# Quick Start for Using PowerWorld Simulator for Market Analysis

Overview
• This is a quick tutorial of PowerWorld Simulator Simulator’s s Optimal Power Flow (OPF) tool for analyzing power markets. • The examples may be performed with the free evaluation software which may be downloaded at software, http://www.powerworld.com/downloads/demosoftware.asp. • The tutorial is intended for those who are familiar with navigating PowerWorld Simulator and have some familiarity with power flow studies.
– Free online training videos are available at http://www powerworld com/services/webtraining asp to teach http://www.powerworld.com/services/webtraining.asp program navigation and basic functions in PowerWorld Simulator – Live training sessions are also available. Please visit h // http://www.powerworld.com/calendar.asp ld / l d
©2011 PowerWorld Corporation Market Analysis Quick Start-2

Objectives j
• Provide background on the Optimal Power Flow (OPF) Problem • Show how the OPF is implemented in PowerWorld Simulator OPF • Explain how Simulator OPF can be used to solve small and large problems • Provide hands hands-on on examples • Provide sample OPF results and visualization on a realistic large power system
©2011 PowerWorld Corporation Market Analysis Quick Start-3

Optimal p Power Flow
• The goal of an optimal power flow (OPF) is to determine the “best” way to y operate p ap power system. y instantaneously • Usually “best” = minimizing operating cost. • OPF can incorporate and enforce transmission limits, but we’ll introduce OPF y ignoring g g transmission limits initially

Market Analysis Quick Start-4

“Ideal” Power Market:
N Transmission No T i i System S t Constraints C t i t
• An ideal power market is analogous to a lake
– generators g supply pp y energy gy to the lake and loads remove energy – no transmission limits and no losses

• There is a single marginal cost associated with enforcing the constraint that supply = d demand d
– buy from the least-cost unit that is not at a limit – the h price i of f that h unit i sets the h marginal i l cost
©2011 PowerWorld Corporation Market Analysis Quick Start-5

02 Bus A Bus B 300.4 MW AGC ON 300.Two Bus Example p Total Hourly Cost :8459 \$/hr Area Lambda : 13.0 MW 199.6 MW AGC ON 400.0 MW ©2011 PowerWorld Corporation Market Analysis Quick Start-6 .

00 14. 16. The graph on the right shows the system supply curve.00 15.00 0 350 700 1050 T t l Area Total A Generation G ti (MW) 1400 Current generator operating point ©2011 PowerWorld Corporation Market Analysis Quick Start-7 .00 0 175 350 525 G Generator t Power P (MW) 700 12.00 13.00 15.System Marginal Cost is Determined b Net by N tG Generation ti Cost C t Below are graphs associated with this two bus system. assuming the system is optimally dispatched.00 12. The graph h on th the left l ft shows h the th marginal i l cost t for f each h of f the th generators (which meet the equal lambda criteria).00 14.00 16.00 13.

system-wide marginal cost 40.0 Marg ginal Co ost (\$ / M MWh) 60.0 20.0 0.0 60 100 140 180 Total Generation (GW) ©2011 PowerWorld Corporation Market Analysis Quick Start-8 . US 80.Typical Supply Curve f Northeast for N th t U.S.0 For each value of generation there is a single.

g.Real Power Market • Different operating regions impose constraints. total supply in region must equal total demand plus scheduled exports • Transmission system imposes constraints (transmission limits) • Marginal costs become localized ©2011 PowerWorld Corporation Market Analysis Quick Start-9 . e.

taking into account realistic equality and inequality constraints • Equality constraints – – – – Bus real and reactive power balance Generator voltage setpoints Area MW interchange Transmission line/transformer/interface flow limits ©2011 PowerWorld Corporation Market Analysis Quick Start-10 .Optimal p Power Flow ( (OPF) ) • Minimize cost function. such as operating cost.

Optimal p Power Flow ( (OPF) ) • Inequality constraints – Transmission line/transformer/interface flow limits – Generator MW limits – Generator reactive power capability curves • Available Controls – – – – – Generator MW outputs Load MW demands Phase-shifting transformers (or phase angle regulators) Area Transactions DC T Transmission i i Line Li Setpoints S t i t Market Analysis Quick Start-11 ©2011 PowerWorld Corporation .

01 \$/MWh Bus B 300.0 MW AGC ON 403.01 Transmission line is not overloaded 13.Two Bus Example: N Constraints No C t i t Total Hourly Cost : 8459 \$/hr Area Lambda : 13.0 MW 197.0 MW Marginal cost of supplying power to each bus (locational marginal price or LMP) ©2011 PowerWorld Corporation Market Analysis Quick Start-12 .01 \$/MWh Bus A 13.0 MW AGC ON 300.

y causing g the marginal g costs to must be supplied diverge.Two Bus Example: C t i d Line Constrained Li Total Hourly Cost : 9513 \$/hr Area Lambda : 13.26 Bus A 13.9 MW AGC ON 419.08 \$/MWh 380. ©2011 PowerWorld Corporation Market Analysis Quick Start-13 . additional load at Bus A pp locally.0 MW With the line loaded to its limit.0 MW 260.43 \$/MWh Bus B 13.1 MW AGC ON 300.

* Switch to Run Mode Go to the Add Ons ribbon tab Click Primal LP in the Optimal Power Flow (OPF) ribbon group to solve the case • LP = linear li program. a technique t h i used d to t solve l the OPF • Initially the transmission line limits are not enforced *This case and others referenced herein by y file name are included with both the full commercial software and the free evaluation software.Hands-on: Three Bus Example p Load the B3LP. They are found in the Sample Cases subdirectory where Simulator is installed.pwb p case. ©2011 PowerWorld Corporation Market Analysis Quick Start-14 • • • • .

Three Bus Example p Bus 2 60 MW A MVA A MVA Bus 1 10 \$/MWh slack 0 MW 10 \$/MWh A MVA 120% MVA A 180 MW 0 MW 60 MW Total Cost A MVA 120% MVA A 120 MW 1800 \$/h Bus 3 10 \$/MWh 180 MW 0 MW Line from Bus 1 to Bus 3 is over-loaded. all buses have the same g cost or LMP marginal (\$10/MWh) Market Analysis Quick Start-15 ©2011 PowerWorld Corporation .

Range = 0 to 400 MW – Bus 3: 20 \$ / MWhr. all load is served by the least-cost generator. Range = 0 to 400 MW • A single 180 MW load is at bus 3 • Ignoring transmission limits. at bus 1 ©2011 PowerWorld Corporation Market Analysis Quick Start-16 .1 pu reactance transmission lines (no MW losses). Range = 0 to 400 MW – Bus 2: 12 \$ / MWhr. each with a 100 MVA limit • The generator marginal costs are – Bus 1: 10 \$ / MWhr.Three Bus Example p • All buses are connected through 0.

Three Bus Example p • To enforce transmission line limits: – From the OPF ribbon group. Select OPF Options and Results to view the main options dialog – Select Constraint Options Tab – Clear the checkbox Disable Line/Transformer i / f MVA Limit Enforcement – Click Solve LP OPF ©2011 PowerWorld Corporation Market Analysis Quick Start-17 .

Market Analysis Quick Start-18 ©2011 PowerWorld Corporation .Line Limits Enforced Bus 2 20 MW A MVA A MVA Bus 1 10 \$/MWh slack 60 MW 12 \$/MWh 80% A 100% MVA A 120 MW 0 MW MVA 80 MW Total Cost 80% MVA A 100% MVA A 100 MW 1920 \$/h Bus 3 14 \$/MWh 180 MW 0 MW OPF redispatches to remove violation. Bus marginal costs are now different.

equal – For bus 1 to supply 1 MW to bus 3. and no generator has a marginal cost of \$14. Each LMP matches the marginal cost of the local generator. impedance and all line impedances are equal.Why y is bus 3 LMP \$14 /MWh? • The least-cost source of marginal g p power at buses 1 and 2 is the local generator. 3 – Likewise. 3 ©2011 PowerWorld Corporation Market Analysis Quick Start-19 . • However. the generator at bus 3 has a marginal cost of \$20. 2/3 MW would go directly from 2 to 3. for bus 2 to supply 1 MW to bus 3. while 1/3 MW would “loop loop around around” from 1 to 2 to 3. 2/3 MW would flow on direct path from 1 to 3. while 1/3 MW would go from 2 to 1 to 3. • Power flow in the network distributes inversely to line impedance.

0 (no ( more flow fl on 1-3) 1 3) • Solving requires we increase Pg2 by 2 MW and decrease Pg1 by 1 MW: a net cost increase of \$14.Why y is bus 3 LMP \$14 /MWh? • With the line from 1 to 3 limited. • To supply 1 more MW to bus 3 we need Pg1 + Pg2 = 1 MW 2/3 Pg1 P 1 + 1/3 Pg2 P 2 = 0. limited no additional power may flow on it. ©2011 PowerWorld Corporation Market Analysis Quick Start-20 .

Bus Marginal g Controls • In the OPF Options and Results. go to the Results  Bus Marginal Controls tab to identify the marginal units for each bus ©2011 PowerWorld Corporation Market Analysis Quick Start-21 .

choose Difference Flows  Difference Case) ©2011 PowerWorld Corporation Market Analysis Quick Start-22 . choose Difference Flows  Set Present as Base Case) • Change bus 3 load to 181 MW • Solve the OPF • View the difference case (from Tools Ribbon. first set the present case as the base case (from Tools Ribbon.Three Bus Example p • To verify marginal cost cost.

as G2 went up by 2 MW and G1 went down by 1MW Market Analysis Quick Start-23 ©2011 PowerWorld Corporation .Verify y Bus 3 Marginal g Cost Bus 2 1 MW A MVA A MVA Bus 1 0 \$/MWh slack 2 MW 0 \$/MWh -1 MW A MVA A MVA 0 MW 1 MW 0 MW A MVA A MVA Total Cost 14 \$/h Bus 3 0 \$/MWh 1 MW 0 MW One additional MW of load at bus 3 raised total cost by 14 \$/hr.

this represents the amount of system savings which could be achieved if the MVA rating was increased by 1 1. MVA ©2011 PowerWorld Corporation Market Analysis Quick Start-24 . cost you can also calculate the marginal cost of enforcing a line constraint • For a transmission line.0 0 MVA.Marginal Cost of Enforcing C t i t Constraints • Similarly to the bus marginal cost.

Choose OPF Case Info  OPF Lines and Transformers to access OPF Constraint Records • Look at the column MVA Marg. Cost ©2011 PowerWorld Corporation Market Analysis Quick Start-25 .MVA Marginal g Cost • Switch Difference Flows back to Present Case • From the Add Ons ribbon.

Why is MVA Marginal Cost \$6/MVAh ? \$6/MVAhr? • If we allow 1 more MVA to flow on the line from 1 to 3. (no more flow on 1-3) • Solving requires we drop Pg2 by 3 MW and increase Pg1 by 3 MW: a net savings of \$6 • Verify by changing the limit on the line to 101 MVA ©2011 PowerWorld Corporation Market Analysis Quick Start-26 . then this allows us to redispatch as follows Pg1 + Pg2 = 0 MW 2/3 Pg1 + 1/3 Pg2 = 1.

Total Cost decreases \$6 ©2011 PowerWorld Corporation Market Analysis Quick Start-27 .Increased Line Limit Bus 2 21 MW A MVA A MVA Bus 1 10 \$/MWh slack 59 MW 12 \$/MWh 80% A 100% MVA A 122 MW 0 MW MVA 80 MW Total Cost 80% MVA A 100% MVA A 101 MW 1929 \$/h Bus 3 14 \$/MWh 181 MW 0 MW Limit 1-3=101 MVA.

The values assume marginal power is absorbed at the slack. ©2011 PowerWorld Corporation Market Analysis Quick Start-28 .How do Marginal Generators Aff t C Affect Constraints? t i t? • In the OPF Options and Results. go to LP Solution Details  LP Basis Matrix tab to identify de t y t the e sensitivity se s t v ty of o each eac marginal ag a control on each constraint Increasing g output p of Gen 2 by y 1 MW decreases flow on the binding constraint (Line 1-3) by 1/3 MW.

the marginal load must be supplied locally • Restore line 1-3 1 3 limit to 100 MVA • Change bus 3 load to 250 MW ©2011 PowerWorld Corporation Market Analysis Quick Start-29 .Both lines into Bus 3 Congested g • For bus 3 load above 200 MW MW.

Both lines into Bus 3 Congested g Bus us 2 0 MW A MVA A MVA Bus us 1 10 \$/MWh slack 100 MW 12 \$/MWh 100% 0 MW MVA A 100% MVA A 100 MW 100 MW Total Cost 100% MVA A 100% MVA A 100 MW 3202 \$/h Bus 3 20 \$/MWh 250 MW 50 MW LMP at bus 3 is set by the cost of the generator at bus 3 (\$20) Market Analysis Quick Start-30 ©2011 PowerWorld Corporation .

which have a total capacity of 200 MW • Both constraints cannot be enforced • The marginal cost is now arbitrary. the 250 MW load cannot be served without overloading the lines.Loss of Generator at Bus 3 • Now if the g generator at Bus 3 is taken out of service. Constraint p tab Options ©2011 PowerWorld Corporation Market Analysis Quick Start-31 . given by a penalty function • The Maximum Violation Cost is \$1000/MWh b default. by d f l but b may be b changed h d on the h OPF Options and Results dialog.

Unenforceable Constraint Bus 2 53 MW A MVA A MVA Bus 1 10 \$/MWh slack 47 MW 12 \$/MWh 100% 0 MW MVA A 152% MVA A 203 MW 99 MW A Total Cost 99% MVA 151% MVA A 151 MW 2593 \$/h Bus 3 1041 \$/MWh 250 MW 0 MW Both constraints cannot be enforced. bit Market Analysis Quick Start-32 ©2011 PowerWorld Corporation . enforced One is unenforceable and bus 3 marginal cost t is i arbitrary.

Unenforceable Limits • The cost minimization algorithm naturally tries to remove the line violations. • High marginal prices and the OPF Constraint Records will identify binding and unenforceable transmission limits • Look for generators that are in/out of service near the constraints • There may be a load pocket without enough transmission: the 3 bus case with generator 3 out of service is an example of a load pocket ©2011 PowerWorld Corporation Market Analysis Quick Start-33 .

OPF Line/Transformer C t i t Records Constraint R d Marginal costs are non non-zero zero only for active constraints ©2011 PowerWorld Corporation Indicates if constraint is binding or unenforceable Market Analysis Quick Start-34 .

and congestion • Simulator can resolve the LMP into these components B7OPF pwb case for an example. losses.Cost of Energy. example • Open the B7OPF.pwb using a slightly more complex system with transmission losses ©2011 PowerWorld Corporation Market Analysis Quick Start-35 . Losses and C Congestion ti • Some ISO documents refer to cost components of energy.

• For each area: – Set AGC Status to OPF – Toggle Include Marg. Losses and C Congestion ti • From the Add Ons ribbon tab.Cost of Energy. select OPF Case Info  OPF Areas. Losses column of each area to YES ©2011 PowerWorld Corporation Market Analysis Quick Start-36 .

click Primal LP to solve • The line between buses 2 and 5 is a binding constraint • Now open OPF Options and Results – G Go t to the th Results R lt  Bus B MW Marginal M i l Price P i Details D t il page – Here you will find columns for the MW Marg Cost. Congestion.Cost of Energy. and Losses ©2011 PowerWorld Corporation Market Analysis Quick Start-37 . Energy. Losses and C Congestion ti • Change the load at Bus 5 to 170 MW • From the Add Ons ribbon.

Cost of Energy. Losses and C Congestion ti • Note that the only value that is truly unique for an OPF solution is the total MW Marginal Cost k k  Ek  Ck  Lk ©2011 PowerWorld Corporation “Impact” “I t” of f constraints on LMP Market Analysis Quick Start-38 .

Losses. and C Congestion ti Reference R f • The costs of Energy. specified for each region on OPF control: either an area or super area – Return to OPF Case Info  OPF Areas – Right-click on Area Top and choose show Dialog – The Cost of Energy. and Congestion Reference option group is in the lower left – Similar settings may be found on the Super Area dialog ©2011 PowerWorld Corporation Market Analysis Quick Start-39 .Cost of Energy. Loss. Loss. and Congestion are dependent on the reference for Energy and Losses.

without fixed interchanges between the individual areas • Area records are preserved for calculation of average prices. its AGC St t field Status fi ld must t be b OPF ©2011 PowerWorld Corporation Market Analysis Quick Start-40 . and other quantities • For a super area to be used in the OPF.Super p Areas • Super areas are a record structure used to hold a set of areas • Super p Areas work like ISOs: a number of control areas are dispatched as though they were a single area. exports.

comparison set the present case as the base case again (from Tools Ribbon. ribbon select OPF Case Info  OPF Super Areas • Right Ri h click li k i in the h empty grid id and d select l Insert… ©2011 PowerWorld Corporation Market Analysis Quick Start-41 .Super p Area Control • For comparison. choose Difference Flows  Set Present as Base Case) • From the Add Ons ribbon.

Super p Area Control • Right-click in the empty grid and select Insert… • Select all areas and click OK • Choose Optimal Power Flow Control f from the h option i group on the h right i h • Optionally click the Rename button and rename the super area “ISO” ©2011 PowerWorld Corporation Market Analysis Quick Start-42 .

Super p Area Control ©2011 PowerWorld Corporation Market Analysis Quick Start-43 .

Losses to YES • Solve S l the h O OPF ©2011 PowerWorld Corporation Market Analysis Quick Start-44 .Super p Area Control • Click OK to close the dialog • Toggle Include Marg.

but increase at buses 4-6 • Generator MW output p increased at buses 4 and 6. LMPs drop p at buses 1-3.Super p Area Control • Replacing the 3 area interchange constraints and with a single power balance constraint p Area allowed a redispatch p that for the Super decrease the total cost by \$89/hour • LMP changes g vary y by y location. but decreased at buses 2 and 7 • The line between buses 2 and 5 is still a binding constraint ©2011 PowerWorld Corporation Market Analysis Quick Start-45 .

individual area control ©2011 PowerWorld Corporation Market Analysis Quick Start-46 .Super p Area Control • Change in bus marginal costs with ISO Super Area control vs.

example.Options p for Further Analysis y • What are the marginal g costs of enforcing g the line constraints? How do the system costs change if the line constraints are relaxed (i. not enforced)? For p . try y solving g without enforcing g line 2 to 5.. • Try these other scenarios – – – – – – Reduce the fuel cost of the generator at bus 1 Take the generator at bus 4 out of service Take the line between buses 2 and 5 out of service Increase the load at bus 3 to 200 MW Scale the load by 150%.e. system-wide Change the minimum MW limit of the generator at bus 2 to 50 MW – …and numerous other possibilities ©2011 PowerWorld Corporation Market Analysis Quick Start-47 .

clearing prices and “winners winners and losers” may be greatly influenced by inputs and assumptions. including – – – – – Generator costs or bids Generator availability N t Network k topology t l (lines (li in i service i or out) t) Transmission limits Load: system-wide and at individual buses • The concepts analyzed in these simple models apply to real real-world world power markets as well ©2011 PowerWorld Corporation Market Analysis Quick Start-48 .Summary y • In nodal markets.

and ECAR. They are proprietary and subject to Critical Energy Infrastructure Information (CEII) restrictions on distribution. PJM. Energy Information Administration • Such cases are now g generally y only y available in North America from ISOs. NYPP.Application of OPF to a L Large System S t • Next case is based upon p the FERC Form 715 1997 Summer Peak case filed by NEPOOL – Case includes NEPOOL. ©2011 PowerWorld Corporation Market Analysis Quick Start-49 .S. Transmission Operators. and NERC entities. representing a significant portion of the Eastern Interconnect (9270 buses and 2506 generators) t ) – The system was modeled both as a single Super Area and as separate power pools with fixed interchanges ost ge generators e ato s have ave est estimated ated costs (others (ot e s default de au t to \$10/MWh) \$ 0/ W ) – Most – Market model and results developed in joint project between PowerWorld and U.

NEPOOL/NYPP/PJM/ECAR Supply Curve 80. with i imports of f 2.0 Marg ginal Co ost (\$ / M MWh) 60.0 0.0 20.62 2 62 GW 40.0 Super area has about 160 GW generation.0 60 100 140 180 Total Generation (GW) ©2011 PowerWorld Corporation Market Analysis Quick Start-50 .

System-Wide Super Area: T Transmission i i Loading L di at t Optimal O ti l Solution S l ti The constrained lines are shown with the large red pie charts ©2011 PowerWorld Corporation Market Analysis Quick Start-51 .

System-Wide Super Area: B M Bus Marginal i l Price P i Contour C t ©2011 PowerWorld Corporation Market Analysis Quick Start-52 .

System-Wide Superarea: 85 MW Gen G in i Western W t NY is i offline ffli Note N t the th load l d pocket k t created t d and d difference diff in i LMPs LMP based b d on operation of a single 85 MW generator ©2011 PowerWorld Corporation Market Analysis Quick Start-53 .

170 \$4 494 170 / hr.494.170 \$48 170 / hr h Fixed interchange yields “seams” between power pools ©2011 PowerWorld Corporation Market Analysis Quick Start-54 .Individual Power Pools: B Marginal Bus M i l Price Pi C Contour t Total T t l operating ti cost t = \$4. h an increase i of f \$48.