Economic Operation of Power Systems

Economic Operation of Power Systems

Economic operation is very important for a power system to return a profit on the capital invested. Rates fixed by regularity bodies and the importance of conversation fuel place pressure on power companies to achieve maximum possible efficiency. Maximum efficiency minimizes the cost of KWhr to the consumer and the cost of the company to deliver that KWhr in the face of constantly rise prices for fuel, labor, supplies and maintenance.
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Economic Operation of Power Systems

Characterization of Power Generation Units:

! The following figure shows a typical fossil-fuel generating unit. (Thermal Unit)
Fuel Input Generator Pm Pe To Transmission Lines

Boiler

Steam Turbine

Cooling Tower
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Economic Operation of Power Systems

The unit consists of a single boiler that generates steam to the turbine . Fuel is burned and its chemical energy is converted into heat. The heat is used to convert the water into steam that enters that turbine to provide a mechanical power on the shaft of synchronous generator. Finally, the mechanical energy is converted into electrical energy through the synchronous generator.
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Economic Operation of Power Systems

Generation Characteristics:
! Thermal Efficiency:
How much fuel is needed to produce 1 MWhr of electrical energy.

! Load Factor: (known as Capacity Factor)

It is the ratio of annual energy produced to (8760*Electrical capacity of plant)

Annual Energy Produced LF = 8760 Unit Capacity

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Economic Operation of Power Systems

! Maintenance Requirements:
For how long out of service for maintenance?

! Reliability:
Probability of power system to fulfill its function for a given period of time.

! Capital Cost, Fuel Cost, Operation and Maintenance Cost.

Economic Operation of Power Systems

Operating Cost of a Fossil-Fuel Generating Unit

Operating Cost (Ci )

Variable Operating Costs

Fuel Cost Maintenance Cost

Fixed Costs

Capital cost of installing the generation unit.

The operating cost is always function of real power output from the unit (Pi). The operating cost can be controlled by operating strategy enter into the Economic Dispatch formulation.
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Economic Operation of Power Systems

The following figure shows the typical operating cost ci of a fossil-fuel unit versus real output power Pi.

!"#re 1

Economic Operation of Power Systems

In practice, ci is constructed of piecewise continuous functions. The discontinuities may be due the firing of equipment such as additional boilers or condensers as power output is increased. It is convenient to express ci in terms of KJ/hr or BTU/hr, which is relatively constant over the lifetime of unit, rather than $/hr which can change monthly or daily.

Economic Operation of Power Systems

Note:
! ci can be converted to $/hr by multiplying the fuel input KJ/hr by the cost of fuel in $/KJ . ! BTU (British Thermal Unit): it is a unit of energy equal to about 1055 J 1BTU = 1.055 KJ 1KWhr = 3412 BTU

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Economic Operation of Power Systems

Unit incremental operating cost:

! It is defined as the derivatives (slope) of the unit operating cost Ci versus the unit output Pi.
dC i Unit Incremental Cost = dPi

! When Ci consists only of fuel costs, dCi/dPi is called The Heat Rate. (BTU/KWhr) ! The reciprocal of the heat rate, which is the ratio of output energy to input energy, gives a measure of fuel efficiency for the unit.
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Economic Operation of Power Systems

!"#re 2

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Economic Operation of Power Systems

From the previous figure, maximum efficiency occurs at Pi=600 MW.

r$% !"#re 1 Heat rate = C/P = (5.4*10^9)/(600*10^3) &s 'n !"#re 2 = 9000 KJ/Kwhr = (9000 KJ/Kwhr) / (1.055 KJ/BTU) = 8531 BTU/KWhr

The efficiency at this output power;

= (1/ 9000) (KWhr/KJ)*(3413) (BTU/KWhr) *(1.055) (KJ/BTU) = 40%

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Economic Operation of Power Systems

ECONOMIC DISPATCH:
! The economic dispatch problem is to select the real output power of each controlled generating unit in an area to meet a given load in such a way that the total operating costs in the area are minimized.

Ci : Unit Operating Cost. PLoad: Load Power.

!"#re 3

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Economic Operation of Power Systems

P1+P2++PN=PLoad

S.T. minimizing

CT=C1++CN

Operating cost ($/hr) includes fuel cost, Maintenance, capital cost of installing the generations. Unit Incremental Operating Cost:
dCi Unit Incremental Cost = dPi
! It is defined as the derivative (slope) of unit operating cost with respect to the unit output. $/MWhr

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Economic Operation of Power Systems

Lets consider an area with N units operating on economic dispatch as in figure 3;

! The total operating cost of these units is:
C T = i =1C i = C 1 ( P1 ) + C 2 ( P2 ) + ... + C N ( PN
N

$/hr

! The total Load demand PT in the area is:

PT = P1 + P2 + ... + PN = i =1 Pi
N

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Economic Operation of Power Systems

Mathematically the economic dispatch problem is:

min i =1C i ( Pi ) subject to i =1 Pi = PT

N N

function

constraint

The solution of economic dispatch problem can be based on using Lagrange Function.

= f (x ) ( g (x ) 0)
Lagrange Multiplier
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Economic Operation of Power Systems

= i =1C i
N

N i =1

Pi PT

d dC 1 = = 0 dP1 dP1 d dC 2 = = 0 dP2 dP2 . . . d dC N = = 0 dPN dPN

dC 1 = dP1 dC 2 = dP2

dC N = dPN
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Economic Operation of Power Systems

dC N dC 1 dC 2 = = = ...= dP1 dP2 dPN

All units should have the same incremental operating cost. (Criterion for the solution of economic dispatch)

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Economic Operation of Power Systems

Example 11.4:

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Economic Operation of Power Systems

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Economic Operation of Power Systems

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Economic Operation of Power Systems

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Economic Operation of Power Systems

Effect of inequality Constraint If the inequality constraints are included, the economic dispatch should be modified. If the one or more units reach their limited value, then these units are held constant at their limits and the remaining units operate at equal incremental operating cost. The incremental operating cost of the area is ! for the units that are not at their limits.
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Economic Operation of Power Systems

Example 11.5:

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Economic Operation of Power Systems

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Economic Operation of Power Systems

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Economic Operation of Power Systems

Effect of Transmission Losses on Economic Dispatch Although one unit may be very efficient with a low incremental operating cost, it may also be located far from the load centre. In general, using generators closer to the load results in lower losses. The transmission losses associated with this unit may be so high that the economic dispatch solution require the unit to decrease its output while other units with higher incremental operating costs but low transmission losses increases their output.
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Economic Operation of Power Systems

When the transmission losses are included, the constraint function becomes:

P = P + P L i T i =1
Total Load Demand Total Tr. Losses

To solve the economic dispatch problem, we can use a Lagrange Function:

= i =1C i
N

N i =1

Pi PT PL

)
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Economic Operation of Power Systems

d dP1

d dP2 . . .

PL dC 1 dC 1 1 = 1 = = 0 dP1 dP1 1 PL P1 P1 PL dC 2 dC 2 1 = 1 = = 0 dP2 dP2 1 PL P2 P2

d dC N = dPN dPN

PL dC N 1 1 = = 0 dPN 1 PL PN P N

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Economic Operation of Power Systems

The economic dispatch problem (including the transmission losses) is:

dC i dC i 1 = Li = dPi dPi 1 PL Pi Penalty Factor i=1,2,...,N

All of units must have the same incremental operating cost dCi/dPi multiplied by the penalty factor Li.
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Economic Operation of Power Systems

Example 11.7:

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Economic Operation of Power Systems

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Economic Operation of Power Systems

The penalty factor at the slack bus is always unity!

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Economic Operation of Power Systems

Unit Commitment:

! When should each unit be started, stopped and how much should it generate to meet the load of minimum cost?? ! Economic dispatch is not concerned with determining which units to turn on/off (this is the unit commitment problem).

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Economic Operation of Power Systems

Optimal Power Flow:

! The solution of optimizing the generation while enforcing Transmission Lines is to combine the economic dispatch with power flow. ! The result is known as the Optimal Power Flow (OPF).

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