EEL 6266

Power System Operation and Control

Chapter 3
Economic Dispatch of Thermal Units
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 2
The Economic Dispatch Problem
Consider a system that consists of N thermal-generating
units serving an aggregated electrical load, P
load
input to each unit: cost rate of fuel consumed, F
i
output of each unit: electrical power generated, P
i
total cost rate, F
T
, is the
sum of the individual
unit costs
essential constraint:
the sum of the output
powers must equal
the load demand
the problem is to
minimize F
T
T G 1
P
1
F
1
T G 2
P
2
F
2
T G N
P
N
F
N
P
load
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 3
The Economic Dispatch Problem
The mathematical statement of the problem is a constrained
optimization with the following functions:
objective function:
equality constraint:
note that any transmission losses are neglected and any operating
limits are not explicitly stated when formulating this problem
Problem may be solved using the Lagrange function
( )

=
=
N
i
i i T
P F F
1

=
= =
N
i
i load
P P
1
0
( ) |
.
|

\
|
+ = + =

= =
N
i
i load
N
i
i i T
P P P F F L
1 1

2002, 2004 Florida State University EEL 6266 Power System Operation and Control 4
The Economic Dispatch Problem
Principles
the Lagrange function establishes the necessary conditions for
finding an extrema of an objective function with constraints
taking the first derivatives of the Lagrange function with
respect to the independent variables allows us to find the
extreme value when the derivatives are set to zero
there are N
F
+ N

derivatives, one for each independent variable

and one for each equality constraint
the derivatives of the Lagrange function with respect to the
Lagrange multiplier merely gives back the constraint equation
the N
F
partial derivatives result in
( )
0
d
d
= =

i
i i
i
P
P F
P
L
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 5
The Economic Dispatch Problem
Example
determine the economic operating point for the three
generating units when delivering a total of 850 MW
input-output curves
unit 1: coal-fired steam unit:
unit 2: oil-fired steam unit:
unit 3: oil-fired steam unit:
fuel costs
coal: $ 3.30 / MBtu
oil: $ 3.00 / MBtu
the individual unit cost rate functions
2
3 3 3
2
2 2 2
2
1 1 1
00482 . 0 97 . 7 78
00194 . 0 85 . 7 310
00142 . 0 2 . 7 510
P P H
P P H
P P H
+ + =
+ + =
+ + =
( ) ( )
( ) ( )
( ) ( )
2
3 3 3 3 3 3
2
2 2 2 2 2 2
2
1 1 1 1 1 1
01446 . 0 70 . 23 234 0 . 3
00582 . 0 55 . 23 930 0 . 3
004686 . 0 76 . 23 1683 3 . 3
P P P H P F
P P P H P F
P P P H P F
+ + = =
+ + = =
+ + = =
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 6
The Economic Dispatch Problem
Example
the conditions for an optimal dispatch
solving for yields
then solving for the generator power values
850
02892 . 0 70 . 23 d d
01164 . 0 55 . 23 d d
009372 . 0 76 . 23 d d
3 2 1
3 3 3
2 2 2
1 1 1
= + +
= + =
= + =
= + =
P P P
P P F
P P F
P P F

41 . 27
850
02892 . 0
70 . 23
01164 . 0
55 . 23
009372 . 0
76 . 23
=
=

4 . 128 02892 . 0 ) 70 . 23 41 . 27 (
8 . 331 01164 . 0 ) 55 . 23 41 . 27 (
8 . 389 009372 . 0 ) 76 . 23 41 . 27 (
3
2
1
= =
= =
= =
P
P
P
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 7
The Economic Dispatch Problem
In addition to the cost function and the equality constraint
each generation unit must satisfy two inequalities
the power output must be greater than or equal to the minimum
power permitted:
minimum heat generation for stable fuel burning and temperature
the power output must be less than or equal to the maximum
power permitted:
maximum shaft torque without permanent deformation
maximum stator currents without overheating the conductor
then the necessary conditions are expanded slightly
min , i i
P P
max , i i
P P
max ,
min ,
max , min ,
d d
d d
: d d
i i i i
i i i i
i i i i i i
P P P F
P P P F
P P P P P F
=
=
=

2002, 2004 Florida State University EEL 6266 Power System Operation and Control 8
The Economic Dispatch Problem
Example
reconsider the previous example with the following generator
limits and the price of coal decreased to $2.70 / MBtu
generator limits
unit 1: 150 P
1
600 MW
unit 2: 100 P
2
400 MW
unit 3: 50 P
3
200 MW
new fuel cost rate function for unit 1:
solving for yields
( ) ( )
2
1 1 1 1 1 1
003834 . 0 44 . 19 1377 7 . 2 P P P H P F + + = =
8 . 38 3 . 109 9 . 701
82 . 24
850
02892 . 0
70 . 23
01164 . 0
55 . 23
007668 . 0
44 . 19
3 2 1
= = =
=
=

P P P

2002, 2004 Florida State University EEL 6266 Power System Operation and Control 9
The Economic Dispatch Problem
Example
this solution meets the constraint of generation meeting the
850 MW load demand, but units 1 and 3 are not within limit
let unit 1 be set to its maximum output and unit 3 to its minimum
output. The dispatch becomes:
P
1
= 600 MW P
2
= 200 MW P
3
= 50 MW
hence, must equal the incremental cost of unit 2 since it is the
only unit not at either limit
next compute the incremental costs for units 1 and 3
( ) 88 . 25 200 01164 . 0 55 . 23
d
d
200
2
2
2
= + = =
= P
P
F

( )
( ) 15 . 25 50 02892 . 0 7 . 23
d
d
04 . 24 600 007668 . 0 44 . 19
d
d
50
3
3
600
1
1
3
1
= + =
= + =
=
=
P
P
P
F
P
F
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 10
The Economic Dispatch Problem
Example
note that the incremental cost for unit 1 is less than indicating
that it is at its maximum
however, the incremental cost for unit 3 is not greater than so it
should not be forced to its minimum
rework with units 2 and 3 incremental cost equal to
note that this dispatch meets the necessary conditions
incremental cost of electricity = 2.567 cents / kilowatt-hour
0 . 68 0 . 182 600
67 . 25
250 850
02892 . 0
70 . 23
01164 . 0
55 . 23
3 2 1
1
= = =
=
= =

P P P
P

2002, 2004 Florida State University EEL 6266 Power System Operation and Control 11
Consider a similar system, which now has a transmission
network that connects the generating units to the load
the economic dispatch problem is slightly more complicated
the constraint equation must include the network losses, P
loss
the objective
function, F
T
is the same
as before
the constraint
equation must
be expanded
as:
Network Losses
T G 1
P
1
F
1
T G 2
P
2
F
2
T G N
P
N
F
N
P
load

=
+ = =
N
i
i loss load
P P P
1
0
Transmission
network with
losses, P
loss
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 12
Network Losses
The same math procedure is followed to establish the
necessary conditions for a minimum-cost operating solution
Lagrange function and its derivatives w.r.t. the input power:
the transmission network loss is a function of the impedances
and the currents flowing in the network
for convenience, the currents may be considered functions of the
input and load powers
it is more difficult to solve this set of equations
( )


=

+ =
|
|
.
|

\
|

|
.
|

\
|
+ + = + =

= =
i
loss
i
i
i
loss
i
i
i
N
i
i loss load
N
i
i i T
P
P
P
F
P
P
P
F
P
L
P P P P F F L
d
d
0 1
d
d
1 1
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 13
Network Losses
Example
repeat the first example, but include a simplified loss
expression for the transmission network
the incremental cost functions and the constraint function are
formed as:
this is no longer a set of linear equations as before
( ) [ ]
( ) [ ]
( ) [ ]
2
3
2
2
2
1 3 2 1
3 3 3 3
2 2 2 2
1 1 1 1
00012 . 0 00009 . 0 00003 . 0 850
00012 . 0 2 1 02892 . 0 70 . 23 d d
00009 . 0 2 1 01164 . 0 55 . 23 d d
00003 . 0 2 1 009372 . 0 76 . 23 d d
1
d
d
P P P P P P P
P P P F
P P P F
P P P F
P
P
P
F
loss
i
loss
i
i
+ + = = + +
= + =
= + =
= + =
|
|
.
|

\
|

2
3
2
2
2
1
00012 . 0 00009 . 0 00003 . 0 P P P P
loss
+ + =
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 14
Network Losses
Example
a new iterative solution procedure
step 1 pick starting values for P
1
, P
2
, and P
3
that sum to the load
step 2 calculate P
loss
/P
i
and the total losses P
loss
step 3 calculate that causes P
1
, P
2
, & P
3
to sum to P
load
& P
loss
step 4 compare P
1
, P
2
, & P
3
of step 3 to the values used in step 2; if
there is significant change to any value, go back to step 2, otherwise,
the procedure is done
pick generation values
find the incremental losses
MW 150 MW 300 MW 400
3 2 1
= = = P P P
( )( )
( )( )
( )( ) 0360 . 0 150 00012 . 0 2
0540 . 0 300 00009 . 0 2
0240 . 0 400 00003 . 0 2
3
2
1
= =
= =
= =
P P
P P
P P
loss
loss
loss
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 15
Network Losses
Example
total losses
solve for
in matrix form
( ) ( ) ( ) MW 6 . 15 150 10 12 300 10 9 400 10 3
2
5
2
5
2
5
= + + =

loss
P
( )
( )
( )
( ) 0 6 . 15 850
036 . 0 1 02892 . 0 70 . 23
054 . 0 1 01164 . 0 55 . 23
024 . 0 1 009372 . 0 76 . 23
3 2 1
3
2
1
= + + +
= +
= +
= +
P P P
P
P
P

54 . 28 91 . 131 49 . 296 20 . 437

6 . 865
70 . 23
55 . 23
76 . 23
0 1 1 1
964 . 0 02892 . 0 0 0
946 . 0 0 01164 . 0 0
976 . 0 0 0 009372 . 0
3 2 1
3
2
1
= = = =
(
(
(

=
(
(
(

(
(
(

P P P
P
P
P
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 16
Network Losses
Example
since the values of P
1
, P
2
, and P
3
are quite different from the
starting values, we return to step 2
find the incremental losses and total losses
solve for in matrix form
( )( )
( )( )
( )( ) 0317 . 0 9 . 131 00012 . 0 2
0534 . 0 5 . 296 00009 . 0 2
0262 . 0 2 . 437 00003 . 0 2
3
2
1
= =
= =
= =
P P
P P
P P
loss
loss
loss
( ) ( ) ( ) MW 73 . 15 9 . 131 10 12 5 . 296 10 9 2 . 437 10 3
2
5
2
5
2
5
= + + =

loss
P
55 . 28 33 . 136 38 . 298 03 . 431
73 . 865
70 . 23
55 . 23
76 . 23
0 1 1 1
9683 . 0 02892 . 0 0 0
9466 . 0 0 01164 . 0 0
9738 . 0 0 0 009372 . 0
3 2 1
3
2
1
= = = =
(
(
(

=
(
(
(

(
(
(

P P P
P
P
P
2002, 2004 Florida State University EEL 6266 Power System Operation and Control 17
Network Losses
Example
summarization of the iteration process
iteration P
1
P
2
P
3
losses
count (MW) (MW) (MW) (MW) ($/MWh)
1 400.00 300.00 150.00 15.60 28.54
2 437.20 296.49 131.91 15.73 28.55
3 431.03 298.38 136.33 15.82 28.55
4 432.45 297.92 135.45 15.80 28.55
5 432.11 298.06 135.63 15.81 28.55
6 432.19 298.02 135.59 15.80 28.55
7 432.17 298.03 135.60 15.80 28.55