Professional Documents
Culture Documents
Subject: RPS
Branch: EE Batch: A
Page Total
Topics Covered
No. Page
Definition of congestion management and Reason for
22 104-108 5
transfer capability limitation
Subject: RPS
Branch: EE Batch: A
Plagiarism
Topics Covered
Average: 52%
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO:-22
Allow only that set of transactions which, taken together, keeps the transmission
system within limits.
Even if this care is taken, in real time, the transmission corridors may get overloaded
due to unscheduled flows. The system operator has to take some remedial action
104
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Definition of Congestion
The peculiar characteristics associated with electrical power prevent its direct comparison
with other marketable commodities. First, electrical energy can not be stored in large
chunks. In other words, the demand of electric power has to be satisfied on a real time basis.
Due to other peculiarities, the flexibility of directly routing this commodity through a
desired path is very limited. The flow of electric current obeys laws of physics rather than
the wish of traders or operators. Thus, the system operator has to decide upon such a pattern
of injections and take-offs, that no constraint is violated.
Thermal Limits: Thermal limits establish the maximum amount of electrical current
that a transmission line or electrical facility can conduct over a specified time period
before it sustains permanent damage by overheating.
Voltage Limits: System voltages and changes in voltages must be maintained within
the range of acceptable minimum and maximum limits. The lower voltage limits
determine the maximum amount of electric power that can be transferred.
105
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
The limiting condition on some portions of the transmission network can shift
among thermal, voltage, and stability limits as the network operating conditions
change over time. For example, for a short line, the line loading limit is dominated
by its thermal limit. On the other hand, for a long line, stability limit is the main
concern. Such differing criteria further lead to complexities while determining
transfer capability limits.
If the network power carrying capacity is infinite and if there are ample resources to keep
the system variables within limits, the most efficient generation dispatch will correspond to
the least cost operation. Kirchoff‟s laws combined with the magnitude and location of the
generations and loads, the line impedances and the network topology determine the flows in
each line. In real life, however, the power carrying capacity of a line is limited by various
limits as explained earlier. These power system security constraints may therefore
necessitate a change in the generator schedules away from the most efficient dispatch. In the
traditional vertically integrated utility environment, the generation patterns are fairly stable.
From a short term perspective, the system operator may have to deviate from the efficient
dispatch in order to keep line flows within limits. However, the financial implications of
such re-dispatch do not surface because the monopolist can easily socialize these costs
amongst the various participants, which in turn, are under his direct control. From planning
perspective also, a definite approach can be adopted for network augmentation.
106
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Effects of Congestion
The network congestion essentially leads to out-of-merit dispatch. The main results of these
can be stated as follows:
Market Inefficiency: Market efficiency, in the short term, refers to a market outcome
that maximizes the sum of the producer surplus and consumer surplus, which is
generally known as social welfare. With respect to generation, market efficiency will
result when the most cost-effective generation resources are used to serve the load.
The difference in social welfare between a perfect market and a real market is a
measure of the efficiency of the real market. The effect of transmission congestion is
to create market inefficiency.
Market Power: If the generator can successfully increase its profits by strategic
bidding or by any means other than lowering its costs, it is said to have market
power. Imagine a two area system with cheaper generation in area 1 and relatively
costlier generation in area 2. Buyers in both the areas would prefer the generation in
area 1 and eventually the tie-lines between the two areas would start operating at full
capacity such that no further power transfer from area 1 to 2 is possible. The sellers
in area 2 are then said to possess market power. By exercising market power, these
sellers can charge higher price to buyers if the loads are inelastic. Thus, congestion
may lead to market power which ultimately results in market inefficiency.
In multi-seller / multi-buyer environment, the operator has to look after some additional
issues which crop up due to congestion. For example, in a centralized dispatch structure, the
system operator changes schedules of generators by raising generation of some while
decreasing that of others. The operator compensates the parties who were asked to generate
107
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
more by paying them for their additional power production and giving lost opportunity
payments to parties who were ordered to step down. The operator has to share additional
workload of commercial settlements arising due to network constraints which, otherwise,
would have been absent.
One important thing to be noted is that creation of market inefficiency arising due to
congestion in a perfectly competitive market acts as an economic signal for network
reinforcement. The market design should be such that the players are made to take a clue
from these signals so as to reinforce the network, thus mitigating market inefficiency.
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
108
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO:-23
The congestion management schemes are strongly coupled with the overall market design.
Efficient allocation of scarce transmission capacity to the desired participants of the market
is one of the main objectives of congestion management schemes. Thus, distinction among
them can be made based on market based congestion management methods and other
methods. Market-based solutions to congestion are deemed fairer as they contribute better to
economic efficiency than other methods. Methods other than market based make use of
some criteria to allocate the transmission capacity. These methods are supposed to introduce
some kind of arbitrariness as they do not contribute towards efficient pricing of congested
link. Classification of congestion management schemes on these lines is shown in Table 4.1.
109
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Before moving on to see details of these methods, we first see various phases of the entire
process of congestion management on timeline. This is explained with the help of Figure
As the transactions keep on committing, the system operator continuously
updates the available transfer capability between various regions / areas / nodes in
the system. This becomes essential because as the day-ahead (or the spot) market
approaches, the operator should have knowledge about the network capacity left for
settling the market. The transmission network capacity allocation in a coordinated
market may take an explicit or implicit form. In other words, there can be a separate
market for transmission capacity reservation or it may be integrated with the
coordinated market.
Even after capacity allocation, the real time flows may lead to violation of transmission
capacities. In order to relieve congestion during real time, congestion alleviation methods
are employed.
110
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Out of several congestion management techniques listed above, following are exclusively
termed as congestion alleviation methods:
Re-dispatch
Counter Trade
Curtailment
It should be noted that the capacity allocation methods usually allocate the transmission
capacity in ex-ante manner before physical delivery of energy. On the other hand,
congestion alleviation methods are termed as remedial actions. The procedure of capacity
allocation starts with the calculation of Available Transfer Capability
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
111
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO:-24
Generally, the non-market based methods rely upon the information about the ATC in order
to take a decision while allowing the next set of transactions. Thus, calculation of ATC
gains a lot of importance under such market structures. In the early days of deregulation in
USA, the ATC values for the next hour and for each hour into the future would be placed on
a website known as the open access same-time information system (OASIS), to be operated
by the ISO. Anyone wishing to send a power transaction on the ISO's transmission system
would access OASIS web pages and use the ATC information available there to determine
if the transmission system could accommodate the transaction, and to reserve the necessary
transmission service.
It is a measure of the transfer capability remaining in the physical transmission network for
further commercial activity over and above already committed uses. Mathematically, ATC
is defined as the Total Transfer Capability (TTC) less the Transmission Reliability Margin
(TRM), less the sum of existing transmission commitments (which includes retail customer
service) and the Capacity Benefit Margin (CBM
112
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
It is defined as the amount of electric power that can be transferred over the interconnected
transmission network in a reliable manner while meeting all of the specific set of defined
pre and post contingency system conditions.
It is defined as the amount of transmission transfer capability necessary to ensure that the
interconnected transmission network is secure under a reasonable range of uncertainties in
system conditions.
The NERC report [24] brings out the difference between “transfer capability” and
“transmission capacity”. According to this report, the „capacity' specifically mentions the
rating of the equipment, for example, the ampacity of the conductor. On the other hand, the
„capability' depends upon generation, customer demand and the conditions in a transmission
system for the given time period. Thus, the „capacity' of a circuit may not change much
from time to time. However, the „capability' always changes with the time by virtue of
changes in the system condition.
As mentioned earlier, ability of the network system to reliably deliver power is limited by
physical and electrical characteristics of the system. These limits are: Thermal, Voltage and
Stability. During the varying conditions of power system, one of these limits plays a major
role in deciding the transfer capability. Determining which limit is binding during a
particular time is a challenging task and makes computation of ATC an involved task.
Many methods have been suggested to calculate the ATC. The methods differ on the basis
of the power flow model being employed, the system aspects considered, the compelling
113
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
limits under consideration and some other factors. However, a broad way of classifying
methods is based on the type of limit considered, i.e., Thermal limit, Voltage limit or the
Angular stability limit. The DC power flow methods take into consideration only the
thermal limits. The AC Optimal power flow (OPF) methods consider thermal as well as
voltage limits. Then, there is another version called Continuation power flow method (CPF).
It considers a series of power system solutions to be solved and tested for limits. The
amount of transfer is gradually increased from the base case until a binding limit is
encountered. Ejebe et al. [31] have described a method based on continuation power flow,
incorporating limits of reactive power flows, voltage limits, as well as voltage collapse and
line flow limits. Stability constrained methods require transient studies to be carried over a
case developed with anticipated scenario. Christie et al. [1] have proposed a method based
on DC power transfer distribution factors (PTDF). This utilizes DC load flow based
formulation, and computation of simultaneous ATC has also been considered using an
optimization based approach.
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
114
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO: - 25
These assumptions create a model that is a reasonable first approximation for the real power
system, which is only slightly nonlinear in normal steady state operation. The model has
advantages for speed of computation, and also has some useful properties like linearity and
superposition.
With these assumptions, power flows over transmission lines connecting bus i and bus j is
given as:
With these assumptions, power flows over transmission lines connecting bus i and bus j is given
Where,
115
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
The total power flowing into the bus i, Pi, is the algebraic sum of generation and load at the
bus and is called a bus power injection. Thus,
Where, the elements of the susceptance matrix BX are functions of line reactances . One
node is assigned as a reference node by making its angle zero and deleting corresponding
............................................................................................................................(4.4)
.................................................................................................................................(
4.5)
Thus, power flow over line lm can be found out using equation 4.1.
From the power transfer point of view, a transaction is a specific amount of power that is
injected into the system at one bus by a generator and drawn at another bus by a load. The
116
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
coefficient of linear relationship between the amount of a transaction and flow on a line is
represented by PTDF. It is also called sensitivity because it relates the amount of one
change - transaction amount - to another change - line power flow.
PTDF is the fraction of amount of a transaction from one bus to another that flows over a
transmission line. is the fraction of a transaction from bus i to bus j that flows over
a transmission line connecting buses l and m.
.....................................................................................................................(4.6)
Suppose there exists only one transaction in the system. Let the transaction be of 1 MW from bus
i to bus j. Then, the corresponding entries in equation 4.7 will be: and . All other
entries will be zero. From equation 4.5, we get
..........................................................................................................................(4.7)
Similarly,
...........................................................................................................................(4.8)
Thus,
............................................................................................................................(4.9)
117
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
.......................................................................................................................(4.10)
Using equations 4.9, 4.10 and 4.1, the PTDF can be calculated as
...................................................................................................(4.11)
Entry lth row and ith column of the bus reactance matrix X
The change in line flow associated with a new transaction is then
...................................................................................................................(4.12)
Where,
l and m buses at the ends of the line being monitored
i and j from and to bus numbers for the proposed new transactions
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
118
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO:-26
Various norms can be set to assign network capacities on pro-rata basis. The capacities can
be allocated on average load or generation, or percentage of long term transactions or
maximum demand, etc. In other words, all participants receive an equal percentage of the
total amount of capacity they apply for. These norms are used for capacity allocation as well
as for congestion alleviation, which is used in real time. This scheme also has same
limitations as in first come first served method.
Another limitation of this method is possible strategic behavior of the market participants.
The system of pro-rata distribution of capacity can lead to market parties applying for
119
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
transmission capacity much more than what they want, knowing that the actual amount that
they will receive is physically limited.
EXPLICIT AUCTIONING
The principle of explicit auctioning is based on selling the available capacity of the tie line
to the highest bidder through auction. This is nothing but auctioning of the tie line capacity.
The explicit auctioning separates the energy market from transmission capacity market.
This approach is commonly used in Europe for capacity allocation at several borders. In
explicit auctioning, the system operators (or the TSO in Europe) determine ex-ante, the
available transmission capacity (ATC) considering security analysis, accepts bids from
potential buyers and allocates the capacity to the ones that value it most. Thus, explicit
auctioning is a market based concept, which provides economic signals. Thus, with perfect
foresight, bidders for transmission capacity would predict the electricity market outcome
with efficient use of transmission.
A limitation of this mechanism is the increased complexity which may complicate trading
activities of market participants. Another limitation is that the mechanism fails to account
for parallel flows in meshed networks. In this context, a new method has been proposed
called coordinated auctioning.
Coordinated Auctioning
120
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
The coordinated auctioning splits the markets into energy market and transmission capacity
market. Participants have to ensure that they own sufficient transmission rights to conclude
their energy exchanges. However, coordinated auctioning tries to overcome problems
associated with explicit auctioning by accounting for the effects of loop flows in the
network. A central auctioneer is introduced who manages capacity allocation at all borders
included in the Internal European Market (IEM). For coordinated auctioning, three steps are
necessary:
Each system operator informs the central auctioneer about the available transmission
capability.
Market participants submit their bids to the central auctioneer.
The auctioneer allocates transmission capacity using a model similar to nodal
pricing.
Market participants may value their willingness to pay for transmission rights by comparing
the different zonal prices. Hence, rational bidders for transmission rights will submit bids
equal to the zonal difference in energy prices, as savings for cheaper energy are traded off
against the transmission costs. With perfect foresight and all information available, a
coordinated auction will lead to the same allocation as the nodal pricing approach, which in
turn is considered as an economically efficient decision.
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
121
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO:-27
122
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
With no congestion, the market will settle at a single unconstrained market price MPU, and
the total generation and load will be equal, i.e.,
.................................................................................(4.83)
Where,
Since price area A has overall cheaper generation, area A will be net exporter and flow on
line AB will be from A to B. If this unconstrained market settlement results in exceeding the
transfer limit of line AB, then each zone is treated as a separate area, and the zonal markets
are resolved separately. The power balance constraint in zone A is that generation equals
area A load plus transfer on line AB. The value of transfer is the maximum transfer limit of
line AB. An example of the supply and demand curves for two areas A and B is shown in
Figure 4.6.
Here, the unconstrained market clearing price is MPU. The exchange capacity is included in
the area price calculation by moving the supply curve in area B and the demand curve in
area A, as indicated by the dotted curves. Now,
.......................................................................................(4.84)
123
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Similarly,
........................................................................................(4.85)
Individual settlements for each market is done once again. This arrangement ensures that
PAB is restricted to . It can be seen from the Figure 5.6 that the area A price (MPA) is lower
than unconstrained market clearing price (MPU), where as the price of area B (MPB) is
higher than (MPU). The difference between the respective area prices and the system price
is called the network rent and is given as:
.....................................................................................(4.86)
Illustrative Example
124
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Consider a two area system as shown in Figure 4.5. Suppose the capacity of line between
the system A and B is 100MW. The Power exchange receives buy and sell bids from both
areas A and B. These bids present power as a function of price. These are represented as:
...............................................................................(4.87)
................................................................................(4.88)
The bid constants are given in Table 4.7.
Step 1: Unconstrained market settlement is done initially. This gives a market price of 35
INR/MWh. The powers in each area are shown in the Table 4.8:
Area PG PD
A 405 210
B 120 315
.........................................................................(4.89)
Step 3: The results of step 1 are compared with the line flow limits to see if congestion is
occurring on any of the corridors. In this case, the flow on line connecting areas A and B is
195 MW as against its capacity of 100 MW.
Step 4: Separate the market into two price areas: area A and area B.
125
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Step 5: Find out market clearing prices of individual price areas, using load and generation
bid data of respective areas. The outcome of this is presented in Table 4.9.
Area
Area
PG PD
Price
A 250 250 24.73
B 231 231 48.95
Step 6: Using the principle of market-splitting, each area is now dispatched separately and
by including the line capacity constraint. The cumulative load curve in area A and
cumulative supply curve in area B are adjusted such that flow over a line connecting areas A
and B is restricted to 100 MW. This adjustment renders following functions for individual
market settlements:
..........................................................................(4.90)
............................................................................(4.91)
Step 7: The results of final dispatch are given in Table 4.10.
Area
Area PG PG PAB
Price
100
A 330 230 (net 30.0
export)
-100
B 174.3 274.3 (net 41.78
export)
In this case, after making settlements, there is some money left with the power exchange. It
is equal to differences of area prices times the flow on tie line connecting two areas.
126
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
Network Rent
.............................................................................(4.92)
It is apportioned to the TSOs involved for grid capacity enhancement. Bilateral contracts
that span price areas must sell the energy in the supply area and purchase energy in the load
area to account for the contribution to congestion, and to expose the contracts to the
financial consequences of congestion. It is the only instance of mandatory spot market
participation.
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
127
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
LECTURE NO: - 28
Re-dispatching
Re-dispatching is exercised as a command and control scheme, i.e., ISO curtails or increases
injections without market based incentives. As generators have to be reimbursed, the ISO
has an incentive to keep re-dispatch cost low.
Counter Trade
Curtailment
128
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
The congestion management techniques are strongly coupled to the overall market design.
The nodal pricing or OPF based schemes require a centralized dispatch. In this scheme, the
ISO schedules generators and loads based on their bid data such that social welfare is
maximized. While doing so, network constraints are added to the optimization problem so
that the most economic nodal injection pattern is obtained without creating congestion. The
129
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
physical bilateral transaction is scheduled as if the generation injection submitted a zero bid
and the load submitted an infinite bid. Such a transaction is then subject to an ex-post charge
that equals the opportunity cost of transaction, i.e., the cost difference of selling the power
to the pool at the injection node price and buying it back at the take-off node price. Bilateral
traders then opt for buying financial instruments to hedge the price difference risk. Bilateral
traders can also manage transmission price risk by actively participating in congestion relief
by providing incremental/ decremental bids. The nodal pricing scheme achieves economical
efficiency, however, at the cost of complexity and transparency. The scheme is commonly
employed in LMP markets which work according to standard market design in USA .
The inter-zonal/ intra-zonal scheme tries to strike a balance between the complexity and
economic significance. The basic idea in this approach is to divide the grid into few
predefined congestion zones, which have separate markets whose respective market clearing
prices set the uniform price within the zone. It makes calculation for larger systems simpler.
In this scheme, different objectives are used to correct for inter-zonal and intra-zonal line
loadings. When inter-zonal congestion occurs, bilateral transactions across zones are subject
to ex-post congestion fee based on congestion relief cost between the zones. Zonal pricing
schemes were employed in Californian market.
Price area congestion management scheme used in Nordic pool forms a special version of
zonal congestion management scheme. It divides the system into different price areas when
there is congestion. These areas are divided at congestion bottlenecks. Each area will have
its own market. Price areas are defined pragmatically, based on experience and engineering
judgment. Some additional criteria for analytical determination of price areas is required if
the system is not radial inter-connected [1].
In contrast with the nodal pricing scheme, where implicit auctioning of transmission
capacity is done, the transmission facilities in European interconnections are allocated by
means of explicit auctioning. This separates transmission and energy markets. The
mechanisms to account for the effect of loop flows, a scheme called coordinated auctioning
is being proposed, that requires centralized auctioning of transmission interconnections.
130
Gauri Shankar Sharma
Unit-5 EE-5 Sem. Restructured Power System
The term - congestion management generally refers to the capacity allocation to various
participants before finalizing the actual schedules of nodal injections. It is possible that the
commonly employed mechanism may not lead to a feasible solution. The last resort
available with system operator is the forceful curtailment of some of the transactions, based
on some criteria. Again, the real time unscheduled flows may hit the line flow limits. For
this, congestion alleviation methods are employed which may take the form of market based
or non-market based solution.
Method
Characteristi Market Based Allocatio Alleviatio
c Example
? n n
Explicit Decentralized
European
auctioning of Yes
Yes No interconnectio
Auctionin transmission
n
g capacity
Requires
centralized
PJM, New
Nodal dispatch,
Yes Yes No England, New
Pricing implemented
York
in pool based
markets
Can be used
with
Zonal centralized Australia and
Yes Yes No
Pricing dispatch or Nordic pool
using market
splitting
Re-
- Yes No Yes -
dispatch
Replacement
of ill placed
Counter
producer with Yes No Yes Sweden
Trade
better placed
producer
Some norm of
Most of the
Pro-rata allocation, not
No No Yes developing
methods necessarily
countries
economically
References:
1. https://www.pserc.cornell.edu/tcc/tutorial/TCC_Tutorial.pdf
2. https://iopscience.iop.org/article/10.1088/1755-1315/233/3/032025
3. https://ieeexplore.ieee.org/document/6698716/
131
Gauri Shankar Sharma