Energy Management and SCADA

Economic Dispatch

MODULE 2
LECTURE 5

Dr.RAVI K
VIT VELLORE
Economic Dispatch
• Economic Dispatch (ED) is defined as the process of allocating
generation levels to the generating units in the mix, so that
the system load is supplied entirely and most economically.
• The objective is to calculate, for a single period of time, the
output power of every generating unit so that all the demands
are satisfied at the minimum cost, while satisfying different
technical constraints of the network and the generators.
• Each generating unit has a unique production cost defined by
its fuel cost coefficients (a, b, c of 𝑎 + 𝑏𝑝 + 𝑐𝑝2 )
where a represents all efficiency factor depending cost,
b stands for those costs which are proportional to
the power generated say like fuel cost,
c stands for the costs to be met even when there
is no power generation
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Economic Dispatch
• Economic dispatch is also defined as the coordination of the
production costs of all the participating units in supplying the
total load.
• The purpose of economic dispatch is to determine the optimal
power generation of the units participating in supplying the
load.
• The transmission losses are neglected to make the task of
solution procedure easier.
• The inclusion of transmission losses makes the task of
economic dispatch more complicated. A different solution
procedure has to be employed to arrive at the solution.
• Economic Dispatch models the electric power system (with
one or more control areas) and dispatches the available
generation resources to supply a given load for each control
area in the most economic
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manner in real-time operation
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Economic Dispatch
• The objective is to minimize the total generation cost
(including fuel cost, plus emission cost, plus
operation/maintenance cost, plus network loss cost) by
meeting the following operational constraints:
 System load demand
 Downward-and-upward regulating margin requirements of
the system
 Lower and upper economic limits of each generating unit
 Maximum ramping rate of each generating unit.
 Unit's restricted operating zones (up to three restricted zones
per unit).
 Emission allowance of the system (SO2, CO2, NOx)

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Economic Dispatch
 Network security constraints (maximum mW power flows of
transmission lines).
 Supporting multiple I/O curves (incremental Heat Rate) and
emission cost curves for different fuels.

N thermal units committed to serve a load of PLoad

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The Economic Dispatch Problem
• The total cost rate of this system is, of course, the sum of the
costs of each of the individual units.
• The essential constraint on the operation of this system is that
the sum of the output powers must equal the load demand.
𝐹𝑇 = 𝐹1 + 𝐹2 … … . +𝐹𝑁
= σ𝑁𝑖=1 𝐹𝑖 (𝑃𝑖 )
0 = 𝑃𝐿𝑜𝑎𝑑 − σ𝑁 𝑖=1 𝐹𝑖 (𝑃𝑖 )
The transmission losses are neglected and any operating limits
are not explicitly stated in this problem.
In order to establish the necessary conditions for an extreme
value of the objective function, add the constraint function to the
objective function after the constraint function has been
multiplied by an undetermined multiplier. This is known as the
Lagrange function
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The Economic Dispatch Problem
ℒ = 𝐹𝑇 + 𝜆𝜙
• The necessary conditions for an extreme value of the objective
function result when we take the first derivative of the
Lagrange function with respect to each of the independent
variables and set the derivatives equal to zero.
• In this case, there are N + 1 variables, the N values of power
output, 𝑃𝑖 plus the undetermined Lagrange multiplier 𝜆
𝜕ℒ 𝑑𝐹𝑖 (𝑃𝑖 )
𝜕𝑃𝑖
= 𝑑𝑃𝑖
− 𝜆=0
𝑑𝐹
Or 0 = 𝑑𝑃𝑖 − 𝜆
𝑖

So, the necessary condition for the existence of a minimum cost-

operating condition for the thermal power system is that the
incremental cost rates of all the units be equal to some
undetermined value, 𝜆
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The Economic Dispatch Problem
The constraint that power output of each unit must be greater than
or equal to the minimum power permitted and must also be less
than or equal to the maximum power permitted on that particular
unit must also be satisfied.
𝑑𝐹𝑖
So, 𝑑𝑃𝑖
=𝜆 𝑁 𝐸𝑞𝑢𝑎𝑡𝑖𝑜𝑛𝑠
𝑃𝑖,𝑚𝑖𝑛 ≤ 𝑃𝑖 ≤ 𝑃𝑖,𝑚𝑎𝑥 2𝑁 𝑖𝑛𝑒𝑞𝑢𝑎𝑙𝑖𝑡𝑖𝑒𝑠
σ𝑁𝑖=1 𝑃𝑖 = 𝑃𝐿𝑜𝑎𝑑 1 𝑐𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑡
The necessary conditions can be expanded slightly as
𝑑𝐹𝑖
=𝜆 𝑓𝑜𝑟 𝑃𝑖,𝑚𝑖𝑛 ≤ 𝑃𝑖 ≤ 𝑃𝑖,𝑚𝑎𝑥
𝑑𝑃𝑖
𝑑𝐹𝑖
≤ 𝜆 𝑓𝑜𝑟 𝑃𝑖 = 𝑃𝑖,𝑚𝑎𝑥
𝑑𝑃𝑖
𝑑𝐹𝑖
≥ 𝜆 𝑓𝑜𝑟 𝑃𝑖 = 𝑃𝑖,𝑚𝑖𝑛
𝑑𝑃𝑖
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The Economic Dispatch Problem
considering losses
The objective function, FT, is the same as that defined before.
However, the constraint equation must now be expanded to the
one shown
𝑁

𝑃𝐿𝑜𝑎𝑑 + 𝑃𝐿𝑜𝑠𝑠 − ෍ 𝑃𝑖 = ∅ = 0
𝑖=1
The Lagrange function is
ℒ = 𝐹𝑇 + 𝜆𝜙
In taking the derivative of the Lagrange function with respect
to each of the individual power outputs, pi, it must be
recognized that the loss in the transmission network, 𝑃𝐿𝑜𝑠𝑠 is a
function of the network impedances and the currents flowing in
the network. The derivative of the Lagrange function with respect
to any one of the N values of pi results
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 N thermal units serving load through transmission network.

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The Economic Dispatch Problem
considering losses
𝜕ℒ 𝑑𝐹𝑖 𝜕𝑃𝐿𝑜𝑠𝑠
= −𝜆 1− =0
𝜕𝑃𝑖 𝑑𝑃𝑖 𝜕𝑃𝑖
𝑑𝐹𝑖 𝜕𝑃𝐿𝑜𝑠𝑠
+𝜆 =𝜆
𝑑𝑃𝑖 𝜕𝑃𝑖
𝑃𝐿𝑜𝑎𝑑 + 𝑃𝐿𝑜𝑠𝑠 -σ𝑁
𝑖=1 𝑃𝑖 = 0
There have been two general approaches to the solution of this
problem. The first is the development of a mathematical expression
for the losses in the network solely as a function of the power output
of each of the units.

The other basic approach to the solution of this problem is to

incorporate the power flow equations as essential constraints in the
formal establishment of the optimization problem. This general
approach is known as the optimal power flow.
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