LL 369

CWL8 S?S1LM AnAL?SlS

Lecture 17
Cpt|ma| ower I|ow LMs
1om Cverbye and koss 8a|d|ck
1
AnnouncemenLs
8ead ChapLer 7
Pomework 12 ls fourLh edlLlon 1119
1120 1121 1127 1128 flfLh edlLlon
1220 1221 1226 1227 due 1uesday
november 22 (noLe change of daLe!)
Pomework 13 ls (fourLh edlLlon) 1123
1124 71 73 74 73 (flfLh edlLlon) 1223
1224 71 73 74 73 due 1hursday
uecember 1
2
CpLlmal ower llow
1he goal of an opLlmal power flow (Cl) ls Lo
deLermlne Lhe besL" way Lo lnsLanLaneously
operaLe a power sysLem
usually besL" mlnlmlzlng operaLlng cosL whlle
keeplng flows on Lransmlsslon below llmlLs
Cl conslders Lhe lmpacL of Lhe Lransmlsslon
sysLem
Cl ls used as basls for realLlme prlclng ln
ma[or uS elecLrlclLy markeLs such as MlSC !M
CA and L8CC1 (from uecember 2010)
3
LlecLrlclLy MarkeLs
Cver lasL Len years elecLrlclLy markeLs have
moved from bllaLeral conLracLs beLween
uLlllLles Lo also lnclude spoL markeLs (day
ahead and realLlme)
LlecLrlclLy (MWh) ls now belng LreaLed as a
commodlLy (llke corn coffee naLural gas) wlLh
Lhe slze of Lhe markeL Lransmlsslon sysLem
dependenL
1ools of commodlLy Lradlng have been wldely
adopLed (opLlons forwards hedges swaps)
4
LlecLrlclLy luLures Lxample
Source Wall SLreeL !ournal Cnllne 10/30/08
3
ldeal" ower MarkeL
ldeal power markeL ls analogous Lo a lake
CeneraLors supply energy Lo lake and loads
remove energy
ldeal power markeL has no Lransmlsslon
consLralnLs
Slngle marglnal cosL assoclaLed wlLh enforclng
consLralnL LhaL supply demand
buy from Lhe leasL cosL unlL LhaL ls noL aL a llmlL
Lhls prlce ls Lhe marglnal cosL
1hls soluLlon ls ldenLlcal Lo Lhe economlc
dlspaLch problem soluLlon
6
1wo 8us Lu Lxample
Total Hourly Cost :
Bus A Bus B
300.0 MW MW
199.6 MW MW 400.4 MW MW
300.0 MW MW
8459 $/hr
Area Lambda : 13.02
AGC ON AGC ON
7
MarkeL Marglnal (lncremenLal)
CosL
0 175 350 525 700
Generator Power (MW)
12.00
13.00
14.00
15.00
16.00
8e|ow are some graphs assoc|ated w|th th|s two bus system 1he graph on |eft
shows the marg|na| cost for each of the generators 1he graph on the r|ght
shows the system supp|y curve assum|ng the system |s opt|ma||y d|spatched
CurrenL generaLor operaLlng polnL
0 350 700 1050 1400
TotaI Area Generation (MW)
12.00
13.00
14.00
15.00
16.00
8
8eal ower MarkeLs
ulfferenL operaLlng reglons lmpose consLralnLs
may llmlL ablllLy Lo achleve economlc
dlspaLch globally"
1ransmlsslon sysLem lmposes consLralnLs on
Lhe markeL
Marglnal cosLs become locallzed
8equlres soluLlon by an opLlmal power flow
Charglng for energy based on locallzed
marglnal cosLs ls called locaLlonal marglnal
prlclng" or nodal" prlclng
9
CpLlmal ower llow (Cl)
Cl funcLlonally comblnes Lhe power flow
wlLh economlc dlspaLch
Mlnlmlze cosL funcLlon such as operaLlng
cosL Laklng lnLo accounL reallsLlc equallLy and
lnequallLy consLralnLs
LquallLy consLralnLs
bus real and reacLlve power balance
generaLor volLage seLpolnLs
area MW lnLerchange
10
Cl conL'd
lnequallLy consLralnLs
Lransmlsslon llne/Lransformer/lnLerface flow
llmlLs
generaLor MW llmlLs
generaLor reacLlve power capablllLy curves
bus volLage magnlLudes (noL yeL lmplemenLed ln
SlmulaLor Cl)
Avallable ConLrols
generaLor MW ouLpuLs
Lransformer Laps and phase angles
11
Cl SoluLlon MeLhods
nonllnear approach uslng newLon's meLhod
handles marglnal losses well buL ls relaLlvely slow
and has problems deLermlnlng blndlng consLralnLs
Llnear rogrammlng (L)
fasL and efflclenL ln deLermlnlng blndlng
consLralnLs buL can have dlfflculLy wlLh marglnal
losses
used ln owerWorld SlmulaLor
12
L Cl SoluLlon MeLhod
SoluLlon lLeraLes beLween
solvlng a full ac power flow soluLlon
enforces real/reacLlve power balance aL each bus
enforces generaLor reacLlve llmlLs
sysLem conLrols are assumed flxed
Lakes lnLo accounL nonllnearlLles
solvlng an L
changes sysLem conLrols Lo enforce llnearlzed
consLralnLs whlle mlnlmlzlng cosL
13
1wo 8us wlLh unconsLralned Llne
Total Hourly Cost :
Bus A
Bus B
300.0 MW MW
197.0 MW MW 403.0 MW MW
300.0 MW MW
8459 $/hr
Area Lambda : 13.01
AGC ON AGC ON
13.01 $/MWh 13.01 $/MWh
1ransmlsslon llne
ls noL overloaded
WlLh no
overloads Lhe
Cl maLches
Lhe economlc
dlspaLch
Marglnal cosL of supplylng
power Lo each bus (locaLlonal
marglnal cosLs)
1hls would be prlce pald by load
and pald Lo Lhe generaLors
14
1wo 8us wlLh ConsLralned Llne
Total Hourly Cost :
Bus A
Bus B
380.0 MW MW
260.9 MW MW 419.1 MW MW
300.0 MW MW
9513 $/hr
Area Lambda : 13.26
AGC ON AGC ON
13.43 $/MWh 13.08 $/MWh
WlLh Lhe llne loaded Lo lLs llmlL addlLlonal load aL 8us A musL be supplled
locally causlng Lhe marglnal cosLs Lo dlverge
Slmllarly prlces pald by load and pald Lo generaLors wlll dlffer bus by bus
13
1hree 8us (83) Lxample
Conslder a Lhree bus case (bus 1 ls sysLem
slack) wlLh all buses connecLed Lhrough 01
pu reacLance llnes each wlLh a 100 MvA llmlL
LeL Lhe generaLor marglnal cosLs be
8us 1 10 $ / MWhr 8ange 0 Lo 400 MW
8us 2 12 $ / MWhr 8ange 0 Lo 400 MW
8us 3 20 $ / MWhr 8ange 0 Lo 400 MW
Assume a slngle 180 MW load aL bus 2
16
Bus 2 Bus 1
Bus 3
Total Cost
0.0 MW
0 MW
180 MW
10.00 $/MWh
60 MW 60 MW
60 MW
60 MW
120 MW
120 MW
10.00 $/MWh
10.00 $/MWh
180.0 MW
0 MW
1800 $/hr

83 wlLh Llne LlmlLs nC1 Lnforced

Llne from 8us 1
Lo 8us 3 ls over
loaded all buses
have same
marglnal cosL
(buL noL allowed Lo
dlspaLch Lo overload
llne!)
17
83 wlLh Llne LlmlLs Lnforced
Bus 2 Bus 1
Bus 3
Total Cost
60.0 MW
0 MW
180 MW
12.00 $/MWh
20 MW 20 MW
80 MW
80 MW
100 MW
100 MW
10.00 $/MWh
14.00 $/MWh
120.0 MW
0 MW
1920 $/hr

L Cl redlspaLches
Lo remove vlolaLlon
8us marglnal
cosLs are now
dlfferenL
rlces wlll be dlfferenL
aL each bus
18
Bus 2 Bus 1
Bus 3
Total Cost
62.0 MW
0 MW
181 MW
12.00 $/MWh
19 MW 19 MW
81 MW
81 MW
100 MW
100 MW
10.00 $/MWh
14.00 $/MWh
119.0 MW
0 MW
1934 $/hr

verlfy 8us 3 Marglnal CosL

Cne addlLlonal MW
of load aL bus 3
ralsed LoLal cosL by
14 $/hr as C2 wenL
up by 2 MW and C1
wenL down by 1MW
19
Why ls bus 3 LM $14 /MWh ?
All llnes have equal lmpedance ower flow ln
a slmple neLwork dlsLrlbuLes lnversely Lo
lmpedance of paLh
lor bus 1 Lo supply 1 MW Lo bus 3 2/3 MW would
Lake dlrecL paLh from 1 Lo 3 whlle 1/3 MW would
loop around" from 1 Lo 2 Lo 3
Llkewlse for bus 2 Lo supply 1 MW Lo bus 3
2/3MW would go from 2 Lo 3 whlle 1/3 MW
would go from 2 Lo 1Lo 3
20
Why ls bus 3 LM $ 14 / MWh
conL'd
WlLh Lhe llne from 1 Lo 3 llmlLed no addlLlonal
power flows are allowed on lL
1o supply 1 more MW Lo bus 3 we need
LxLra producLlon of 1MW 9

+ 9

1 MW
no more flow on llne 1 Lo 3 2/3 9

+ 1/3 9

0
Solvlng requlres we lncrease 9

by 2 MW and
decrease 9

by 1 MW for a neL lncrease of

$14/h for Lhe 1 MW lncrease
1haL ls Lhe marglnal cosL of dellverlng power
Lo bus 3 ls $14/MWh
21
8oLh llnes lnLo 8us 3 CongesLed
Bus 2 Bus 1
Bus 3
Total Cost
100.0 MW
4 MW
204 MW
12.00 $/MWh
0 MW 0 MW
100 MW
100 MW
100 MW
100 MW
10.00 $/MWh
20.00 $/MWh
100.0 MW
0 MW
2280 $/hr

lor bus 3 loads
above 200 MW
Lhe load musL be
supplled locally
1hen whaL lf Lhe
bus 3 generaLor
breaker opens?
22
1yplcal LlecLrlclLy MarkeLs
LlecLrlclLy markeLs Lrade varlous commodlLles
wlLh MWh belng Lhe mosL lmporLanL
A Lyplcal markeL has Lwo seLLlemenL perlods
day ahead and realLlme
uay Ahead CeneraLors (and posslbly loads)
submlL offers for Lhe nexL day (offer roughly
represenLs marglnal cosLs) Cl ls used Lo
deLermlne who geLs dlspaLched based upon
forecasLed condlLlons 8esulLs are flnanclally"
blndlng elLher generaLe or pay for someone else
8ealLlme Modlfles Lhe condlLlons from Lhe day
ahead markeL based upon realLlme condlLlons
23
aymenL
CeneraLors are noL pald Lhelr offer raLher
Lhey are pald Lhe LM aL Lhelr bus whlle Lhe
loads pay Lhe LM
ln mosL sysLems loads are charged based on a
zonal welghLed average of LMs
AL Lhe resldenLlal/small commerclal level Lhe
LM cosLs are usually noL passed on dlrecLly
Lo Lhe end consumer 8aLher Lhese
consumers Lyplcally pay a flxed raLe LhaL
reflecLs Llme average of LMs
LMs dlffer across Lhe sysLem due Lo
Lransmlsslon sysLem congesLlon"
24
MlSC LM ConLours 10/30/08
23
LlmlLlng Carbon uloxlde Lmlsslons
W 1here ls growlng concern abouL Lhe need Lo
llmlL carbon dloxlde emlsslons
W 1he Lwo maln approaches are 1) a carbon Lax or
2) a capandLrade sysLem (emlsslons Lradlng)
W 1he Lax approach lnvolves seLLlng a prlce and
emlLLer of CC
2
pays based upon how much CC
2
ls
emlLLed
W A capandLrade sysLem llmlLs emlsslons by requlrlng
permlLs (allowances) Lo emlL CC
2
1he governmenL
seLs Lhe number of allowances allocaLes Lhem
lnlLlally and Lhen prlvaLe markeLs seL Lhelr prlces
and allow Lrade
26