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Dr. R. GNANADASS, BOYSCAST Fellow Assistant Professor, EEE Department Pondicherry Engineering College, PUDUCHERRY – 605 014 E-Mail – firstname.lastname@example.org The objective of this lecture is to explore the applications of the Artificial Intelligence techniques to solve the technical challenges of deregulated power industry. 1.1. INTRODUCTION
Throughout the world, electric power utilities are currently undergoing major restructuring process and are adopting the deregulated market operation. Competition has been introduced in power systems around the world based on the promise that it will increase the efficiency of the industrial sector and reduce the cost of electrical energy of all customers. Electrical energy could not be stored in large quantities. Continuity of supply is sought as more important than the cost of the electrical energy. To meet the growing power demand, electric power industry has to adopt the deregulated structure. For integrated operation of deregulated system, regulating agencies such as pool operator or system operator have to be formulated. In the deregulated power market, the electricity is dispatched with the help of either by a separate power exchange or the system / pool operator. The power system deregulation is expected to offer the benefit of lower electricity price, better consumer service and improved system efficiency. However, it poses several technical challenges with respect to its conceptualization and integrated operation. Basic issues of ensuring economical, secured and stable operation of the power system, which can deliver the power at desired quality, has to be addressed carefully in a deregulated market. The complexity is more in such an arrangement. Power systems, all over the world, have been forced to operate to their full capacities due to the environmental and / or economical constraints. This results in the need of new generation centers and transmission lines. The amount of electric power that can be transmitted between two locations through a transmission network is also limited by security constraints. Power flows should not be allowed to increase to a level where a random event could cause the network to collapse due to overloading, angular instability, voltages instability or cascaded outages. This state of the system is called as congestion of the power system. Managing congestion to minimize the restrictions of the transmission network becomes the central activity of power system operators in recent years.
Independent System Operator (ISO). 1. higher voltage levels are needed. maintaining security. a supreme entity for the control of transmission system. It was also a local monopoly. In the conventional market. This concept is gaining deep attention which desire to introduce competition into traditional regulated utilities without giving up their existing regulatory structure. Transmission Open Access (TOA) is an important step for the translation of conventional power systems to a deregulated power system. DEREGULATION IN POWER INDUSTRY The driving force behind the development of power systems is the growing demand for electrical energy in developing countries. transportation. A.C. This situation also calls for effective methods to ensure the transmission system reliability. transmission and distribution facilities. operational procedures and economic conditions of the system and enables two or more parties to use the transmission network for electricity power transfer of another party. In a monopolistic market. economy and reliability of the system. obligations. The electric supply industry in every country for about the last one hundred years has been a natural monopoly and as a monopoly attracted regulation by government. In such transmission. while the power is transferred through the network. it is very much important that sellers and buyers of electricity need to find the cost allocation to their wheeling transactions. technical problems such as voltage control and dynamic stability will arise. So wheeling is currently a high priority problem in both regulated and deregulated power industries. The energy demand will be the greatest in the near future.2. satisfying consumer’s demands at proper voltage and frequency level.2 The deregulation of the electric utility industry allows many independent power producers (IPP) to be connected across the transmission system. In the new . The major difference between conventional monopolistic electricity market and the emerging deregulated market is that electricity in the former case is considered as merely energy supply sector. in the sense that in any area one company or government agency sold electric power and services to all customers. Such a deregulated system study is carried out in the present thesis work. This involves in heavy pricing over the customer. also needs to know such costs in order to make correct economic and engineering decisions on upgrading the transmission facilities. In the beginning. the single utility is responsible for maintaining physical flow of electricity. The deregulated power system is to give opportunity to the customer to buy energy at a more favorable price. Therefore. transmission has to transfer power over long distances. the industry has been operated as a vertically integrated monopoly organization that owned the generation. the same agency is responsible for power generation. As energy demand continues to grow. It consists of the regulatory structure. whereas in the new market structure these tasks are segregated and have to be separately paid by the transacting parties. Before entering into the details of the work. whereas in the latter case it is treated as a service sector and is to be marketed like any other common commodity. important terms used have been explained in the following section. Without exception. In a deregulated environment. there are many simultaneous bilateral and multilateral transactions in addition to power pooling. distribution as well as control. which includes transmission right.
a limited level of competition is already introduced at generation level by allowing participation of Independent Power Producers (IPPs). Some of these ancillary services can directly be arranged by the seller / buyers of electricity. political. In addition.2. However. The additional services include arranging power for the loss makeup or load following.2. In India. Motivations for Deregulated Power Industry Since the 1980’s. many of these tasks are treated as separate services.1. which are seen as necessary to reduce costs of energy production and distribution. were the first few to introduce deregulated market of electricity in the mid-eighties followed by U. is to fix tariff for power sales. and the shortage of public resources for investment in developing countries. generation. Shortly most of the power utilities in the country will be adopting the deregulated structure in some sense. Accordingly. each deregulated scheme must address the fundamental technical issues associated with the properly operating open transmission network. Their primary function. Many factors such as technology advances.3 deregulated electricity market. Some of the following potential technical problems before open power market are to be handled carefully. 1. . high tariffs. Some of the Asian countries. Further. where it is now fully operational. These are called ancillary services in the deregulated environment and have to be arranged and paid separately. providing enough voltage / VAR support.e. eliminate certain inefficiencies. Open Transmission System Operation There are many variations in the deregulated scenarios for electric power systems around the world. shed manpower and increase customer choice. The differences may be due to historical. transmission and distribution has already been done in a few states. In addition. global financial drives. such as Argentina and Chile. contributed to the worldwide trend towards deregulation. geographical or economic factors. maintaining the system frequency. spinning reserve in the system etc. the electricity supply industry has been undergoing rapid and irreversible changes reshaping the industry that is remarkably stable and served the public well. including India. South American countries. the transmission of electricity itself will be treated as a separate service and has to be changed from the transacting parties and paid to the wire companies. A significant feature of these changes is that it allows for competition among generators and create market conditions in the industry. specific to each country or area. Scandivinian countries and the USA in the 1990s. the rise of environmentalism.2. This transition towards a deregulated power market is commonly referred to as electricity supply industry restructuring or deregulation. managerial inadequacy. at present. 1. arranging for start-up power.K.. the regulatory bodies have been formed at central level and also at some of the states. changes in political and ideological attitudes. regulatory failures. there exist different schemes for operation and regulating access to transmission systems. in addition to the primary task of the system operator and wire companies to ensure meeting the power transactions all the time. separation of three organs of power system i. have already taken initial steps in this direction.
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