‫بالل المهدي مفتاح‬

Example(1)

consider two utilities connected with tie-lines:

Area A:

𝑃𝑙𝑜𝑎𝑑 = 700 𝑀𝑊

𝑃max 𝑡𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛 = 1200 𝑀𝑊

𝑃min 𝑡𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛 = 300 𝑀𝑊

-------------------------------------------------------

𝐹1 (𝑃1 ) = 1122 + 15.84𝑃1 + 0.003124𝑃12

𝐹2 (𝑃2 ) = 620 + 15.7𝑃2 + 0.00388𝑃22

𝐹3 (𝑃3 ) = 156 + 15.94𝑃3 + 0.00964𝑃32

-------------------------------------------------------

𝑑𝐹1
= 15.84 + 2 ∗ 0.003124𝑃1 = 𝜆
𝑑𝑃1

𝑑𝐹2
= 15.7 + 2 ∗ 0.00388𝑃2 = 𝜆
𝑑𝑃2

𝑑𝐹3
= 15.94 + 2 ∗ 0.00964𝑃3 = 𝜆
𝑑𝑃3
𝑃1 + 𝑃2 + 𝑃3 = 700

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 700
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟖𝟓𝟔

𝑷𝟏 = 𝟑𝟐𝟐. 𝟕 𝑴𝑾

𝑷𝟐 = 𝟐𝟕𝟕. 𝟗 𝑴𝑾

𝑷𝟑 = 𝟗𝟗. 𝟒 𝑴𝑾

OPERATION COST AREA A:

𝐹1 = 1122 + 15.84(322.7) + 0.003124(322.7)2 = 6559

𝐹2 = 620 + 15.7(277.9) + 0.00388(277.9)2 = 5282.6

𝐹3 = 156 + 15.94(99.4) + 0.00964(99.4)2 = 1835.68

OPERATION COST AREA A=13677.28 $/h

Area B:

𝑃𝑙𝑜𝑎𝑑 = 1100 𝑀𝑊

𝑃max 𝑡𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛 = 1470 𝑀𝑊

𝑃min 𝑡𝑜𝑡𝑎𝑙 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛 = 360 𝑀𝑊

-------------------------------------------------------

𝐹1 (𝑃1 ) = 950 + 13.41𝑃1 + 0.002641𝑃12

𝐹2 (𝑃2 ) = 560.5 + 14.17𝑃2 + 0.003496𝑃22

𝐹3 (𝑃3 ) = 560.5 + 14.17𝑃3 + 0.003496𝑃32

-------------------------------------------------------

𝑑𝐹1
= 13.41 + 2 ∗ 0.002641𝑃1 = 𝜆
𝑑𝑃1

𝑑𝐹2
= 14.17 + 2 ∗ 0.003496𝑃2 = 𝜆
𝑑𝑃2

𝑑𝐹3
= 14.17 + 2 ∗ 0.003496𝑃3 = 𝜆
𝑑𝑃3

𝑃1 + 𝑃2 + 𝑃3 = 1100
 𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17
+ + = 1100
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟏𝟖𝟏

𝑷𝟏 = 𝟓𝟐𝟒. 𝟕 𝑴𝑾

𝑷𝟐 = 𝟐𝟖𝟕. 𝟕 𝑴𝑾

𝑷𝟑 = 𝟐𝟖𝟕. 𝟕 𝑴𝑾

OPERATION COST AREA B:

𝐹1 = 950 + 13.41(524.7) + 0.003124(524.7)2 = 6559

𝐹2 = 560.5 + 14.17(287.7) + 0.003496(287.7)2 = 4927.13

𝐹3 = 560.5 + 14.17(287.7) + 0.003496(287.7)2 = 4927.13

OPERATION COST AREA B=18569.26 $/h

Total operation cost = 13677.28+18569.26 = 32246.54 $/h

2.RESULTS OF THE ECONOMIC DISPATCH:

𝑃1 + 𝑃2 + 𝑃3 + 𝑃4 + 𝑃5 + 𝑃6 = 1800

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94 𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + + + +
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964 2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496
= 1800

𝝀 = 𝟏𝟔. 𝟗𝟗

𝑷𝟏 = 𝟏𝟖𝟒 𝑴𝑾

𝑷𝟐 = 𝟏𝟔𝟔. 𝟐𝟑 𝑴𝑾

𝑷𝟑 = 𝟓𝟒. 𝟒𝟔 𝑴𝑾

𝑷𝟒 = 𝟓𝟗𝟎 𝑴𝑾

𝑷𝟓 = 𝟒𝟎𝟑 𝑴𝑾

𝑷𝟔 = 𝟒𝟎𝟑 𝑴𝑾

OPERATION COST AREA A:

𝐹1 = 1122 + 15.84(184) + 0.003124 (184)2 = 4142.32

𝐹2 = 620 + 15.7(166.23) + 0.00388 (166.23)2 = 3337.02

𝐹3 = 156 + 15.94(54.46) + 0.00964 (54.46)2 = 1052.68

OPERATION COST AREA A=8531.98 $/h

OPERATION COST AREA B:

𝐹1 = 950 + 13.41(590) + 0.003124(590)2 = 9781.23

𝐹2 = 560.5 + 14.17(403) + 0.003496(403)2 = 6838.8

𝐹3 = 560.5 + 14.17(403) + 0.003496(403)2 = 6838.8

OPERATION COST AREA B=23453.89 $/h

Total operation cost = 8531.98+23453.89 = 31985 $/h

area A costs: without interchange: 13,677.21

with interchange: 8,530.93

savings: 5,146.28

area B costs: without interchange: 18,569.23

with interchange: 23,453.89

increased cost: 4,884.66

combined net savings: 261.62

conclusions:
area A can argue that area B had a net operating cost increase of 4884.66 and therefore area
A ought to pay area B this cost area B can argue that area A had a net decrease in operating
cost of 5146.28 and therefore area A ought to pay area B this savings
EXAMPLE(2):

rework the first example by carrying out the steps for incremental cost comparison
between the two utilities

conduct the series of dispatches in steps of 50 MW

AREA A:

STEP 1 WHEN 700 MW:

𝑃1 + 𝑃2 + 𝑃3 = 700

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 700
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟖𝟓𝟔

-------------------------------------------------------------

STEP 2 WHEN 650 MW:

𝑃1 + 𝑃2 + 𝑃3 = 650

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 650
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟕𝟏𝟎

𝑷𝟏 = 𝟐𝟗𝟗. 𝟐𝟓 𝑴𝑾

𝑷𝟐 = 𝟐𝟓𝟗 𝑴𝑾

𝑷𝟑 = 𝟗𝟏. 𝟖 𝑴𝑾
STEP 3 WHEN 600 MW:

𝑃1 + 𝑃2 + 𝑃3 = 600

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 600
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟓𝟔𝟑

𝑷𝟏 = 𝟐𝟕𝟓. 𝟕𝟖 𝑴𝑾

𝑷𝟐 = 𝟐𝟒𝟎 𝑴𝑾

𝑷𝟑 = 𝟖𝟒. 𝟐𝟐 𝑴𝑾

-------------------------------------------------------------

STEP 4 WHEN 550 MW:

𝑃1 + 𝑃2 + 𝑃3 = 550

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 550
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟒𝟏𝟔

𝑷𝟏 = 𝟐𝟓𝟐. 𝟐𝟓 𝑴𝑾

𝑷𝟐 = 𝟐𝟐𝟏. 𝟑 𝑴𝑾

𝑷𝟑 = 𝟕𝟔. 𝟓𝟓 𝑴𝑾

-------------------------------------------------------------

STEP 5 WHEN 500 MW:

𝑃1 + 𝑃2 + 𝑃3 = 500

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 500
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟐𝟕

𝑷𝟏 = 𝟐𝟐𝟖. 𝟖𝟕 𝑴𝑾

𝑷𝟐 = 𝟐𝟎𝟐. 𝟑𝟏 𝑴𝑾

𝑷𝟑 = 𝟔𝟖 𝑴𝑾
STEP 6 WHEN 450 MW:

𝑃1 + 𝑃2 + 𝑃3 = 450

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 450
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟏𝟐𝟑

𝑷𝟏 = 𝟐𝟎𝟓. 𝟑𝟒 𝑴𝑾

𝑷𝟐 = 𝟏𝟖𝟑. 𝟑𝟕 𝑴𝑾

𝑷𝟑 = 𝟔𝟏. 𝟑𝟓 𝑴𝑾

-------------------------------------------------------------

STEP 7 WHEN 400 MW:

𝑃1 + 𝑃2 + 𝑃3 = 400

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 400
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟗𝟕𝟔

𝑷𝟏 = 𝟏𝟖𝟏. 𝟖𝟏 𝑴𝑾

𝑷𝟐 = 𝟏𝟔𝟒. 𝟒𝟑 𝑴𝑾

𝑷𝟑 = 𝟓𝟑. 𝟕𝟑 𝑴𝑾

-------------------------------------------------------------

STEP 8 WHEN 350 MW:

𝑃1 + 𝑃2 + 𝑃3 = 650

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 350
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟖𝟐𝟗

𝑷𝟏 = 𝟏𝟓𝟖. 𝟑𝟔 𝑴𝑾

𝑷𝟐 = 𝟏𝟒𝟓. 𝟒𝟖 𝑴𝑾

𝑷𝟑 = 𝟒𝟔. 𝟏𝑴𝑾
AREA B:

STEP 1 WHEN 1100 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1100

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1100
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟏𝟖𝟏

𝑷𝟒 = 𝟓𝟐𝟒. 𝟕 𝑴𝑾

𝑷𝟓 = 𝟐𝟖𝟕. 𝟕 𝑴𝑾

𝑷𝟔 = 𝟐𝟖𝟕. 𝟕 𝑴𝑾

-----------------------------------------------------------------

STEP 2 WHEN 1150 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1150

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1150
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟐𝟗𝟏

𝑷𝟒 = 𝟓𝟒𝟓. 𝟒𝟑 𝑴𝑾

𝑷𝟓 = 𝟑𝟎𝟑. 𝟑𝟒 𝑴𝑾

𝑷𝟔 = 𝟑𝟎𝟑. 𝟑𝟒 𝑴𝑾

-----------------------------------------------------------------

STEP 3 WHEN 1200 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1200

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1200
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟑𝟗𝟓

𝑷𝟒 = 𝟓𝟔𝟓. 𝟏𝟐 𝑴𝑾

𝑷𝟓 = 𝟑𝟏𝟖. 𝟐𝟐 𝑴𝑾

𝑷𝟔 = 𝟑𝟏𝟖. 𝟐𝟐 𝑴𝑾
STEP 4 WHEN 1250 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1250

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1250
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟒𝟗𝟕

𝑷𝟒 = 𝟓𝟖𝟒. 𝟒𝟏 𝑴𝑾

𝑷𝟓 = 𝟑𝟑𝟐. 𝟕𝟗 𝑴𝑾

𝑷𝟔 = 𝟑𝟑𝟐. 𝟕𝟗 𝑴𝑾

-----------------------------------------------------------------

STEP 5 WHEN 1300 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1300

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1300
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟔𝟓𝟔

𝑷𝟒 = 𝟔𝟎𝟒. 𝟑𝟑 𝑴𝑾

𝑷𝟓 = 𝟑𝟒𝟕. 𝟖𝟐𝟔 𝑴𝑾

𝑷𝟔 = 𝟑𝟒𝟕. 𝟖𝟔𝟐 𝑴𝑾

-----------------------------------------------------------------

STEP 6 WHEN 1350 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1350

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1350
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟔. 𝟖𝟑𝟏

𝑷𝟒 = 𝟔𝟐𝟒. 𝟏𝟗 𝑴𝑾

𝑷𝟓 = 𝟑𝟔𝟐. 𝟖𝟒 𝑴𝑾

𝑷𝟔 = 𝟑𝟔𝟐. 𝟖𝟒 𝑴𝑾
STEP 7 WHEN 1400 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1400

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1400
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟕. 𝟎𝟎𝟔

𝑷𝟒 = 𝟔𝟒𝟒. 𝟎𝟕𝟗 𝑴𝑾

𝑷𝟓 = 𝟑𝟕𝟕. 𝟖𝟔 𝑴𝑾

𝑷𝟔 = 𝟑𝟕𝟕. 𝟖𝟔 𝑴𝑾

----------------------------------------------

STEP 8 WHEN 1450 MW:

𝑃4 + 𝑃5 + 𝑃6 = 1450

𝜆 − 13.41 𝜆 − 14.17 𝜆 − 14.17

+ + = 1450
2 ∗ 0.002641 2 ∗ 0.003496 2 ∗ 0.003496

𝝀 = 𝟏𝟕. 𝟏𝟖𝟏

𝑷𝟒 = 𝟔𝟔𝟐. 𝟔 𝑴𝑾

𝑷𝟓 = 𝟑𝟗𝟏. 𝟖𝟕 𝑴𝑾

𝑷𝟔 = 𝟑𝟗𝟏. 𝟖𝟕 𝑴𝑾

note that at step 6, area A’s incremental cost is just slightly above area B’s
incremental cost, and that this relationship changes at step 7

for minimum operating cost, the two systems ought to be interchanging power
between 250 MW and 300 MW the procedure can then be repeated with smaller steps
between 250 and 300 MW as needed
EXAMPLE(3):

consider a three utility region with interchange agreements

data for utility areas A & B are the same as in previous examples

AT STEP 7 WHEN 400 MW:

𝑃1 + 𝑃2 + 𝑃3 = 400

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 400
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟗𝟕𝟔

𝑷𝟏 = 𝟏𝟖𝟏. 𝟖𝟏 𝑴𝑾

𝑷𝟐 = 𝟏𝟔𝟒. 𝟒𝟑 𝑴𝑾

𝑷𝟑 = 𝟓𝟑. 𝟕𝟑 𝑴𝑾

OPERATION COST AREA A:

𝐹1 = 1122 + 15.84(181.81) + 0.003124 (181.81)2 = 4104.8

𝐹2 = 620 + 15.7(164.43) + 0.00388 (164.43)2 = 3306.45

𝐹3 = 156 + 15.94(53.73) + 0.00964 (53.73)2 = 1040.28

OPERATION COST =8452 $/h

AT STEP 5 WHEN 500 MW:

𝑃1 + 𝑃2 + 𝑃3 = 500

𝜆 − 15.84 𝜆 − 15.7 𝜆 − 15.94

+ + = 500
2 ∗ 0.003124 2 ∗ 0.00388 2 ∗ 0.00964

𝝀 = 𝟏𝟕. 𝟐𝟕

𝑷𝟏 = 𝟐𝟐𝟖. 𝟖𝟕 𝑴𝑾

𝑷𝟐 = 𝟐𝟎𝟐. 𝟑𝟏 𝑴𝑾

𝑷𝟑 = 𝟔𝟖 𝑴𝑾

𝐹1 = 1122 + 15.84(228.87) + 0.003124 (228.87)2 = 4901.78

𝐹2 = 620 + 15.7(202.31) + 0.00388 (202.31)2 = 3955.07

𝐹3 = 156 + 15.94(68) + 0.00964 (68)2 = 1284.4

OPERATION COST =10165 $/h

Agreement A:
Saves area A =13677.2-845.27=5225 $/h

Costs area B=4963 $/h

After splitting saving area A pays area B =5094 $/h

Agreement B:
Saves area C =1822 $/h

Costs area A=1712.3 $/h

After splitting saving area C pays area A =1767.15 $/h

-------------------------------------------

Area A pays =3326.83 $/h

Area B receives =5093.9 $/h

Area C pays=1767 $/h

Agreement BA:
Agreement A:
Saves area A =5313 $/h

Costs area B=4963 $/h

After splitting saving area A pays area B =5138 $/h

Agreement B:
Saves area C =1822 $/h

Costs area A=1800 $/h

After splitting saving area C pays area A =1811 $/h

-------------------------------------------

Area A pays =3326.83 $/h

Area B receives =5138 $/h

Area C pays=1811 $/h