Lecture 7B

Economic Dispatch of Thermal

Units Part 2
© Bruce F. Wollenberg, University of Minnesota 1
Economic dispatch with piecewise
linear cost functions

© Bruce F. Wollenberg, University of Minnesota 2

Economic dispatch using linear
programming

© Bruce F. Wollenberg, University of Minnesota 3

 LP formulation
Fi ( Pgen=
i
) Fi
( Pgeni
min
) + si1 Pgeni1 + si 2 Pgeni 2 + si 3 Pgeni 3
Where:
0 ≤ Pgenik ≤ Pgenik max for k=1,2,3

and finally:
Pgeni = Pgeni min + Pgeni1 + Pgeni 2 + Pgeni 3
and

Fi ( Pgenik +1 ) − Fi ( Pgenik )
sik =
( Pgenik +1 − Pgenik )
Where k = the index for segments

© Bruce F. Wollenberg, University of Minnesota 4

 LP economic dispatch
Ngen
Minimize ∑
i =1
( Fi ( Pgenimin ) + si1 Pgeni1 + si 2 Pgeni 2 + si 3 Pgeni 3 )

0 ≤ Pgenik ≤ Pgenik max for k=1,2,3,… for all generators i=1…Ngen

and finally:
Pi =Pi min + Pgeni1 + Pgeni 2 + Pgeni 3 for all generators i = 1…Ngen

Subject to:

Ngen

∑P =P
i =1
i load

© Bruce F. Wollenberg, University of Minnesota 5

 Example 3A solved with LP
Number of Generator Generator Generator Total
Segments 1 2 3 cost
MW MW MW ($/hr)
1 400 400 50 8227.870
2 375 350 125 8195.369
3 450 300 100 8204.105
5 400 340 110 8195.206
10 385 340 125 8194.554
50 393 335 122 8194.357
Standard solution 393.2 334.6 122.2 8194.356
with Lambda Search

© Bruce F. Wollenberg, University of Minnesota 6

Economic Dispatch using Dynamic
Programming

Find the optimum dispatch for a total demand of 310 MW

© Bruce F. Wollenberg, University of Minnesota 7

 Plots for Generator 1
3000
25
2760
2500 21.8
2427.5 20
2000 2085
1772.5 15
13.7 13.3
1500 1460 12.5 12.5
1355
10
1000
810
5
500 4.2

0 0
50 75 100 125 150 175 200 50 75 100 125 150 175

Cost vs. P(MW) Incremental cost vs. P(MW)

© Bruce F. Wollenberg, University of Minnesota 8

 Plots for Generator 2
18
2500 16.2
16

2000 14
1950
12 11.8 11.8
1655
1500 10
1360
1155 8 8.2
1000
6
750
500 4
2
0
0
50 75 100 125 150
50 75 100 125

Cost vs. P(MW) Incremental cost vs. P(MW)

© Bruce F. Wollenberg, University of Minnesota 9

 Plots for Generator 3
2500
2358 16
14 14.4
2000 1998
1704.5 12 12.1 12.1 11.74 11.74
1500 10
1411
1108.5 8
1000
6
806
4
500
2
0 0
50 75 100 125 150 175 50 75 100 125 150

Cost vs. P(MW) Incremental cost vs. P(MW)

© Bruce F. Wollenberg, University of Minnesota 10

 Using DP to solve dispatch of
generators 1 and 2
f 2= F1 ( D − P2 ) + F2 ( P2 )

Where D is the “Demand”

or the total power to be
supplied

© Bruce F. Wollenberg, University of Minnesota 11

 Last of all dispatch generator 3 with
the other two
f 3= f 2 ( D − P3 ) + F3 ( P3 )

© Bruce F. Wollenberg, University of Minnesota 12

Adjust for demand = 310 MW

Between 300 MW and 325 MW the marginal unit is

Generator 2 so the solution to this dispatch is:

© Bruce F. Wollenberg, University of Minnesota 13

Composite Generation cost function
The S generator is a composite of all N
Generators on the left of the bus

© Bruce F. Wollenberg, University of Minnesota 14

Procedure to generate the composite
cost function

© Bruce F. Wollenberg, University of Minnesota 15

 Composite function

Curve fit to composite

Data points

© Bruce F. Wollenberg, University of Minnesota 16

 Base Point and participation factors
• Problem:
– When the power system experiences a small
increase or decrease in load we want to tell the
AGC where to put each generator without running
a completely new ED
– We do this by predicting the change in generator
output with a small change in lambda for each
generator

© Bruce F. Wollenberg, University of Minnesota 17

Load change and resulting generation
changes
LOAD

Pgen1

Pgen2

Pgen3

T
Base point and participation factors
∆λi =∆λ ≅ Fi " ∆Pi

By definition then the  ∆Pi  (1 / F ′′i )

 =
 ∆PD  ∑ ( F ′′i )
Participation factor = 1

(1 / F ′′i )
∆Pi =∆PD =∆PD ( pf i )
∑( )
i
1
F ′′i

© Bruce F. Wollenberg, University of Minnesota 19

Dispatch of thermal generator units
with transmission losses considered

Ngen
Pload + Ploss − ∑ Pi =φ=0
i =1

© Bruce F. Wollenberg, University of Minnesota 20

Lagrange function with losses

or

© Bruce F. Wollenberg, University of Minnesota 21

 Incremental losses
∂Ploss
∂Pi
During the economic dispatch we first determine the incremental
Losses, then consider them fixed, then perform the economic dispatch
Then recalculate the incremental losses, etc etc.

Incremental losses may be calculated by approximate methods such

As the B matrix, or calculate exactly using a power flow algorithm.

© Bruce F. Wollenberg, University of Minnesota 22

 The concept of locational marginal
price (LMP)

Generator MW Marginal Generator Bid MW Marginal

1 Cost 2 Cost
($/MWh) ($/MWh)
Segment A 400 5.00 Segment C 200 6.50
Segment B 800 7.50 Segment D 400 8.00

© Bruce F. Wollenberg, University of Minnesota 23

Generator linear segment cost
functions

© Bruce F. Wollenberg, University of Minnesota 24

Base dispatch with no line flow limit

LMP at both buses

Generation dispatch: Is 7.5

Segment MW Price Gen 1 segment A

A 400 5.00 Gen 2 segment C
C 200 6.50
B 300 7.50 Gen 1 segment B

© Bruce F. Wollenberg, University of Minnesota 25

Dispatch with 100 MW line flow limit

Generation dispatch:
LMP at bus 1 is 7.5
Segment MW Price LMP at bus 2 is 8.0
A 400 5.00
C 200 6.50
B 200 7.50 Gen 2 segment D
D 100 8.00

© Bruce F. Wollenberg, University of Minnesota 26

 Summary for economic dispatch
module
• Economic dispatch is performed at even time
intervals or upon a significant load change in
real time during power system operations
• Any time a study is to be done, some form of
economic dispatch must be performed to
match generation output to load and to get
the approximate minimum cost

© Bruce F. Wollenberg, University of Minnesota 27

THANK YOU