dr. abeer almaimouni
TRANSCRIPT
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Dr. Abeer Almaimouni1
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Disclaimer
These slides were designed by Dr. Abeer Almaimouni and were used while teaching the course of Power System Economics at Kuwait University. Unless it is specified on individual slides, the content, graphs, and numerical examples were based on the book of Prof. Daniel Kirschen and Goran Strbac, Fundamentals of Power System Economics, or the slides that Prof. Kirschen used while teaching the course at the University of Washington. In many places, a direct quotation was made from either his slides or book.
2Dr. Abeer Almaimouni
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Key terms
Electric demand
Residential, industrial, and commercial
load
Load profile
Electricity supply
Generation
Transmission
Distribution
Conventional generators
Renewable resources
Operational flexibility
Load Duration Curve
Base load , Intermediate load , Peak load
Economic dispatch
Unit commitment
Power flow
Optimal power flow
DC power flow
Fixed cost
Variable cost
Unit constraints
System Constraints
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Electricity Demand
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Residential Load
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Residential Load
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Types of Electric Loads
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Electricity Consumption by Sector
8Source: Environment Protection Agency
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A Sample of a Daily Load Profile
9Maggiore, Simone. (2013). Evaluation of the effects of a tariff change on the Italian residential customers subject to a mandatory time-of-use tariff.
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Representative Weekly Load profile
Santini, Danilo & Zhou, Yan & Vyas, Anant. (2012). An Analysis of Car and SUV Daytime Parking for Potential Opportunity Charging of Plug-in Electric Powertrains. World Electric Vehicle Journal. 5. 652-666. 10.3390/wevj5030652.
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Electricity Supply
11anelectricalengineer.com
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The Electric Utility Network Source: Utilities Consumer Advocate (UCA)
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Different Technologies to Generate Electricity
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https://www.freevector.com/
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Some of these technologies are
environment-friendly and some
of them are not as they produce
greenhouse gases, chiefly 𝐶𝑂2
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https://ee-ip.org/
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Some of these technologies are
environment-friendly and some
of them are not as they produce
greenhouse gases, chiefly 𝐶𝑂2
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https://letters2president.org/letters/1166
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The main technologies that are used to generate electricity are Thermal Power Plants
Fossil-Fuel Power Plant Nuclear Power Plant
Fossil-fuel power plant (coal, natural gas or oil)Nuclear Power Plant
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Renewable Resources
Solar Panels Wind Turbines18
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Utilities usually own a fleet that consists of a mix of different generation technologiesHow does the utility decide which units to dispatch to meet the demand of electricity?
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20IRENA’s Global Energy Transformation Report
International Renewable Energy Agency
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How do fossil-fuel plants work?
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http://butane.chem.uiuc.edu/
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How do nuclear plants work?
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https://khwarizmi.org/event/harnessing-nuclear-energy/
nuclearpower3rdpro/home/how-nuclear-energy-works-1
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How do solar panels work?
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https://solarmagazine.com/solar-panels/
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How do wind turbines work?
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Mikrora.com
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How hydroplantwork?
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thinglink.com
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The Power System Economic ProblemsWhat is the cheapest way to meet the demand reliably?
Economic Dispatch (ED)
Unit Commitment (UC)
Optimal Power Flow (OPF)
26http://www.steamenginerevolution.com/
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Economic Dispatch
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Assumption: Single Bus System
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Load
A B C
Generators
Ignore the limits of the network
https://en.wikipedia.org/wiki/Electrical_grid
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Economic Dispatch: Problem Definition
• Given: load and a set of units that are on-line
• Consider the limits of the generating units
• How much should each unit generate to meet this load at minimum cost?
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Economic Dispatch: Problem Definition
• Objective:• Minimum cost to meet the
demand
• Such that:• The total load = total generation
• The output of each unit does not exceed its upper and lower limits.
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Load Profile
A B C
Generators
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Economic Dispatch: Mathematical Formulation
• Objective: Minimize𝐶 = 𝐶(𝑃𝐴) + 𝐶(𝑃𝐵) + 𝐶(𝑃𝐶)
Such that:Load/generation balance:
𝑃𝐴 + 𝑃𝐵 + 𝑃𝐶 = 𝐿• Units constraints:
𝑃𝐴𝑚𝑖𝑛 ≤ 𝑃𝐴 ≤ 𝑃𝐴
𝑚𝑎𝑥
𝑃𝐵𝑚𝑖𝑛 ≤ 𝑃𝐵 ≤ 𝑃𝐵
𝑚𝑎𝑥
𝑃𝐶𝑚𝑖𝑛 ≤ 𝑃𝐶 ≤ 𝑃𝐶
𝑚𝑎𝑥
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Load Profile
A B C
Generators
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What are types of costs of generation?
Fixed cost:Capital cost.Maintenance and Operation (M&O)PersonalLand
Variable Cost:Fuel CostStart-up costMaintenance CostCO2 tax
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What are the types of costs to be considered in the economic dispatch problem?
Fixed cost:Capital costMaintenance and Operation (M&O)PersonalLand
Variable Cost:Fuel CostStart-up costMaintenance CostCO2 tax
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Calculating the
Running Cost of
Thermal Plant
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Cost Curve
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Incremental Cost Curve
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Practical Economic Dispatch
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Example
PA = 120MW
PB = 90 MW
λ = 0.6PB
dCB
dPB
20 70 110 140
0.1
0.6
0.8
PA
dCA
dPA
30 80 120 150
0.3
0.5
0.7
Unit PSegment Ptotal Lambda
A&B min 20+30 = 50 50
B 70-20=50 100 0.1
A 80-30=50 150 0.3
A 120-80=40 190 0.5
B 110-70=40 230 0.6
A 150-120=30 260 0.7
B 140-110=30 290 0.8
If Pload = 210 MW, and the systems consists of two generating units (A and B).
What is the optimal economic dispatch, if the incremental or marginal cost curves are as shown below?
Only consider the minimum and maximum generation constraints and Ignore the other constraints.
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Unit Commitment
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Unit Commitment: Problem Definition
• Given: Load profile (e.g. values of the load for each hour of a day)
• Given: Set of available units
• Consider the limits of the generating units
• When should each unit be started, stopped and how much should it generate to meet the load at minimum cost?
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Examples of Daily Load Profile
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Unit Commitment: Problem Definition
• Objective:• Minimum cost to meet the
demand considering the load profile
• Such that:• The total load = total generation• The unit's constraints are not
violated.• The system’s constraints are not
violated.
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Load Profile
A B C
Generators
? ? ?
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What are types of costs of generation?
Fixed cost:Capital cost.Maintenance and Operation (M&O)PersonalLand
Variable Cost:Fuel CostStart-up costMaintenance Cost𝐶𝑂2 tax
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What are the types of costs to be considered in the unit commitment problem?
Fixed cost:Capital costMaintenance and Operation (M&O)PersonalLand
Variable Cost:Fuel CostStart-up costMaintenance CostCO2 tax
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Calculating Start-Up
Cost
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Calculating Start-Up
Cost
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• Start-up cost depends on the time the unit has been off:
⁻ If the unit has not been off for a long time, the water will still be warm
⁻ Hot start vs. cold start
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Notations
u(i,t) : Status of unit i at period t
Unit i is on during period t
Unit i is off during period t
Power produced by unit i during period t
u(i,t) = 1:
u(i,t) = 0 :
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𝑝(𝑖, 𝑡):
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Unit Constraints
• Maximum generating capacity
• Minimum stable generation
• Minimum “up time”
• Minimum “down time”
• Minimum ramp up rate
• Minimum ramp down rate
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Unit Constraints
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Unit Constraints
• Maximum generating capacity
• Minimum stable generation
• Minimum “up time”
• minimum, “down time”
• Ramp rate
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System Constraints
• Constraints that affect more than one unit
• Load/generation balance
• Reserve generation capacity
• Emission constraints
• Network constraints
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System Constraints
Load/Generation Balance Constraint
Total Generation=Total Demand
where:N: set of available units
𝑖=1
𝑁
𝑢 𝑖, 𝑡 𝑝 𝑖, 𝑡 = 𝐿(𝑡)
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System Constraints
• The total capacity of the available units is equal or larger than the sum of the total load and the reserve
where:
R(t): Reserve requirement at time t
Reserve Capacity Constraint
𝑖=1
𝑁
𝑢 𝑖, 𝑡 𝑃𝑖𝑚𝑎𝑥 ≥ 𝐿 𝑡 + 𝑅(𝑡)
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Why Reserve is Needed?
• Unanticipated loss of a generating unit or an interconnection causes unacceptable change in frequency if not corrected
• Need to increase or lower production from other units to keep frequency drop within acceptable limits
• Rapid increase in production only possible if committed units are not all operating at their maximum capacity
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All Generators Must Run at the Same Electric Frequency
MECHANICAL TORQUEELECTRICAL TORQUE
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Why Reserve is Needed?
Upholding the delicate balance between the generation and the consumption
Cause/effect/Required action
The Steady state condition
Frequency is not changing
No action is required
A fault in the lines that causes a sudden drop in the demand of electricity.
Increase in the frequency.
Negative reserve: decrease output when generation > load
Loss of one of the generating units.
Decrease in the frequency
Positive reserve Increase output when generation < load
Electric Power Mechanical Power
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Electric Power
Electric Power
Mechanical Power
Mechanical Power
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Type of Reserve?
• Spinning reserve• Primary
• Quick response for a short time
• Secondary • Slower response for a longer time
• Tertiary reserve• Replace primary and secondary reserve to
protect against another outage
• Provided by units that can start quickly (e.g. gas turbines)
• Also called scheduled or off-line reserve
• Reserve must be spread around the network• Must be able to deploy reserve even if the
network is congested
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How to Determine the Needed Reserve?
• Protect the system against “credible outages”
• Deterministic criteria:• Capacity of largest unit or
interconnection
• Percentage of peak load
• Probabilistic criteria:• Takes into account the number and size
of the committed units as well as their outage rate
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Cost of Reserve?
• Reserve has a cost even when it is not called• More units scheduled than required
• Units not operated at their maximum efficiency
• Extra start up costs
• Must build units capable of rapid response
• Cost of reserve proportionally larger in small systems• Important driver for the creation of
interconnections between systems
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System Constraints
Network Constraint Cheap generatorsMay be “constrained off”
More expensive generatorMay be “constrained on”
A B
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System Constraints
Network Constraint
• Transmission network may have an effect on the commitment of units• Some units must run to provide voltage support
• The output of some units may be limited because their output would exceed the transmission capacity of the network
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System Constraints
Emission Constraint
• Amount of pollutants that generating units can emit may be limited
• Pollutants:• SO2, NOx
• Various forms:• Limit on each plant at each hour• Limit on plant over a year• Limit on a group of plants over a year• Etc…
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Notation
𝑢(𝑖, 𝑡): Status of unit i at period t
𝑢(𝑖, 𝑡)=1 Unit i is on during period t
𝑢(𝑖, 𝑡)=0 Unit i is off during period t
Power produced by unit iduring period t
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𝑝(𝑖, 𝑡):
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Solving the Unit
Commitment Problem
• Decision variables:• Status of each unit at each period:
• Output of each unit at each period:
• Combination of integer and continuous variables
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u(i,t) Î 0,1{ } " i,t
x(i,t)Î 0, Pimin;Pi
maxéë ùû{ } " i,t𝑝(𝑖, 𝑡)
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How many combinations
are there?
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Examples• 3 units: 8 possible states
• N units: 2N possible states
111
110
101
100
011
010
001
000
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How many solutions are
there anyway?
• Optimization over a time horizon divided into intervals
• A solution is a path linking one combination at each interval
• How many such paths are there?
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1 2 3 4 5 6T=
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How many solutions are
there anyway?
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Optimization over a time horizon divided into intervalsA solution is a path linking one combination at each intervalHow many such path are there? Answer:
2N( ) 2N( )… 2N( ) = 2N( )T
1 2 3 4 5 6T=
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The Curse of Dimensionality
• Example: 5 units, 24 hours
• Processing 109 combinations/second, this would take 1.9 1019 years to solve
• There are 100’s of units in large power systems...
• Many of these combinations do not satisfy the constraints
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2N( )T
= 25( )24
= 6.2 1035 combinations
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How Can We Beat
the Curse?
Brute force approach won’t work!
• Need to be smart
• Try only a small subset of all combinations
• Can’t guarantee optimality of the solution
• Try to get as close as possible within a reasonable amount of time
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Optimization with Integer
Variables
• Continuous variables• Can follow the gradients or use Linear Programming
(LP)
• Any value within the feasible set is OK
• Discrete variables• There is no gradient
• Can only take a finite number of values
• Problem is not convex
• Must try combinations of discrete values
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Main Solution
Techniques
• Characteristics of a good technique• Solution close to the optimum
• Reasonable computing time
• Ability to model constraints
• Priority list / heuristic approach
• Dynamic programming
• Lagrangian relaxation
• Mixed Integer Programming
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State of the art
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Let's try to solve a simple example
Can we at least get an idea of what the solution will look like?
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A Simple Example
• Unit 1:
• PMin = 250 MW, PMax = 600 MW
• C1 = 510.0 + 7.9 P1 + 0.00172 P12 $/h
• Unit 2:
• PMin = 200 MW, PMax = 400 MW
• C2 = 310.0 + 7.85 P2 + 0.00194 P22 $/h
• Unit 3:
• PMin = 150 MW, PMax = 500 MW
• C3 = 78.0 + 9.56 P3 + 0.00694 P32 $/h
• What combination of units 1, 2 and 3 will produce 550 MW at minimum cost?
• How much should each unit in that combination generate?
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Cost of the Various
Combinations
G1 G2 G3 Pmin Pmax P1 P2 P3 Ctotal
Off Off Off 0 0 Infeasible
Off Off On 150 500 Infeasible
Off On Off 200 400 Infeasible
Off On On 350 900 0 400 150 5418
On Off Off 250 600 550 0 0 3753
On Off On 400 1100 400 0 150 5613
On On Off 450 1000 295 255 0 5471
On On On 600 1500 Infeasible 5617
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• Far too few units committed: Can’t meet the demand
• Not enough units committed:Some units operate above optimum
• Too many units committed:Some units below optimum
• Far too many units committed:Minimum generation exceeds demand
• No-load cost affects choice of optimal combination
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Observations on the
example:
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Optimal generation schedule for a load profile
Decompose the profile into a set of period
Assume load is constant over each period
For each time period, which units should be committed to generate at minimum cost during that period?
Another Example
Load
Time
1260 18 24
500
1000
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Optimal Combination
for Each Hour
Load Unit 1 Unit 2 Unit 31100 On On On1000 On On Off900 On On Off800 On On Off700 On On Off600 On Off Off500 On Off Off
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Matching the Combinations
to the Load
Load
Time1260 18 24
Unit 1
Unit 2
Unit 3
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Matching the Combinations
to the Load
Load
Time1260 18 24
Unit 1
Unit 2
Unit 3
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Flexible Plants
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• Power output can be adjusted (within limits)
• Examples:
• Coal-fired
• Oil-fired
• Open cycle gas turbines
• Combined cycle gas turbines
• Hydro plants with storage
• Status and power output can be optimized
Thermal units
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Inflexible Plants
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• Power output cannot be adjusted for technical or commercial reasons
• Examples:
• Nuclear
• Run-of-the-river hydro
• Renewables (wind, solar,…)
• Combined heat and power (CHP, cogeneration)
• Output treated as given when optimizing
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Typical daily variation in power demand
https://www.e-education.psu.edu/eme807/node/667
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Load Duration Curve
The load duration curve is defined as the curve between the load and time in which the ordinates representing the load, plotted in the order of decreasing magnitude, i.e., with the greatest load at the left, lesser loads towards the rights and the lowest loads at the time extreme right. (Source: circuitglobe.com)
Sterling, John & Mclaren, Joyce & Taylor, Mike & Cory, Karlynn. (2013). Treatment of Solar Generation in Electric Utility Resource Planning. 10.13140/2.1.4239.9361.
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Issues Must consider all constraints
Unit constraints
System constraints
Some constraints create a link between the periods
Starting up a generating unit costs money in addition to the running cost considered in economic dispatch
Curse of dimensionality
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The Impact of Network Limitation
transformers-magazine.com 91
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Economic Dispatch
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Limitation of Economic Dispatch
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Example of network limitation
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Unacceptable ED Solution
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Acceptable ED Solution
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Modified ED Solution
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Optimal Power Flow Problem
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Optimal Power Flow- Overview
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Mathematical Formulation of the OPF (1)
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Mathematical Formulation of the OPF (2)
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Mathematical formulation of the OPF (3)
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Mathematical Formulation of the OPF (4)
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Mathematical Formulation of the OPF (5)
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Mathematical Formulation of the OPF (6)
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Compact Form of the OPF problem
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OPF Applications
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OPF Challenges
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DC Power Flow Problem
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111
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Advantages of DC Power Flow
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Active/Reactive Decoupling
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Power Flow Equations
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Neglect Resistance of the Branches
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Assume All Voltage Magnitudes = 1.0 p.u.
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Assume All Angles are Small
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Interpretation
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Why is it called DC power flow?
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An Illustrative Example
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Example of Linear Programming OPF (LPOPF)
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Example
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Flows Resulting from the Economic Dispatch
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Calculating the Flows using Superposition
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Calculating the Flows Using Superposition (1)
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Calculating the Flows Using Superposition (2)
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Calculating the Flows Using Superposition (3)
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Correcting Unacceptable Flows
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Check the Solution Using Superposition
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Comments (1)
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Comments (2)
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