Power System Operation Control
Introduction
Power System Operation & Control
Spring 2020
Pre Requisite
Power System Engineering or Power System Analysis
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2 Money
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Economic Importance
Annual Peak Load: 15,000 MW
Annual Load Factor: 60%
Average annual heat rate for converting
fuel to electricity: 10,500 Btu / kWh
Average Fuel Cost: $9.17 per MBtu
corresponding to Oil Priced at $ 55 / bbl
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Total Fuel Cost for the System
Annual energy produced:
15,000 103 kW 8760 hours/year 0.60 7.884 1010 kWh
Annual Fuel Consumption:
10,500Btu/kWh 7.884 1010 kWh 8.2782 1014 Btu
Annual Fuel Cost
8.2782 × 1014 Btu × 9.17 × 10−6 $/Btu = $7.6 𝑏𝑖𝑙𝑙𝑖𝑜𝑛
What about money?
Minimizing costs
Operating costs
Fuel, personnel, maintenance
Investment costs
Generators, lines, transformers, switching devices, …
Maximizing profits
Competitive electricity markets
Maximizing utility or benefits
Consumer’s perspective
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Reliability
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What About Reliability?
Operational reliability
Withstand faults, failures, forecasting errors and other common
operational problems
Operate with a security margin
Planning reliability
Ability to handle long term problems
Units on long-term maintenance
Droughts
Build enough spare capacity
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Cost of Reliability
Providing a security margin and spare capacity
costs money
Run additional generating units to have some
operating reserve
Limit production of some generating units to avoid
problems in case of a sudden outage
Build additional generators and transmission lines
to improve long term reliability
Value of reliability
Poor reliability cause consumer outages
Outages cause a loss of revenue or comfort
Measured using surveys
Estimate of cost of latest outages or
Willingness to pay extra to avoid outages
Value of Lost Load (VoLL)
Average value of a MWh not delivered
Estimates range from $2,400 to $20,000
~ 100 times larger than the cost of energy
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Balancing the greed and the fear
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How do we model this balance?
Mathematical optimization problem
Cost minimization or profit maximization
Reliability introduced through constraints
Explicit costing of reliability is still controversial
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Environmental Impact
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Three-way balancing
More complex optimization problems
Some environmental effects can be monetized
Operating cost of renewable generation is essentially zero
Carbon tax or carbon trading to reflect the effect of CO2
emissions
Others cannot be monetized
Effect of hydro generation on fish
Modeled using additional operating constraints
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Government energy policy
Not “pure” economics
Markets and companies take a short term view
Long term or strategic considerations
Reduce dependence on imports
Introduction of competitive electricity markets
Choice of primary energy sources
Promotion of wind and photovoltaic in Germany
Nuclear power in France
Energy conservation in the Pacific Northwest
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Course outline (1)
Organization of the electricity supply industry
What are the major economic functions?
Who does what?
Introduction to optimization
Optimization with continuous variables
Optimization with discrete variables
Traditional power system economics problems
Characteristics of Power Generating Units
Economic dispatch
Transmission System Effects
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Course outline (2)
Unit commitment
Fuel Scheduling
Optimal power flow
Control of Generation
Organization of electricity markets
Interchange of Power and Energy
System security and ancillary services
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Textbook
Power Generation, Operation,
and Control, 3rd Edition
Allen J. Wood, Bruce F.
Wollenberg, Gerald B. Sheblé
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