Sigma Institute of Engineering

Electrical Engineering Department

Semester :7TH
Subject :Interconnected power system
Subject Code :2170901
 A
Presentation on

ECONOMIC OPERATION OF POWER

SYSTEM

Prepared by:
1.Patel Parth M. (140500109527) Guided by:
2. Khamal Dharmesh R. (150503109509)
3.Durvesh Ismail N. (150503109507)
Mr. Viral B.Patel
4.Bhagat Rakesh S. (150503109503) (Assistant Professor)
5. Dalwani Aishwaray B. (150503109505)
6. Khrva Jilka Y. (150503109510)
7 Patel Krishna P. (150503109520)
8. Zalawadiya Ravi M . (140500109540)
 Out Line of Presentation
 Introduction
 Generator Operating Cost
 Economic Operating OF Generators within thermal
Plant
 Incremental Rate Curve
 Optimal Operation by Co-ordination Equation
 Penalty Factor
 Derivation of transmission loss formula
 B-Coefficients for multi-machine power system
 Unit Commitment
 Unit Commitment using dynamic programming Method
3
 1.Introduction
 Electric power today plays an extreme important role in
the life of the community and in the development of
various sectors of economy.

 In fact, the modern economy is totally dependent on the

electricity as a basic input.

 In every system, an economics plays an important role.

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  The economic, operation of power system means to
schedule the committed geterators to meet the load,
maintain voltages and frequency within prescribed
tolerances and minimize open cost with higher efficiency
without stressing the equipment.

 The power plant design must be made on the basis of

most economical condition.

 The function of generating station or power station is to

deliver power at the lowest rate possible cost per kilo
watt hour.

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  This total cost is made up of fixed charges consisting of
interest on the capital, taxes, insurance, depreciation and
salary of managerial staff, the operating expenses such as
cost of fuels, water, oil. labor, repairs and maintenance
etc.
 A saving in the cost of generation of electrical power
represents a significant reduction in the operating cost as
well as fuel cost.
 Economics of power generation is defined as the art of
determining the per unit (i.e 1kWh) cost of production
of electrical energy for a power generating plant.

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 2.GENERATOR OPERATING COST
 The cost of power generation by any thermal unit
depends upon its characteristics.

 Performance of any unit can be understood by

studying the generators input-output Suppose
characteristics and the cost curve.

 When we plot the curve between input energy rate

F ( P )(Mkcal/h) and generator power output
i Gi
PGi ( MW)
is known as input-output curve.

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 It is easy to express the input-output curves in terms of input
energy rate (MK cal/hr) rather then fuel cost per hour
(Rs/hr) because fuel cost charges monthly or daily in
comparison with the fuel energy used per hour or input
energy rate at a given output power.
 The input output curve of a generating unit as shown in fig. It
varies between minimum input power (MW )min and maximum
output power (MW ) max

 If the plant loading is below the minimum input power and

above the maximum output power it will be uneconomical or
technically infeasible for power plant.

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 •The relation between input energy rate or operating cost of
fuel and output power can be expressed as:

F     P  P ( Mkcal/hr)
2

where, F  fuel input in k - cal/hr

P  output in MW
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 ,  ,   constants
  The fuel input F can be converted into cost C (expressed in
Rs/hr). By multiplying constants by the cost of fuel in
Rs/Kcal.Thus,
C    P  P
(P)
2

where C  cost of fuel in Rs/Kcal

(P)

 Suppose there are many power generating units are working.

For each power station the expression of operating cost can
be expressed as,
C (P )     P   P
2

i Gi i i Gi i Gi

 The given expression is for the i unit of the plant which are
working at generating station.

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 3.ECONOMIC OPERATION OF
GENERATORS WITHIN THERMAL PLANT
 The generating unit efficiency can be defined as the ratio
of electrical energy out put to fuel energy input.
Electrical energy output

Fuel energy input
 All over efficiency of the plant is different for different
generating units. It normally varies between (20-90)
percentage.
 It depends upon the generating unit equipments,
maintenance, power supply. material used, protective
devices etc.
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  A typical curve plotted between Heat Rate and output
H (P )
i Gi

powerP (MW) is known as Heat Rate Curve. In other

Gi

words. We can say that the heatrate curveH P( ) which is

i Gi

the heat energy obtained by combustion of fuel (MKcal)

needed to generate one unit of electrical energy.
 We obtain an exponentially decreasing curve between heat
rate and output power.
 The generating unit is most efficient at the minimum heat-
rate which corresponds to a particular P .
Gi

 The heat rate varies with the output power P . Gi

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 •Heat rate curve shown in fig,

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  Heat rate which corresponds to a perticular PGi .
 The heat rate varies with the output power PGi . Heat rate
curve shows the increase in the heat rate at low and high
power limits.
 Normally the thermal power plants have their efficiency
around 35%.
 It means all input fuel energy is not converted into electric
energy.
 By using the heat rate curve we can obtain the relationship
between input-output curve and heat rate curve by
equation written in the next slide,

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F ( P )  P H ( P ) MKcal / hr ,
i Gi Gi i Gi

F ( P )  heat rate in MKcal/hr & P  output power in KW

i Gi Gi

C ( P )  KF ( P ), where C ( P )  input fuel cost

i Gi i Gi i Gi

now put the value of F ( P ) i Gi

 '

H ( P )      P MKcal/MWH
i Gi
i
i
' '
i Gi
P Gi

by multiplyin g with P & simplifica tion Gi

C (P )     P   P
i Gi i i Gi i
2
Gi

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 4.INCREMENTAL RATE CURVE
 When a graph is plotted between the slop of input energy
rate Fi (PGi) (MKcal/Hr) & output power PGi (MW) for
generating station is known as incremental rate curve.
 A incremental rate curve is shown in figure.
 The mathematical expression for the incremental rate
curve can be obtained by first derivative of the i/p o/p
function with respect to the o/p power. It is expressed as

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  Incremental Rate is given by

(MKcal/MW or Rs/ MW-Hr)

Where = incremental fuel cost

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 For the economic operation of a generating station should be
low. It can be expressed as MKcal/MW. If it is expressed in
terms of Rs/ MW-Hr then it will be called as incremental cost.
The fuel cost curve and the incremental cost curve may have
many discontinuities. The discontinuities occur when the o/p
power extended by using external boilers, steam condensers, or
other equipments. It may be discontinues due to fuel cost.

 The incremental fuel cost may be expressed by a number of

short line segment.
 The typical increment curve shown in figure.
 5.OPTIMAL OPERATION BY CO-
ORDINATION EQUATION
 For the power generation at generating station different
generators are connected in parallel for continues power
supply.

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 If the required demand are load demand is gretar then
rated capacity.
 Suppose the generating units are connected in parallel to
power supply, total load demand is 100 MW. Unit first &
second run at full load having capacity of 60MW & 30MW
respectively & 3rd unit having capacity of 25MW.
 When the load demand is increased more than 100MW, first
when we increase the load demand the 3rd generating unit
will supply power more than 100MW.
 It will supply maximum power up to 25MW. If the load
demand is further increased more than 125 MW , all the
generating stations will out of order & the incremental fuel
cost will also increased rapidly.
 To minimize this fuel cost different generating units are
connected in parallel, we can take an estimation for optimal
generating scheduling.
Sr. No. Power Generated Fuel Cost (Rs) Increment Cost
(Rs)

1 1 MW 100 0

2 2 MW 101 1

3 3 MW 103 2

4 4 MW 105 2

5 5 MW 108 3

6 6 MW 122 14

7 7 MW 234 12

8 8 MW 136 22
 The increment fuel cost of the generating station is increased
rapidly. To overcome this, increase the number of parallel
generating units. A shown in fig. generating units are
connected in parallel.
 Here, C1 = Cost of fuel input to first unit/station in Rs/Hr
C2 = Cost of fuel input to second unit/station in
Rs/Hr
Cn =Cost of fuel input to nth unit/station in Rs/Hr
C = Total cost of fuel input to the all units in Rs/Hr
P1 = Power generated by first unit in MW
Pn =Power generate by nth unit in MW
C = total fuel cost in Rs/Hr
n = Total number of units/station
 Total power generated by n units is given by

 Total fuel cost of the n unit is given by

 Condition
 Equation shows that if transmission losses are neglected, the
total power Demand at any instant must be met by total
generation .
 To solve the equation, we shall use the Lagrangian multiplier
technique.
 According to this technique, first we form the Lagrange cost
function defined by

 Where ƛ is the lagrange multiplier.

 Optimal generation scheduling of the plants can be obtained
by minimization the function.
is a function of , So the partial derivatives become full
derivatives,
 For the n units it can be expressed as

is the incremental cost of power generation

for generator . This is also known as the
principle of equal ƛ criterion. Equation is called
the coordination equation.

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 6. PANALTY FACTOR
 When the distance of generating plants from the loads are
different, the costs of different transmission losses will
affect the economic distribution.
 Suppose there are n generating plants. Let
are the fuel costs of individual plants for the respectively
electrical power outputs of respectively. Let
is the total power received by the loads (total load
demand) & is total transmission losses. For the n plants,
total fuel cost is given by

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  The total power generated by the plants are,

 The total demand and the transmission losses must be met by

the total generation at instant

It is called active power balance equation.

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  By using of Lagrangian multiplier ƛ, the cost function
is defined as

For economical load dispatch

The equation is called coordination equation because they

coordinate the incremental transmission losses with the
incremental cost of production.
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  is a function of only and therefore, the partial derivatives
become full derivatives

From equation, we get

where

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  The is called penalty factor for plant i. It depends upon
the location of the plant. The larger the incremental
transmission loss, the larger is penalty factor.
 It can also be given as

 The above equation is to get the minimum fuel cost; the

incremental fuel cost of each plant multiplied by its
penalty factor is the same for all plants in the system. It
can also be called that the optimal generations are obtained
when each plant is operated such that penalty factor
multiplied with incremental costs are equal. For the
unit, it can be given as a
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  If all the transmission losses are neglected . Then optimal
loading of plants can be given as

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 7.DERIVATION OF TRANSMISSION
LOSS FORMULA (KRON’S METHOD)
 It is accurate method of find the transmission loss.
 This method has been given by KRON, So it is also called
as KRON`s method.
 Figure represents two generating units 1 & 2 feeding a no
of loads.
 The total load current IL is supplied by source 1 & 2.
 Out of many branches within the network consider a
branch (any three phase transmission line) designed as b.

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35
  Let the switch in figure 4.8 (a) be open. Then the total load current IL is
supplied by generator 1 only. With generator 1 acting alone, the current
in the line b is Ib1 whereas the generator current is I1.
 Now define current distribution factor Mb1 as;

 Similarly, let the switch in figure 4.8 (b) be open & the total load
current IL be supplied by generator 2 only. With generator 2 acting
alone, the current in the line b is Ib2 whereas the generator current is I2.
Now define current distribution factor Mb2 as:

When both the generators are connected to supply load current, the
current through the branch b i.e., Ib can be obtained by applying the
principle of superposition as:

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  The current distribution factors are taken as real numbers
owing to the following assumptions:
1.The phase angle of all load currents are the same.
2.The ratio X/R for all transmission line in the transmission
network is the same
Let,

Where,
𝞱1, 𝞱2 are the phase angles with respect to a common
reference.

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  From equation.

 Now, let
P1 , P2 = 3-phase real power outputs by generator 1 & 2
respectively.
and

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 Cos ∅1 , Cos ∅2 = Power factor at generator end 1 & 2
respectively
V1,V2 = bus voltage at generator ends 1 & 2 respectively
Rb is the resistance of branch b
 Let k be the number of branches in the transmission
network.
 Now, the total transmission loss in the entire network is
given by,

 Substitute in equation, we get

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  Substituting &

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  The above loss equation in terms of B-coefficients can be
written as:
for two generator system.

 Where,

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  The terms , & are called loss coefficients or B-
coefficients.
 The unit of B-coefficients is MW-1 when the voltage are in
KV & branch resistance in ohms.
 The following assumption are consider to derive expression
for β co-efficient.
1.Voltage magnitude for all power plants remain constant.
2. The power factor or ratio of reactive power to real power
remain constant for all power plant.
3. All load current maintain a constant ratio.
4.Voltage phase angle (𝞱) for each buses remain constant.

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 8. B-COEFFICIENTS FOR MULTI-
MACHINE POWER SYSTEMS
 Let equation be extended for a power system with number
of generators.
 Total transmission losses in the system are:

 Where, are elements of the S-Matrix.

 Diagonal terms in the B-Matrix:

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  Off-Diagonal terms in B-Matrix:

 Expanding equation,

 In the matrix form of equation

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  In the condensed form, equation can be written as,

 The transmission losses in power system having two generating

stations are:

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 9.UNIT COMMITMENT
 In the electrical power system it is expected to have power
instantaneously and continuously available to meet
customers demands.
 The economic operation depends upon following functions
such as load forecasting.
 unit commitment. economic dispatch, security analysis etc.
 An overall solution of these problems provides a
continuous and reliable supply of electricity while
maintaining the optimal cost of production and operation
for the system.

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  Unit commitment is the most important problem in
operational scheduling of electrical power generation.
 In this start-up and shut down (ON/OFF) operation are also
involved to meet load demand for a short time.
 The objective is to minimize total production to meet
system demand and reserve requirements.
 The recent time installing of large thermal units, complexity
of power network and other environmental pollution again
need to find better solution or approach for determination
of economic emission unit commitment schedule.

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  Unit commitment problem can be solved by assigning
priority for the generating units such that the most efficient
unit is loaded first and then other units are loaded according
to their efficiency.
 The security constrained unit commitment (SCUC)
determines generating unit schedules in a utility for
minimizing the operating cost and satisfying the prevailing
constraints such as load balance, system spinning reserve,
ramp rate limits. fuel constraints etc.
 The unit commitment problem is related to the class of
complex combinational optimization problem.

48
  Unit commitment can be solved by finding the possible
combinations of the units and then select that combination
which has the least operating cost between them.
 But it requires consume a lot of time. In recent time we find
out some advances computing technologies method to solve
out the unit commitment problem.
 These methods are not time consumingV are grouped as
(a) deterministic techniques
(b) meta-heuristic techniques
(c) hydrothermal coordination
(d) dynamic programming method

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 10.UNIT COMMITMENT USING
DYNAMIC PROGRAMMING METHOD
 In the dynamic programming method we find out the total
number of unit available, their individual operating cost
characteristics and load demand on the generating power
plant.
 it is assumed that load on each generating unit or
combination of units changes in certain time inlerval with
uniform step size.
Assume the function cost F ( x ) is given as,
n

F ( x )  minimum cost in Rs/hr of generating x MW by n units

n

f ( y )  cost of generating of MW by the n unit

n
th

f ( x  y )  min. cost of gen.(x - y) MW by the remaing (n - 1) unit

n 1
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 Fn ( x)  Fn ( x)  f n ( y)  Fn1 ( x  y)
y  min
min .load  y  max. load
•The value of y is varied between min.load P to max. loadmin

limit Pmax with discrete step size of P D

•The minimum value of recursive relation is optimum value of F (x)

n

•By using the recursive relation we can easily find out the
combinations of units which requires minimum operating costs
for load scheduling with uniform step of size from minimum
value of load to maximum value of load.

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  In the dynamic programming method total minimum
operating cost and the load shared by each unit of the
optimal. Combinations are automatically determined for
each load level.

 If we use the dynamic programming method for two units

the most economical combinations are determined for all
the generating stations load by using recursive relation For
two units.

 We can find out the minimum cost of generating (x-y) Mw

by generating unit.
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  By using dynamic programming method we obtain the most
economical cost curve in discrete form for the two units.
 It is also called cost curve of a generating unit.
 If the load demand is further increased than other generating
unit comes in operation.
 If the third unit is added and the procedure is repeated to
find the cost curve of the three combined units.
 Considering first two units as single equivalent unit.
 This process is repeated until all available units are
exhausted or completely used.

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  By using this method we can obtain the optimal way of
loading K units.
 We can also find out the optimal loading for (Kth) units.
 By using the dynamic programming method we can obtain
unit commitment table.
 It shows the units which are in operation and required
minimum operating cost for the different loads.
 Unit commitment table is prepared for single time for all
given set of units.

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  If the load change on load centre it will require to change
the starting and stopping times of the units without
changing the basic unit commitment table.

 When the load is changed again we have to find out the

most economical station operating cost by increasing load
in uniform step size.

 By changing the value of number of generating units n find

out the new recursive relation between the generating
units.

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 THANK
YOU
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