Evolution of Power System Structure

When we push buttons and switch on electric lights in our apartments, we seldom
think of what electricity is. The electrical energy now is everywhere but only approximately
100 years ago the first electrical transmission took place. It happened during Frankfurt
am Main International Electrotechnical Exposition in 1891. It was the a scale transmission
of power from hydro-electric plant of Lauffen am Neckar over a distance of 175 km to the
Exposition at Frankfurt. The transmission was the first three-phase line. The electrical
energy was supplied from a synchronous generator rated 210 kW, 95 V, 40 Hz, speed of
rotation 150 rpm.

It was only the beginnings of the Synchronous Machine but before this event many
other developments took place. They were due to contributions by such prominent
persons as Nicola Tesla, Galileo Ferraris, Charles Bradley, and Fridrich Haselwander and
they all were based on Michael Faraday’s experiments due to which the electromagnetic
induction phenomena were discovered. According to Faraday’s views confirmed by
experimental results, the space is not empty but there was an intricate field which by its
inter-connections transmitted the prime mover mechanical energy into electric energy
which can be further transmitted via transmission lines to the electrical energy customers.

100 years ago the first electric power station with rating of hundreds of kilowatt
was used for lighting purposes then for electric power supply for central parts of the cities,
industrial plants and these were created by electrification company leaders such as AEG
in Germany, GE in USA etc. During the first decade of the XX century the capacity of the
largest electric power station reached values of 10 MW, during the 1930s – already 200-
300 MW, and during the 1960s – 1 GW. The increase in the capacity was stimulated by
economic considerations – the larger rated stations were characterized by larger
efficiency, and less costs of installation. Around the middle of the 20th century it became
evident that electrical energy is the most comfortable kind of energy very easily
transformed into every other kind.

Nowadays approximately 60% of primary energy is transferred into electric energy

and then used in diverse applications. The electric energy production is concentrated in
power stations both of large and medium ratings, mostly on thermal (about 70% of
summary power), hydraulic (about 20%), and nuclear (about 10%) systems.

The "heart" of every power station is the synchronous generator (see Electrical
power generation).

At the beginning all electrical power stations were operated separately, supplying
electrical energy only to their own customers. But very soon the engineers realized that
the integration individual power stations into an electric power system gives many
advantages, technical (increase power supply reliability) and economical (decrease costs
of energy), and integration of systems became very rapid. It was based on the progress
in electric power transmission technology and parallel operation of several power stations.
For successful power system transmission, it was very important to increase the
transmission voltage in gradual steps to a high value which now is at 750 kV and more.
This made transcontinental power systems and long transmission lines possible.

So, now electrical energy is produced by converting the mechanical energy of the
prime mover into electricity and integrating separate sources of energy into power stations
and systems to distribute the electrical energy among the customers and to use it in many
applications.

New Power System Under EPIRA Law

The National Power Corporation (NPC) was created under Commonwealth Act No.
120 on November 3, 1936 as a non-stock government corporation. In 1960, NPC was
converted into a stock corporation wholly owned by the government under Republic Act
2641. In 1971, its charter was revised by virtue of Republic Act 6395, as amended. NPC
was granted an authorized capital stock of P 50 billion corresponding to 500 million shares
of stock at P100 par value, of which 270,488,708 shares were issued equivalent to P
27.049 billion.
 From its creation up to the late 1980’s, the generation of power and its transmission
through the nationwide transmission grid (the Grid) in the country was vertically
integrated, centrally controlled and managed, and wholly-owned by the NPC.

In June 2001, Republic Act 9136, otherwise known as the “Electric Power Industry
Reform Act of 2001”, the EPIRA was enacted to institute reforms in the industry. The
major aspects of the reforms include the (1) restructuring of the entire power industry to
introduce competition in the generation sector, (2) change from government to private
ownership, and (3) introduction of a stable regulatory framework for the electricity sector.

The EPIRA organized the industry into four (4) sectors, generation, transmission,
distribution and supply. The structural reforms resulted among others in the creation of
two (2) government-owned and controlled corporations (GOCCs), the Power Sector
Assets and Liabilities Management Corporation (PSALM) and the National Transmission
Corporation (TRANSCO).

PSALM was created to take ownership of all existing generation assets,

independent power producers (IPP) contracts, real estate and all other disposable assets,
and to assume all liabilities and obligations of NPC. The principal purpose of PSALM is
to manage the orderly sales, disposition and privatization of NPC’s assets with the
objective of liquidating in an optimal manner all the NPC’s financial obligations and
stranded contract costs. On the other hand, TransCo was created to take over the electric
transmission function of NPC and the responsibility for planning construction and
centralized operation and maintenance of high voltage transmission facilities including
grid interconnections and ancillary services. NPC was retained as a GOCC (a) to perform
the missionary electrification functions, i.e. provision of power generation and its
associated power delivery systems in areas that are not connected to the transmission
system, through its Small Power Utilities Group (SPUG) (b) to manage the watersheds
and (c) to operate and maintain the generation assets transferred to PSALM pending their
disposal.
Major Components of Deregulated Power System

Electric deregulation is the process of changing rules and regulations that control
the electric industry to provide customers the choice of electricity suppliers who are either
retailers or traders by allowing competition. Deregulation improves the economic
efficiency of the production and use of electricity. Due to competition in the electric
industry, the power prices are likely to come down which benefits the consumers.

The main objectives of the deregulated power market:

• To provide electricity for all reasonable demands.

• To encourage the competition in the generation and supply of electricity.
• To improve the continuity of supply and the quality of services.
• To promote efficiency and economy of the power system.

The important concepts of deregulation are:

• Competition: The competition is at two levels in deregulated power industry:

Wholesale (generation) and retail (distribution).
• Deregulation: The rules governing the electric power industry are changed. The
new structure introduces competition into the market, in place of a few large
regulated companies. 42
• Open Access: In deregulation of power system the Independent Power Producers
(IPP) are permitted to transmit the power using utility transmission and distribution
systems.

The benefits associated with deregulation are:

• Systems capacity will be used efficiently.

• Optimization of energy supply will takes place.
• Price of the electricity will become clearer.
• Consumer choice will be improved.
• Bad technologies are ignored and good technologies are replaced in their place.
• Electricity prices are reduced.
• The usage efficiency is improved due to restructuring in price signals.
 • Power flow will takes place from surplus areas to shortage areas.
• The cost of ancillary services is reduced by reserve sharing.

In the deregulation process, some new entities are expected to appear and hold
major rules in power industry. The structural components representing various segments
of the electricity market are:

• Generation Companies (GenCos.)

• Transmission Companies (TransCos.)
• Distribution Companies (DisCos.)
• Independent Power producer (IPP)
• Independent System Operator (ISO)
• Power Exchange (PX)
• Retail Energy Service Companies (RESCos.)

Figure 1. Deregulated power utility structure

In the deregulated electricity market, increased infrastructure utilization increases

capital returns and increased competition increases economic energy transactions. Due
to introduction of less costly sources, there will be new power flow patterns. New
transmission difficulties will be created and some existing transmission constraints will be
binding more often and with more economic significance. The interconnections are used
at their capacity due to increased interchanges in power markets. This reality has brought
into focus the practical limitations of interconnections and the associated problem of
transfer capability. All these issues will have to be considered when transmission planning
for a project is undertaken. Figure 1 explains the transition process from regulated
industry to a deregulated one.

The word “deregulation” is relatively new to most of the countries. Due to the fact
that it had only been in place in the power market for the past decade, and with the limited
number of countries experiencing it, it is yet to be seen whether it is an opportunity or
threat to the market. It can be a trend that is beneficial to one country and create problems
for another. Constant review and monitoring of all the different markets is done to track
the advancement of the power market. Up to date, the future of the market looks
encouraging meeting the aims of deregulation.

In this topic it is discussed the main aim and the potential benefits of the
deregulation of the power industry. Deregulation will greatly increase power transfers
between areas and change the pattern of inter-area transfers and the network will be
utilized in a way not envisioned in its design.

Interconnected Power Structure

An interconnected power system is a complex enterprise that may be subdivided

into the following major subsystems:

• Generation Subsystem
• Transmission and Sub-transmission Subsystem
• Distribution Subsystem
• Utilization Subsystem

Generation Subsystem

Generation subsystem includes generators and transformers. An essential

component of power systems is the three-phase ac generator known as synchronous
generator or alternator. Synchronous generators have two synchronously rotating fields:
One field is produced by the rotor driven at synchronous speed and excited by dc current.
The other field is produced in the stator windings by the three-phase armature currents.

The dc current for the rotor windings is provided by excitation systems. In the older
units, the exciters are dc generators mounted on the same shaft, providing excitation
through slip rings. Current systems use ac generators with rotating rectifiers, known as
brushless excitation systems. The excitation system maintains generator voltage and
controls the reactive power flow. Because they lack the commutator, ac generators can
generate high power at high voltage, typically 30 kV.

Three-phase ac generator from around 1895

The source of the mechanical power, commonly known as the prime mover, may
be hydraulic turbines, steam turbines whose energy comes from the burning of coal, gas
and nuclear fuel, gas turbines, or occasionally internal combustion engines burning oil.

Steam turbines operate at relatively high speeds of 3600 or 1800 rpm. The
generators to which they are coupled are cylindrical rotor, two-pole for 3600 rpm, or four-
pole for 1800 rpm operation. Hydraulic turbines, particularly those operating with a low
pressure, operate at low speed. Their generators are usually a salient type rotor with
many poles. In a power station, several generators are operated in parallel in the power
grid to provide the total power needed. They are connected at a common point called a
bus.

With concerns for the environment and conservation of fossil fuels, many alternate
sources are considered for employing the untapped energy sources of the sun and the
earth for generation of power. Some alternate sources used are solar power, geothermal
power, wind power, tidal power, and biomass.

A steam turbine used to provide electric power

The motivation for bulk generation of power in the future is the nuclear fusion. If
nuclear fusion is harnessed economically, it would provide clean energy from an
abundant source of fuel, namely water.

The transformer transfers power with very high efficiency from one level of voltage
to another level. The power transferred to the secondary is almost the same as the
primary, except for losses in the transformer.

Insulation requirements and other practical design problems limit the generated
voltage to low values, usually 30 kV. Thus, step-up transformers are used for transmission
of power. At the receiving end of the transmission lines step-down transformers are used
to reduce the voltage to suitable values for distribution or utilization.
 The electricity in an electric power system may undergo four or five transformations
between generator and consumers.

Transmission and Sub-transmission Subsystem

An overhead transmission network transfers electric power from generating units

to the distribution system which ultimately supplies the load.

Transmission lines also interconnect neighboring utilities which allow the economic
dispatch of power within regions during normal conditions, and the transfer of power
between regions during emergencies.

High voltage transmission lines are terminated in substations, which are called
high-voltage substations, receiving substations, or primary substations.

The function of some substations is switching circuits in and out of service; they
are referred to as switching stations. At the primary substations, the voltage is stepped
down to a value more suitable for the next part of the trip toward the load. Very large
industrial customers may be served from the transmission system.

The portion of the transmission system that connects the high-voltage substations
through step-down transformers to the distribution substations is called the sub-
transmission network. There is no clear distinction between transmission and sub-
transmission voltage levels.

Typically, the sub-transmission voltage level ranges from 69 to 138 kV. Some large
industrial customers may be served from the sub-transmission system. Capacitor banks
and reactor banks are usually installed in the substations for maintaining the transmission
line voltage.
Distribution Subsystem

The distribution system connects the distribution substations to the consumers’

service-entrance equipment. The primary distribution lines from 4 to 34.5 kV and supply
the load in a well-defined geographical area.

Some small industrial customers are served directly by the primary feeders. The
secondary distribution network reduces the voltage for utilization by commercial and
residential consumers. Lines and cables not exceeding a few hundred feet in length then
deliver power to the individual consumers.

Distribution systems are both overhead and underground. The growth of

underground distribution has been extremely rapid and as much as 70 percent of new
residential construction is via underground systems.

Load Subsystems

Industrial loads are composite loads, and induction motors form a high proportion
of these loads. These composite loads are functions of voltage and frequency and form
a major part of the system load.

Heavy-Duty Single-Phase Capacitor Start And Run Induction Motor

 Commercial and residential loads consist largely of lighting, heating, and cooking.
These loads are independent of frequency and consume negligibly small reactive power.
The load varies throughout the day, and power must be available to consumers on
demand.

The daily-load curve of a utility is a composite of demands made by various classes

of users. The greatest value of load during a 24-hr period is called the peak or maximum
demand. To assess the usefulness of the generating plant the load factoris defined. The
load factor is the ratio of average load over a designated period of time to the peak load
occurring in that period. Load factors may be given for a day, a month, or a year.

The yearly, or annual load factor is the most useful since a year represents a full
cycle of time. In order for a power plant to operate economically, it must have a high
system load factor. Today’s typical system load factors are in the range of 55 to 70
percent. Load-forecasting at all levels is an important function in the operation,
operational planning, and planning of an electric power system. Other devices and
systems are required for the satisfactory operation and protection of a power system.

Some of the protective devices directly connected to the circuits are called
switchgear. They include instrument transformers, circuit breakers, disconnect switches,
fuses and lightning arresters. These devices are necessary to deenergize either for
normal operation or on the occurrence of faults.

The associated control equipment and protective relays are placed on

switchboards in control houses.