2 ) is greater than the Market Price. Similarly, if a new d l and d2 are calculate gene^).^ and the Market Price is rea ate^ [(Gene4)-x . e x ~ - r . ( T - t ) ) . N ( - d l ) - ( G e ~ e 5 ) . $ . N(-d2)f+(Gem7) then a sell is generated.

Power System Restructuring and ~ e r e ~ l a ~ o n

IQ

17 M a ~ ~ icosts on vertical axes ( $ / ~ W vs. . ~al )

__
29

1
Bo

20

40

60

100

120

140

Spot price on vertical axis ($/MWh) versus time (hours)

~ n f o ~ a t i o n c ~ n o l Application Te o~

0.

20

Standard deviation of spot price on vertical axis versus time

37
Valuation for Put 0 (strike=$l5)

Power System ~

e and Deregulation ~

Valuation for Put 1 (strike=$aO)

10
$

6
$

4 5 2

0 0
$

0 60 80 100 V ~ l u a t i o ~ Put 2 (strike=$25) far

28

40

20

40

60

80

100

0
Hours

1.10 Market valuation for the put options ($ vs. hours)

rodu~tion: AAer fitness is calculated, the agen~sare sorted accord~ngto their ss. Reproduction is performed using single-point crossover of two parents selected from the best half of the population using r selection, One child is created and ~ e ~ l a cansagent in the worst half of the popu e id Each childs genes can be mutated in four different ways (bearing in m n that the genes are real-valued):
1, 2.

2% of the time the gene is r e ~ ~ a c e d randomly. 5% of the time the gene is multiplied or d 10% of the time the gene is multiplied or 1% of the time the sign of the gene is ch

an do^ genes are generated according to the relation: NewGene = ~ e n e ~+iRandom[O..11.(Gen n where GeneMin and GeneMm are the max and min values of that gene over the e ~ t i r e ~opulation. (This was tried as a reasonable way of ge~eratingnew genes without ran disc~ding wh has collectively learned about the re~sonable because the space for real numbers is infinite.) a coefficien~, This process is repeated until every agent in the worst half of the popul~tion has been replaced. (A variation on this theme is to replace the worst on with randomly generated agents, in an effort to introduce ne 1 and prevent stagnation.)

Results: The GA was able to evolve a strategy that co~~istently made a profit buying ut options in this market. As shown in Fi

Infi3mation Technology Application

ent is positive and ~ m p r ~ v over the generations, ultimately reaching a value of es per trade (with one trade allowed each hour). Figure 1I. 11 also shows the fitness of the worst agent and the average fitness for lose the whole population. One can See that at the start of the run most agents a c ~ a l l y money (make a negative profit) but by the end of the simulation the aver~ge fitness has risen to nearly zero. Figure 11.12 shows the best genes from 4 different runs.
2
1.5
1

0.5

20

40

60

80

100

Maximum Fitness

-15

-20

.
3

5r-----

Minimum Fitness

' 1

1
0

20

40
Average Fitness

60

a0

100

igure 11.11 Maximum, mini mu^ and average fitness over a typical run. The vertical axis m ~ a ~ r e s profit per generation; the horizontal axis counts generations.

na m
Solving the optimal power flow (0 associated with

wer

m is ~ n d a to the ~ n b u n d~ i nof ~ ~ ~ l ~ n open access and is of increasing dereguiated environment of the electricity ension n o n - l i ~ ~ r optimisation onal which is difficult to solve. The ~ o ~ p u t a ~ ~difficulties in solving the OPF prob its use in power system o p e ~ t ~ o n s .

gene0 -2.7386 gene1 :-I 4.23i gme2: 4 . ~ ~ 9 6

g~ne5: -6.441 1 gene& 2.6333 g e n ~ 7 ~ 17 -6.97 Fitness = 1.7178

The best genes aner 100 generations from 4 ~ f f ~ rrunsn t ~

0~~~~ ensure conv to as a result, many local

app~ied the IEEE 30-bus test system under different ~ e n e r a t o ~ to resented.

11.4.1
The OPF problem seeks to optimise s t e ~ y - s ~power system p e r f o ~ with re spec^ to at~ ~ ~ e an object~ve fwhile subject to numerous constraints. For optimal act dispatch, the objective ~ n c t i o nJ is that o f total g~neration , cost. ion o f ~ansmission losses and voltage level optimi a

minf(x,
subject to

U)

(1 1.1)

of control variables (these include generator active tap s e ~ i n g sx ~ the vector o f de~endent a ~ a b l (1 ~ ) is v e ) is the ob~~ctive be optimi to generator reactive po are the ~ ~ i e q u aclo n s ~ a ~ on s i~ n~ power ~ o n s ~ a i ~ t s ;

EP seeks the optimal solution by evolving a population of c a n ~ ~ ~saot ~ ~ ~ i over a e ons n ~ m ~ of rgene~at~ons i~era~ion e or f o ~ ~ from an existi~g ed po~ulation prod^^^^ a new solution by perturbing each component of an exis a~ount. The degree of optimali~ each of the c ~ d i d a t e of so i~easured t h e i ~ ~ t n ~ s s , can be by which

ugh the use of a c o ~ p e t i t i o ~ scheme, the i~dividuals each p in h other. The winning i n d ~ v i ~ ~ a l s the next generation. For optim~sa~~o the more o p t ~ so~utionshave a a~ er chance of surviv lation ~volves towards the global optimal point. ive and the process is ~ e ~ i n a byea d ~ stopp Rer a s ~ e c i ~ number o f iterations or ed no apprec~able change in the best so~ution a certain n u ~ b of ~ for e ge adopted in the present work. The main stages of the EP t ~ ~ ~ n~c l u ~ ~ in i~a ~ ~ ~ a t ~ i ~ t u n a Figure. 11.13. mutation and compe~~tion shown i the ~ o w c h o f~ are

e s ~ c ~ andn g ~ D~re~lation

ased on the EP me~hodology, an a l g o r i t ~for solving the PF ~roblemcan be e s ~ b l i s ~ e d . basic f l o w c ~ ~the algo~thmis shown in ~ The of i 11.13 with its ~ ~ r components described below and in Sections 1 1.4.2 and 11.4.3. s Q l ~ ~ o individual in a pop~~ation An ~ : re~resents candidate a ts o f that solution consist of the co~trollableand uncontrol on at all v ~ ~ a b S ~ e c. ~ ~the ac ~ l~~~ o ~ v aa b b ~ee s ~ p e c i ~ e d ~e~ c o ~ ~ a ~ are power g e ~ ~ r a t (PV) nodes other than the slack node, the specified voltage m or at all PV nodes and tap positions for variable tap t r ~ s f o ~ e rEach candidate solution also stores s. depe~dentvaria~lessuch as the most recent load flow solution for subsequent use in ~ i t ~ a l i s i n g load flow on the next iteratio~to reduce c o ~ p u ~ t i o n within the the time loadflow algorithm.
Zis~~iuon: Each o f the con~ollable va~ables an i n ~ v ~ is i ~ iat ~ a ~rs e ~ n d o ~ of d n ~ using a uniform random number ~ ~ s ~ i b within its feasible u~on . For example, for the s p e c ~ active power generation for a PV node i, with acti ~e~ Pmw, have we

(1 1.2)

where U{Pm,, is a ~ i f r o~ ~ numbe~ e ~ e e n and P. In additio~ this, P, , d o ~ b ~ P,," , to one cand~datesoiution will have its specified active power generation for all PV nodes excluding the slack node set to the economic dispatc~ solu~ionfor the system active power load as the aggregate active power load of all nodes plus 2% to appr ~ ~ s ~ ~ losses. ~This n s o economic dispatch solution is obtained using the

tioons: Each candidate s o ~ ~ t i isn o assigned a fitness to ~ e a s u r its e ect to the objective being optimised. In the case of active and reactive tness of individua~ will be, i

M
f i =

(11.3)

VP, =

K , ( v ~ 1 . 0 ) ~ Vj > v,- or V, < V if ' otherwise

otherwise

~ n ~ o ~ aTechnology ~pplicat~oi~ ~ion

initialise Population

Make a gradient step

Evaluate loadflow and assign fitness to altered candidates

~ 11.13 Flowchart of EP-OPF g u ~ ~

m ~ In tile above ~ ~ u a t ~ o nis the ~ a x i ~ u ossible cost of g e n e r ~ t i oand C, is the , i. The eneration cost of indiv~~ual term V?, denotes a penalty term on PQ or swi node j for v ~ o l a preset voltage limits Y,~, ~~g Y. represents a penalty on

a reactive power limit. K, and Kq penalty weighting constants, It is not n e c e s s ~ y impose a enalty on slack node active power ~io~ations the at at ion to as stage helps to satisfy this constraint. The EP-OPF algorithm seeks the solution with the maxi~um fitness.
~ ~ u new ~ ~ ~ of OFF solutions is produced A t population : from the existing population through the mutation operator. A new indivi from each ~ndividua~i , where thejth OPF variable in the new ind p calc~~~ated as

where x> denot~s value of variable j in pIr. x is the value of variablej in the parent : the ,

~ ( O , ~ is , )Gaussian random n u ~ ~ ~ with a ~ a ber

deviation of oJ,The e x ~ r e s s i ~esigned c,,s o~ for i
I

me^

of zero and a s

(1 I .5) w ~ e r e is the ~ ~ eofsi ~ d i v ~ d u af , is the m ~ i m u m Ji s i; ~ , , fitness wit hi^ the po~ulation; xY,x;ltn denote the er and lower limits of variable j ; a is a ~ o s i ~ ~ v ~ tly less than unity; and r is the iteration counter. The term a' ation of~set rate of which depends on the value of a the (1 1.5) that a solution that has a much lower fitness than th value fora,,; hence it will be moved further by r n u ~ ~ i o n a to loc
~~~~~~~: in the satisfaction o f the slack node active To help co~~ai~ts, all units other than the slack are assigned R loadi their dispatc~ess then compared with the total generati i of that indiv~dua~.the difference between them is with If the slack unit, then the candi~ate ~ c e p ~ eIf . is d not, the process five a~empts. with~n If these a~empts feasible assignment is n a c o n s ~ a i n ~ d force satisfaction by sharing the ~xcessive to r ~ ~ a i generators as follows. n ~ g ing the slack node active power in an i n d i v ~ d has ~l e slack unit is unit 1, the total available capacity o f uni

-N
i=2

(1 1.6)

~xce$sive generation of the slack node is

2

(11.7)

is the SUM of the active power demand an the tran~rnissionloss the value of which is set to that found in the i ~ e d ~ a t prev~ous e ~ y load flow s ~ ~ u t i o n of The loading of unit 2 is then modified according to

(11.8)
exceeds the maximum loading o f unit 2, it is cessive gener~tion the slack node left to be sh of

Information Technology Application

377

The above proceditre is repeated to modify the loadings of the units 3 to N. After all b: Ioadings of the units are ~ o d ~the slack node active power will be on its ~ ~ d , power limit is viola~~a. : In the corn~etition stage, a s e ~ e ~ ~ ~ o n on from the two ~ ~ ~ h a n iis r n s use I so~utions h o u l ~ s selection*The selection t e ~ ~ n i used is a ~ ~ ~ ~ n a r n ~ n t qu~ scheme their co~espondi series of N, t o ~ ~ n ~ m ~ ~ p o nEach j ~ di v i d i is a s s i ~ ~ a wore s, according to ~ ~ . ~a~ ed

j=1

(I 3 * 10)

where J; is the fitness ofindi

ual i. The opponent r, is c

are t

tes the ~reatest integer less th 1 [0,l]. The k highe a as ~ ~~ ~ d i vini the next ~ e ~ ~ ~ r a t i o n . the ~ d ~ ~ ~

Power System R

~ and ~ e r ~c~ u l a t i ~ n~ R ~

method o f switching which is applied within the load flow stage. When a PY node ha node, it is no longer possible to control the voltage at that bus result the algorith~ does not adjust the voltage o f a switched PVnode.

11.4.5

~ r ~ ~ iAccelerat~o~ ent

to the large dimens~onali~ the OPF p r ~ ~ ~ e m o ~ u ~ o n a ~ of ev , c ues such as EP can take an ~ a c c e p ~number of iterations to c ~ n v e le e speed of convergence of the EP-BPF algorithm, acceleration t e c ~ ~ ~ ~ rovide an inte~ediate e ~ m a ~ pofncandidates to a more optimal ~osition, r i ~ o led. To achieve this acceleration, a ~ r o p o ~ ofnthe popu~ationis moved in of the dir~ct~on the negative gradient. This is achi of 1431. As the gradient step forms only o~~hm choice o f step size is not as critical as it is in a to a constant sniall step size to enswe convergence. The sens~tivity f the s o ~ u ~ o nc h ~ g e s o to ent variab~es varies solution is less sens~tiveto changes in activ than to ~ h ~ g in s e magnitudes and iransfo ap settings. As a result of this, di has a large step size while r step sizes. These variable-

D is pr~vidinga focused local o p t ~ i s a t ~ o whil. n, ation. Reactive power penalty terms are not includ SD f o ~ ~ u l a t i o n except for the slack node, which cannot be switch process. The effect of generator node sw~tchin in the load flow routine creates d i s ~ r b ~ c in sthe solution rocess. These disturb e metho~$ such as SD diverge or converge to local optima. However o p t ~ ~ i ~ ascheme ese ~ r o b ~ e m s avoided. ~ion are o reflect any penalties in the fitness function ( will often discard solutions produced not inc~uded within SD p ~ ~ a I t i ins(11 3 . e .) will usual^^ incur gre hrn p e r f o ~ s well on convex ~ r o b l e ~ s whe ver, If the solution surface is multi~modalth become trapped in a local optimum. This i s the case wh odelled by non-convex curves such pie ents 139,461. These c u ~ e present a pr s and discontinuities in fie gradient. this gradient, it is possible for the solution to cross the As the step is bas d i s c o R t i ~ uwhere i~ ent i ~ f o ~ a t i osnno longer v i s beyond the local such that if an active power loading of a unit crossed a disco that b o u n d a ~ These bound~ies, . while Iobal EIP ~ ~ e ~~~~h omutat ~ w ~

Information Technology Application

11.4.6

A ~ p l ~ c ~ tSfu n io

The EP-OPF a l g o ~was applied to the IEEE 30-bus test system. Three sets of t ~ cost curves were used to illustrate the robustness of the technique. The fust case is where all curves are quadratic 1471; in cases (b) and (c) some of the cost cewise quadratics or quadratics with sine components. Ther~fore in are many local optimal solutions for the dispatch p solution^ thm cannot d e ~ ~ i thee global o p t ~ m ~ n e for va~~dating developed algorithm. the lemented using the 6: ~ ~ g u ~ g e ~entiL~m computer. The speci Fro pro~ram execu was e the a l g o ~ t h ~ system data are s u ~ a ~ i s ind Append~x, In all cases, the standard and IEEE 30-bus loading is used.
as^

are represented by quadratic functions from [ In thi s ~ m a ~ s in dTable 11.2. The program was run 100 times with the se e A p ~ e n ~The .average cost of solution obtained was $803.51 with the mi i~ $802.62 and ~ a x ~ m u ~ The average execution time was 51.4 $805.61. s o ~ ~ tdetails for the ~ i n i m u m are provided in Table 11.2. io~ cost For this case, a solution of $802.40 was reported in [471. This was obtained using penalty functions for generator reactive power limits. The EP-OPF returned a solution with no PV nodes being switched. ~ o w e v ~the solution from [47] violates the slack r, -limit s~ightly approximately 1.7 by
le 11.2. Generator data and cost coeficients for base case (a)
Bus

P"" ,'
MW

r,mm
MW

,""
MVAr

K=MVA

Cost Coe~icients
a

No.
1 2

50
20

5 8
11

15 10 10
12

200 80 50

-20
-20

250
100

35 30
40

-I5 -15

I3

-10 -15

80 60 50 60

0.00 0.00 0.00 0.00 0.00 0.00

2.00 1.5 17
1.00

3.25 3.00 3.00

0.00~~~ 0.01750 0.062~0 0.00834 0.02500 0.02500

Generation inpu?/outputfunction
6

c,= a, +b,e + C , e 2

In this s ~ ~ units y , cost curves were replaced by pie summarised in Table 1R .3 to model different hels or valve-point cise c o n ~ o ~ units with d~scontinuitiesin cost curves, the ~ n with t over ~ st capacity was selected to be the s bus. The average cost of solution $649.67 with the m~n~rnum being d ~ a x i $652.67. The ~ v e ~ ~ x e~ u ~ i o ~ ~ u ~ ag c for the m ~ n i ~ ucost are ~ r o v ~ in e ~ m d Table blem, it failed to con was a ~ p r o x i ~ a t e ~ y

Power System R ~ s ~ c and ~ere~ulaEion ~ ~ n g

d ~ ~ o n s ~that e ~ a t the

D has d~~ficulties n ~ n - c o n v ~ ~ u t i ~ ~ with sol surfaces. It is global o ~ t i if the ~ o d i ~ c a ~di e~s n s b e ~ ~ u c~ ever, the global o p t i ~ u m will ing intervals for units 1 entire solution space unlike The voltage profile at the solution is shown in
I -

- -

10

15 Node

20

25

30

Voltage Profile Solution in Case (b) Generator cost coefficients in case (b) Bus
From
MW
50

No.
1

To Rw 4
140

Cost Coefficients b c
0.70 1.05 0.30 0.0050 0.0075 0.0100 0.0200

55.0

140 20

200 55

82.5 40.0

55

80

80.0

0.60

~~neration input/output function C, = U, c b,e -I-

c,?*

curves of the generators ~ ~ ~ n e c ~ e onent s u p ~ ~ ~ p o s e d loading effects [39,

are pro~ided Table 11.5, To i l l ~ s ~ r a ~ ~ in stics of the po~ulation over the 100 it can be seen that the El?-0

.15 Coizvergence ofthe EP-OPF algorithm in case (c)

thm i s applied to this case its abiIity dependent on the s of n Q ~ - c o ~ v e x c ~ ~ ethe, a b i ~ of~the eost s i sol~tiQn great~y is reduced. The ~ ~ a l lsearch mechan~smsof el method for a dirccted local search, ~ ~ o w eperform well in these cases. v~~,
Generator cost coefficients in case (c)
ax
US No,

Cost cQefficien~$
a

MW

MW

b
2.00 2.50

50 20

200
80

150.00

0.0016

50.00

~.0630
0.0980

25.00

0.0100

40.00

Gen~ra~ion p u ~ o u ~ cost function in ut

C, = a, + b,c + C,

set to an almost pure^^ cost-ba~ed le, may have a less des~rable vol the objective ~ n c t i o n of ~ ~ ~ t i it is s ~ s ~ ~to l e o n ~o b de a flatter voltage profile. Ideally all load nodes will have a voltage m a g n ~ ~ ofe I per unit. To ~ c ~ this the v e d ~ ~ ~ ~ e~ n c s i o n 1.3) was ~ o d ~ to e d s t (I ~

Power System Restructuring and Dere

fi

h4
E

(11.11)
k

VFk=

KJ(vk -1.0)~ if V, $1.0,

othe~ise

k aP

The ~~r~ VF, denotes a penalty term on a load node k and K,is a constant penalty he ~ ~ ~w ~ ~ ~ n ~ if o ~ u l a t i o n i the SD e s v ~ o ~ w ~tr ealso n ~ ~ ~ to the form of VFkabove. With this penalty the 1 a ~ ~to ~ ip ~t~ i s e m n the cost o~generation while trying to ~ a i ~the load fl t a ~ To ~ e m ~ n sthe teffect of this change, case (b) ~ e The voltage profile achieved is shown in Pi ge level to load nodes 51.54, which is close to th able 11.5. Of the 10 a b e ~ e profile than that found in (b r ~ i f ~ cin ~lr ~ v ~ daid e~ u a ~ ~ u o n q solutions.

ble 111.5 ~i~~~

Case (a)

solution found by EP-OPF ia case (c)

Case (b)

Case (c)

Case (d)

P, p2

Ps P8
PI, PI,
Vi

173.848 9.998 21.386 22.630 12.928 12.000 1.050 1.034 1.005 1.016 1.069 1.055 1.020 0.900 0.950 0.940

V2

V5
V8

140.000 55.000 24.165 35.000 18.773 17.53 I 1.019 1.048 1.038

1.055

V,,
V13

1.OS5

t,,
I,, t55

t3h

0.980 1.010 0.930 0.930 0.970

199.600 20.000 22.204 24.122 14.420 13.001 1.050 1.061 1.043 1.036 1.100 1.038 I .030 1.MO
1.010

0.980

140.000 55.000 24.458 33.849 14.518 23.322 1.045 0.952 1.004 1.027 1.044 0.990 1.030 0.940 0.910 0.940

een widely used in the power in relaying s c ~ ~ r n load forecasti es~

Power System Restructuring and ~ e r e ~ ~ a

~rocess~ng power of the V Q Neumann digital computer with the abili ~ d e ~ ~ s ~ andsto on y ordina~ ex~erience. ANNs have widely b For e n e r ~ yrnanage~ent,load flow and However, most existing ANNs for electri
~

ions such as load

ill be shown in this

11 be s h o that this new c ~ m ~ I e x ~

isba to eti~ate bar voltages in a load flow problem.

Figure 11,17 shows a cal A for real nodes and I nurn nodes, rn number of hi is ~ e ~ is o ~ extensib freely k

e are n n~mber o tota~ling three lay All the x and the w in rs within an i n ~ e ~[O, I]. al that w belong^. A set o f erscript of each w uts, dk,for b l ,...,2, ~ o ~ ~ s p oto adset ~ ~i n ~ ~ txj,j=19...,a, is used as ia n i of s, e ns ard sigmoid function is e loyed and the ~ollowing ~ u a t ~ ohol
1st hidden node 1st
OULPUL node

7 A typical ANN for real numbers

k ni

1
i=l

=1, ... 1
)

(1 1.12)

1
J=I

i = l , ..., r n

y f ~ n c t i E,n ~being ~ i n i ~ i s e d ~ is
2

to obtain an o ~ t i ~setlof values o f w usin the ~ h ~ l l - c l i ~ b i n ~ ' a a ~ ,the ~ o l ~ ~ w ~ n g holds:

~so that at o ~

ere 2 = step size = 1.

basic e i e ~ ~ nof sthe newly d e s ~ g ~ ~ d t ic ~ n c tsay z =~ x, where x is i ~ w~

e s t ~ c ~ and ~ g r e ~ l a t i o n ~ n e

~ o ~ p nl ~ ~xb exi s ~ x2, the opera~i~n clearly show^ in the ~ o w ~ r ~ r and is 11.18.

(1 1.15)

where

j =

ask e

l of the newly designed 'complex' ~ ~ ~

Information Technology Appli~a~on

(11.116)

The new ANN for the complex number format

As this sigmoid function is highly non-linear and complicated, V E needs to numerically. The method is to perturb each w by a very small amount w values of w are kept constant. A new value E is then evaluated. The ratio of of the new E from the old E, due to the ~ e ~ b a t i o gives the colrespondi n, VE. E itself now becomes a complex number and the gradient hnctio

1/2, as defined by the following equation:

(11.17)

versus the In order to test the p e r f o ~ ~ ofe the newly deve~Qped c co~plex co~ventiona~ real in handling complex numbers, a simple ~ n c t i o nshown in e q u a t ~ o ~1.18) is (1 A data set with nine ~~~~g ex les ape ~vailable ~~0~ and uring the training process, we ~ o ~ t i n u o u keep track of the total s ~ u ~ e d s~y t from the nine training sets.

x+-1

(11.18)

there are ~ W O ~nput For the i ~ p ~ e m e n onatheoconventional real ~ ~ ~ on on the new comp hidden nodes and ~ W Q output nodes. For the imp there are one input ~omplex node, three h~dden o m p ~ ~ x c nodes and one are set to one ~nitially node. All values of w for both the mnve itrarily set to 1.5. The before ~aining, a fair initial guess, and i.e. two ANNs d ~ n ~ g ~ is ~ h i s ~ of ~ ~ u ~ error of the nine training o s ed ite~ationsfor the c ~ m ~ l e x shQwn in ~ ~ g u 11-20. It can be seen th re ile the real ANN can only ANN to arrive at a total squared error o f ~ch~ea e v total square error of 3 . 8 ~ 1 0after 23 000 i t ~ ~ ~ i oAfter the two -~ ns. two networks while the c a value of x = 0 . 2 5 ~ ~ . 2 5 is gwes an output of 1.85-jl.4, i.e. should be 2.25-jJ.75. The real error, while the complex A gives an output of 2.3-jl.75, i.e. 1.8 % error. From this illus~ativee x ~ p ~itecan be conclud~d it is better t , that o systems involving complex numbers instead of using a real
)

te 1. Sample values ofthe complex test function 16

5.1 - j4.9 2.1 -j3.8

1.1 -j2.7 4.2 j1.9
~

x 0.1 -+ j0.l 0.1 +j0.2

0.1 +j0.3 0.2 +j O . l

2.7 j2.3

0.2 +j0.2

I .74 - j Z 3.3 j0.9 2.61 - j1.34 1.97 -.j1.37

0.2 +j0.3 0.3 +j0.l

0.3 +j0.2

0.3 Cj0.3

I n f o ~ a t ~ ~ n~ c ~ nApp~icat~on o o i o ~

Error history of two ANNs under training

In order to make a fair comparison, the computer sim~lation been carried out again has by us in^ thee d~fferent network con~gurations. The same functi as shown in equation (1 1.18) and Table 11.6 have been used consists of two separa~e NNs, each consisting of one real input node, real node and one real o u ~ unode, thus t e ~ Two S e p a ~ W e . The sec0 t e ~ ~s ut nodes, two real hidden nodes and two real The third c o n ~ g u ~ a t consists of one io~ complex hidden node and one ~omplex bjective of this simulation is for detailed reduced by 10 times CO e Figure 1 1.21. It can be seen e b e h a v i ~ ~ r two separate NNs of came there is no crossery poor, as expected i n ~ Q ~ a t ib~tween two real on the it error a l ~ o u g h takes more iter ce, it can be seen fmm both Fi

. However, the time duration of

an that of the conventional real , both NNs have more or less the same are ction of this section, complex widely used in electric power systems and, thus, the complex9 design shod ted

3 9 ~

Power System R

~ s ~ and ~ e r ~ ~ ln t ~o n c ~ ~ a i
P

whenever ANNs are applied to electric power systems. One typical example of a ~ p ~ y ~ g the 'complex' ANN to load flow analysis is shown in the following section.
0 35 ................................................................................................................................

.......... ..........

...........................................................................................................

.....................................................................................................

................. .................

i 11.21 Error~ g history of three N ~ ~

s for comparison

11.5.4

App~icationf 'C'omplex"ANN to Load Flow Analysis o

with one or more hidden layers is s u ~ i ~ i ein torder to approximate any conti n n-linear ~ n c ~ i o n arbi~arily well on a compact interval, provided sufficient hidden neurons are available [53]. The power load with the h flow problem is by itself a non-linear problem and, hence, it can be ~ a I y s e d of an ANN, A six-bus network, as shown in Figure 11.22, has been used to test performance of the newly developed 'complex' ANN. us-1, bus-2 and bus-3 are generat~r buses while bus- 1 is the swing bus. Bus-4, bus-5 and bus-6 are ordinary load buses where the P (active are to be specified. The training example is generated using ~ e ~ o n - R a p h s o n algorithms. This is just an illus ng real application, the 'complex' ANN will continuou time state of the network in terms of voltage, P and . The details of the network pa~~meters shown in Tables 11.7(a) and 11.7(b) below: are

~nfo~ation Technology Applica~~on

391

bu

i 11.22 The ~ g six-bus network for load flow computation ~ ~

.7(a) Busbar power for load flow study

Bus bus-1 bus-2 bus-3 bus-4 bus-5 bus-6

PI,,

Qio,

pgen

0 0 0
P4

0 0 0
Q4

_--

Vsp,

0.5 0.6

1.05 1.05 1.07

_--*-

".._

P s
P6

Q5
Q6

-__
_--

--_

Network parameters for load flow study From bus- 1 bus-1 bus- 1 bus-2 bus-2 bus-2 bus-% bus3 To R (P.U.) bus-2 0.1 bus-4 0.05 bus-5 0.08 bus3 0.05 bus4 0.05 bus-5 0.1 b~s-6 0.07 bus-5 0.12 X@.u.) 0.2 0.2 0.3 0.25 0.1 0.3 0.2 0.26
B (P.U.)

0.02 0.02 0.03 0.03 0.0 1 0.02 0.025 0.025

Power ys~em e ~ ~ ~ ~ i n R
b~s-3 bus-4 bus-5

bus-6 bus-5 bus4

0.02 0.2 0.1

0.1 0.4 0.3

0.01 0.04 0.03

14 training examples, shown in Table 11.8, have been generated by the sofhvare for l e ~ i n by the two ANNs. In this case, the voltage at busg e three gener~tors maintain constant voltages at the c o ~ e s ~ o n d i
3.8 Training examples for the neural networks

0.7ij0.7 0.9+j0.9 0.9+j0.7 0.7+j0.9 0.7t-j0.7 0.790.7 0.790.7 0.7Cj0.7 0.9-kj0.7 0.7+j0.9 0.9+j0.9 0.9+j0.9 0.9+j0.9 0.9+i0.9

0.7J-jO.7 0.9+j0.9 0.7-tj0.7 0.7+j0.7 0.9-tj0.7 0.7+j0.9 0.71-j0.7 0.71-j0.7 0.9+j0.9 0,9+j0,9 0.9Cj0.7 0.7+j0.9 0.9+j0.9 0.9+j0.9

0.7+j0.7 0.9+j0.9 0.7+jO.7 0.71-j0.7 0,7+j0.7 0.7+j0.7 0.9+j0.7 0.7-i-jO.9 0.9+j0.9 0.9-tj0.9 0.9+j0.9 0.9+j0.9 0,9+j0.7 0.7+j0.9

0.97$-j0.089 0.864-jO.137 0.969-jO.101 0.960-jO.088 Q.962-jO.l15 ~.944-j0.084 0.964-jO. 108 0.95 190.086 0.883-jQ.137 0.872-jO.125 0.903-jO.142 0.882-jO. 108 0.894-j0.~40 0.880-jO.116

here fore, inputs to each real9 and three inputs to the complex* two o u ~ u nodes for the real ANN and one t the subscnp~ refers to the number o n e ~ o remain ~ n c h ~ during the trial test. r ~ ~ e d
B

load flow network is learned by the real9 and CO and V5.The real ~ o m b ~ n ~ tof o n s P6, Q4 ~ P4,P,, . The initial v a ~ ~ e s all wei of S fan ordinary sigmoid function for real [O,I] and it is not suitable for this applica~ion, sigmoid ~ ~ ~ ~ t islight~y o d ~ ~ e d the was o n m to the f o ~ l o w i n ~ form:
4

I n f o ~ ~ ~Technoiogy Application ion

39~

The limit of iterations for both ANNs is set to 230000 as in the case of Section 11.5.3. Figure 1 1.23 shows the variation of the total squared error of the two ANNs with r ~ ~ eto t c the number of iteration.

0.08

0.07
b

2 0.05

(B

0.04 0.03 0.02

C~nventional NN
Gomplex PlN

0.01

0
1

21

41

61

81

101

121

141

161

181

201

221

2 3 Training errors of two AMds for power load Row

After the two ANNs have been trained, they are used to estimate V, under differen~ testi~g samples of PI and Q,, i = 4,5 and 6 . There are two categories of testing samples, first set (Cases 1 to 7) being those P and Q randomly selected in between the limits of P and Q i n c ~ ~ d e dTable I 1.8. Another set (Cases 8 to 12) is randomly selected outside the limits in of under test are shown in to test the ability of ge~e~alisation the two ANNs. The P, and QI Table 11.9 while the results are shown in Table 11.10.
TaMs 1 . Test cases or the neural networks 19
Case P4+jQ4 I 0.77i-j0.82 2 0.72+j0.76 3 0.83-tj0.87 4 0.75+j0.77 5 0.841-jO.81 G 0.88+j0.81 7 0.80+j0.80
Ps+jQ5 P6+jQ6

0.75+j0.79 0.84+j0.73 0.88+jO.S1 0.77-tj0.80 0.72+j0.79 0.82+j0.89 0.82-tj0.89 0.80+j0.76 0.71+j0.77 0.79tj0.82 0.83+j0.87 0.751-j0.82 0.80ij0.80 0.80+j0.80
I

394

Power System Restructuring and Deregulation

8 9 10 I1 12

0.61-1-j0.69 0.92+j0.95 0.58-tj0.69 0.76+j0.94 0.791-jO.87 0.61+j0.57 0.60-tj0.60 0.6O+jQ.60 l.OO+jl.OO l.OO+jl.OO

0.781-jO.67 0.97-tj0.8~ 0.94+j0.68 0.60ij0.60 l.OO+jl,OO

Comparison of the neural networks Case

V, /Correct V, Meal NN

1 2 3 4 5 6 7 8 9
10

11 12

0.935-jO.109 0.920-jO.1I I 0.924-jO.15 1 0.921-jO.108 0.912-jO.103 0.923-jO.115 0 0.922-jO.109 0.91790.11 0.932-jO.101 0 9 3 j . 1 .2-O2 4 0.907-jO.113 0.923-jO.118 0.924-jO.112 0.92290.113 0.923-jO.113 0.919-jO.101 0.897-jO. 105 0.920-jO. 105 0.974-jO.108 0.923-jO.112 0.993-jO.064 0.914-jO.077 0.785-jO.169 0.928-j0.141

Ys/Complex NN 0.932-jO.108 0.922-jO.1 1 6 0.919-jQ.102 0,919-jO.114

0.931-jO.101

0,910-jO.113 0.921-jO.112 ~.922~0.114 0.920-j0,120 0.970-jO.106 0.960-j0,062 0.889-jO.160

o Figure 11.23, although there are on tra~~ng examples, it can be seen is smaller than that of the newly that, initially, the total squared error of the real ANN. Actually, after 500 ~eve~oped ~comp~ex9 s, the total squared error of the WN has akeady attained a steady-state va d 0.032. AAer 4300 iterations, the complex ANN catches up with the real and the total s q u ~ e de improving. A ~ e 23000 iterations, the error is r ctually, if we c o m p ~ e e 11.20, one very interesting result can be noted, It seems that the real get itself into a m i n i ~ u m after a small number of can continuous~yimprove itself during the le time for training is about 90 s and 150 s for the real and comp PI1 300 PG is used under ~ i ~ d o 98,s A l t h o u ~ w the ~ c ~ a is $imi~ar. is suspected that it is quite easy for c y It er random initial guesses of weights have been trie similar resu~ts. This is one merit of the newly developed complex A m . Next, Tables 11.9 and 11.10 are referred to where we want to test the power of pred~ctionof the two ANNs. The first seven testing samples have been randomly selected in be^^^ the limits of t0.7, 0.91 of both the P and Q. The complex ANN behaves better in all cases. ~ o w ~ v ewhen five alternative testing samples, selected outside the limits, are tried, the r, ex9 ANN behaves better except in case 9. E appears that, in general, the CO t s more p r e f e ~ ~for the present application. le

I n f o ~ a t i Technology Application o~

95

. 4
power has doubled Since the 1980s formation process in^ has exploded. Process every two years. Today, the Intel Pentium I11 runs at a clock spee E is expected that by 2002, the chip could run at a clock speed of 3 t t the technology could create, sto search and process vast amounts o have yet to advance the techno y further to access and interface easily. Tra~it~onal~y, interactio ith a comp~terhas involved mouse or j o y s t i c ~ ~ a c k b aevicc to input information and the us m the system. With the development of virtual re (VDU) to receive output syst~ms7 intera~~ion ods have been developed that allow the user to new computer- generate^, or virtual, environments (VEs). VR can be considered an e x t ~ s i o n of ideas which have been around for some considerable time, such as flight s ~ ~ u l a tand ~ io wide screen ~ i n e m a ~ Using such systems, the viewer i s presen~edwith a ~ c r which ~ ~ e ~ on of the visual field giving a powerful s ite of technologies which permit human resen~tions i n f o ~ a t i o n of held in c , a u d i t o ~ tactile stimuli, eac and cant extension to the way the users kte shared unders~nding,lead to simulate inacc allowing the user to extract the lessons to be learned without the inherent risk, This alltsws a me in the user to i ~ ~ t ~ rin crte a ~ - ~ ~with a computer-generated e~vi~onment a s i ~ p l ~ , natural m ~ n e rw ~ t ~ othe need for extensive mining. Pres 7 ut av~i~able budget and requires high levels of nts in low-cost desktop e technology more of smaller ~ompanies. The strength of VEs is in ion of the n a t u int~ractive ~~ skills of the human. As esktop VEs systems, inte~rating novel display widely used. The po~ential and a great deal of research is currently develop these technologies into effective useable eaply on a conventional desktop large-screen display for mult~~user pa~icipation. l ~ o ~ not always re~evant A gh to use, i ~ e r s i v e represen~a~~ons involve the use of head-mou~ted can displays tactile gloves, and other devices to enhance the effect. Ap~lications range from simulations cal items ~ ~ a n g ~ n g buil~ingsto mole~ulars ~ c ~ r e to )more abs~act from s such as the disp~ay large amounts of t ~ ~ e - v data (e.g. analysis of world of ~ ~ n g lex databases) or illus~a~ing intan~ib~e concepts [54].

11.6.1

Types of

A l ~ ~ o u g his dif~cult catego~se V systems, most con~guratio it to all gory can be ranked by the sense sion or presence can be regard

Power stem ~

~andcDere ~

the user is focused on the tas in hand. ~ to be the pr~duct several param of ity, s t e r ~ s c o p ~ c vi field of regard and the
in i s ~ ~ and~ o level of imersi ~ the n factors ~ v o i v e ~ .

e presen~eis o ~ i

of the display. For VE will incr~asethe

terns are not re

T
Main ~ e ~ t u r e s

systems (adapted from [SS])

Scale Sense o f ~ i aw~cn~ss

Field of regard

LOW

~e~i~i-High
t ~ o ~ e~ ~ ~i ~ m ~

~ Low ~

High High

La Sense of immersion

Medium Low Low Low ~ o n ~ L ~ w Mediu~-High

High

Vision i s the m a i ~sense th

shade, etc. V

de~i~ers have c o ~ c e n ~ a t e ed such as 3-D graphics, vwi ~ i s very c~ ~ p ~e x ~ concen~ates ~ n t e ~ r e t a tof i~ f Q ~ a t it~ n is s o l and on io n ~at

ective (i.e. what is seen varies from per so^ to tter at sim~atingvision than non-imme~ive ' forcing concentration on the virtual I on-po~able.There are also three related betow.

II.~.6 Cave
Gave is a small room where a computer"generated world is ro~ect~onmade on 0 h the front and side walls. This soluti is t c collective VK experience because it allows different people to share the same e x ~ e r i ~ nate the same time. It seems that this t ~ c ~ o l o g i c solution i s p ~ i c u I ~ appropriate for al ly cockpit simu~a~ions it allows views from differ~nt as sides of an i ~ a ~vehicle. ~ i n

~ ~ ~ d ~~lepreence systems immerse a viewer in a real world that is ~ a p by video cameras at a d ~ ~ location and allow for the remote m ~ i ~ u l a t i o n ~ a n ~ ~ ~ a ~ o Telepresence is used for remote r. exp1orai;ionlmanipulation of hazardous e n ~ ~ r o ~such as s e n ~ space and u n d e ~ ~ ~ ~ ~ e r .

of real e n v i r o n ~ e ~with ts logies of ' ~ u g ~ e n t e d reality' allow for the view s ~ p e ~ ~ ~ virtaaI dobjects. As a matter of fact the ose 's view of the world is sup~lementedwith virtual objects and items whose mean in^ is aimed at e ~ c h i the n~ ation content of the real e n v ~ o ~ e n t .

has been used by the military and by space scienti p h ~ a c o l o ~ i s~ o l, e c u biologists and theoretica~ ~s 1~ ~hysicists into its domain. Simply speaking, the t e c ~ o l p r ~ v i ~ hei oo e~ ical attributes of scientific models. It is a too2 on of data to a new dimension, to the point at which the user, i teracts with, or is e n ~ l by ~ model that has been c r ~ ~ t e d . f the to accelerate scientific ~nders~anding enablj~gthe by

VR to v~sual~se ~ r o t o imaginative p ~ o j e c ~ s h o ~ the Iif~cyc~e and ~ e can ~n of make them available much earlier than would otherwise be the case. n ~ e ~ ~ tmedia, where a wide variety of ~ x p e r i ~ ccan be create ive es exp~ore their Q W pace, choosing their own ~ a t h w a y ~ ~ at ~ As the technologies of VR evolve, the a ~ p l i c a ~ ofn s ~ i s assumed that VR will reshape the interface b e ~ e e n p by ~ ~ f e new ways for the c o ~ u n ~ c a t i o ninformat ~ n g of

Information Technology Application

399

and the creative expression of ideas. Note that a VE can represent any 3-D world that is either real or abstract. This ~ncludesreal systems like buildings, landscapes, spacecra s c u ~ p ~ rcrime scene recons~ctions, es~ solar systems, and so on. Of special jnteres~ the are visual and sensual representation of abstract systems like magnetic fields, turbulent flow s t r ~ ~ t ~molecular models, mathematical systems, auditorium acoustics, stock es, behaviour, population densities, and any other artistic and creative work of abstract nature. These virtual worlds can be animated, interactive, shared, and can expose behaviour and ~nctiQnality. "hough still relatively new, VR has already been put to use in a number of different, iniiovative ways. In the world of industrial design, engineers are using CO simula~ions prQto~pes speed up the time required to take a new product from the of to drawing board to the productioii line. In the world of science and medicine, doctors are computer-simulated pathologies to determine the outcome of ~o~entially risky cedures before these procedures are actually p e ~ o ~ ond e il e ~ ~ i n e e ~architects and interior designers are using VR s ng, realistic, computer-genera~edsimulatjons of proposed environmen~.The can then be ~ o d i ~ e dreal-time based on client input, zoning ordinances, ~ e s t h e ~ i c in concerns and budgetary considerations. In the world of weather fore casting^ VR is being used to predict weather p a ~ e andsto ~ where a storm will make 1 create h ~ r i ~ a m e o ~ wh~chs accu~ately n ~ ~ can d s astronomy students tour and when. In the world of higher education, galaxies and physiol students tour the innermost workings of the human body. A VR sim~lation a CO of pip~work la~out, example, could allow access, main~nance for and safety aspects to be examined at the design stage, more effectively than by mode~~ing. It imi~ediateIypermits the evaluati~nof routing and accessibili~~ thereby avoiding expensive, t~~e-consuming correction during or even after c o n s ~ c t i o n ~ e r ~ many T h are portunities that have yet to be explored. romising In the ~ n ~ o ~ a t i o n VR has been identified as one of the age, de~~elopment areas. There is a constant improvement in marketing per of both quality of appl~cat~ve systems and receptiveness of potential customers, T h i s is due to VR decrease of the cost of VR systems and devices, (2) the rmance r e l i a b ~ l iof the t e c h ~ o l o (3) the extKeme~y ~ ~, ed from VR use in its various forms and purposes such as gh the t e c ~ o l o g y mature enough to have d~fferent is appli~atio~s, there resolved for its use for practical app~ications. The sensational press cov associated with some of these t e c ~ o l o ~ has led es many ~ o t e n ~ iusers to overe al e the actual capabi~~ties existing systems. Many of of them must a~tuallydevelop the t e c ~ o l significantly for their specific tasks. Unless o~ their expertise includes ~ ~ o w l e of g e human-machine interface requi ~ the application^ their res~lting product will rarely get beyond a 'conceptual ~racticalapplications. Current VR products employ proprietary hardw There is little doubt that incompatibility between different systems is restricting market growth at present. It is probable that as the market matures, certain s t ~ d a ~will emerge. ds The premise of VE seems to be to enhance the interaction between people and their systems. It thus becomes very important to understand how people perceive and inte events in their environments, both in and out of virtual represen~tion of reality,

~ u n d ~ ~ ~ n t a l remain about how people interact w the SYs~ems,b v h e y may questions i ce and a u g ~ e n cognitive p ~ r f o ~ a n inesuch e n v ~ o t c n ~ p l o for i n s ~ c t i o n~ i n i n and other ~ ~ o p l e - o ~ e y~ , g

The t ~ e system consists of an infrared camera, shown in Figure 1 1.24, a ~ a ~ shown in Figure 11.25. The ~nfrared detectors inside the camera are cooled argon to and they sense d s p ~ c ~ m range betwee in the while floppy disks and h i g ~ - s ~ e e d proce~sing a PC, on

QISS

are o ~ f e r ~ d to

402

Power System RestruchJring and Deregulation

DMK with pannin~tilting hnctions can give the absolute c o o r d ~ ~ tofseach grid point on e the power e ~ u i p ~ while the thermal system can give the rea~-times u ~ a c t e ~ p e r a ~ r e en~ e of that grid point. When this information is fed into a tailor-made ~ - b a s software ~ d e, a 3-D thermal image can be displayed and manipulated. The major prob~em here is with the co~espQndence between the DMK and the thermal system, i.e. matching eve^ point sensed by the DMK lo a c o ~ e s p o n d i point on the thermal image. ~g

2 6 Laser-based ~ s t a n c e - m e a kit ~ ~ s~

of the system and the procedure of calibration. Sobel [62] and G e ~ e ~ ar o p t ~ s a t i o nfor c a ~ e r a calibratio~.A comp~hens survey of the ~ ~ t e r aand e ~ r discussion of r n ~ ~ ~fordes~ e ~ r o nc c ~ ~was p a ~ ~ ~ t e d o i ~ r s Lenz and Tsai [64]. It has been found that the pro s i ~ p l ec a ~ e r a s~ model and its calibrat~on ti~isation. At the same time, its level o f for our application. A pin-hok camera of a standard e ~ e c ~ o ncamera. Let ic in the ~ n ~ v e r 3-D world coordin sa~ coord~~ates the image point on the thermal i of to I(Xp 5)is modelled a standard approach i prQ~ecti~e coordinates. a 3x4 matrix, is known where the element, t34,i t inside the transfo scaled to ' 1'. Let c ~ ~ ~ d i nvector, together with the two ate ation of the ~ a ~ s ~ o ~ a t i o n .

(11.28)

n = 6 are e ~ o u ~ h to

with known, (xwj9ywi, ine the 11 u n ~ Q w n t to have more points so an ~ v e r a g i n ~ techn n is larger. In other ~ ~ r dthe, fQllQwingn sets s

where

( tl1 f 1 Z t13 814 121 822 t 2 3 t 2 4 131 t 3 2 f 3 3 >'

f the least sum of squares over the n number o f ~ a ~ ~ poin r a ~ ~ ~ b

From ~ ~ ~ e reight calibration, points are i ~ n ~ ~

Y w j Xwj

( I 1.24)

Information T ~ c h ~ o A ~ g y ~ c a t i ~ n ~ ~~

xwj

Ywj
z wj

Power System R e s ~ c and D enr ~ ~ l a ~ i o ~ ~ ~

object has the same spatial resolution with respect to the original one. Inte~olation surface temperat~e by means of a similar process. is The grid points are generated in appropriate sequence by the two ~ ~ - c o n stepper ~ e ~ ~ ~ m o t o ~ ,For each of the n number of 8 within the specified ran^^, there are m n ~ b e r of , s 8 ~ i ~ h another specified range. Hence, the grid points can be viewed as elements of , in es where n x m = M , each representing the x, y and z coordinates of ely. For the (ij) grid point where i = 1, ..., n-1,a n d j = 1, ..., rn-1, nts, namely (i+lj), (ij+l) and (i+lj+I)> are conside ing ( i j ) , (i+lj) and (ij+l) and the other hav (i+Xj+l). The equation of the first plane is given by the followin

(1 1.27)

ints are created on relevant planes. The surface te in equat~on(1 1.27) can be oint from the three vertices are
I L

(11.28)

The ~ e ~ p e r a of rany point on the three sides of the tri ~ e ~ n t e ~ ~ of thet twoovertices, i.e. the two end points ~ ~ ~ n a ~ ~ ~ t i omatrix ~ ~ n s i s t ~ nnine r must be s nal of g the e q ~ a t i (1 ~ ~ o 1.29).

(1 1.29)

~forma~ion Technology Application

11-7.4 I ~ p ~ e ~ e ~ ~~ ~ t ~i o ~ ~ ~ a p

The competitive electricity market: raises utility cost consciousness. no~aily associated with equi~ment n v e ~ e and continuous niai i n~ system. Power trans~orm are one of the most expensive elements in the s ~ s ~ e m . ~ d e n t i f i ~ a ~of oany hot ots, i.e. potential faults, could provide benefits inclu ~ n extended ~ ~ n s f o Ii e r es, reduc~ion in risk of failures and i ~ maintenance s ~ a t e ~ i e A, t r ~ s f o ~room, shown in Figure 1 1 2 8 , housing three 1500 s er kVA 11 kV/380 V ~ ~ s f o ~ e r s , for implement in^ the developed system. was used

1.28 Three 1500 kVA ~ ~ n s ~ o ta~ e r t r ~ s f o ~plant room in typical er

in the x direction, E200 m, rection, while the s u ~ a c e te from 24.5s"C to 44.8"C w t a resolution of 0.2"C. It takes about 3 seconds to record the ih and o ~ e n ~ t of o n ~ a ,thus needing more than I ~o~~ the w ~ o p~oe~ i by n ~ There is not enough. inates and surface t e m p ~ r a ~ofe each r of points belonging to a con 91. ustration while the full i s shown in Figures 11.31 and 1 1 X . The x, y and z coordinates measured in metres, are t ~a es the a b s o ~ u ~~o o ~ d ~of an~image int with respect to the c o ~ r ~ i n a s e ~ s of the ~ t ~ e DMK. In the ~ e o m e mode,athe 3 surface of the ~ a n s f o i ~ as ~ ~ ~ ~ s e shown in Fi 1 1.3 1 without any information on temperature. It should be noted that the 3-Ea surface i s not totally identical to the real surface in this situation. The reason is that part of the

Power System ~ e s t ~ c and i n ~ lation ~

9 T r a ~ ~ ~ o r m e3~under i ~ a g i ~ g No.

The c a ~ i e cover has a

ower t e m p e r a ~ e , All these fe

rdinates versus surface temperature

4m)
2.5

2.5 2.5 2.5 2.8 2.8 2.8 2.8

Y m 1.7 1.8 1.9 2.0 2.3 2.4 2.5

2.6

z(m)
0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

TC) 43.8

37.0 31.4 41.2 27.2 2-72 27.2 27.5

0
c_

cc

E -0.2
N

-0.4

3.5

surface ~~~~e~ a ~ ~ the geometricalrmode in f ~ ~ e

410

ower System Restructuring and ~ ~ ~ e ~ l a t i o n

~ u ~ h e r m o r e ~ user can h e l y adjwt the viewing angle to concentrate on m y the p ~ ~ c u l a r of the part ~ v ~ ~ o n mfor n ele e ~ ~ e ~ o ~ r a c m sy ph mode. The 3-0 i n f o ~ a t i o n all compon of play. Ths designer can thus fly around improper placement of equipm the 2-D draw~ngs conv~ntional~y suppli has been com~~ssioned, regular thermal t spots in the equipment can i l ~ ~ a of these hot sspots can b ~ ~ o ~ A point to be noted is that a sk because any technically proficie d the 3-D t ~ e ~ o g r ~ s .

In this chapter, we have considered four hot topics in i n f o ~ a t i o ~ tech vi & p ~ ~ i ~ a ~ n o ~ e , y ,~nte~~igent i ansl agents, evo~ution ~ r o g r a ~ m i n g , n ~n e ~ ~ r r s , ~ k ~ se of ~ e r i v a t ~ v ~ financial instrum I: and useful tool for manag~ng risk in l ~ c a bto ~ ~ ~ e i valuing Scholes t set the market valuation of put options on e l e c ~ ~ ~ o en used to evolve a ~ e n whose fitness was ~ ~ a u r bydtheir ~s e

d has failed in the

s for ~ a i n t ~ n a n c this e,
e optical and thermal

Iiifomatioii Technology Appl~ca~~on

devised, resu~ting a new gradient ~ c t i o for back propagation. In order to demonstrate in n d complex ANN is superior to the col~ventiona~ real that the newly de novel t ~ c ~ ~is carried out for load flow que simple app~ication power network consisting of six buses. It conc~uded the complex that in two aspects. Firstly, the complex will not the conventional real trapped in a locd min Secondly, it seems that there is an improved ability to cases not fal~ing within the trainin
~~

The authors would also like to thank IEE and IEEE for granting p e ~ i s s ~ o nEeproduce to the materials contained in references [4,61] and [9,1 13 respectivley.

fa: The load Row data for the system is that of the s t ~ ~ a r d

hes ll,lZ315 and 36 are in phase tap-ch tap pin^ ranges of &lO% with a step size of 1%. The busses is 0.95 p.u, while the upper limit is 1.05 p.u. generation nodes have an upper limit of 1.10 p.u. ~pulation size is set at 20 and the The number of tournaments Nt was set at tant M in the ~ ~ efunction in (1 I ) is d e t e ~ ~ bydthe set o f s s e ?%he value o f a in (11.5) was 0.9. limit c h ~ k i was started at ~g Row when a previous solution w not used in the load flow i n iteration 1 when it was. For all cases the weightings within the r ~ ~ e vto the case are K , = ~ 0 0 0K q = 10,000 where QS,& in a~t , is

ing gradient acceleration is 50 % in all cases. d in EP and in comparison studies include penalties identical to those described in [43] for voltage violations with weighting of 20. ~enalties for act~ve reactive power limit violations and e slack node of this For ngs of 30 and 10 ~esp~ctively. case (d) e, the penalties for voltag~v i o l a t i o ~are replaced by penalt~es of the form of Vt;;. in ( weighting K,. of 10. The SD step size for all cases (a)-(c) is 2.0 for active 0.001 for v o ~ t a gfor case (d) the step sizes are 0.00~ active po ~; for er tap and 0.001 for voltage. Q-limit treatment for all nodes other e d the slack node is ~ ~ d l by switching within the load Row routine.

[I]

M.P. Wong, ~ ~ ~ ~ i a and neural network applications in power system^', Invited int~lligencel Paper, Proceedings o the International Conference on Advances in Power system Control, f Operation & ~ ~ n a g e ~ e n 1943, pp.37-46. IEE, ~ ,

41

Power System Restructiiriiig and Deregulation

[ ] S.B. Lau and K.P. Wong, An artificial neural network approach to transient stability 2
assessment, Australian Jourrral o f Intelligent Information Processing Systems, Vo1.3, No. 1, 1996, pp.75-85. R.P. Wong and S.U. Lau, An artilicial neural network approach to modelling generator fuel cost characteristics, Journal of Institution o engineer^, Singaporc, Vo1.36, No.6, November f 1996, pp 7 1-77. W.L. Chan, A.T.P. So and L.L. Lai, Initial applications of complex artificial neural networks to load-flow analysis, IEE Proceedings - Chzerufron, Transmission arid Distribution, Vol.147, No.6, November 2000, pp.361-366. K.P. Wong arid E. Tsoi, Genetic algorithms approach for the evaluation of trade-off between economic and environmental costs in power dispatch with multiple fuels and pollt~hnt~, Proceeditzgs ofthe International (hference on Advances in Power System Control, Opemtron & Mmagement, IEE, 1995, pp.553-558. K.P. Wong and S Y .W Wong, Combined genetic algoritl~mls~niulated annealing/fUzLy set approach to short-term generation scheduling with take-or-pay fuel contract, IEEE Transactions on Power Sys%ms,Vol.1 I, No.1, 1996, pp.112-118. K.P. Wong and S.Y.W. Wong, Hybrid genetic/simulatetl annealing approach to short-tcrm multiple-fuel-consta~ed gencration scheduling, iEEE Trmsacfiom on Power Systems, Vo1.12, No.2, 1997, pp.776- 784. L.L. Lai and J.T. Ma, Genetic algorithms and UPFC for power flow control, Interntrtional Journal on Engineering intelligent Syrlenw, vo1.4, No.4, CRL Publlshing Ltd, UK, December 1996, pp.239-242. J. Yuiyevich and K.P. Wong, Evolutionary programming based optimal power flow algonthni dispatch, IEEE Transacfion,son Power system.^, Vo1.14, No.4, 1999, pp.1245-1250. K.P. Wong. A. Li and T.M.Y. Law, Advanced constrained genetic algorithm load flow method, IEE Proceedings - Generafron, Transmission and Distribution, Vol. 146, No.6, November 1999, pp.609-616 Derek W. Lane, Charles W. Richter, Jr. and Gerald B. Sheble, Modcling and evaluating electncity options markets with intelligent agents, Proceedings of the International Conference on Power Uiiy Deregulation, Restructuring and Power Techriologiec 2000, City tit University, London, IEEE, Apiil2000, pp.203-208. L.L. La], H. Subasinghe, N. Rajkurnar, b. Vaseekar, B.J. Gwyn and V.K. Sood, Objectoriented genetic algorithm based artificial neural network for load forecasting, Lecture Notes in Computer Sciencc, LNCS, Springer-Verlag, Xin Yao et al. (Editors), May 1999. K.P. Wong and C.C. Fung, Development of a fuzzy-logic-based control algoi-ithm for the commitment o energy sources in an integratcd energy system, IEEE Conference Prvce~dings First Australian and New Zedand Crinference on Intelligent Information Sj)stetris (ANZIIS93), Decembcr 1993. pp.432-436. P.C.K. Luk, L.L. Lai, T.L. Tong, GA optimisation of rule base in a fuz7,y logic conirol of a solar power plant, Proceedings o the internufional Covference on Power Utility f Deregzilatzun, Restructuring mid Power Technologies 2000, City University, London, E E E , April 2000,221-225. L.L. Lm, An expert sysrem used in power system protection, IFAC Symposici Ser~es,1990, Mo.8, Pergamon Press, Oxford, pp.489-494. J Bradshaw, eci., Sojware agents, MIT Press, Cambndge, Mass., 1997. 61

[3]

141

[S]

[6]

[71

181

[9]
[IO]

[I 11

[I21

1131

1141

[lSl
[16]

Information Techiiology Application

I3

J,S. Rosenschein and C. Zlotkin, Rules of Encounter: Designing Conventions for Au~omated Negotiation among Computers, bridge: MIT Press, 1994. Barbara ~aye-Roth,Robert van Cent, Rembert Reynold, M. V a u ~ a n Wescourt, Agents application, IEEE Intelligent Systems & their Applical 99, pp.23-27. A. Brooks, A Robust Layered Control System for a Mobile Robot, ~ E E E a ~ r n ~f l J o Robotics and Automa~ion, V01.2, 1986, pp.14-23. J. Ferber, Simulating with Reactive Agents, in E. Nillebrand and J. tender (Eds.), Many Agent ~ ~ ~ u ~ a t i Artificial Lqe, ~ s t e r d a m10s Press, 1994, pp.8-28. and o n : R,A. Brooks, Intelligence without representation, Artscial Intelligence, Vo1.47, 1991, pp.139-159. M. Wooldridge and N.Jennings, Intelligent agents: Theory and practice, The ~ n o w ~ ~ d g e eering Review, Vol.10, 1995, pp.i 15-152. Nwana and M. Wool~idge,Sohare agent technologies, British Teleco~m~n~cations ology Journal, Vol.14, October 1996. J. Bates, The Role of Emotion in Believable Characters, Com~i~njcations the A o f V01.37, 1994, pp.122-125, A. Newell, A. (1982), T h e Knowledge Level, A r t ~ c ~ Intelligence, Vol.18, 1982, pp.87al
127.

P. Maes, (ed), Designing A ~ ~ o n ~ m o ~ Theory and Practice from Agents: ~ngineering Back, MIT press, 1991 and A. Chavez and P. Maes, Kasbah: An agent marketplace for buying and selling goods, ~roceedingso the First ~nternational f Conference on the Practical A p p l i ~ a t ~ ~tn~ ~ ~ i ~ i g e of Agents and ~ u l t i ~ A g eTechnology nt 1996), London, April 1996, pp.75-90. P. Waynes, Free Agents, Byte, March 199.5, pp.105-114. M.R. Genesereth aid S.P. ~etchpel, S o ~ w aagents, Communications of the ACM, Vo1.37, r~ 1994, pp.48-53. G. Wiederhold, Mediators in the architecture of future information systems, IEEE Computer, V01.25, 1992, pp.38-49. C. ShebIC, energy in a fully evolved marketplace, ~ o r t hAmerican Power S)imyosium, te University, KS, 1994. C. SheblC, d operation in an auction market structure, Paper p~es~ntedthe 1996 at IEEE~ES Winter Meeting. Baltimore, ND, 1996. J. Marshall, Futures and Option Contracting: Themy and Practice, South Western P u b l ~ ~ ~ n ~ USA, 1989, lives, Prentice Hall, USA, 1997. Genetic Algorithms in Search, ~ p ~ i m i z a t & ~ i o Machine Learning, A
I
~~~

ccessive linear p r o g r a ~ i n g based OFF solution, O ~ t ~ m a ~ ~ e q u i r e ~ and ~ s ~ n Challenges, IEEE Power Engineering nlinear p r o ~ a m m i n ~ rithtns and d~coinposit~on al strategies for OPF, Optimal Power Flow: Solution Techniques, Requirements and C h ~ ~ l e n ~ e s , IEEE Power ~ n g Society, 1996,~ 10-24. ~ ~ pp. g

Power System R e s ~ c ~ r i and Deregulation ng

[38] J.A. Momoh, S.X. GMO, E.C. Ogbuobiri and R. Adapa, The quadratic interior point method on solving power system optimisation problems, IEEE Transact~ons Power Systems, Vo1.9, AUSS~ 1994, pp.1327-1336. .P. Wong, and Y.W. Wong, Genetic and genetic/simulated-~ealingapproaches to economic dispatch, IEE Proceedings - Generation, Transmission and Djstribution, Vol. 14I , No.5, 1994, pp.507-513. E401 IEEE Committee Report: Present practices in the economic operation of power systems, IEEE Transactionson Power Apparatus and Systems, VoLPAS-90, 1986, pp.1768-1775, [4 11 D.B. Fogel. Evolutionary Computation; Toward a new Philosophy in Machine Intel~~gence, IEEE Press, 1995. . Wong, and A. Li, A technique for improving the convergence characteristic of genetic algorithms and its application to a genetic-based load flow algorithm, Simulated Evolution and Learning, J.N. Kim, X. Yao, T. Furuhasi (Eds), Lecture Notes in Artificial ~ n t e ~ l i ~ e n c e 1285, Spring$r-Verlag, 1997, pp. 167-176. 1431 H.W. D o m e 1 and W.F. Tinney, Optimal power flow solutions, IEEE Transactions on Power Apparatus and Systems, Vol. PAS-87, 1968, pp. 1866-1876. P. Wong and J. Yuryevich, E v o ~ u t i o n ~ ~ p r o ~ a m i n g - b a s e d algorithm for vironmentally-constrained economic dispatch, IEEE Transactions on Power Systems, V01.13, No.2, 1998, pp.301-306. [45J K.P. Wong, A. Li and M.Y. Law, ~ ~ e v e l o p ~of e n t ~ constrained genetic algorithm load flow method, IEE Proceedings - Generation, Transmission and Distribution, Vol. 144, No.2, 1997, pp.91-99. [46] D.C. Walter and G.B. Shebk, Genetic algorithm solution of economic dispatch with valve point loading, IEEE PES Summer Meeting, 1992, Paper No.92 SM 414-3 PWRS. [47] 0. Alsac and B. Stott, Optimal loadflow with steady state security, IEEE T ~ u n ~ ~ on ~ ~ o n c Power Apparatus and Systems, Vol.PAS-93,1974, pp.745-751. [48] J.M. Zurada, Eds. Introduction to Artijkial Neural System, Info Access and Distribution Pte Ltd., Singapore, 1992, pp.1-3. [49] L.L. Lai, ~n~elligent System Applications in Power Engineering - E v o l u t j o ~ a ~r o ~ r a ~ m i n g P and Neural Networks, John Wiley & Sons, Chichester, 1998. [SO] T.T. Nguyen, Neural network optimal-power-~ow, Proceedings o the Fourth In#ernationa~ f IEE, Conjerence on Advances in Power System Control, Operation cft ~anagement~ Pub No 450,November, 1997, pp.266-271. [5 I] T.T. Nguyen, Neural network load-flow, IEE Proceedings - Generation, Transm~ssion and ~ i s ~ r i b u ~ jVo1.142, No.12, January 1995, pp.51-58. on, [52] W.L. Chan and A.T.P. So, Developmentof a new artificial neural network in complex space, Proceedings of 2nd Biennial Australian Engineering ~ a t h e m a ~ Confeuence, Sydney, July ~cs 1996, pp.225-230. 1531 J.A.K. Suykens, J.P.L. Vandewalle and B.L.R De Moor, ArtiJicicaE Neural Networkr for ~ o d e l l ~ and Control of Non-linear Systems, Kluwer Academic Publishers, Boston, 1996. ng [54] Virtual reality: personal, mobile and practical applications, IEE Cfflloquju~, Digest No.

in the design of an immersive system, IEEE ~ o ~ p u Graphics ~er and Applications, Vol. 14, 1994, pp.55-59. [56] S . Kalawsky, Exploiting Virtual Reality Techniques in Education and Training: Technological Issues, S I N 4 Report Series, 1996.

Information Technology Applica~~on [57] S.G. Bumay, T.L. Wi~liamsand C.H. Jones, E&, Ap~ljca~jon therm^^ I~iagjng, o f Wilger, 1988. [58] A.T.P. So, F.H.Y. Chan and A.W.C. Kung, A real time system for the diseases using computer~zedthermo~aphy*, Biomedical Thennolop, pp.27-35. [59] E.H.Y. Chan and A.T.P. So, Application of thermography in advanced consumer elec~onics, Frocee~ings f the Infe#arional Symposizdm on Consumer Electronics, Beijing, C E o October 1992, pp.337-340. diagnostic technique of high-voltage electrical [60] Niancang Wou, The infrared t h e ~ o g ~ p h y equipments with internal faults, Proceedings o P O ~ . ~1998,~ N 1998, pp. 110-115. f ~ IEEE, 1611 W.L. Chan, A.T.P. So and L.L, Lai, Three-dimensional thermal imaging for power equipment monitor~ng, I.. Proceedings - ~eneration,Transmission, and ~ i s r i b ~ # ~ o n147, No.6, Vol. , November 2000, pp.355-360. [62] 1 Sobel, On calibrating computer controlled cameras for perceiving 3D scenes, Artificial . Intelligence, Vo1.5, 1974, pp.185-198. f ~ o [63] D.B. Gennery, Stereo-camera calibration, Proceedings o Image Und~rs~and~ng r ~ h o ~ , 1979, pp. 101-108. [a] Lenz, and R.Y. Tsai, Techniques for calibration o f the scale factor arid image center for R.K. high accuracy 3D machine metrology, IEEE Bansactions on Pattern Analysis and ~ i a c ~ j n e Intelligence,Vol.10, NOS, 1988, pp.713-720. E651 O.D. Faugers and 6. Toscani, The calibration problem for stereo, Proc. o ~ f ~ Miami, P R 1986, pp.15-20. E661 R.M. Taylor, W. Robinett, V.L. Chi, F.P. Brooks, W.V. Wright, R.S. Williams and E.J. Snyder, The nano~anip~lator: virtual reality interface for a sca a ~Mellin~ microscope, Computer Graphics,Vo1.27, 1993, pp.127-134. [67] G.M. Herb and C.A. Shaffer, A real-time robot arm collision avoidance system, IBEE T r i a ~ a c ~ Robotics and ~ u t # ~ a t iVo1.8, No.2, 1992, pp.149-160. ~on~~ ~n,

r Lsi Lei Lai

City U n ~ v e r sLondon i~~ UK
UK

Utility c o ~ p ~ n i~ ~ e s e n t t h e ~ ~ e l onethe I ~ t e ~b t es ed v ~ e ~us i ~c s s es ~ w the ~ n~ ~ se as e u i c k ~as possible. ~ a ~ ~t y ~ e c ~ available for Intenlet applications is difficult, ~ l ~ ~ y bus~ness o ~ ~ o ~ n i towards the Internet will ~ie a d v a ~ t a ~The u t i ~iin~d u s has a~ways e. ~ been w ~ t i n g so that they can be purchased easily. Waiting for the In could take a long time and c only result in loss of

12.2.1

at Is fheI ~ t @ ~ n e ~ ?

A p ~ ~ ~ofthe ~ ~ n to Power ~ y s t e onitoring and Tradi~g c a Internet ~

catego~cs: o n ~ e r c ~and n o n - c o ~ e r c ~ a l . c al ~xamples commercial use are p u b ~ ~ c of s , financial data, roduct a d v e ~ i s e ~ e n tand information. s are publication of papers, references, on-line ~ t o ~ a and ls .The ~ ~ ~ risn e only able to d ~ s ~ i static~in not t bu static i n f o ~ a t i o n also be dist~buted the form of active We can in ~epending information requested, or in pages such as search en on i response to ~ueries n from the I n t e ~ e user. t gages are pages in which changing data is constantly received. Such pages can contain online music, radio stat~ons, video or real-time data updates.

The Internet allows compiiters to talk to each other via a cable or wireless CO order to allow computers m i n g differearl operating systems to communic l a n ~ u a gor, ~ a n s ~ ~ s sprotocol, is ~ e ~ u i rThe . ~ ion e ~ most comm i on the I n t e ~ es~TCPIICP. The use of a protocol ensures that a user information on the Internet regardless of the computer, operating rryste ~ n f o ~ a t i o n the Internet to be universa~~y on accessibl vided in a f o ~ a that can be displayed success~lly t an veloped to allow data to be received in a d o c ~ e n t are plain text d o c u ~ e n t s s CO presen~bIe layout [2,3]. allow software to display the text in a ~ o r m a ~ e d layout. For active pages, languages such as J cript or Java allow software to be included in a added interactivi~. s o ~ a r products used to display Web doc e ~rowsers because they assist the user in browsing or surfing the I most common Internet browsers are Internet Explorer by M ~ a v i g a t by ~etscape. o~

12.2.3

m t Would a

thout the Internet?

met most comgu~ers would be s ~ d a l o n e network. These c o ~ p uwould only be able to access in t ~ the local area network ( ~ A This ~n f.o ~ a t i o n ~ i would h themselves or ~ a n s f e ~ e d a physical medium suc from within the LAPS. It would not be possible to access the latest news or obtain up-to-date a com~uter. ~ e n e vaesr o ~ a r c o m p o n ~on a comp ~ e t ed sofhvare version would need to be available at its location. ical medium to be supplied to location of the c o ~ p u t e woul r ional costs when compared providing i n f o ~ a ~ and s on over the Internet. The I n t ~ ~pro~ides~ u ~ t i p ~ e of e ~ e c ~ o n i c f o ~ a t ~ ~ n , et es n ~amuals, a g a ~ i ~ e~ t o r ~ ah~ s , m s, s, f r e q ~ e ~ tasked q u ~ s t ~ o n iy on c o ~ ~or~progra~ming t ~ g problems and many more which WO ava~lablc.

Power System Restructurhg and ~ e r e ~ ~ a t i o n

i n d u s has been utilised by the power ~ n d u for~ ~ e ~ l i n ~ ~ s s cing ~roductivity.The best power plants are not the plants with their computers. The best power plants will be the ones w h ~ are using the right IT tools c~ and using them appropriate^^. There are many benefits to the power ~ n d u by ~ s accessing the largest resource of IT tools, the Internet and some of them are listed below: e r e ~ l a ~ ofo n ~ energy market formation on power privatisation available for customers esentation of private e ~ e r g y supply companies ice c ~ m p ~ i s for energy custome~ on -up to electricity suppli cing supply chain costs ised supply chain by t of remote e - p ~ e r s h i p s tomer relationship management d control for manag~ng peak demand energy ~ ~ c i n g power systems component monitoring an component control me expert advice for problems which have een expe~enced other sites on n-line c o n s u l ~ c ( e - ~ o w ~ e d gimprov~ng n o w l e ~ ~ e~ a g e ~ e n t . y e) ~ g automation for continuous energy supply oni it or in^ to operation, e.g. in case of point f a i l ~ e 1 marketplace in the energy sector floors or NetMarkets for e l e c ~ s~ppliers c ~ ~ ce auctions and negotia~ions between energy d i s ~ b u t o and supplier r Ability of governmental regulators to monitor energy companies on-line rchase o f ~ ~ h i ornspare ~ e parts from a wider range of s u p p ~ i ~ r ~ g of raw materials such as oil, coal or gas -line ~ a r k e ~ ~ acontrol ~ n v e n t o ~ e s ces

for teleco~municat~ons ice provider (ISP) services

o f c o ~ o d i t i e and equipment s

~pp~ication the Inte~et Power System ~ o n i ~ o rand Trading of to i~g

19

w Can I in^ the I n f o r ~ ~ t I Need? ~on In order to find the information required within millions of Web sites a search engine can be used. Most ISPs provides the Internet user with a simple search facility to search by cat ego^ or keyword. The number of Internet search engines is constantly Companies which are provid~ng a free Internet search facility are advertising as a source of income. Search engines are constantly combing amount of accessible Web pages trying to index the information they conta~n.This indexing job is done by a parr of the search engine called a Web crawler. If specific k e ~ o r d s used for searching through the accessible Web sites, these k e ~ o ~ ares are d matched against the index and lists of pages containing the keywords are ~splayed.

Generally, the Intemet can be used to gather or publish information on all t can be c a p ~ e d electronic format. ut finding the right information with in quality describes the problem of the usability of the Internet. One of the m with connecting to the Internet is slow technology. If Internet users have slo old computers or old software, the usability of the Internet is not high. Keeping technology updated requires i n v e s ~ e nin hardware and software upgrades. ~ o ~ e r cusage~ the t i a of Internet can only be effective if such investments are met. But there are more parameters which affect the usability of the Internet and which cannot be influenced by i n v e s ~ e non t the client side parameters like: which search engine to use, what keywords will give the best search results and which Web pages contain the information required? ~ ~ e ~ ~ broken links, which are connections b e ~ e e n Web sites where the target site has been removed, f r a ~ e n t a t i o n repetitive or duplicated contents will reduce the usabi~~ty. and Increasing Internet usability is the ultimate objective for many commercial users. Therefore, keeping a cooperative database of practical keywords, laces of interests and bookmarks on an internal Web page will increase productivity and reduce Internet ~ u ~ n g .

12.3.I

~ ~ i e nUsefor ~ e s e u r ~ h e r s t~~c

Originally, in addition to the US military effort, universities created the Intemet to share infQrmationon research p r o ~ a ~ eIn other words, the I n t e ~ itself has been a research s. e~ pro~amme between universities in the USA. With the Internet in place, research p~ojects can be continued where other research projects have stopped. This is p ~ i c u ~true for ~ly open governmen~l ~ n i v ~projects, avoiding duplication of rese and s i ~ private research projects are executed behind closed doors for economic reasons although there are exceptions. esearch software projects which are sponsored by universities or the public sector for evelopment on the frontier of technology are often open source and accessible to ch projects often benefit from the input of hundreds of con~ibuting r o g r ~ e r s p from all over the world. One example of such a collective effort is the Linm operating system, It has been ~ e v e ~ o p by an countable number of c Q n ~ i b u tand ~ a ~into ~ d ed o~ r a very stable and reliable system. Most importantly, its source code is freely available on the I n ~ e ~ e ~ .

4120

Power System Restrur;turing and

The ~nternet the ideal medium for publish~ng n f o ~ a ~ i o n is i without h a ~ n to pay high g rates to commercial publishers. Everybody with I n t e ~ eaccess and Web space c t A r e s e ~ c hresul~sor join newsgroups to exchange research ~ n f o ~ a t i o n . ~ ~ a g i n a b ~ e is avai~ablewithin the never-ending lists of newsgroups. ~ e w s g r o ~ p s topic allow researchers to publish and discuss their results with c o ~ p e ~ eaudience. Whenever research problems accme nt be found in the Internet news~oups.Sc query and collaborate with colleagues and access or share s o ~ a r e and i n f o ~ ~ a t i o n available on remote machines across the I n t e ~ e t . made

12.3.2

~ ~ u c u t ~Use a l ~n

The Internet can be used to access information on schools, universities, scho~ars~ip9 b ~ n by fellows~ips9 others. It is able to improve inte~ctions e ~ e insti~tions sharin and info~ation about events, projects, timetables, resources and act~vities, wh~ch may pro the usability of resources, such as sharing transportation or avoiding overcrowding in the local s w i m m ~ g pool. The Internet can even help reduce the ~ ~ i costs g schools, e, n of ent to be bought in bulk and shared by several institution. als can be made available to students on-line, which saves on material costs, cannot be lost or left at home and allow students to get pr~pared. ~ h e ~ o rthey F e, allow p ~ t e students to gather more detailed i n f o ~ a t i o n ~ ~ a ~ about a course up for it. There are several on-line training courses avaiIable on the I n ~ e ~ e t . allow people They who live in ~ e m o locations to continue their education after leaving school. With the help ~e of an on-line tutor, which monitors the progress of students remotely, queries can be sent and answer~d e-mail within minutes, On-line exam~ations o n - ~ i n ~ via and mu~tip~e-choice questions generally follow such studies, includ~ng publishing o f exam~nation the res~lts.

12.3.3

Inte~net

Prior to ~ ~ i a n g decision on which product to purchase, extensive i n f o ~ a t i o fact sheets and general opinions can be analysed. The I n ~ e ~ ~ n a ~ lusers t et es product or component performance by being able to access dir competing companies. Good starting points for obtaining lists of CO sp~cialise~ on-line magazines, virtual ~xhibitions virtual shopping centxs. or

usinesses can compete with on-line quotes for services and goods to a ~ c pto s ~ ~ b l e cu~tomers.They can show detailed statistics on their busine5s p e r f o ~ a n c eto a ~ a c t pot~n~ial v ~ s ~ and~shareholders, ~usineses pu~lish n f ~ ~ a t i o n c o ~ ~ i c a t e in or can i and via a secure Internet connection and firewalls to improve c o ~ u n ~ c a between remote ~on

Ap~li~ationthe Internet to Power System Monitoring and Trading of

~ u l t i m ~ dmeans the simui~neous of more than one medium. A single medium can ia use be text, image, video and sound. ~ ~ i ~ t i m edevices are able to play music, animated dia images, motion p i c ~ r e s videos. But multimedia technology is not just about playing and multiple media, it also includes storing, transmitting and presenting information from multiple sources. Uses for such technology include e n t e ~ i ~ e nvideo conferencing, t, video on demand (VOD), close circuit television (CCTV) and distance learning. These are many different formats in which multimedia contents can be stored. The most common ones found on the Internet are listed in Table 12.1.
2.1 Common multimedia types
Category
Audio, Sound, Music

Movie, Video Images, Photos

Extension (MIME type) AIF AV1 M3U MID MP3 SND WAV AV1 DV DVD MIV MOV MP2 WE MPEG MPG BMP G F P E G JPG TIF PGX WMF I

This list s ~ a r ~ s only a fraction of available file types. There are many more file e s types for images, sound or movies and new ones emerge constantly. If the Internet browser receives a multimedia file, it identifies its contents by the type, which is related to the file extension. Once the content i s identified, the browser executes somVare to use the file as intended by the originator. In cases where the brow~er does not include software for opening a file type, e.g. MOV (Windows browser invokes a helper appl~cation, a movie player. For an unknown or e.g. a browser plug-in or an external helper application may be required. and ability of the Internet to distribute multimedia content, c ed music and video occur. Without copy protection it is ve convert music or video tracks into an Internet distributable format. But there are obvious advan~ges selling music electronically over the Internet, e.g. no record c o ~ p no y ~ for ~ i n t ~ ~ e d i a ~ e s cost, large audience and many more. low ,

Internet on-line services such as Internet banking and account managing, s h o p p ~ ~ ~ in virtual hopp pin^ malls, live news and trading floors, just to name a few, have become very popular. On-line shop~ing become very popular for light goods (sma~l has pos~age cost) music, videos and books. Several large supermarket chains are trying to push ping for food and groceries by introducing a fixed delivery fee and delivery times. Such business is not time critical and can be accomplished continuous connection to the Internet. Time-c~tical on-line services, such as trading floors, require a con~inuous connection to the In~ernet order to follow and react to market changes. They can only be succes in the used IT infhstructure can handle real-time data transmissions and if cont~ngency are in place in case of technical failure.

Power System Restructuring and ~ e r e ~ ~ a ~

Trading floors and on-line auctions are a very promising development on the Internet. They allow multiple sources and end users to meet in a c o ~ o virtual n business without verbal c o ~ u n i c a t i o n travelling. or

12.3.7

S~pport Professionals for

~e~erencingfo~ation in plays an important part in many professions9 p a ~ i c u l ~ the ly legal, medical, scientific, financial and information technology professions, Internet was estabiished, these professions relied on an extensive amount of published papers, e.g. books, journals and reports. The production and dis~bution paper reports of can be expensive and slow, resulting in i n f o ~ a t i o n being unavailab~ewhen it is required or only available to those who can afford it. Since the introduction of the Internet, such i n f o ~ a t i o n readily available to everybody. People who are ork king in a fast moving is e n v i r o ~ e n tsuch as the IT sector require flequeni updates. The I n t e ~ provid~sa ~t medium in which updates can be made available to everybody quickly,and cheaply; therefore, the latest technology and manuals can only be found on the Internet. The Internet user can be hidher own doctor or lawyer. But there is a danger. Using the ~ ~ f o ~ a twithout the necessary experience can sometimes lead to wrong conclus~o~s. ion This is especially true for self-analysis of illnesses. Some ~ n f o ~ a t i o n the Internet on should only be used for the purpose of improving i n f o ~ t i o n a specific group of for professionals. It might be useful to know which illness matches the symptoms but a professiona~ shou~d compile the final conclusion. ~nternet~based business analysis solutions for the utility marke~laceprovide utilities and e n companies wt ~large-scale sop~isticatedanalyses of their data and allow them ~ ~ ih to extend access to these analyses to a larger number of users. As a result, users will have -click access to energy and power plant data to s u p p o ~ their energy ~ a d and g ~ t management and for improved business decision-making capabilit~es. source for the power Internet forums have been successfully used as an ~ n f o ~ t i o n utility industry with regards to IT-related questions, such as the year 2000 (Y2K) issues. There is a vast amount of power utility related data already available on the ~ n t e ~butt e some of it is poorly organised and difficult to find. Energy i n f o ~ a t i o n companies a d ~ e s s this shortfall because they specialise in the collection of information related to power utility research. ~ n ~ companies ~ e ~ e have created virtual conference room, where visitors can review case studies, survey results, white papers, reports and studies, meet with staff consul~nts, and p a ~ c i p a t e an on-line survey. in

12.3.8

The Power Industry and the Infernet

Can the Internet really stand up to its promise to increase productivity and p r o ~ ~ ~ i and y lit ost for the power industry? is not much evidence to support this s ~ ~ m e n t 9with but connection ownership, this will change in the near future, to increase productivity by using the Internet to find the right ~ ~ ~ o ~easily ~ o n a t and quickly and to attract ~otential clients to ~ommercia~ pages to in~rease r o f i ~ b ~ l i ~ . Web ~

~pp~ieationthe Internet to Power System of

nitoring and Trading

23

~ f ~ c i eWeb page desi should start from the need of the clients (the c o r n nt find the ~ f o ~ a t i orn o products they require ( i n ~ e ~ e d i acontent) and move to t te (e-commerce tool). Making money via e-commerce requires the real business on-line. ~ ~ c r e a s ~ n 1 barrier to purchase goods on-line, is one of the than just i n d u s ~ news. It ices tailored specifically to the power i n f o ~ a t i o n the average I ~ t e ~ e t to professiona~~ satisfy a need, or to solve a problem. For example, low to optimis~ngthe c o ~ b u s t ~ o n process or reducing shipment delivery tim shipload c a p a c i ~ using other Web sites. ~ n c r e a s e ~ f f i c ~ e pages will increase its p o ~ u and a h ~ e ~o r e value. To ~a to b ~ t f its t visitors, the Web page should contain added conte increase the rate of rec Web sites should provide easy access to e ~ e c ~ i cia l erspec~ive.~ o w e r in ~ i s ~ b u t Qcon~ac~ors, rs~ engineers~ purcha$~n r e s ~ ~ c for mmu es er electrical industry ~ ~ o f e s s i o ~ a l s . s the ~ n t e ~ can support the core c o ~ p e t i et to rgy-trading p l a ~ canobe designe~ receive ~ ~ orga~~~sations use these biddoffers to sched and resources locally, A d ~ i t i o ~~ n c t i o n provided to the ark et inch al data, s e ~ l e ~ e nbilling and p ~ b l i ~ h i ~ g t, of pricing and trading i ~ f o ~ ~ t i o n i ~ f o ~ ~portal. Such a platform can be designed to give market ~ a r t i c i F ~ ~ t t ~ o n to access the m ~ k e24 hours a day, seven days a week. t ~ t i l i ~ ies are developing e l e c ~ o n ~ c Internet. In illing will reduce the utility CO on-~ine e ~ i c e r ~ s ~ d e n t ~ a ~ s for and their ~ s w e r Q s utility c ~ m p a n and s ~~ 1 les, This will allow po offer a c ~ ~ n ~ cst o r s ~ ~ tc Q ~ e c t ~ t e ~ i wiring. ing l n t e ~ etechno~ogyadv t iders (ASPS). The idea is to provide so is instalIed on a rem ter with ~ n ~ e access. This avoids the probl ~ e t and ~aintainedor u p ~ a ~ e d ess to expensive and highly speci the standby time and cost of , for ~ a i n i n g u ~ o s can be lea ~ es I" of people a ~ e n ~ This is one ~ g .

12.3.9

Recent ~ ~ p r o v e m eont the Internet n ~

Since the computer ~ a n u f a c ~ r i n g industry and the Internet are ~irectly related, faster and cheaper computers will constantly cause expansion of the Internet networ~. This, in itself, is a positive deve~opmen~ long as the transpo~tion as network is at least expa~ded the at same rate. Therefore, a constant improve men^ of the Infernet i n f r ~ s t ~ cis n e c e s s a ~ ~r to ensure a continuous quality of service. With more and more users using and publishing information on the Internet, more and more information becomes available. It is c e ~ a i n ~ y the case that every Web site on the not Internet on a specific topic contains valuable i n f o ~ a ~ i o n . ometimes i n f o ~ a ~ i ois n duplica~e~ even wrong. This makes it sometimes difficult to find quality contenf for or serious researchers without wasting time visiting ~ i ~ e r eWeb sites con~aining nt effec~ively similar information. ~~)nsequently~ the more iiifo~ation there is on the lnterner the more diluted the quality of content on a common topic and the more difficult it becomes to find quality content. But the Internet is constantly i~proving search engine$, which are now its using iiifomiafiorr-refiningprocesses with artificial intelligence (AI). The processing power of PCs has been doubling almost every two to three years and with the new generation of niultimedia extended processors (MMX), Web p include images, sound or video clips. This development has increased the Internet sur-fig, sometinies caused just by the graphicai design and ~ n c ~ i o n a ~ i ~ ( i n ~ e r a c ~ i v i ~ )nOQ the content of a Web site. People visiting interactive ~ e sites can and b interact with their contents for fun or for business ~ ~ ~ o s e sInt The . improved the appearance and i n t e r a c ~ ~of iWeb sites and has cre v ~
is ortant issue su~ounding Inte et. A system w h i c ~ not the us business. When the I ~ t e WRSee ~~ a b ~ i s h ee ~ u rwas ~ s s ~, i~ rs did not intend to use it fo esses started to e m e r ~ e on need for securily arose. There are several reasons why h c o ~ p u t eSome o f the most common ones are clienl/se ~. A simple securi~y-rel~ted in browsers can allow bug ~ n f o ~ a t i oWith the latest 128 bit en n. rotocol, hackers will have at least ion, ifit is within their ab~~ity. the Int~rnet while on the move is one o f th e~ ~~ o ~ra bhand-~eld e v ~ such as l~ e . d ~~s w r i s ~ ~ ~are~ u ~ e n t ~ y c ce s available for accessing the ~ n t e ~ ~ ~ .

Currently, the PC is still the most common way to access the K ~ t ~ ~ e ~ . few years, Internet access will be drama~ically incre TV set-top boxes, game consoles or video teleph ~ n ~browser en tling I n t e ~ eaccess at any location. ~ ~ e t WAP or ~ ~ ~ e r r i e t - e n ~ b l e ~ are cu ntly being pushed as a ~elephone$ far, there is still a lot of convincing and iiii~roveme~~ts done until WAP phones will to be

~ p ~ l i c ~ toEo n Internet to Power System i the

onitoring and Trading

take a s e ~ om asr ~ eshare. They suffer from b ~ d w i d t h ~ t res~ictions small dis and Pal~tops c o n ~ a slook quite promis~n~, thek display is reasonabIy in t since idth restrictions. C ~ ~ e n t l~ , A phones and palmto y P Ie to mobile phone text ~ e s s a g i n ~ ~ omising technologies for accessing the ~ n t e ~in the ~~e are et as Internet display units, if connected to the ~ n t e ~viat a teleph e ~ b ~ the c and c o ~ ~ c t et-top b ~ will sit e e ~ e e n TV and e teiep~one o ~ e c t i o n will io~ eliver services s ~ asc ~ TV or video on demand. dig game consoles in the late 1990s, game consoles are a ~ o ~ ~ e r e T~ternet. They need to be equipped with a s ~ ~ i l ~ tec require a telephone c o ~ e c t i o n Already some . et connection from game consoles for offer full Internet browsing. already have a display, ted to a ~ e l e ~ line and ~ o ~ e keyboards and the abWy to ady. They also have l o ~ a t of ~ n ~ far the costs of o ~ e r s h arid m ~p lds (e.g. in fridge doors) have se to some respect.
12.4.I

Access. to the ~ ~ t e r ~ e ~
or s~all/medi~m"size connection to an ISP. a ~ ~ e sto , ~ n t ~ ~ e s the f a fast connect~onwith all i t s us ternet, making it the ~ ~ ~ or middle e ~

Access to the ~ n ~ e ~ n ~ t

Pi

-8. The Internet as a three-tier connection

426

Power System ~

e and ~ e r e ~ l a t i o n ~

The Internet is building on a client-server rela~ionship model, where the clients Internet browser connects to an Internet Web server. For the browser to an operating ystem or platform needs to be ins~al~ed the clients PG. on to Web servers. Operating platforms supply the basic structure of the computer environ~ent such as convenient access to all p e ~ p h edevices installed on the computer. ~l ml it is possible to create an Internet browser for a specific computer hardware layout, ie the m ~ ~ of~ computer e ~ d hardware combinations would require a browser for every possible option, Therefore computer software is generally written for operasing systems. o~erating systems for client n i a c h ~ e s are icrosofts Windows, Linux The most comMo~ and Apple ~ a c ~ n t o s hMacOs. The more applications these are available for any platform, s the more popular this latform becomes, Therefore, most home or o ~ i c e - ~ a computers se~ will have one of the ~reviously mentioned operating systems. servers have different criteria for choosing the ~ l ~ t on which they reside. f o ~ ad applica~~on support is necessary or home and office CO r e l ~ ~ b iare ~ major criteria for Web servers. O p e r ~ ~ i n g l i the plat Solaris, W i n d o ~ s and Wewlett Packavd are focused on secure access res~ction$ NT and secure ~ e m management. Access res~ctionsinco orate ~ ~ l ~ i - u s e r o ~ capabilities nt levels of access, e.g. Web users cai only acces g. Secure memory management incorporates nt levels of memory access, e.g. every op ning in its own address space and will not conflict with other pro~rams system in case it crashes. b issue for Web servers is s e c u ~ i ~ , ile ~ e servers allow access ody, access res~ctions apply to all other areas on the serv~rs hard disk.

12.4.3

Web Clients

client is a piece of software that is able to receive ~ f o ~ a t i for dis on p u ~ o s e s Web clients are used to access information pub~ishedon an Internet-enabled , Web server via a URL. Web clients do not exist in isolation since ey have to access a server for i ~ f o ~ a tretrieval. They are part of the clie~t-serverMO 1, ~ h i c is s io~ h h in ~ 12.2. The Internet utilised the clien~-servermodel because of nature.

are 1 . The client-servermodel 22

The most common Web clients used for displaying i n ~ o ~ ~ a ton n c ioa browsers such as Internet Explorer or Netscape ~ ~ v i g a t oWeb cl~entsfor r,

Application ofthe Internet to Power System Monitoring and Trading

427

i n f o ~ a ~ ~ o n can be found in Internet search engines. A Web client must be able to storage understand the format of the remote i n f o ~ a t i o n accessed for successful p r o c ~ i n gIf, for . example, a Web site containing Chinese writing is accessed, the browser must have the reqLiired fonts installed. If rcal- me data should be displayed in a Web client, the client has to have the capabili~to receive data updates and display changes ~ ~ c o r d ~ n gThe ly. m u l t i ~ d e data types and constantly emerging new technologies and standards forces of companies building such clients to release frequent updates. Users of Web clients should always try to update client s o f ~ a r in order to access new Internet tecIino~ogies. e

12.4.4

Web Sewers

Accessible UIpLs must be located on a dedicated Web server. Only Web servers which are enabled for ~nternet access are accessible by the Internet user. Basically, a Web server is a computer with Web server software such as Apache Web Server, Internet Information Server (IIS), Personal Web Server (PWS) or any other Web server software. This software allows other computers to connect to a specific port (normally port 80) and display the contents via a Web browser. 12.4.5

Web Protocols

Web servers are able to understand several protocols. A protocol is a method computers use to communicate with each other. There are several types of protocols. Different types of protocols are required for different tasks, e.g. Web page access or file transfer, The most common protocol used over the Internet is a combined protocol called part is rcsponsible for the c o ~ u n i c a ~ i o n the IP part is required for and identi~cation computers. In order to address uniquely any Web semer on the Internet, a of unique token is required. This has been realised with telephone numbers in mind. Therefore, a Web server can be addressed by a set of numbers, the TP number. It can be used in the browser as a hexadecimal, octal or decimal number. Its most common appearance is decimal and it looks like this: 123.456.789.012. Since such numbers are difficuit to remember, a more friendly way has been d ~ ~ c l o p e d , called a domain name. The domain name allows the use of friendly names such as h ~ : / / ~ . w i l e y . c o instead of 199.171.201.14. Good domain names are limited and m most of them have already been occupied. Some of them are available on the t ark et for bidding, which i s very similar to personalised car number plates. Recent court rulings have tried to discourage domain name hogging by forcing individuals to release branded and trademarked company domain names so that the companies can represent themselves on the Internet without paying millions of dollars. 12.4.6

E-~~il

The Internet owes parts of its pop~~arity the e-mail system. E-mail i s an electronic to means of sending a message from one computer to another in an organised fashion. E-mail services are offered by an ISP. Mail accounts can be created from ISP e-mail providers such as CompuServe or AOL. E-mail is the fastest and cheapest way of sending messages

Power System Restructuring and ~ e r e g u l a t i o ~

to any location in the world. There are specific protocols for sending and receiving e-mail ~e messages. The protocol used to send e-mail messages across the ~ ~ t eis~ h et ~ i m p ~ e rotocol ( S ~ T ~ ) . protocol used to receive e-mail messag~s the Post Office The is versions of these protocols have been improved in robustness and P2 or POP3. If e-mail c o n ~ i n s more than just text, e.g. a ~ ~ c h m e n tanother ~ r o ~ o c orequ~red. s, is ~ llows do~nloading uploading of files on remote machines and is called or rotocol (FTP). It is a~~omatically invoked if an ~ ~ a c h r n esncopied to a i ~ hard disk. If, for i ~ s t a n e e ~ graphics adapter driver software requires upda~ing, is more the i.t than likely that it is available on the Internet. Generally, there will be more than one location, called FTP site, for ~ownload~ng. The most used protocof for Web browsing is the ?TP.This protocol carries ~ n f o about~the originatornof the i n f o ~ a t i o n the information itself It is able to ~ ~ ~ ~ and tell the b r o ~ s e of which type (e.g. plain text or cQ~pressed) f o ~ a(e.g. ~ T ~JSP, r and t L ) the ~ n ~ o ~ is so that o n browser can play it correctly. Free ~ I i t e ~ e ~ - b ae-e d a ~ ~ the s mail sewices are available, e. g. from HotMail o

62.4.7

Internet Security

I n t ~ ~~ etc ~ r i isyn e c e s s a ~ protect cornpurer resources against the risks and threats e t to that arise as a result of a connection to the Internet. originated from the idea of cQnnec~ing computers b e ~ e e n esign of the Znte~et s etc. f i r com~unication owle edge-shar~ng purposes. There was no reason and for a n ~ ~ to consider s~botaging connectio~~, only a selection of trustwo o ~ y the since people h sical access to the computers connected to the I n t e ~ e t sharing se~isitive rese~ch ation. Tilerefore, security issues were not part of the i n i t ~ a ~ ~ ~design. t Since more and more users have access to the Internet and its utilisation for business and ~ ~ ~~ansactionshas grown, Internet security has become a r i m a ~ c ~ a i concern. The rcasons for ~xplQiting sabotaging the Internet are man~fold. or One of the major security concerns is caused by the fact that data is: transported as text, allQwi~g access for third parties. This risk is mos acceptable for non~en easy nce the Z n ~ is~a ~ ~ t ss these lines if avo d st option for se~sitive afford a ~ o n ~ ~ n u o u s cable

home workers to have access to sensitive eompany data from any location. These r e q u i r e ~ ~ ~have persuaded many companies to open up their private Intranet to connect nts to the public Internet. Protec~~ng private network and shielding it from h~ckers without restrictin a commun~catio~ remote users can be achieved with a firewall. A firewail to w r ~ ~ toncombat unauthoris~ e access to files or uiider~y~n p e r ~ ~ ~ n g o systems. on the company policies, only selected services are granted access to the outside world. Figure 12.3 shows how an Intranet can be protected with a firewall. Local computers are able to connect to each other and to the Internet, but remote coinputers with Internet access

43

Power System R e s ~ ~ c ~ rand ~ e r ~ ~ l a t i o n ing

recipient needs to receive the private key, which can be intercepted. Private key generators produce only one key (A) for encryp~ion decryption of data. and

! Trans~ission

across the

I Internet

Data ~

nusing a private key ~ ~

The alternative is to use a private/public key pair. In this case, a message c e n ~ ~ t with the public key, but only d e c ~ t with the ~ ~ i v a key. This allows e d ~ d te p u ~ l i s h i nthe public key to many people, who are able to send ~ e s s a g e s ~ back to the e the publisher of the public key is the hing the public key, the ~ e s s a g can b ~s blic key, only the p ~ v a t e can dec key public and private key lic key generators always pro where A i s used for encryption and B for

Secret readable data

I
f

I ~rans~ission
across the Internet

~ e c r y p t ~ o n private key with

.5 Data encryption using a public and private key pair

result irm using less server re sour^^$ so t

age is l~aded faster. Th aved, e.g. the use of c s ~ n t e r c h Format (GIF). The GIB; ~g~ ir image ~ompression ratio. One of th

o p ~ balanc~of ~image quality a ~ ~ a

Application of the Internet to Power System Monitoring md Trading

33

Server 1

Server 2

Server 3

Network load balancing with three servers

ua

software is ~ m p o ~ a n t . answer is Java. Java has been develo~ed The with the Internet in mind. It is not exactly i n ~ e ~ r e t e dn o ~ - i n t e ~ r e t e d ~s o ~ e w h e in~the m i d ~ l e ~ or but r because the source program code is compiled into byte-code, process. Java byte-code is i n ~ e ~ r e byea Java Virtual Machin ~ d p r o ~ e s s o r ~ s ~ien~si ~ c ~ i during run-time. This mechani ~ ons different platforms if an a p p r o p ~ J ~ e ~ g languages are enabling Web pages are i ~ p for on-line and re o ~ ~ ~ntgractive Web pages are required if feedback from the Web user is relevant.

12.5.3

at Is ~ a v a S c r ~ ~ ?
a p r o ~ ~ i n i ~ g n ~ a which is exe na ge ages that provide a means of adding As shown in Figure 12.9, JavaScrip in the Web ~rowser. is one of It

age from a Web server, the browser inte~rets the JavaSc~~pt for page i n t e r a c t ~ v If, for code ~~. $elect~b~e of products and ces, ~ a v a ~ c r i p t keep track of the running of all list can selected from the list. Such interact~vi~ cannot be accomplis~ed with basic cript v e ~ s a t i i allows Web pages to be created without i~ JavaScript does not necessarily need to be emb eb pages in JavaSc~iptmight defeat the ML pages by adding interactivity inste
Computer
1

nment for JavaScript applications

de in J a v a S c ~ is tvery similar to writ in^ code for a Java ~ is how events for executing code sections are trigg objects, e.g. a button, to trigger code, which might ~ ~ l ~ u laasubtot te d show the result in a ~ o p - u p message window. whenever unknown p r o ~ a m m ~ g is executed ca~tionmust be ta code Internet browser executes the JavaScript code in an encapsulated env~ronmen~~ preventing access to system reso~rces, the hard disk. ~ h e o r e ~ ~ cit lshould be just as safe to e.g. a ~y

~ p ~ ~ i c aof the 1 ; i t ~ ~to Power System ~ion et

onitoring and Trading

as it is to execute applets. ut holes have been f o ~ in some browsers d Java security ~ ~ p l e m e n ~ ~ i Q n s cleverly written JavaScript code to access files with allowing own location and name. Nevertheless, the execution of Java code in et JavaScript or an a ~ p ~ within the Internet browser can be turned off when brows in^ u n ~ s t e Web sites. d

opment p r o ~ a m i ~ i n g 1

creation of a Java source file, this file can be compiled into Java b ~ e - c o d e a Java via compiler as shown in Figure 12.10.
ptain text Java instructions

Execution of bytecode in Java Virtual Machine (JVM)

Prograrn,class

2.10 Java code com~iiat~oii execution and

Java c Q ~ p i lcan ~ o ~ l o a d from the n ~ ~from tvcarious 1 e~ ed e numero~sc ~ ~ e r c Java l ~ a develop~entplatforms on the m ~ k e t s which all ~ e v e l o ~ ~a n t e er ~ e b u g ~ ~ n g n o n - c ~ ~ ~ e r cones. Since Java than ial in~oducedby icrosystems, it i s one of the most reliable sources for tutorials, ~ o ~ ~ p i land s e r other Java resources. It can be accessed via the h ~ : /.jav a.sun.corn. / ~ Java byte-code can be executed on any different computers. There ing ~ a n ~ a Any c o ~ p u t e r g~. which has a Java le to execute java byte-code. This means that softwar once. This is a real advantage ~ s i ~ n ewritten and compil~d d, terms of dis~ibution the Internet. on

E n v i r o ~ e n ~ a Java ~pplication for

Power System ~ ~ s t ~and ~ n g e

of which have a

, thus ~ a ~ i it safe to mn a p p ~ ~ ~ s ng
can p e r f o ~ it is live on the Ente if w h i it was ~ o ~ ~ ~ d . ~ ~

~for a Java applet r ~ ~ ~

shows the e n v i r o ~ n

A p ~ l i c a ~ ~ o the Internet to Power System Monitoring and Trading of n

access to c o n ~ ~ e n t i a ~

be seen as a web if lines ~ e p ~ e s e ple who are pending time on th noth he^^ are browsing or surfing the Web.

438

Power System ~ e s ~ ~and ~ i n g ~

all parts are combined into a single H L page. The static part can include ~eneral n ~ o ~ aandi logos. The dynamic part can be a table where data is q u e ~ e ~ ~ on a da~base, formatted and enclosed by ~~~L tags. Such dynam~c creation of WT can be achieved via a CGI or servlets. Therefore it is not unlikely that initially being d as a set of templates with the conten~s added via creation, ~ e n ~ r a t i o a dynamic Web page is illustrate

ases are the most used dat ases are categorised s are hiera~chical,relat re ts the data is stored and ~ e r e ~ othis e f f ~ ~how the ~ n c ~ i o n s access the data. Examples of a hi can ata files as shown in Figure 12.14 [6,7]. ~~t~ h i ~ ~ ~ c ~a i t caa ~~ a ~ stored in a tr ~ data is ~ ~ , data can be found near the root

es ~ b j ~ c t - o ~ i e n(00)~ ~ t a b a scombine t ted of i n f o ~ a t i o n ~ o r in ~the table. For ex s e ction could be the calculation of moving averages.

g l ~ n g u a gGalled ~ ~ c ~ r e d ~ seque~~. is imple~ented SQL s t a n ~ ~said to be the d ~ ~ t a ti s not always guaranteed io~ ~ ~to a ~ ~ o w ~ ~ a ~ ~ e s s a for ~ spe r

Application of the lnternet to o w a System Monitoring and Trading

.14 Most common database types

nce the SQL q ~ e r y been defined and coded, it needs to be sent to the has for execution. Database vendors have their own version and i r n ~ l e r n e ~ ~ t of n io their database manager and query optimisers. Therefore, a common c r o s s - p l a ~ ~ o ~ database connectivity standard for Java has been introduced called Java database connectivity (JDBC). JDBC drivers have been developed from JDBCs pred~ceor, ODBC, and are available for almost every database. JDBC comes in different levels of d a t ~ b ~ ac~essibili~. examp~e, se For Level 1 JDBC drivers a C bridges for databases where only an ODBC driver exists and Level 4 can access a database directly and are generally written in pure Java. When the database and the SQL application reside on the same computer, and no server exists, the database model is called a two-tier model with the first tier being the ap~lica~ion and the second tier the database as shown Figure 12.15 .

JDBC driver via LAN

Two-tier JDBC driver connection

Power System R ~ ~ ~ ~ c Deregulation g and ~ r i ~

If the database is located on a server the appiicat~onaccesses the database via server software. Such server software can be accessed via an ordinary http request. IVcan be written in any CGI executable language, e.g. Per1 or C*, or as a pure Java application, e.g. servlets or EJBs). ~erver-s~de soflware generally contains parts of the business logic of the database. Business logic is, for example, pre-programmed SQL methods for accessing a database or invoking transaction scripts as shown in Figure 12.16. In most Web applications the third tier is to be regarded as the connection to the database, since applications cannot be granted direct access to the database across the Intemet for reasons of security. Therefore, whenever a database is accessed across the Internet, an appropriate CGI, a servlet or EJBs must be coded. There are several software companies creating off-the-shelf client-server software for data presentation for the client and database access on the server. ........ Client ............................ ...............................
~

SQL queries sent to servlet driver via WAN

.....
/

Figure $2.16 Threetier JDBG driver connection

12.6.4

Web Pages with Functionaliiy

Web pages can include knctionality, e.g. collecting data typed in by users and its validation using JavaScript or VBScript. DHTLM is a collective description of mixing the ~nc~ionalitya scripting language with Web page interactivity. of

~ p p l i ~ ~ tofothe Internet to Power System ~ o ~ ~ i t o rmdg i n i n Trading

12.6.5

Web Pages with Integrated A

A new trend into leased ~p~lications the Internet can be noted. Many small CO on which c m o t altlford to develop an application on ltaeir own, have used es for e ~ o ~ e rfor e ~ c shopp~ng the I n t e ~ eand trad on t

.7
This section aims to give readers who are not Web developers a quick b a c ~ ~ r o u n extended Markup Language (X ). XML is primarily used to define wit atting i n f o ~ a ~ o n . IS the most suppo~ed o ~ a t t i n g a n ~ a g e browsers on f l by lacks e x ~ ~ s i b i since the tags which are used must be defined within the li~, the race began b e ~ e e n major Web browser m a n u f a c ~ r e ~ , defin style ~ n ~ Q d uas ~ matter of competitive advantage, cad L weakness is that the tags are used for formatting and only little about what the information is. XML can describe the stored i n f o ~ a t i o n clearly,

12.7.1
The s h o ~ c o m in ~ ~ ~ haw accelerated the introduction of X L. One ofthe major i H is that XML does not contain tags which relate to TITML and X if~erencesb e ~ e e n OCUmentS is assign the f o r r n a ~ i ~ g the data. The forrnatt of a constant format data elements, represent~gspecific e document. By i n ~ o d u c ~ n g data e new entire ~ d u s ~ i are able to interchange i n f o ~ a t i o n a suitable format. Since es in ocuments contain the data elements, a new type of document is re ion about its repres~ntation.Such documents are called stylesbe i n ~ o ~ a t ~ o nbe given later. Stylesheets can change the way X will in~ browser, If the ~ o ~ a t tneeds to be changed, only the stylesheet requires ~odificat~on, separat~ng maintenance between data and f o ~ a t t i n g content and layout. the or

12.7.2

Reasons for

document i s accessed, a plain text editor can be used to access the data, is that dy a d v a n ~ g ~ in years to come e v e ~ b ~ will be able to readlwrite the files. Plain files are pla~forrnand application independent. This means that it is not n ~ e s s to ~ a use files have been created in order to read the ~ n f o ~ a t ~ o n . is conversion can be saved if data creation s document file created in the 2980s word^^ or rd 2.0) 50 years later. This gives XML a truly universal and timeless data s cr~ss-platforrndata ~ c ~ i v i and com~atibi~i~y ng problems,

42

Power System Restructuring and ~ ~ r e ~ u l a t i o ~

split by type of data and subsequen~lydisplayed depending on meaning, This is because different parts of the data can be identified which enables different applications to utilise it in different ways, e.g. searching or summarising. A data element starts with a tag describing the meaning of the data, e.g. <NAME>, and ends with a terminating tag, e.g. 4NAME>. XML data smctured in such a way is referred to as being well farmed.
~ ~ ~ Q t~ ~a g : ~ f ~ ~ a ~ a ~ data is presented in a hierarchical format. Hierarchical formats have the advantage of faster drill-down for more specialised information or move-up for more generalised information.One of the major disadvantages is that they suffer from data duplication. r
~ ~ r i ~ i ~ ~ ~ ~ ~ ~ ~ ~

XML data can be formatted for display by using a stylesheet. Stylesheets define how a specific element is displayed, e.g. on a screen or printer. This enables the user to reuse the XML data for different views or presentations by applying different stylesheets. As well as displaying XML data, stylesheets can be used to convert XML data into different formats such as LaTeX or PDF.

Inline ~ ~ ~ ~ t Q n g s ~ XML allows the inclusion of other files containing XML. This results in manageable chunks of XML data. Files containing XML data chunks can then be included in one or more XML documents, reducing the amount o f data duplication. s~i}~pi~~ allows users to define a tag set of their own. Some rules with regards to its layout are Iisted below:
L requires one Iarge container element, which encapsulates sub-elements. All open tags must have a corresponding closing tag, e.g. <T-Il>GIHi>. All sub-elements within a hierarchy must be closed in reverse order. Outer elements containing sub-elements can only be closed if all sub-elements belong to the outer element are closed, e.g. <H IxW2><H3></H3~2></H1>. Attribute values for tags must be in quotes, e.g. <H1 colour="blue"></IT1>. The same data can be formatted in different ways by introducing different ways of represen~ing elements. Once the data has been generated in we~i-forma~ed XML, it can be reused by different industries.

12.7.3

Separation o Content and Layout f

Information contained in static Web pages may change form time to time, challenging Web page designers for fast and reliable update mechanisms. M a i n ~ i n ~ n g fl~xibility static the of Web pages is therefore one of the major design issues driving the in~oduction new of strategies and technologies. HTML pages contain content and layout within one document. Content is the information displayed on an HTML page; it can be in the form of pXain text, tables, charts, graphics or others. Layout is the presentation of the HTML page; it is embedded as HTML markup tags and is not explicitly displayed to the viewer since the browser translates the inarkup tags into positioning information.

Application of the Internet t Power System Monitoring and Trading o

Classic HTML pages contain both content and layout in the same file, causing dif~cu~ties common layout needs to be replicated for all pages if changes are needed. since For example, if % large company changes the layout of its Web pages a modification of each Web page is required if they were written in static HTML markup l a n ~ a ~This e* problem can be avoided if content and layout are separated. The t e c ~ o l used for the o~ separation could be achieved with XML for content and extended Stylesheet Lan (XSL) for layout. Figure 12.17 shows the relationship. Details on XSL will be given later. By separating content from layout, Web design can be split among specialised teams such as graphical experts, script programmers and site managers. This allows each component to be reused and versioned, reducing maintenance complexity.

Content Repository

3
SQL query objects

SQL query objects

.I7 Rendering of XML data with an XSL stylesheet for NTML display

~ e p e n d ong XSL stylesheet ou ut formats such as WebTV, WAP, PDF or others ~ the could be c o n ~ c t ~Since XSL stylesheets are in principle XML documents, they can be d. converted by another XSL stylesheet into a new XSL stylesheet as shown in Figwe 12.18.

Change management system based on XSL stylesheets

44

Power System ~ e $ ~ ~ c t u r andE e r ~ ~ l a t i ~ n in ~

and XSL can be transfe~ed between mul~ple l a ~ f o ~ s , ~ ming languages. This protects the technology inves stored in plain text and therefore always accessible. This m proof and allows new ~ e r g ~ tn g ~ ~ l Q g ito srely on a simple but co~prehens~ve ec e data structure.
~ a y V a l~ ~ ~ t i o ~ DTD o i a with

e definition (DTD) file c o n t a ~ ~ s layout ru validate XML to avoid invalid or inc XML files require to be well formed so d o c ~ e n contains rules, with w ~ c an t h order to pass a DT validation test. Such rvles con parameter data types, andatory or optional tags or data. u~ilisation assist error analysis within an XML dQcument. can

12.7.5

~~lesheet~

se of a stylesheet is to display X L data in a format specified by the stylesheet. in allow the same XML data to be d i s p l a ~ e d diferentways. Since a data view is d ~ p e n d e ~ t which information about the data is requ~ed,s t y l ~ s h e eoffer an on ~ enormous flexibility not matched by RTML. If an HTML do in table format, and a transposed view is required, a new HTML creat~dand this will caus ation of data. If the data is documents need to be up using a set of s avoided. Regardless of which view is required by the us ocu~ent cQntaining the data. This ~ a n g e m e n t offeps since only one data source is involved. If the user nee n be used. One XML document can be f o ~ a in many different ways just ~ e ~
s of stylesheets, which can be used with the most common browsers. The WOmost frequently used are cascading stylesheets ((3s style 1ang~Iage (XSL). Stylesheets allow ~odification thousand^ of of concu~ently consistently, and this makes the r e d e s i ~ Web sites much simpl~r. and of

font styles t XML elements. o its a ~ i b u t e ssuch as name, weight, sizes, f o r e g r o ~ d , colour, backg ~ ~ a g r a spacing, and many more. CSS stylesheets were introduc ph means o f extending the style properties of L has a set of pre-defined eleme t contains the same element n will result which might not result in the

headings. If a CS

Application of the Internet to Power System

nitoring and Trading

eie ents in a browser, will not e x ~ e r i e n c ~ these have any pre-de~ned

SS gets its name from the fact, that the stylesheets can be cascaded. This m e ~ that n~ more than one stylesheet can be applied to a data source.

d o ~ u ~ eand format it for the purpose of creating a static ~T~ nt on the Inkernet.

document for publi~hing

links to another document. This is acco~plish define how individual parts of a d o c u ~ e n are h t ,XSL or XLL documents. L hy~erlinks with the difference that are more ~ e x ~ b ~ e . ow a connection to entire documents inks allow a more ts, XLinks allow mu~ti-direct~ona~ 1 the links allow running in more than one direction. They allow every element to become a link not just pre-defined elements. ~ P o ~ t e allow links to arbitrary positions in an XML document, a rs re~erencing,footnotes, end notes, interlinked data, connections between parts of remote documen~ other more complex document nav and d to link by reference rather than by exact location g a series of reiationsh~~s among information held in allows ~iiipoin~ed to other XML documents. XLL links c links L since they allow for one-to"many, giving user more choice.

The increasing complexity of large electric power systems has resulted in a greater need for ~ ~ ~ n t e to ~ c e a reliable supply of power. ~ o n d i t ~ o ~ - b a s e d ten^ n ensure main d ~ ~ b u t on-line HV condition ~ o n ~ ~ have been the current trend. In Non ed o ~ n g with the construction of m internaeional irport, new power substations have been built to meet the huge energy d e m a n ~ ~ capacity of the existing distributed mon~tor~ng The system, which is based on one-to-one ~ o ~ u n i c a ~ i o considered i n a ~ e ~ uand e was ~ , ~ t t~erefore a completely new design concept was tried. The schematic block diagram of the new~y developed system is shown in Figure 12.19.

446

Power System Restructuring and Deregulation

12.8.I

R ~ q u ~ r e m o n ~ s Stibstation ~ Airport f

An international airport, currently the largest in Southeast Asia, was constructed and was opened in 1998, A number of electric power substations for the new terminal building and associated i n ~ a s t ~ chaveebeen constructed. A detailed study into one of the numerous ~r substations revealed the shortfalls of the existing distributed on-line monitoring system because the substation there had been too remote from the maintenance centres. The engineers in charge of the transmission network in China Light & Power Company Ltd (CLP) very often need to know not only the real-time status of power equipment but also the security and fire safety of the substation. Furthermore, in consideration of a more efficient operation of the system in the future, personnel in other organisations, such as the Airport Authority, Fire Services Department and other operation and maintenance departments within CLP, may need to gain access simultaneously to the important information within the substation. The original information system needed to be enhanced and extended to tackle the fire safety and security requirements. Therefore, the idea of remote vision for substation monitoring has been employed. This enabled engineers and relevant staff to sec on their remote display monitors the real-time scene of the indoor environment of the substation at different office locations or at home during standby duty. Intruders and fire outbreak in terms of smoke emissions can be detected immediately. To allow simultaneous access to information by all parties concerned, the old method of using modem-based peer-to-peer communication has been abolished and replaced with an In~e~et-based client-server concept.
MC
Cap.

- Micro Controller - Capacitor

PC - Personal Computer

FigMr@ 12.19 The whole Internet-based monitoring system

Application of the Internet to Power System ~ o n i ~ o and Trading ~ng

The substations, though having great impact on the integrity and normal whole airport, are normally unmanned. Existing substations are equipped panels that retrieve signals from smoke and heat detectors. False alarms are fr~quently encountered and this leads to wasting resources as the fire services are only able to discriminate them when they arrive at the remote sites, Illegal intruders must be and prohibited from entering such substations at any time. To accomplish mentioned above, a remote vision system was developed.

te V i $ ~ ~ n V cameras are installed at different locations in e off-the-sh Figure 12.20 shows the structural schematic diagram of the remote vision sys is to cover all internal areas as completely as possible. For example, the eight locations of the airport substations being monitored are the fire panel, control roam, 11 kV switchgear room, 132 kV switchgear room, substation entrance, 132/11 kV transformer bay, cable basement 1 and cable basement 2. Each camera is equipped with the functions o f zooming and tilting. The video signal from each camera is wired back to a tai remote control and multiplexing box. The on-site PC controls each box via the prhter port. Through this box, the lighting contactors of the eight locations can be e de-energised based on commands from a remote server. This is to ensure ~ l l ~ i n a t ~ o n or each camera to grab a satisfactory real-time image of each location. level Via this box, the video signal of any one camera can be selected by an image ~ a b b e card r on a time-~ultiplex~ng basis. F u ~ e ~ o r the, PC is c a ~ u n i c a t i ~ g all o e with microcontrollers in the existing distributed monitoring system. In addition, control si for p a ~ i n g tilting each camera can be output from the box. C o ~ u n i c a ~ i o n and between ~ce the PC and the CLP m a i ~ t e ~ centre is accomplished by a modem. On the sofhvare side, the on-site PC has two modes of operation, namely the re mode and the real-time mode. The regular mode i s active during normal operation. The onsite PG s e q ~ ~ e n ~grabs~ y i a ~ images from the eight cameras at a ~ ~ e ~ u e o 5yseconds per nc frame. The value of the average grey level can be used to assess the overall ~lluminat~o of the site and the lighting system of the site can be switched on and off acc~rding~y. The average grey level of this updated image is further compared with that of the previous image, which was grabbed and saved onto the hard disk 40 seconds ago. If t ~ e i~ e s a significant change in the average grey level, the two images cannot be compared d ~ e c t l y and the system will regard it as an error and wait or another 40 seconds. ~ ~ e the ~ updated image is subtracted from the previous image so that any significant chan
nsidered significant, the on-site PC will first of a11 save the two relevant images onto the hard disk for later reference and then inform the ma~ntenance centre by producing an alarm at the server. On top of analysing the images, the on-site PC saves the real-time images onto the hard disk at a frequency o f two sets per how. There are two levels of operatian being selected by the server, namely the coarse level and the fine level. Under the coarse level, images of size 320 pixels x 200 pixels are transmitted, resulting in a transmission cycle of only 48 seconds for the eight images from the eight respective cam er^. If the user finds anything unusual, the fine level can be

Power System Restructuring and

switched in, resulting in a transmission rate of around 35 seconds for each image of size 640 pixels x 400 pixels. The user is able to fix any camera on-line and p a ~ ~ i l ~ z o o m that p a ~ ~ c u lc r e r aThe compression algorithm for these images is s ~ d ~ d a~ . with the quality factor set at 15 o/o so that the file size of coarse-level e-level images is around 30 kb. There are two f a c t o ~ ~ a n s m i ~ s ~ o n namely the quality factor and the speed o rate, quality factor is the optimal value based on experime improvement is limited. If an ISDN link is provided from the s su~$~ation, ~ansrnission wilf be su~stan~ia~ly the rate improved. This remote vision system requires neither spare contacts nor a d d ~ t ~ o n a ~ u c e r sIt ~sd . can be used to prevent theft as well, General ins~ection the s of such as c ~ e c k i n ~ cleanliness and quality of ~aintenance work. Is can be grabbed as images so that the user at ce centre can confirm. whether the are false or genuin~ in the aetivat~$ zone. re~evan~ camera to see the existence of smoke remote vision system can be used to monitor external contrac necessary in the substation. ~ q u i p ~ ein th a ~ r d o u areas or areas withou~ n s ce, such as confined spaces or equipment rooms with live conductor^, can be monitored by this system. During major overhauling or fault h a n ~ l i n the ~ a i n t e ~ ~ c e ~, ~ a n a g e is able to visualise the equipment status through the ~ i s ~ mon y r ~a i n s ~ c t i o n to the site engineers, Site problems encountered can be effici s eration of the site staff and central management personnel.

Remote vision system

A p p ~ i ~ a ~ ofthe lnternet to Power System ~ o ~ i t o and Trading ion ~ng

smission of energy requires constant monitor ~ e ~ a n epower supply. ~ o n i t o r ~ n g such nt of occasions in which vital changes of important paramete used to predict a po~entialproblem with the equipment. Such monito sudden loss of sub-sta~ionequipment leading to unexpected power cuts. uncharacteristic behaviour of one element in the supply chain can i p e r f o ~ a n c e other equipment or might even cause d ~ a g e This is even worse if of . sporadic m a l ~ c t ~ o n one device leads to damage in another device. Such sporad~c of m a l ~ n c t ~ o ndevices can only be detected if continuous monitoring is practised. of heref fore constant monitoring of equipment will improve power system reliabil reduce maintenance costs because devices can be replaced before they cause damage. tice, it is imposs~b~e monitor every unit since they are geograph~cal~~ to $is ~ u r t h e ~ o rit would be too expensive to keep qualified personnel in remote e, locations for 24 hours a day, 7 days a week. Therefore, remote monitoring of e q u ~ ~ ~ e n the help of c o ~ ~ u t ehas been practised for some time. Com~uter$ the with t rs are perfect a l ~ e ~ a t i v e monitoring personnel since they are able to monitor constantly and to accurately, detecting even the smallest changes in critical parameters. ~omputers be placed at important points of a substation. The price of computer can hardware has been failing continuously for a number of years, making remote monitoring with computers effective and economical viable. Most of the hardware r e ~ ~ i r for real-time data collect are well established and robust. Once the ed connected and con~gured~ device ers for each hardware component make i access and control its ~ n c t ~ o n a l ian abstract level. Device drivers for disp on ~ ling cards or other hardware, for example, are genera~lywritten in a low-level programming language such as assemble^^ C or C3-i- to increase processing speed. Using ing l a n ~ a g e will increase processing speed, since the s ked for a specific type of processor and o p e r a t ~ ~ g system. dency plays an important role when it comes to deciding which compoiients to buy. Not all companies can afford to update their device drivers in good Exp time if 8 new or changed processor or operating system is in~oduced. compon~nts such as U 0 sampling cards can be rendered useless if devic atible with the latest processors and operating systems. Therefore if h ~ d w a r e s purchased in large numbers from a manufac~rer i record of a continuous supply of device drivers. Once the ~onitoringco~puters collect data, access to the data by users ~ u s be t gra~ted. Compu~erscan dis~ibute data in many different ways. ~ a s i c a ~ l ~ , are two there distinct network conste~la~ons. LANs, where local computers are connected via a local where remote ~ o m p u t e r ~ connected by means of l o n g - d i s ~ c e are g access to substation data via the I n t e ~ e t requires an I n t e ~ e t connection. uters act as data collection points for a remote power devices i s accomplished by sequen~ia~ly converting their analogue signals into digital ~ n f o ~ a t i ovia n 640 conve~ers. Such AIL) converters can be found on standard PC I/ s. The

50

Power System ~

~and ~ ~ r ~ ~ u l a t ~ o s ~

typical range of an A/D converter can be dJ2V or ASV, which requires a p p ~ o p ~ a t e conversion of the analogue signal to match the A/D converters input range. The AfD conversion sample frequency depends on how many data sources are conv~rted on the required data accuracy. It can be quite low ( and 4 data t r ~ s f o ~ a t i o are planned. If, for example, spectral analysis or other data-intensive ns ~nsformationsare part of the overall monito~ng process, the s ~ p l i n g frequency must satisfjr the mathematical constraints of the ~ a n s f o ~ a t i oused. ns In order to avoid loss of accuracy or injections of harmonics into the analogue signals, NI) c o ~ v e should be placed as close as ~ o s s i b ~ e the source. Once the ~ n a ~ o ~ e ~ e ~ to signals are converted into digital info~ation, ~ansmiss~on not cause loss of accuracy. will Figure 12.2 1 shows how substation components exchange data via a LAN.

re 12.21 Collection of data in a local PC

The raw data received via the LAN from the ~ i c r o c o n ~ o ~needssto be converted in ~er such a way that it can be sent to the ~ a i n t e n ~ centre. It requires a f o ~ athat is e ce t extendable, in case new components are added to the monitoring requiremen~s, received from different sources needs to carry add~~ional information such as the name of the source, Its location, date and time, scaling factors, units and many more. There are different possibilities on how to encode this addi~ional information. The most configurable and extendable formatting standard, which is widely accepted, is XML. It is compatible with all opera tin^ platforms since it is contained in a plain text file, for e x ~ p i e :
<TRFWSFORMER> <Temperature Unit = Centigrade3 60 </Temperaturea cPowerAngle Unit = Degree> 20 c/PowerAngle> CPowerRating Unit = kVAr 200 c/PowerRating>

ADD~ication ofrhe Internet to Power System onitoring and Trading

$a tation data has been collected and stored in local PCs, it needs to be published. se o f the case study is to grant access to the substation data for all responsible parties. Such parties may be the p e ~ o ~of the electricity and security CO el brigade or other remote experts and advisers. In order to publish i n f o ~ a t i o n over the a Web server connected to the Internet is mandatory. is study, there are several different ways of d i s ~ i b u ~ i n ~ ~ ~ a t on the nf io~ Internet, such as:

Static Web ~ a ~with a dynamic applet and data polling. e s Static Web pages with a d ~ a m i applet and data streaming. c s ~entioned previous~yin brief, static Web pages are not really suitab~e cons~ntly for require the data to be embedded within the document. If the ,the d o c u ~ e nneeds to be changed r n ~ u a ~ erefo. fore, fast data t ~y ented by static Web documents. D ~ a ~Web pages we one way of publishing changing data over the i c a new static Web page is generated and ~ranmi~ed to of takes place, Such g e ~ e ~ t i o nWeb pages can be do (CGI) and an executable program located in the Web k of the CGI inte~faceis to instan~iatethe C y the user. A p r ~ g used for the CGI c r ~ programming language ut must be compiled or i n t e ~ r e ~by lthe server. ~ e updatin~~ n f o ~ a ~ o o the ~~~e~ i s s u i ~ for~slow-chang~g i n b ~ data suc weekly events.

eb page

~ ~ n e r on ~ e d ~ request by the CGI clfthe server.

~ ~ c ~ l i Web page via server CGI created y

pages me not limited to the CGI. They can be S e ~ l e t s w r i ~ e n Java and executed on the Web server. They fbnct are in in way to ~ ~ I ~ pro a ~ but are e ore flexible and re~iab~e terms of r o b u s ~ e s ~ ams e d security. If a Web page is generated d y n ~ i c a l l y a server with ~ e q u e n data chan on t every 10 m ~ u ~ ite is likely that the client browser might display obsolete info ~ , The ~ r ~ ~ l withnserver-side- enerated Web pages is that the browser er beco~es ava~~able the server. ~rowsers on have no

452

Powcr System Restructuring and Deregulation

if new data has become available on the server. ~ h e r e ~ ~ r euser is r e ~ u i ~ e d~ ~ l the a ~ the , to o con~inuously selecting the refresh or reload option in the by rowser. are even more options to generate dynamic Web pages. Internet ~ r o g ~ a ~ i n g l ~ g u a g such as active server pages (ASP), s ~ r v side i n c ~ ~ ( e S or J a v a ~ c ~ and ~s e~ d~ ~ ) pt

tic Web pages can contain a

e a ~ " data update request via repea~~d ~ u e to ~ ~ server ~ ~ ~ ~ e re s the

Application of the Intemet to Power System Monitoring and Trading

12.24 Real-time data updates via continuous connection to the server (data s~reaming~ M ~ c

The ~aintenance office is connected to the remote power substations using a standard t~~~communication connection, as shown in Figure 12.25. ~epending which ~arameters on are ~ o n i t o r ~ d the maintenance office, different data update ~e~hnologies to be in need considered. In the case when all measurements taken from the appliances within the substations are within their set tolerances, transmission of averaged n i e a s u r e ~ ~ ~ i t s might be suf~icien~. case a fault QCCWS, measured and locally stored data from a defined In all point could be transmitted. In order to receive continuous data transmission, data streaming is requi~ed fast real-time data updates. for

~ u b s ~ ~1 o n i

Substation 2

2.25 Connection between power substations and the maintenance office

If remote expert advice or an on-line reporting is required, data transmisions of real measurements can be transmitted across the Intemet. There are several ways o f displaying r e a ~ - t i ~ e e.g. as numerical values in an analogue or digital display or time series data, graph, as shown in Fibare 12.26. At present, browsers do not have a built in ~ n c ~ ~ o n a l i for supporting graphical representations of data. Therefore software extending the browser's display capabilities must be used. Applets could use the browser's client area for

454

Power System R e s t ~ ~ ~ r i~n~~ e ~ i a t i o n and r

drawing lines, shapes or colours. Such shapes offer the basic ~ n c t i o n a l r e ~ u i r e ~ i~ for controls capable for displaying real-time data.

igital Display

Analogue Display

Time Series

.26 Different controls to display real-time data

other impo~ant aspect of working with applets is that they are able to connect back to the server from which they were loaded to retrieve new data updates, regardless of whether data polling or data streaming is used. Dispiay~g real-time data in an applet is roughly a two-step process, as shown in Fi The first step is to transmit the applet from the Web sewer to the browser. step is to transmit data to the applet,

12.8.3

~ o n ~ ~ ~ ~ i n ~

A few examples will be given on the mo~~toring power station equip men^ such as of circuit breakers for the prevention of major faults and supply i n t e ~ ~ t i Q ~ s . The SF, gas pressure measurement history over for J a n 1996, was ~ ~ e s e n t e d a circuit breaker (C ~ ~ 12.28. It can be seen that there has been a very serious SF, gas leakage problem with the CB and the system was successful in giving a warning to the ~aintenance team on 17 December 1995. The gas topping exercise was compie~ed 18 December 1995 to avoid a on major failure ofthe CB. A method was develope~ measure the travelling of to s based on looking at the c ~ ewaveforms. Figures 12.29 and 12.30 show the me ~ t X 32 kV CB which is used to switch a 132 kV, 80 reactor. From the figures, it can be seen that the closing time for the CB is 125 rns while the ~ipping time is 50 ms.

Application of the Internet to Power System ~ o n i t o r i ~ g Trading and

U ,

c4

3.7.

3.6.

3.5

3.4

IS

Time Is

re 12.29 Current waveform for closing of reactor CB

Power ~ystem ~

~ and ~ e r ~n~ ~ a t i o n c ~ ~

Time is
C u ~ e nwaveform for tripping ofreactor C t

be air c o ~ ~ r e o ~ e o a ~ time (Ton) and idlin s ~ r ~ in~ are sbown in ~ i 12.31. If rToff ~is short, this ~ ~ o r n air will meet ~ ~ e limit very quickly ~ ~ ~ the lower ~

storage tank. As a result, prec

Air compressor odoff timing

Application of the Internet to Power System ~onitoring Trading and

~

57

St

er

Electricity deregulation is creating a free electricity market which is differen~ from count^ to country. For each ~ e s t ~ c t uutility, the market operator provides the essential service re~ nction. Electricity ~radingin Europe will change ~ a m a ~ i c a ~ l y as the wholesale and retail markets open up to competition. Competition between utility suppl~ers will bring bene~ts end users only if each competitor has the same access to ~nfo~nation to To c ~ regard~ng power pricing and distribu~ion, keep the energy marke~lace o ~ p e ~ i t iit e , d i s c r i ~ ~ n atransparent and easily accessible for each compet~tor. ~o~, ng is not confined within a countrys borders. Many countries are to ne~ghb~uring countries so that a ~entralisedoperated can have a key role [9]. That kind of power exchange will have to offer a re~iable and efficient exchange information between the market participants by operating a r ~ ~ ~ a b l e , highly d~s~ributed low-cost informa~ion and network. If the open energy market is to succeed, all participants must be wired into a s~andard data exchange Infrastructure that must be platforni and language ~ndepen~ent. Tl-tesefore the Internet, with its ~ l a t and o ~ ~ language independence, is the choice for h o s ~ on-line ~g wer traders require fast reaction to market changes. They nee to control their trades across all current bids, offers and iiegotiations by means of a mouse-c~i~k r ~ ~ u irealand re time ~ a r ~ ie f o ~ a t i o n ,including market depth as well as vital news nt i n f o ~ ~ a ~ i Furtherxiore, anonymity during negotiations and tools for t on. analysis of marke~ o n d i t i ~ the relevant ~e~uircments. ~ re er exchange with its large nuinbers of v ~ ~ a b l rn s The complexity of the e predi~~ion market trends of rediet. Therefore, pa~icipan~s be awa must eters to s u p p o decision making in the daily offer~ng ~ pro xchange can s c h e d ~ ~ e enough capacity to meet all requi~ ibe different kinds of auctions natory and unifoK~auction system [lO]. An ideal power exchange r e ~ u l a ~ ~ o n reserve in ~ a ~ a lbased on auctions. The dispa~ched and le~ regula~i~n the capacity to maintain real-time is g r e s e ~ es the prov~sionthat can res i the market situation and follows
t pa~~cipants to ensure high p r o ~ t a b i l i ~ have

nd a clear re~at~onship between the value of a re, pa~icipants use an ageni with a specific be can and trading systems coal services and new tools and technologies for controlling, ~cheduling~ ~ l e c ~ i ~ ~ ~ ~ e fin~e~~igent tech~ologyhas been develo~ ci 5 r e , agent power arke et as described in Chapter 11. Complex distributed system enefit the ~ ~ i t e r a c ~ ~ o n intelligent s between ng of electricity. ln~eiligent agents per s in an on-line auction [ 131. As mentioned previously, agents for buying or selling electric^^ r e ~ r e 5 e n t ~either generators or consumers. In order to use agents to ~g

458

Power System R e s ~ c and D en ~ ~ l a t i o n ~ ~ r ~

advantage, each agent needs to present a unique economic and strategic behaviour model. These mode~s are based on human behaviour with respect to different tra env~onments, example, agents can show an ;anxious buying and selling behaviour, For greedy behaviour or relaxed behaviour to emulate market p~icipants. There are several ~nte~et-based simulation environments for exp various power exchange mechanisms avaiIabIe on the Internet [ 141. allow pa~icipants from different locations to compete in the open market. This is advan~geous the training of personnel, who are able to try different buying for and selling strategies under changing market conditions without causing interfkrence on a real trading floor. With the help o f more advanced trading platform models, differen~ auction types, e.g. uniform price, single and doub~e-sided auctions, and di~erent c o n s t r ~ i ~ ~ ~transmission losses, line capacity and stability limits and congestion e.g. , s i ~ ~ t i ocans be explored. The ultimate objective for each si~ulatjon always ~ , will maximi~e profits from trading energy.

The first step in building a trading platform over the I n t e ~ e is to gain quality ~nternet t access with enough i and width to serve all clients at a ~easonablespe Internet access cannot be achieved by telephone. It is necessary to rent or buy a dedicated r with a reliable ISP, which offers a 24-hour, '?-day customer service. nce a reliable Internet ~ ~ ~ es~blished, is t i o server s o ~ a r must be pure ~ e ing Web services, Currently, the most common Web servers are IIS ~ i ~ r o s o fApache Web Server from Apache and Web Logic. There are many so~tware t, co~panieso f f e ~ gcompetitive Web server so~utions, which can also integrate ecommerce packages. ing a reliable trading platform across the Internet i not trivial. A ~ ~ r n a must be to ensure data security and data ~ t c ~ t yata security across the . Internet has constantly been improved by the int~oductionof better and faster s e c ~ t y algo~thrns.The most used and trusted method is secure sockets layer (SSL). rela~ive~y simple to i lement and does not require changes to any existix~ Data integrity can be achieved by buying a database fiom a major vendor. Such may include startup consultancy and customer support. It is i m p o ~ to tde ~ database in such a manner that the database ~ c ~will e r deliver optima^ performance. are sent to clients in XML format, conversions fkom table ~ o ~ a t abase response times. eref fore, the choice of database layout should match the d i s ~ b u ~ data format if possible [ 151. ed Figure 12.32 shows a simplified block diagram of a between clients connected to a trading platform. On connection to the L page conta~ningall the required fields to n submission of a transaction, the Web s tr~sactiondetails, which should be validated for c o ~ e c ~ e s ~ ase. If invalid data is contained in the ~ s a c t i o changes will be rolled back to restore the da suction servers can be purchased for keeping

Application of the Internet to Power System Monitoring and Trading

As with many real-time auction and trading platforms, data update are sent to the ceivd data updates via XML allow faster data updates, since n to the browser cIient area to avoid the generation of pages. ~ u ~ e ~ o r e clients can be s y n c ~ o n o u s ~ y d a ~ because more , ~p ed small portions of XML data are sent across the Internet, saving precious b ~ d w ~ ~ t h . It will take an entire p r o g r a ~ i n g team to create a real-time auction platform from s to finish. There are several s o ~ compa~ies ~ e offering complete solution pac cornrn~rce and on-line auctions. I n t e ~ e t applications have different r e q ~ i r e m cunknown to desktop a~pficatians. ~ e q u ~ e m e such as sc ~~~ ~ts c o n t i n u ~ ~ of great i r n ~ o ~ for c e e applica~ions. e b - b a s s o ~ a r e are ~ ~ b ~ e~ for highly scalable products require a great knowledge of r n ~ ~ t ~ - t ~ e envir~nrnenzs aded and parallel process~ng architec~res.
Client Computer
I

time data via an

~ommunications aechitectuee

application of ~ ~ t e ~ e t ysaem ~onitoring and is a very e area, e examples have been the benefits derived fr e obvious. er, it can be seen that much work remains to be done. One area is system security in the openaccess e ~ v i r ~ n ~ e n t .

structuring and ~ e r e ~ l a t ~ ~ n

also like to thank E E E for

ission to r e p r o ~ ~ c

ymond ~ r e e i i r n t r o ~ ~ c ~ i o n I i i t @ ~ e ~Eng~neer~, l~~ to the for 1998. Dynamics ~ T OReilly L ~ ~ s Teach Y o u ~ s e ~ 4 in ~ L ~T

1899, ~ e a c ~Press. pi~

Chan, A.T.P. So and L.L T r a ~ a c t i #onsPower Sys ~ ~ o ~ e e(If the K ~ ~ ~~ n Q t i o n ~ l ~ i n r ~#w@r Techn~~og~es IEEE, April 2000, pp.47 1-475. 2000,
er Academic ishers hers^ 1999. Sheblh, ~ h a 6:~Agentebased Econo~ics, ~ ~ in Power ~ y s ~~e~~s st ~ c ~andiEconomics r ng fl2] ~ ~ Liu, Naili Song, n ~ Sacques Law ~ C

n,~ New ~ e t h for~ ~ o

access fees, 162, 165, 167 active reserves, 25

battery charging, 28 bench~ark, 116,125,128,X57,163 bid prices, 23,98, 176 bilateral con~acts, 24,G 1, 5, 158, lG7, 168, 1 bilateral model, 96

black-start capabiIi~, 19 93,

198,199,218

~ e n control~s y s ~ e ~12, ~ a s central utility model 52

148,259

autononiy, 355,356,359 a u ~ ~ " r ~ ~ l o s 128 s , 127, ~ ~

c o ~ p ~ ~ i t ixii, , o n 1,2,4,5,8,9, 11, 15,

back-to-back thyristors, 269,273 ba~ancin~~ k e t , ~ G8,78,85, 113

62

Index

304,329,330,332,334,347,356, 360,373,377,420,457 competitive ~idding, 1,65 competitive framework, xi, 110,353 co~petitive ~eneration, 2,3,4, 107 competitive metering, 114 competitive trading, 24 compu~tional intelli~ence, 353 xxi, condition mQnitoring,129, 132,295, 300,304,312,313,320,322,328, 445 congestion manage men^, xiii, xxi, 58, 69,70,71,75,78,79,86,88,89,90, 94,95,97,99, 104, 178, 180, 5, 198,200,209,215,216, c o ~ ~ e s t i o n a n a g e ~markets, 93,94 ~~ ent contract market, ]I0,6 I, 68, 179 contract path allocation, 57

dissolved gas analysis, 296,323,329 13, distrib~ted gen~ration, 16, 17,20,21, 22,23,25,26,46,48,99, 108, 144, I64 d i s ~ b ~ t gene~ation ed tec~ologies, 13 distribution auto~atiQn, 128, 147, 127, 148,151,418 distrib~tiQn co~panies, 4,63,64, 110, 111, 113, 115, 116, 117, 119, 154, 175,302,316,318,353,361 distribution loss, 63 district heating, 21 d i s ~ r b ~reco~nition, ce 341,350 economic dispatch, 53,77,78,82, 109, 121,133,374,414 eddy currents, 325,326 elasticity, 59, 192, 195, 196,209, 215, 220 electrical d ~ s c h ~ g296,300 e, electricity and gas networks, 1 1 1 electricity dis~jbution industry, 111 electronic auction ~ a r k ~ t10, s e-mail, 354,420,425,427,428,429 embeddedcost, 57,58,186,187,189,
190,194

damper, 273,274 data pol~ing, 1,452,454 45 data security, 458 data s ~ e ~ i n451,452,453,454 g, database, 136, 137,319,321,408,419, 420,437,438,439,440, 458 d a y - a ~ ~61,69,79,86 ~d, day-ahead market, 71,78,90, 176, 178, 191 delivery time, 86,421,423 demand de~and ment, 1 IS demand-side bidding, 68 deregulatiQn,xii, xi& xiv, xviii, xix, 1,2, 5,6,7,9, 10, 15, 19,45,48,50,52, 52,55,57,58,64,70, 71,73, 108, 111, 116, 119, 133, 140, 153, 161, 167, 171, 173, 175,202,217,218, dere~latiom energy market, 4 18 of desalination plant, 38,49 discrete wavelet ~ a n s f Q ~ , 338

embedded generators, 112 embedded systems, 128 emissions-free e l e c ~ c i 19, ~ energy function, 206,385 energy mix, 6 energy policy, 16,48 energy purchase cost, 113 energy storage, 5, 13,259,2 270,285 nzglish auction, 55,56 equilibriu~ point, 68,69,84,97,206, 207 ethernet, 348 e v o l u t ~ o n comp~tin a~ ~ ~ Q l u t ipron ~ ~ o ex ante market, 61 ex post market, 6 1,73 excitation capacitance, 27,223, 32, 35 expert s y s t e ~ s353,355 ,

Index harmonic distortion, I3,26,331,346, 348 harmonic instabilities, 34 head-rnounted displays, 3 hedging, 65,95,360 hedging contracts, 65 hidden nodes, 384,386,388,3 hot spats, 297,400,407,410 hour-ahead market, 158, 176, 178 HVDC, xvii, 73,260,263,264,266, 274,277,278,279,280,281,286 hybrid agent, 355,358,359 hydro, 3,5,6, 12, 13,20,68,72,73, 105,174,229,259,280,330

63

faci~i~tors, 359 fiber optic communication, 147 fiber-based ~ansmission, 142 file types, 42 1 financial markets, 78,88,94,97, 171 financial ~ ~ s m i s s i rights, 95 on first rejected o~fer, 55 flexible AC transmission system, 162 flicker, 266,33 1,342,346,347,352 f o r c e - c o ~ u ~ t converters, 278 ed forward markets, 71,86,95, 106, 178, 361 fossil fuel, 3,4, 6,45,53 Fourier transform, 336,347 free space lasers, 141 ~equency m~dulatio~, 144 fuel cells, 10, 12, 13,20,2li, 26,99,330 hll graphics in~er~ace, 134 ~ ~ rmarket, 8,68,74, I0 e s 362,364 fuzzy diagnosis, 323,325, 328 fuzzy logic, 38,49,341,412 g a ~ i n g50,78, 83,88,91,92,95,98, , 99,107 gas industry, 165 gas turbine technolog~, 173 generation companie, 22,67,72,73, 175,361 eneration mix, 11 156,180,412 genetic algorithm, xix, 49, 360, 362, 364,365,367,370,410,412,414 GIF image, 421 g a v e ~ e n~nte~ention, t 16,45 graph theory, 246,25 1 green c ~ ~ i ~ c a 17 s , te green energy, 20 278,279,280,283

IGBT, 262,263,264,269,278,280 immersion, 395,396,397,400,405 incipient faults, 29(j9323,329 incremental cost, 53,57,83,84,85, 88, 90,91,92,99, 196 incremental cost allocation, 57 Independent Power Pro~ucers, independent system operator, 2 104,121, 175,217 inelastic load, 65,92 inequality cons~aints, 198,21I, 212, 373 i n f o ~ a t i o n e c ~ o l o2,54,59 t ~.~ infrared detectors, 297,401 infrared irnager, 400 i n ~ s ~ e~ ~ ~r nei n1g , l installed capacity, 22,25 223,23 1 266 intelligent electronic devices, 139 interface agents, 355,356,357,358 inte~ational i n ~ c i n g f a~encies, 124 I n t e ~ e txiv, xvii, xix, 1 14, 1 18, 140, , 141, 143, 144, 145,358,416,

458,459,460 auction, 55,56,60,61,65,67, 82,84, 90,91,95,96,98, 105, 108, 109,

46

Index

193,194, 195,362,413,457,
baiidwid~ 1 43 ~ d u ~ a ~143,354,399,420 ~on,

ricing, 23, 57, 99, I 187 ~ ~clearing, 65,71,85, 87,t89,90, ~ k ~ 91,96,177

219,231,234,236

~ a r k ~anspar~ncy, e~
~ e g a w mile al~ocation, a~ 57

in~er-zana~ n g ~ s ~ i88n , ~o o inves 307

9

335 mother wavelet, 337,338,

mutation, 40,41,372, 373, 375, 376, 377,378

159, 160, 162 ~ a ~ g i costs, 3, 53, 58,210,240,242 na~

nodal p r i ~ i 59,73,88, 166, 167, 187, ~~, 188

Index

-.-

~ ~ o ~ - d i s c r i m i nauction, 55 ato~ n o n ~ ~ ~ ~ y srt ~ ~~ ,~ e s e s 397 s

power pool, 4,22,82,86,87,%3, 100, 109,159,176,179,182,183,18 185,292 power quality, xiv, 21,25, 2179 127,

154,231

ly, 116,117, 119,1

150

( I

Index

real~t~me markets, 78, 86 r e ~ e s s anafysis, 116 ~~n latory body, 110,33 r ~ ~ l aincentives, 293 t o ~ r e l i a b i ~benefit, 189, 190 i~ units, 127, 129, 132

sation, 260,261,271,272, 275,276,282,285,28 service ~rovider, 111, 156, 162, xiii, 163, 164,170,288,289 se~ement, 55,63,69,71,79, 177, 423 shadow prices, 96

s i m ~ ~ ~electricity market, 87 e o ~ s single-p~ase loads, 27,46 smart agents, 355 smart m e t e ~ ~61, g social welfare, 54,8 sment, xiii, 115, 117, 125,316 42,46,49,330,399, solar collectors, 38

rew wall, 428,429 ~ ~ s w o r ~ , 429

xxi, , y s t e ~ y n a ~ ~ c s 80, 101

Index

system marginal price, 23, system opera to^, xiv, 51,53,56,59,60, 61,65,69,73, 103, 115, 120, 121, 139, 154, 157, 158, 166, 168, 177, I78,192,X93,194,195,210,331 system-wide blacko~ts,155 t~e-or-pay, 412 tap-chang~, 261,277 telecommunicat~on n d u s153, 154 ~ ~, telephone n e ~ o r k 114 , thermal heating t e c ~ o l o37 , ~ thermal limit, 58,59,66,259, 283 ~ h e ~ o g ~400,410,415 ph~, therrnovision cameras, 297 thyristor cQn~olled reactors, 266 t h ~ scontrolled series capacitor, 271, ~ r 285 tier supplier, 1 12 time of use, 135,190 tournament scheme, 377 t r ~ s i e nenergy margin, 206 t t r ~ s i e ns t a b i ~ ixvii, xx, 139,206, t ~, 219,285,412 ~~nsmission access, xvii, 5 1, 175, 184, 191, 197,200,216 transmission channels, 1 ~ ~ s ~ s s i o n 58,90,95, 165, charge, 168,199,211 transmission loss, xiii, 57,60,65,72, 105, 120, 165, 186, 191, 192, 196, 197, 198,204,214,247,257,373, 374,376,458 tr~nsmission model, 8 tr~smission open access, xiii, 2 16,37P transmission pricing, xxi, 58, 105, 168, 169,187, 191,218,221,246 ~ ~ s r n i s s i protocol, 417,427 on FTP 428 mission revenue, 162, 16 transmission system expansion, 162, 163,170 two-tier system, 120

UHFradio, 144, 149, 150 ~ b u n ~ ~ ixii,g50, 52,53,73, 1 n , uncons~ined schedule, 65 unified power flow controller, 275,33 1

103,104,108,109,1177,180 UNIX, 136,426 uplift charge, 55 usage charges, 162,16 use of system charges, 27, 72, f 11, li 15 valley load time, 241 vertically integrated, 8, 50,58,64,72, 77,153,155,156,157,163,16 178,210,360 vertically integrated utilities, 77, 153 virtual e n v i r o ~ e n395 ~, visual display unit, 395 voice activated messages, 1I voltage collapse, 140,260 voltage control, X4,26,80,93,1 194,284 voltage dip, 117,333,350 voltage sags, 13,331, 332,334,335, 348,349,350 voltage source converter, 280 volunt~ system operator model, 158, 160,161,162,163

WAN, 134,139,358,431, wavelet transform, 336,337,339,350

458

static, 417,433,437, Web server, 426,427,4 451,454,458 web space, 420,437 website, 75, 114

Index

LPE ca~ies, 13 3
ay, 59, 178, 198, 199,
3, 14, 17,20,21,22,26, 45,49,53, 147,259,280,330,349

zonal price, 71, 166, 167, i! ricing, 90, 166, 167, 18