TOPIC 4: GENERATION SCHEDULING IN POWER SYSTEMS OPERATION

OUTLINE
4.1.Introduction
4.2.Overview of Factors Influencing Generation Scheduling
4.3.Types of Generation Scheduling Problems and their Formulation
4.4.Solution Techniques for Optimal Generation Scheduling Problem

4.1.INTRODUCTION
Electrical energy for large scale use cannot be stored, but is generated from natural sources and
delivered through a network of wires/cables as demand arises. Transmission lines are used for the
delivery of bulk power over considerable distances, while a distribution system is used for local
deliveries (i.e., reticulation within specific geographical service areas).
In general, there exist different types of electrical power generating plants/stations based on primary
energy resource used (e.g., coal, oil, natural gas, radioactive matters, river water, marine tides,
underground aquifers, wind, sunlight, biomass materials, etc.), with different production/running
costs, generating capacities, and technical characteristics. The expense on these primary energy
resources constitutes a significant part of the overall cost of system operation. Figure 1 below shows
the block diagram of a simple power system coupling the generating units and different end users.

Figure 1. N generating units serving load through a T&D network

The power system shown above usually operates under continuous variation of consumer load
demand. This demand for electricity exhibits such large variations between weekdays and weekends,
and between peak and off-peak hours that it is not economical to keep all the generating units
continuously on-line. In electrical engineering parlance, an analytical study that involves the selection
of generating units for operation to meet customer load-demand requirements is called generation
scheduling. Since these decisions are to be taken so as to minimise the sum of generating unit startup,
banking, and expected running costs, they are called “optimal generation scheduling”. Cost
minimisation is done subject to the demand and spinning reserve, and satisfying the minimum down-
time and up-time constraints of generating units. So the objective of optimal generation scheduling is
to generate electrical energy to meet the load-demand with minimum cost of generation.
Figure 2 below shows an illustrative load-demand curve (i.e., how demand for electricity faced by an
electrical power system varies moment to moment with changes in consumer activities, pattern of
usage of their loads, and weather). The curve has three main characteristic demand levels: base,

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intermediate, and peak levels. Base demand is the minimum demand for electricity that occurs
throughout the day. This base level of demand is met with baseload generating units which have low
variable operating costs. These units, ideally, runs continuously all year round with a steady load or
output power. The greater part of the daily up and down swings in demand is met by the load-
following or cycling generating units, which are of two types: intermediate and peak load units.

Figure xx. Assignment of units according to their economic efficiencies in supplying varying daily
load demands.
So the demand and the reserve requirements impose global constraints in coupling all active
generating units, while different operating characteristic of each unit constitute local constraints. Thus,
determining which units should be kept on-line and which ones should not, constitute a difficult
problem for power system operators seeking to minimise operational cost.
The optimal generation scheduling problem is to define the production level and/or deployment status
of each plant or generating unit so that the total operational cost of generation and transmission is
minimum for prescribed schedule of load demand. A scheduling problem where cost optimality is
obtained from adjustments in the loading level of individual generating units is called a dispatch
scheduling problem, while that where optimality is achieved through change in the deployment status
(i.e., ON/OFF pattern) is called commitment scheduling problem.
Both types of optimal generation scheduling are influenced by the nature of system load demand
served and the characteristics of the generating units involved. These two factors are discussed in the
following sections. This is then followed by mathematical formulation of the two scheduling
problems. The last section in this topic presents different solution techniques to the optimal scheduling
problem.

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4.2.REVIEW OF FACTORS INFLUENCING GENERATION SCHEDULING
4.2.1. System Load-Demand & Characteristics
Electrical power requirements of different consumers vary in accordance with their activities. The
result of this variation is that the demand they (collectively) place on the generating stations/units
serving them is also never constant but varies from time to time. The total electrical power consumed
by all end-user customers connected to the utility/public electrical distribution network of a system
together with the power used to compensate for losses in all major components of the network
(transformers, converters, and transmission line conductors) is called “system load demand”, SLD.
Knowledge of the SLD and its nature dictates, to a large measure, the generation mix (i.e., the choice
of the type of generation technology to be deployed), the level of loading of individual generating
units and their duty cycle (i.e., dispatch or commitment times or sequence or pattern).
To develop a good understanding of SLD, one needs to first understand the consumers served by the
system. To this end, electrical consumers are normally categorised into the following broad groups:
industrial, commercial, and residential (or domestic). Commercial consumers comprise mainly
offices, shops, schools, etc. The demand which these consumers place on the power system (i.e., the
amount of power they draw from it) depends of their electrical loads (i.e., the electricity-utilising
equipment, apparatus, device and process which they can connect to the system). In practice, electrical
loads can be classified into four broad general categories based on the end-use of electricity: lighting,
power or motive (or motor), heating and electronic. Each of these have different operating & design
characteristics and power requirements, especially in regard to capacity, symmetry (single- or three-
phase), demand constancy (in respect to time, weather, special events, frequency, and voltage), and
use or duty cycle (regular or random use).
Thus, SLD depends on the different characteristics and requirements of the different consumers and
their constituent loads and can be fully described when all of the possible set of values and aspects of
power usage by individual end-use customers are known. In power system engineering, any curve
showing the variation of demand level with respect to time during a given period is called load-
demand profile or curve (CDC). Depending on the time period of analysis, we often distinguish
between hourly/daily, weekly, monthly, quarterly, and annual load-demand curves. The monthly
demand curve can be obtained from the daily demand curves of that month by taking the daily average
demands and plotting them against day-of-month. The yearly or annual load-demand curve is obtained
by considering the monthly demand curves of that particular year. For this, the monthly average
demands are first determined and plotted against month-of-year.
Typical daily load-demand curves of three types of electric customers are given in the figures below
(residential, commercial, and industrial).

Figure 1 – Typical daily demand curve for a residential customer

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 Figure 2 – Typical daily demand curve for a commercial customer

Figure 3 – Typical daily demand curve for an industrial customer

To obtain daily system load demand curve, we aggregate the demand profiles of all the consumers
served by the system. An annual system load-demand curve may be obtained in a similar way.
However, representing 8760 hourly demands is an enormous task which is often simplified by
removing the time chronology from the load-demand representation and re-ordering the demands for
the day according to their duration (in hours). Such a representation of load-demand is called a daily
load-demand duration curve (DDC). It represents daily demand variations/changes in terms of the
number of hours a particular level of demand is equalled or exceeded during or within a given time
period (i.e., a day). A DDC can be obtained for other time periods (e.g., week, month, and year), thus
resulting in weekly, monthly and annual demand-duration curves, respectively. A graphical
illustration of an annual demand duration curve is shown in the figure below.

Figure 4 – Annual Load-Demand Duration Curve

Load-demand duration curves are often characterised by very sharp ascents to the maximum or peak
demand values. The shape of the remainder of the curve varies based on utilisation patterns, size, and
content of the system for which the duration curve is plotted.
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The DDC is obtained from the CDC by organizing the CDC demand data by magnitude, starting with
the highest, and plotting them against the cumulative amount of time that demand levels are
experienced or seen (i.e., equalled or exceeded) over a specified time period. DDC provides a quicker
means of determining the amount of energy used or demanded over a period of time by measuring the
area under the curve.
A graphical illustration of how a demand duration curve is obtained or derived from a daily
chronological demand curve is shown below.

Figure 5 – Determining a daily DDC from a daily CDC

From the foregoing, it clear that daily system demand curves differ significantly from one another,
thus reflecting the distinctive operating conditions of different types of consumers or their constituent
loads. This diversity notwithstanding, it is noteworthy that each chronological demand curve has some
common features. For example, every daily demand curve is generally characterised by some
maximum or peak (Pmax) and minimum (Pmin) value (i.e., highest and lowest values) of the demanded
power which occurs at different times during the 24-hour period. It is generally the practice in power
system planning and operation to specify maximum demand in 10-, 15-, 30-, or 60-minute demand
measurement intervals rather than as instantaneous values. That is, integrated maximum demand
values are obtained by dividing the energy used by the time interval of measurement or the maximum
demand interval:
∆t

Energy use over max. demand interval

∫ P(t )dt
Maximum Demand, Pmax = = 0 [1]
Max. demand interval ∆t

Here, ∆t denotes the adopted maximum demand interval (10, 15, 30, or 60 minutes). Integrated
maximum demand values can be much lower that maximum instantaneous demand values for a load
or facility.
Every demand curve is also characterised by an average value of demand, Pav. That is, the average of
the integrated demands over a specified period (day, week, month, etc.). Its value lies between the
maximum (or highest) and the minimum (or lowest) values of demand. Average demand is given in
terms of the amount of electrical energy consumed (which is given by the area under the demand
curve), Eav, as follows:
T
E 1
Pav = av =
T T ∫ P(t )dt
0
[2]

where T is the total number of hours in a given period (day, month or year).
Another demand characteristic, which can be determined from the demand-duration curve, is the
maximum demand equivalent-hours (MDEH), Tmax. That is, the number of hours of maximum demand

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which will result in the same amount of total energy consumption as is consumed by the actual
demands over a specified period of time. For an annual time frame, this parameter is given by the
expression:
8760
E year =
t =0
∫P D (t )dt = PD ,max × Tmax

or
8760

∫P D (t )
Tmax = 0

PD , max

The maximum demand equivalent-hours (both daily and annual MDEHs) depend on the consumer’s
specific operating conditions. However, experience shows that for different consumer categories, the
value of this parameters lies within certain limits. These limits are shown in the table below.
S.No. Consumer Group Tmax (Hrs/Year)
1 Internal lighting and domestic electrical appliances 1,400 – 3,400
2 Industrial consumer operating on one work shift 2,000 – 3,000
3 Industrial consumer operating on two work shifts 3,000 – 4,500
4 Industrial consumer operating on three work shifts 4,500 – 8,000
The average value of maximum demand equivalent-hours vary significantly among the various sectors
of the economy. For example, most continuous-process chemical and metallic production plants have
an average MDH of 8,500 hours/year, construction material production plants – 6,500; electrified
railroad transport system – 8,000; agricultural production – 5,000; and oil refining industry – 7,400
hours/year.
The preceding section discussed demand representation in graphical form and the key identifying
parameters (e.g., instantaneous demand, maximum demand, minimum demand, average demand, and
energy demand over a specified period of time). This section considers some of the most common
statistical indices used to characterise or describe system load-demand and its changing nature when
the typical demand profiles are not known or given. They are widely used to estimate system demand
(especially, the peak or maximum demand level) when very detailed information about the
characteristics of demand over time is not known beforehand (i.e., when graphical representations or
time plots – CDC or DDC – of demand are not available). Here, an index (aka a factor) is basically
used to refer to a multiplier which when applied to some readily available demand parameter (e.g.,
nameplate ratings, metered consumption, etc.) yields the required or unknown demand parameter (i.e.,
maximum demand). Such indices or factors include the following: demand factor, load factor,
diversity factor, coincidence factor, and utilisation factor. These and many other indices/factors used
in characterising system demand are briefly described below.
(i) Demand Factor
This is the ratio of the maximum demand, Pmax, placed on system, or part of a system, to the total
connected load demand of the system, or the part of the system, under consideration, Pconnec (i.e., sum
of the ratings of all the electrical devices at the customer’s location). A system or a consumer’s total
connected load demand, unlike a total expected load demand, is given by the sum of the continuous
rated capacity, Prtd, of the entire electricity utilising apparatus/appliances, processes and outlets that
the consumer can connect to the supply system.
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 Pmax
k Dem = [7]
Pconnec.
N
PConec. = ∑ Prtd ,i [8]
i =1

where N is the total number of loads (devices, appliances) or load groups connected to the system.
If all of the N electricity utilising appliances/devices connected to a power system are used
simultaneously (i.e., at the same time) at full or maximum capacity, the maximum demand placed on
the system will be equal to the total connected load demand and the demand factor will be unity. In
practice, however, consumers do not use all the loads (devices and outlets) at full rated capacity
simultaneously and therefore the maximum demand is always less than the total connected load.
Therefore, 0 ≤ k Dem ≤ 1 , but its common value generally lies between 0.3 and 0.9. Generally, higher
demand factor values apply to individual loads, or small groups. The reasoning for this is that the
larger the number of loads involved, the less the likelihood that all of them will be fully energized at
any one time.
The demand factor is generally a measure of the contribution of each load or load group to the total
connected load demand of a consumer (i.e., demand factor values give an indication of the percentage
of electrical load devices that are on when the maximum demand occurs). The demand factor can be
computed for an individual customer but not for a distribution transformer or the total feeder. Demand
factor values are normally given in electrical design manuals for the various types of loads and are
often used to express the expected diversity of individual loads within a facility prior to construction.
The knowledge of this factor is vital in determining the capacity of system equipment (i.e., use of
demand factors allows for facility power system equipment to be sized appropriately for the expected
load demand).
(ii) Load Factor
The load factor is a quantity related to the demand factor, expressing the ratio of the average demand
by a load (an individual customer) or a group of loads (a group of customers) for a designated period
of time, Pav, to its maximum demand occurring in that period. The designated period (or time horizon)
may be a day (i.e., 24-hour period), week, month, or year (i.e., 8760-hour period).
Pav Pav
k Load = = [9]
Pmax k dem Pconec

This factor provides a means of estimating maximum demand if energy use or consumption data,
E(T), during a given period of time, T hours, and typical load factor values are known. That is:
E (T ) E (T )
k Load = → Pmax = [10]
Pmax × T k Load × T

The amount of electrical energy appearing in the above expression can be determined from the
demand curve or using direct measurement (i.e., utility billing data).
Another commonly used method for estimating maximum demand based on available annual energy
use or consumption data of a group of consumers, Ea, is the Velander formula – a nonlinear
relationship between Pmax and Ea.

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 Pmax = k1 E a + k 2 E a [11]

The coefficients k1 and k2 are empirical constants obtained from load demand survey research and
published in system planning manuals.
Like the demand factor, load factor is always less than 1.0 because average demand is smaller than the
maximum demand. Load factor normally depicts the time variability of demand during a given period
of time, but it does not give any indication of the actual shape of the demand curve (i.e., load factor is
a measure of the uniformity of demand curve and hence the efficiency with which energy is used or
consumed). A load factor of 1.0 would indicate that the demand curve is completely flat and no peaks
are present. That is, load factor is a measure of the extent to which maximum demand is sustained
during a given period of time.
From the supplier point of view, it is preferable to remove peaks and flatten or smoothen out the
demand curve (for this results in decreased production cost), which corresponds to a load factor
increase. Thus, for better system economic performance, higher load factor values are desirable (i.e., a
high load factor is typically desirable, indicating that a load or a group of loads operate near its
peak/maximum most of the time, allowing the greatest benefit to be derived from any facilities
installed to serve the load).
Another measure closely associated with this factor is what is often called system equipment capacity
factor or simply, capacity factor (or energy delivery factor). It expresses the ratio of average power
demand delivered/generated to the rated or installed capacity of the system equipment or plant, Pinst.
The installed or rated capacity of a system equipment (e.g., generator, power line, or a power
transformer) is normally higher than the expected maximum load-demand to be served by the amount
of the required reserve capacity, Pres. That is:
Pav P
Pinst . = Pmax + Pres. ⇒ k cap = = max × k Load = (1 − CRM ) × k Load [12]
Pinst . Pinst .

where CRM = Pres is the component’s required per-unit capacity reserve margin.
Pinst .

The ratio of the total aggregate maximum demand placed on the system by the various classes of users
to the system’s or system facility’s rated or installed capacity, appearing in the above expression, is
called the equipment utilisation factor, kutil (i.e., k util = Pmax ). Both the maximum demand and the rated
Pinst
capacity are expressed in the same units. The factor indicates the degree to which a system or system
facility is being loaded during the load peak with respect to its installed capacity. The rated capacity of
the system or system equipment is usually determined by its thermal capacity, but may also be
determined by voltage drop limitations, the smaller of the two determining the capacity. Thus,

k cap = k util . × k Load [13]

If we multiply both the numerator and denominator of the capacity factor by the average number of
hours a system equipment or facility is in service and operating, we obtain what we call the duty
factor, kduty:
Pav .Top kWhop Actual Energy Produced or Delivered by Plant
k duty = = = [14]
PInst.Top PInst.Top (Plant Capacity) x (Plant Operation Time)

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The above four factors (i.e., load factor, capacity factor, utilisation factor, and duty factor) indicates
how well the installed system or system component capacity is utilised and operated in the serving the
load placed on it. The duty factor (also called average annual energy delivery factor, EDF) may also
be calculated as follows:

∫ P dt0 ∑P avg × ∆t
=
yr yr
EDF = [15]
Pm × 8760 Pm × 8760
where: Pm – plant capacity (the maximum power the plant can deliver); P0 – power delivered to the
customers at any time t; Pavg – average power delivered over the small interval of time ∆t; and 8760 –
total number of hours in a year.
(iii) Diversity Factor
This factor characterises the variation in the time-of-maximum-use (TOMU) of two or more
connected loads or consumers. Here, system diversity refers to the shift in the time of occurrence of
maximum demand of individual loads/consumers served by a common system facility (i.e., variety of
maximum load usage by time) [difference between maximum non-coincident demand and the
maximum diversified demand]. It, thus, creates a difference between the sum of the individual
maximum demands of two or more consumers (i.e., the maximum non-coincident demand) and the
maximum demand of the combined consumers (also called the maximum diversified demand, MDD
or maximum coincident demand, MCD or group maximum demand, GMD – that is, maximum of the
sum of the demands imposed by a group of loads over a specified period), PDMD, and the levelling of
the demand curve to obtain a more flat curve. That is,
N
Load Diversity , LD = ∑ Pmax,i − PDMD [16]
i =1

For example, one consumer’s maximum demand may occur in the morning, while another’s may
occur in the afternoon, and still another’s in the early morning hours, as shown in the figure below.
This shift in the time of occurrence of maximum demand of individual loads (i.e., lighting, air
conditioner, refrigerator, washing machine, and freezer) results in a reduction of the simultaneous
maximum demand compared to the maximum demands of the individual loads. The diversity factor,
therefore, is the ratio of the sum of maximum demands of each of the load or consumers connected to
the system (i.e., sum of non-coincident maximum demands) to the maximum demand of the
composite consumer (or the coincident maximum demand).
N

∑P
i =1
max, i
k Div = ≥1 [17]
PDMD
A diversity factor is, therefore, always greater than 1.0 – typically between 1.0 and 2.0. It will be 1.0
when all the peaks or maxima for the loads (customers) in a group occur at the same time. Diversity
factor will be greater than 1.0 when the demands are non-coincident (i.e., when they do not occur at
the same for all the loads or customers). The key driver of a load group diversity factor is the group’s
size (i.e., the number of loads or customers in the group). The smaller the size of a load or customer
group, the lower the diversity factor. The diversity factor increases with a large slope in the beginning

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and flattens out as the load group size increases (diversity factor as a function of number of
customers).

Figure 7 – Illustrating load demand diversity

(iv) Coincident Factor
This is the ratio of the maximum coincident total demand of a group of consumers (i.e., aggregate
maximum demand for a group of customers) to the sum of the maximum demands of each of the
consumers (i.e., sum of individual customer maximum demands). That is, coincidence factor is the
reciprocal of the diversity factor:
Pmax, CD
k Coinc . = N
≤1 [18]
∑P
i =1
max, i

The coincident factor can also be determined in terms of the indicators of the contributions of the
individual loads or consumers (or consumer groups) to the coincident (diversified) maximum demand
(CMD or DMD) as follows:
N
Pmax,CD = Pmax, DD = ∑ c i Pmax,i
i =1
N

∑c P
i =1
i max,i
[19]
k Coinc. = N

∑P
i =1
max,i

where ci is the contribution or responsibility factor of i-th consumer (load) in a group of N loads
(consumers), each having a maximum demand of Pmax,i.
If the maximum demands of the individual loads (i.e., if the individual or non-coincident maximum
demands) are the same, the coincidence factor will be equal to the average of the contribution factors
and if the contribution factors of each load are same, the coincidence factor will be equal to the
contribution factor itself.
The contribution factor in the above expression describes one specific customer's (or customer
group’s) influence on a total utility load-demand curve (system or bus demand curve) or, in other
words, the contribution of individual consumer (or customer group) to the total system demand.
Contribution factor (also known as superposition or responsibility factor) is the ratio of the individual
consumer demand during the total system peak period and the maximum individual load-demand

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during the time period (i.e., the ratio of a load’s demand at the time of the system peak to its peak
demand) and is expressed as follows:
∆Pmax,i
ci = SFi = [20]
Pmax,i

where: ∆Pmax,i = the demand of load (customer) i at the time of system peak demand,
Pmax,i = maximum demand value of load (consumer) i
The range of values that this factor can take is between 0 and 1, where a value of 1 would indicate,
that the peak of the individual consumer or load coincided with the peak of total system demand (i.e.,
a load with a responsibility factor of 1 peaks at the same time as the overall system).
Superposition factor is mainly a “utility oriented” tool. This factor could be the major decision driver
to select the customers for participation in demand control programs. The factor exactly tells which
customers should be addressed first and where the load-demand management activities would actually
give the desired results. Having this knowledge, for example, the utility could approach the specific
customer, or group of similar customers with the special proposals for demand control actions (tariffs,
load control programs, etc.).
NB: Note that there is a minor but significant difference between coincidence factor and the demand
factor discussed earlier. The coincidence factor is based on the observed peak or maximum demand
for individuals and groups (i.e., load’s expected demand), whereas the demand factor is based on the
connected load (i.e., load’s maximum rating).

Figure 9 – Illustrating the superposition factor

(v) Load-Loss Factor (aka Loss Factor)
The average power/energy losses in a power system network, for any given period, depend upon the
aggregate demand curve/profile of the customers/loads it serves, and hence on the different demand
curve characteristics (e.g., maximum power demand, average power demand, total energy delivered,
and load factor).
Load-loss factor is a statistical load-demand index which is used to capture this relationship. It is
given by the ratio of the actual/average system power losses over a period of time to the losses
obtaining if the maximum demand is maintained (i.e., peak or maximum power loss) over the same
period:
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 ∆Pav ∆E
K LLF = = [21]
∆Pmax ∆Pmax T
This factor applies only to the variable (aka copper or load) losses in the system.
The relationship between load-loss factor and load factor is given by the empirical formula given
below. This formula was obtained after a detailed empirical study of a number of system demand
curves of a number of electric utilities worldwide:

K LLF ≅ aK Load + (1 − a )K Load

2
[22]

where “a” is a factor lying in the range: 0 ≤ a ≤ 1

For “a” equal to 0, the LLF becomes equal to:

1 NT  P302 ,t 
K LLF = K 2
Load =
NT
∑ 
 2
t =1  Pmax, 30


[23]

where:
P30,t – the 30-minutes average demand in the t-th time period;
Pmax,30 – the highest 30-minutes average demand within the study period; and
NT – total number of 30-minute demand time periods or intervals in the study period (e.g., a
day, week, month, or year).
Thus, the load-loss factor can also be calculated based on load-demand curves, which is generated
from half-hourly average demands over a given study period (e.g., day, week, month, week). The
load-loss factor obtained in this way can then be applied to the system losses calculated at peak
demand to determine the actual losses. System losses at peak demand can be determined from load-
flow studies.
(vi) Average Power Factor
Most consumers require not only real power (which is converted into other useful energy forms by the
end-use loads), but also reactive power for their operations. Thus, alongside active power, this reactive
power requirement must also be delivered by the generating units. Therefore, to fully characterise
system demand, we need to also know the reactive load-demand characteristics. The demand curves of
real and reactive powers are generally not the same (both in magnitude and shape).
In most operational tasks, however, the reactive power demanded by consumers is considered only in
approximate form using the active power demand estimate and an average power factor. The latter is
normally assumed to be constant and is specified either for a maximum demand period or for a
minimum demand period.
From circuit theory and basic power courses, it is known that a power factor is the ratio of average
real power, P, to the apparent power, S and it is given by the cosine of the phase-angle difference, θ,
between voltage across and current through a power system component or load.
P P
pf = cosθ = = [24]
S P 2 + Q2

From where,

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 Q = P tan θ [25]

For efficient operation of the power system, power factor needs to be kept as high as possible. Low
power factor often results in high cost of system equipment, poor voltage regulation, and high energy
losses in the system. Low power factor often results from (or caused by) transformer magnetising
currents, excessive use of induction motors, wide spread use of arc lamps and furnaces, and
overloading of distribution feeders.
Higher power factor values can be achieved by: (i) using synchronous instead of induction motors, (ii)
use of high-speed instead of low-speed induction motors, (iii) operating induction machines at their
rated capacity, (iv) delta-to-star switching of induction motor windings during low load conditions,
and (v) using DC motors instead of AC motors, if possible.
4.2.2. Basic Operational Characteristics of Generating Units
4.2.2.1.Types of Generation Technologies
As already stated, demand for electricity faced by an electrical power system varies moment to
moment with changes in consumer activities, pattern of usage of their loads, and weather. An
illustrative load-demand curve is shown below. The curve has three main characteristic demand
levels: base, intermediate, and peak levels.
As shown in the illustrative load-demand curve, there is a minimum demand for electricity that occurs
throughout the day. This base level of demand is met with baseload generating units which have low
variable operating costs. These units, ideally, runs continuously all year round with a steady load or
output power. The greater part of the daily up and down swings in demand is met by the load-
following or cycling generating units, which are of two types: intermediate and peak load units.

Figure xx. Assignment of units according to their economic efficiencies in supplying varying daily
load demands.

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There are many technology options available to generate electricity needed to meet the baseload,
intermediate (cycling) load, and peak load demands. These technologies are differentiated mainly by
the primary energy source harnessed to produce electricity. A summary of generation plant types
based on the primary energy sources used is given in the table below.
S.No. Type of Power Plant Primary Energy Source(s) Used
Existing Major Options
1 Nuclear Uranium
2 Fossil-Fired Steam Coal, Oil, Natural Gas
3 Hydroelectric Falling Water or Water Current (solar)
4 Combustion Turbines Distillate oil, treated residual oil, natural gas
5 Diesel engines Diesel fuel (oil)
6 Combined Cycle (Steam and Oil or natural gas
Combustion Engine)
7 Pumped storage (hydroelectric) Falling water for generation and other generation sources for in the
system for pumping
Potential Future Options
1 Steam turbines Wood, urban waste, biomass, solar thermal, geothermal
2 Fuel cells Hydrogen-rich gas (can be obtained from light distillate fuel or other
liquid or gaseous fuels)
3 Photovoltaic Solar
4 Wind turbines Wind (solar)
5 Ocean thermal energy conversion Ocean water temperature difference with depth (solar)
6 Tidal power Ocean tides
7 Storage (battery, compressed air) Other generation sources in the system
The focus of this topic, however, is on utility-scale generating plants (i.e., the plants producing large
amounts of electricity at a single site for transmission to geographically dispersed customers). In
Tanzania, the current utility-scale plants are mainly of the following types: hydroelectric (xx %); oil-
fired thermal plants (xx %), and gas-fired thermal plants (xx %).
The process-flow (schematic) diagrams of some the above utility-scale generation technologies were
considered in the basic course on power plants. The student is expected to remember them and outline
the major elements or components (equipment) of each type of generation technology and their
functions and to describe the operating principles (i.e., basic principles of energy conversion in the
various technologies or conversion between energy forms in the various types of plant).
All the different types of generation technologies can be compared to each using the following
framework:
Unique Attributes of a Technology that Influences the Comparative Factor
S.No. Comparative Factor Hydroelectric Fossil Fuel-Fired Geothermal Nuclear Power
Plant Power Plant Power Plant Plant
1 Capital Cost

2 Operation and Maintenance

Cost
3 Reliability and Availability

4 Safety

5 Maintainability

6 Flexibility

7 Simplicity

8 Aesthetics (incl. Social Impact)

EE 315: TOPIC #4 (2015-2016) 14

 9 Efficiency (Energy Loss
During Conversion)
10 Environmental Effect

4.2.2.2.Basic Operational Characteristics

(a) Input-Output Characteristics
The operation of a generating unit, irrespective of technological implementation, is characterised by a
unique performance characteristic, which is the form of a mathematical and/or graphical relation
between the energy input to the unit over a given period of time to the average output power it
produces. They are also called input-output characteristics. Such characteristics are only fully
described if the operating goals or constraints are also given and are not violated. The figure below
illustrates this concept.

The efficiency feedback measures how well the generating unit is doing in transforming inputs to the
output (e.g., how much input energy is required to produce a unit of output energy), while
effectiveness assesses how well the unit’s output measures up to that which it is designed or intended
to achieve. The effectiveness measures usually involve safety, quality, reliability, economy, etc
assessed relative to the goal that has previously been established or set.
The table below summarises the energy inputs of different types of electricity generation technologies.
S.No. Technology Measure of Input Energy (i.e., Input Principle(s) of Conversion
Parameter) to Electricity
1 Fossil-fuel fired Heat energy of combustion (i.e., Refer to course on
thermal power chemical reaction) per unit time Thermodynamics
plant (normally one hour of operation)
2 Hydroelectric Potential energy of falling water and/or Refer to course on fluid
power plant kinetic energy of water current or flow mechanics
(depends of volume of water per unit
time)
3 Wind power plant Kinetic energy of wind current Refer to course on fluid
mechanics
4 Geothermal power Underground heat energy Refer to course on
plant thermodynamics
5 Nuclear power Heat energy of radioactive reaction Refer to course on
plant (fission or fusion) thermodynamics

EE 315: TOPIC #4 (2015-2016) 15

For thermal-based generating units (e.g., fossil-fuel-fired plants, nuclear plant, geothermal plant,
biomass-fired plant, and solar-thermal plant), the energy input is expressed in terms of the amount of
the thermal energy per unit time (normally one hour of operation), while for the hydraulic-based ones
(e.g., water and wind power plants), it is expressed in terms of volume of fluid (water, air) per unit
time. Unit of thermal energy is normally the Kilojoules, while that of water is cubic metres. Thus,
graphically, an I-O characteristic for a thermal-based generator comprises a plot of energy input in
KJ/hour versus output of the generator in MW or kW. The I-O characteristic of a hydraulic generator
will be similar to that of the thermal generator, but the input is different, which is measured in
m3/hour.
Generally, the power output of a generating unit increases with an increase in the energy input per unit
time, but the relationship is often non-linear (i.e., a convex curve). The figures below the typical
characteristics of a thermal-based generating unit and a hydroelectric unit, respectively. The energy
inputs are denoted by F (for thermal unit) and W (for the hydroelectric unit).

Figure xx: I-O characteristic of a thermal generating unit

Figure xx: I-O characteristic of a hydroelectric generating unit

Since the main concern of generation is economic, the I-O characteristic is often changed to an energy
consumption cost (i.e., variable operating cost) characteristic or function by multiplying the ordinate
of the I-O characteristic by the cost of the primary energy consumed by the generator to produce
electricity. The cost of primary energy is measured in Tshs. per unit of that energy (e.g., Tshs./KJ;
Tshs./m3; etc.). Thus, a generating unit operating cost function or characteristic is a plot of input
energy cost in Tshs. per unit time (Tshs./hour) versus the unit’s output power (in kW or MW) or a
functional relationship between hourly energy consumption cost and the output power.
If a line is drawn through the origin to any point on the operating/fuel cost characteristic curve, the
slope can be expressed in energy quantity units per hour divided by the output in kW or MW. For a
thermal generating unit, this operation gives a quantity whose measurement unit is kJ per kWh or per
MWh. This quantity is called the heat rate and its reciprocal is the energy (fuel) consumption
efficiency. Hence, lower heat rates imply higher fuel efficiency. Maximum fuel efficiency occurs at
that point where the slope of the line drawn from the origin to a point on the fuel cost characteristic
curve is a minimum. That is, at the point where the line is a tangent to the curve.
The energy requirements for a given power output can easily be converted into Tshs. per kWh or
MWh by multiplying the fuel cost in Tshs./Btu by the heat rate, which is expressed in Btu/kWh or
Btu/MWh (NB: 1 kWh = 3412 Btu).
In summary, the I-O characteristic of a generating unit is non-linear. The widely used characteristic is
a quadratic function, i.e.,

F ( Pg ) = aPg2 + bPg + c , (Btu/h)

or

EE 315: TOPIC #4 (2015-2016) 16

 OC( Pg ) = aPg2 + bPg + c , (Tshs./h)

where a, b, and c are the coefficients of the I-O characteristic. The constant c is equivalent to the
fuel consumption or fuel cost of the generating unit operation without power output (i.e., the
intercept of the curve with the ordinate).
The parameters of the I-O characteristic of a generating unit are often determined by any of the
following approaches: (i) based on the experiments of the generating unit efficiency; (ii) based on the
historic records of the generating unit operation; and (iii) based on the design data of the generating
unit provided by the manufacturer.
The slope of a fuel consumption cost function or curve is called the incremental cost, denoted by µ:
dFi dOCi
µ= or µ=
dPg ,i dPg ,i

The value of this quantity at any particular output is the additional cost in Tshs per hour to increase
the output by 1 MW. A typical curve of incremental fuel cost versus power output is shown in the
figure below. For economical division of load between generating units within a power plant, the
criterion is that all units must operate at the same incremental fuel cost.
(b) Reliability/Adequacy Characteristics
The reliability of a generation system characterizes the extent to which it can adequately meet
consumer demand at all times, subject to such problems as: random breakdowns of generating
equipment; variations in consumer demand; variations in environmental conditions which affect
generating plant capacity and energy available to the generating system; scheduled maintenance of
generating equipment; and changes in anticipated new capacity scheduled to come on line (e.g., delays
or cancellations because of financial and other constraints).
Satisfactory standard of reliability is obtained by providing plant capacity above that needed for
maximum demands. In power engineering parlance, the amount of plant capacity above the needed
maximum demand is called the plant’s reserve margin. It is normally given as a percentage of the
maximum demand. Thus, a power system with a maximum demand of 10,000 MW and an installed
generating capacity of 12,000 MW at time of maximum demand, will have a generation margin of
20%.
Several factors contributing to the need for reserve generation include generation outages, demand
uncertainty, less-than-perfect interconnection reliability to neighboring power systems, uncertainty of
installation dates for new generation, and the potential transmission line outages within the power
system.
(c) Economy
In general the cost of generating electrical energy can be divided into the following three elements.
(i) Fixed Cost. This cost is independent of maximum demand and energy output. It is due to
annual cost of central organization, interest on the capital cost of land (especially if some
land is held for future development) and salaries of high officials.
(ii) Semi-fixed cost. This cost depends upon the maximum demand but is independent of
energy output. The semi-fixed cost is due to annual interest and depreciation on the capital
cost of the generating plant, transmission and distribution network, building and other civil
engineering works, all types of taxes and insurance charges and salaries of management and
EE 315: TOPIC #4 (2015-2016) 17
 clerical staff. Also yearly compensation given to the workers is included under this
head. The semi-fixed cost is approximately proportional to maximum demand.
(iii) Running or Operating cost. This cost depends upon the number of hours the plant is in
operation or upon the number of units of electrical energy generated. The running or
operating cost is due to annual cost of fuel, lubricating oil, water, maintenance and repair
cost of equipment and wages and salaries of operational and maintenance staff and salaries
of supervisory staff engaged on the running of the plant. The operating cost is approximately
proportional to units generated.
Total annual cost incurred in the power generation is represented by the expression.
E = a + b kW + c kWh
Where a, b and c are constants. Fixed and semi-fixed cost being independent of the amount of energy
generated is also called “standing cost.”
In deciding any scheme for any given service the choice must be such that the total operating cost
(sum of annual fixed cost, semi-fixed cost and operating cost) be minimum.
(d) Safety and Environmental Effects
Power generation, just like most other human activities, has an effect on the environment. Some of
these effects are more serious than others. The atmospheric pollution resulting from coal, oil and gas
combustion has had obvious effects. But combustion of fossil fuel also releases a significant amount
of heat into the environment, mostly as a result of the inefficiency of the energy conversion process.
Power stations have a physical presence in the environment. Some people will consider this a visual
intrusion. Most make noises, another source of irritation. There are electromagnetic fields associated
with the passage of alternating currents through power cables. A power plant needs maintaining,
servicing and often needs providing with fuel. That will generate traffic.
Clearly some of these effects are more far-reaching than others. Even so, the local effects of a power
station may be a significant issue for the immediately adjacent population. Deciding what weight must
be given to such considerations when planning future generating capacity can be a fearsomely difficult
issue. It is the big issues, however, particularly global warming, which will have the most significant
effect on the future of power generation.
4.3.GENERATION SCHEDULING PROBLEMS & THEIR FORMULATION
The main operational problem associated with generating plants which are already in service is that of
deciding on how best to utilize them to meet a given level of system demand. As was mentioned
earlier, system demand has daily and weekend variations that may vary by more than 200% from peak
hour demand through early morning load valley hours. If all the generators operating during the peak
hour would remain on-line for the entire day, then many of these units would be operating at their
minimum power limits during the off-peak hours. Rather than run many of these generators at
minimum power, there may be an economic trade-off in shutting down some of these generators or
redistributing their loading during the off-peak period.
The operations problem here is how to schedule the operation of the existing plants to minimize the
total cost of generation over a specified period of time, typically one day to one week. To schedule a
generating unit/plant mean to turn it on (i.e., starting it up, bringing it up to speed, and synchronizing
it to the system), and connect it so that it deliver a given amount of power to the network. That is,
there are two related operations problems associated with scheduling of generating units.
EE 315: TOPIC #4 (2015-2016) 18
(i) Generating unit dispatch
Generation dispatch problem is concerned with the determination of the share of the required system
load-demand that each available generating unit delivers or that each generating unit in service should
carry (i.e., deciding what the individual power outputs should be of the committed units at each point
in time). The purpose of this decision process is to minimise the total system operating cost for
delivering electricity to meet the minute-by-minute load demand. Thus, generation dispatch can be
considered as the process of allocating the required system load demand between the available
generation units such that the cost of generating electricity is minimised. This minimum cost objective
is achieved not by the switching on and off of generating units, but by regulating the power output
from each unit to take advantage of its unique performance characteristics.
Mathematically, the economic generation dispatch problem may be represented as follows:

 N

Minimise C = TOC = ∑ C i ( Pi )
 i =1 
where TOC – total cost of system operation, Pi – power output of generating unit i (i.e., the power
delivered by generator i) in MW, Ci(Pi) – operating cost function of generating unit i for an output
electrical power Pi (in Ksh./hour), and N – total number of generating units available for service.
The total cost of operation consists of the generation cost (i.e., fuel cost) and the cost of energy losses
in the transmission system. On average, the transmission losses may result in energy losses of 1 – 2%
of the total electricity generation. When the distance between the generation site and the load-demand
centres is large, losses may also be large. Therefore, attention should be given to transmission losses
in dispatching generation. In our formulation, however, the transmission losses will be assumed to
have minimum effect on the loading of the generators and will, therefore, be neglected.
(ii) Generating unit commitment
Generation unit commitment problem establishes which units will be on-line for each hour. That is, its
purpose is to decide on the generators to be shut down, when to do this, and when to start them up
again so that they can deliver power to the system network. The primary objective of this problem is
to minimise the total operating cost (i.e., total cost of generating electricity), subject to the satisfaction
of demand, system reliability requirements, and the physical operating constraints of the individual
generators (i.e., generator capacity limits). The total cost of operation consists of the fuel cost and the
start-up and shut-down costs of all the units over the entire study time span. All these factors which
enter into analysis of unit commitment problem are discussed below.
Mathematically, the total operating cost of the generation system, TOC , can be written as follows:

[ ( ) ]
T N
TOC = ∑ ∑ u it C i Pgt,i + S gt ,i
t =1 i =1

where Pgt,i - output power of generator i at period t (in MW); C ( Pgt,i ) - fuel cost of generator i when
its output power is Pgt,i ; S gt ,i - start-up cost of generator i at period t; N – total number of generators in
the system, T – total number of scheduling periods; and u gt ,i - commitment state of generator i at
period t (this parameter will be 1, if the unit i is on-line, and zero when it is off-line at the period t).

EE 315: TOPIC #4 (2015-2016) 19

The start-up cost is the cost associated with bringing generating units from down to operating
conditions or supplying energy to bring the unit to the operating temperatures and pressures. It
depends on the exact nature of the start-up procedure, especially in regard to the start-up time, which
in turn depends on the number of hours off-line, and the applicable minimum up-time rule (i.e.,
minimum number of continuous hours a unit must run if it is started up), and minimum down-time
rule (i.e., the minimum number of continuous hours a unit must remain off-line once shut down).
Mathematically, start-up costs are usually represented by exponential functions of the time the unit
have been shut down. The longer this period, the colder a unit is and the more expensive it is to start
up.
The solution of the above two operational problems is normally constrained by a large number of
factors that must be satisfied. Critical amongst such constraints is the balance between the total
generated power and the system demand at any point in time.
Equality constraints (Power balance constraint): These are those limitations which arise out of the
necessity for the system to balance the load demand and generation output. Thus, if Pg,i and Qg,i
are the scheduled generation, and Pd,i and Qd,i are the respective load demands, then the following
equation must be satisfied at the load bus shown below.

Pg ,i − PD ,i − Ploss = 0

Q g ,i − Q D ,i − Qloss = 0
That is, the total power output of all operating generators connected to the same integrated
system ∑ , must at every instant be equal to the sum of the consumer load demand
∑ , = and the losses in the system .
Inequality constraints: These are the constraints arising due to physical and operational
limitations of respective units and components. Thus, for each generator we should have a
minimum and maximum permissible output.

Pg ,i ,min ≤ Pg ,i ≤ Pg ,i ,max

Q g ,i , min ≤ Q g ,i ≤ Q g ,i ,max

Dynamic constraints (Ramp Constraint): These constraints arise where fast changes in generating
unit output are required for picking up increasing demand. These constraints account for the fact
that generating units cannot change their output too rapidly. This is especially true of thermal
units where mechanical and thermal stresses are limiting. [Ramping refers to the process of
bringing a generating unit on-line and up to full output]
dPg ,i (t ) dPg ,i (t ) dPg ,i (t )
≤ ≤
dt min
dt dt max

dQ g ,i (t ) dQ g ,i (t ) dQ g ,i (t )
≤ ≤
dt min
dt dt max

Spare/reserve capacity constraints: These are the constraints which account for possible errors in
demand estimation and/or forecasting, any sudden and fast change in demand, and the inadvertent
loss of scheduled generation. In this constraint, the total available generation at any time should

EE 315: TOPIC #4 (2015-2016) 20

 be in excess of the total anticipated demand and any system loss by an amount not less than a
specified minimum spare or reserve capacity, Pres:
N

∑P
i =1
g ,i ≥ PD + Ploss + Pres

Other system constraints include transmission capacity constraints and environmental constraints.
4.4.COMPUTATIONAL SOLUTION OF GENERATION SCHEDULING PROBLEMS
4.4.1. Methods for Solving Generation Dispatch Problem
Generation dispatch problem is concerned with the determination of the share of the required system
load-demand that each available generating unit delivers or that each generating unit in service should
carry (i.e., deciding what the individual power outputs should be of the committed units at each point
in time). The purpose of this decision process is to minimise the total system operating cost for
delivering electricity to meet the minute-by-minute load demand. Thus, generation dispatch can be
considered as the process of allocating the required system load demand between the available
generation units such that the cost of generating electricity is minimised. This minimum cost objective
is achieved not by the switching on and off of generating units, but by regulating the power output
from each unit to take advantage of its unique performance characteristics.
Mathematically, the economic generation dispatch problem may be represented as follows:
 N

Minimise C = TOC = ∑ C i ( Pi ) 
 i =1 

where TOC – total cost of system operation, Pi – power output of generating unit i (i.e., the power
delivered by generator i) in MW, Ci(Pi) – operating cost function of generating unit i for an output
electrical power Pi (in Ksh./hour), and N – total number of generating units available for service.
The total cost of operation consists of the generation cost (i.e., fuel cost) and the cost of energy losses
in the transmission system. On average, the transmission losses may result in energy losses of 1 – 2%
of the total electricity generation. When the distance between the generation site and the load-demand
centres is large, losses may also be large. Therefore, attention should be given to transmission losses
in dispatching generation. In our formulation, however, the transmission losses will be assumed to
have minimum effect on the loading of the generators and will, therefore, be neglected.
(a) Case I: Capacity limits and transmission losses are ignored
This case is studied using the configuration shown in the figure below of N thermal generating units
connected to a single bus serving a total aggregate demand of PD. The input to each unit, shown as Fi,
represents the cost rate of the unit. The output of each unit, Pi, is the electrical power generated by that
particular unit. The total cost rate of this system is the sum of the costs of each of the individual
generating unit. The essential constraint on the operation of this system is that the sum of of the output
powers must equal the load demand.
Pg1
F1 G1

Pg2
F2 G2 PD

Pg,n
Fn Gn

Figure xx. Block diagram of system comprising thermal units

EE 315: TOPIC #4 (2015-2016) 21

Minimisation of the cost of producing electricity is subject to the system constraint of demand-supply
balance and unit capacity limits. That is,
Unit Capacity Limits: Pi min ≤ Pi ≤ Pi max
N
Demand-Supply Balance: ∑P i = PD
i =1

If the total cost of operation is to be minimised relative to the operation of each generating unit’s
power output, then the first derivative of the system cost with respect to each unit’s power output must
be zero. Since there is a limiting condition that the load demand must be met, this derivative of system
cost must take into account that a decrease in one generator’s output is at the expense of an increase in
another generator’s output. This constraint may be mathematically treated by adjoining the demand
constraint condition to the cost criteria via a LaGrange multiplier, λ. The new objective function (i.e.,
the LaGrange function) becomes:
 N
 N

Minimise  L = TOC ′ = ∑ C i ( Pi ) + λ  PD − ∑ Pi  
 i =1  i =1 

N
Since PD − ∑ Pi is equal to zero, then the minimum of the basic cost function and that of the
i =1

LaGrange function will be the same. We can, therefore, obtain minimum cost of operation by taking
the first derivative of the LaGrange function with respect to each unit’s power output. Doing this gives
us the following conditions for economic dispatch:

= + − = − = 0; ∀# = 1, 2, … . . , (

= − =0

The expression ∂C k ( Pk ) in the above condition for minimum system cost is called an incremental
∂Pk
operating cost of generating unit k and is denoted by ck. It shows how the cost of operating the
generating unit k changes if its output changes by ∂Pk (i.e., the sensitivity of generator operating cost
to changes in its power output). Thus, the necessary condition for minimum cost of operation is the
equality of the incremental costs of all the available generating units. That is:
∂C k ( Pk )
ck = = idem.
∂Pk

The necessary condition criteria provide us with a set of equations that can be solved. The unknowns
in these equations include the power outputs of each generating unit, Pk (k = 1, 2, …., N) and the
LaGrange multiplier, λ, a total of N+1 unknowns.
Note:
The operating or fuel cost characteristics of all generators are normally expressed as quadratic
functions, that is:
=) *
++ +, ; ∀# = 1, 2, 3, … … , (
The necessary conditions for the optimal solutions then become:
EE 315: TOPIC #4 (2015-2016) 22
 = 2) ++ =

Or
−+
=
2)
Substituting this value of generator output power into the power balance constraint equations gives the
following:

−+
=
2)

Or
+∑ + ⁄2)
=. 0
∑ 1⁄2)
Hence the LaGrange multiplier can be calculated using this equation and the required generator output
powers by the necessary conditions equations.
Example:
Two generating units of a power system are having the following cost curves or characteristics (in
Tshs/hour):
C1 = 80 + 8P1 + 0.024P12
C 2 = 82 + 8.2 P2 + 0.025P22

P1 and P2 are in MW. Both the units operate all the time. The maximum and minimum load of each
unit are 100 MW and 20 MW, respectively. Using LaGrange relaxation method, determine the
economic dispatch for the units for a total load demand of 80 MW, neglecting the transmission line
losses:
Solution:
1. Form the LaGrange function, L:
L = C1 + C 2 + λ ( D − P1 − P2 )

2. Apply the necessary condition criteria:

∂L λ −8
= 8 + 0.048 P1 − λ = 0 ⇒ P1 =
∂P1 0.048
∂L λ − 8.2
= 8.2 + 0.05P2 − λ = 0 ⇒ P2 =
P2 0.05
∂L
= D − P1 − P2 = 0 ⇒ P1 + P2 = D
∂λ
3. Solve the criteria equations for the power output of each generating unit and total minimum
cost of operation:
λ − 8 λ − 8.2
+ = 40.83λ − 330.67 = D = 80 ⇒ λ = 10.06
0.048 0.05

P1 = 42.9 MW
EE 315: TOPIC #4 (2015-2016) 23
 P2 = 37.2 MW
TOCmin =
The load sharing between generating units determines the participation of each generator in meeting
the required demand, αi.
N N
Pi
∑α
i =1
i =∑
i =1 D
=1

Thus, if the total system load-demand changes by ∆D, then the generation from each unit will be
adjusted as:
∆Pi = α i ∆D

That is, a generator with the bigger value of the participation factor (i.e., the cheaper unit) will take a
larger share of the change.
(b) Case II: Considering the Effect of Generator Power Limits
As already mentioned, the power output of each generating 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.
Considering these inequality constraints, the problem of economic dispatch can be written as follows:

min{C} = C1 (Pg1 ) + C2 (Pg 2 ) + .... + Cn (Pgn ) = ∑ Ci (Pgi )

N

i =1

s.t.
N

∑P
i =1
g ,i = PD

Pg ,i ,min ≤ Pg ,i ≤ Pg ,i ,max

The Lagrange relaxation method can still be used in this case and the process proceeds as follows:
(i) Neglect the inequality constraint and distribute the power among the units according to the
method already described.
(ii) Check the power output limit for each unit according to the inequality constraint. If the power
output is out of the limits, set the power output equal to the corresponding limit. That is,

if Pg , k ≥ Pg , k ,max , then set Pg ,k = Pg ,k ,max

if Pg ,k ≤ Pg , k , min , then set Pg ,k = Pg ,k ,min

(iii)Handle/treat the violated unit as a negative load, i.e.,

PD' ,k = − Pg ,k for violated units k (k = 1, 2, …., nk)

(iv) Recompute the power balance equation as below:

N ni

∑P
i =1
g ,i = PD + ∑ PD' ,k
k =1

or

EE 315: TOPIC #4 (2015-2016) 24

 N ni

∑ Pg ,i = PD − ∑ Pg ,k
i =1 k =1

(v) Go back to step (i)

(c) Case III: Considering the Effect of Transmission Line Losses
From the topic on load-flow analysis, it was established that the total power loss in a power network is
given by the sum of net injected power at all the buses. That is,

1 = = , − , = , −

where Pi – net injected power at bus i

Pg,i – power generated at bus i
Pd,i – demanded power at bus i
PD – total demanded power

Figure N thermal units serving load through transmission network

Since demanded power is assumed to be specified and fixed in a generation dispatch problem, it
implies from the above expression that total system loss only depends on the generator output powers.
The functional relationship between total system power loss and the generator output powers may thus
be given by the expression:

1 = 1 *, 2, 3, … … . . ,

This equation thus depends on the load flow solutions. Note that generated power at bus 1 is not
included in this functional relationship since bus 1 is assumed to be the swing bus for which a power
balance equation is not necessary.
Now, considering this functional relationship and the earlier constraints, the problem of economic
dispatch under this case can be written as follows:

min{C} = C1 (Pg1 ) + C 2 (Pg 2 ) + .... + C n (Pgn ) = ∑ Ci (Pgi )

N

i =1

s.t.

− PLoss (Pg 2 , Pg 3 , Pg 4 ,.....Pg , N ) − PD = 0

N

∑P
i =1
g ,i

Pg ,i ,min ≤ Pg ,i ≤ Pg ,i ,max

Let us first consider this problem without the generator capacity limits. In this case, the augmented
cost function (i.e., the Lagrange objective function) is defined as: λ

EE 315: TOPIC #4 (2015-2016) 25

 ;

= , + λ 4− P6,7 + P89:: P6,* , P6,2 , … . . P6,; + P< =

7

Next, we find a stationary point of the LaGrange function with respect to the multiplier λ and the
generator power outputs. That is,

= −λ=0
, ,

* ∂P89::
= − λ >1 − @=0
,* ,* ∂P6,*
∂P89::
= − λ >1 − @=0
, , ∂P6,7

= − PLoss (Pg 2 , Pg 3 , Pg 4 ,.....Pg , N ) − PD = 0

N

λ ∑P
i =1
g ,i

where i = 2, 3, 4, ….., N
The general form of the above criteria equations may be written as:

A =λ
,

where i = 1, 2, 3, ….., N
and
1
A =
B1 − C
,

where i = 2, 3, 4, ….., N
The parameter ρi is known as the penalty factor for the i-th generator. Note that the penalty factor for
the generator connected to the swing bus is 1.
The necessary conditions for economic operation when system losses are taken into account may thus
be expressed as follows:

A =λ
,

That is, for optimal dispatch, there must be an equality of the product of the penalty factor and the
incremental cost of each of the generators connected to the system. The generators are thus weighted
by their penalty factors. A large penalty factor makes a generating unit less attractive, and a smaller
incremental cost from the generating unit is required.
The above set of equations characterising the conditions for minimum cost operating condition can be
solved for the required values of optimal output power levels. There are two 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 generating units. This is the loss-
formula encountered in a number of power system textbooks. The loss formula is normally derived
from the load flow solutions and has the following general form:

EE 315: TOPIC #4 (2015-2016) 26

 = , ,D E D
D

where E D = ED and called the loss coefficients or B coefficients.

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 optimisation problem. This general approach is
known as the optimal power or load flow and is not discussed here.
With regard to the first approach, we can use the following simple iteration procedure since the set of
the equations are no longer linear:
Step #1: Pick a set of starting values for the power outputs of the generating units that sum to the
total demanded power:

F
, =

GHIJKK
GHL,M
Step #2: Calculate the incremental losses, or the penalty factors, as well as the total losses,
. The incremental losses and the total losses will be considered constant until a return is made
to this particular step.
Step #3: Calculate the value of the LaGrange multiplier, λ, that causes the individual output
powers of the generating units to sum to the total demanded power plus total system losses. This is
done in the same manner as in Case I since the equations are again linear.
Step #4: Compare the output powers obtained from Step #3 to the values used at the start of Step
#2. If there is no significant change in any one of the values, go to the last step, otherwise go back
to Step #2 and continue the iteration using the lastly calculated values of output powers.
Step #5: Done
4.4.2. Solution of Generation Commitment Problem
Generation unit commitment problem establishes which units will be on-line for each hour. That is, its
purpose is to decide on the generators to be shut down, when to do this, and when to start them up
again so that they can deliver power to the system network. The primary objective of this problem is
to minimise the total operating cost (i.e., total cost of generating electricity), subject to the satisfaction
of demand, system reliability requirements, and the physical operating constraints of the individual
generators (i.e., generator capacity limits). The total cost of operation consists of the fuel cost and the
start-up and shut-down costs of all the units over the entire study time span. All these factors which
enter into analysis of unit commitment problem are discussed below.
Mathematically, the total operating cost of the generation system, TOC , can be written as follows:

[ ( ) ]
T N
TOC = ∑ ∑ u it C i Pgt,i + S gt ,i
t =1 i =1

where Pgt,i - output power of generator i at period t (in MW); C ( Pgt,i ) - fuel cost of generator i when
its output power is Pgt,i ; S gt ,i - start-up cost of generator i at period t; N – total number of generators in

EE 315: TOPIC #4 (2015-2016) 27

the system, T – total number of scheduling periods; and u gt ,i - commitment state of generator i at
period t (this parameter will be 1, if the unit i is on-line, and zero when it is off-line at the period t).
The start-up cost is the cost associated with bringing generating units from down to operating
conditions or supplying energy to bring the unit to the operating temperatures and pressures. It
depends on the exact nature of the start-up procedure, especially in regard to the start-up time, which
in turn depends on the number of hours off-line, and the applicable minimum up-time rule (i.e.,
minimum number of continuous hours a unit must run if it is started up), and minimum down-time
rule (i.e., the minimum number of continuous hours a unit must remain off-line once shut down).
Mathematically, start-up costs are usually represented by exponential functions of the time the unit
have been shut down. The longer this period, the colder a unit is and the more expensive it is to start
up.
There are two sets of constraints which limit the above total cost: (i) system constraints, which consist
of the demand requirements and system reliability requirements, and (ii) unit constraints, which are
the minimum and maximum stable generation capacity limits. The latter is normally expressed as
follows:

,i ≤ Pg ,i ≤ u g ,i Pg ,i
u gt ,i Pgmin t max

The demand requirements or generation-demand balance requirement is expressed mathematically as

follows:
N

∑u
i =1
t
g ,i Pgt ,i = Pdt ; for every t = 1, 2, ….., T

Here Pdt is the total system demand at the period t. It is common practice to divide the study time
span, T, into smaller time intervals (periods) of equal duration in which the load demand is assumed
constant. One-hour or half-hour intervals are the ones used widely.
The reliability constraints accounts for the need to ensure that there will be adequate or sufficient
generation on-line to meet not only the forecast demand during normal conditions, but also during
fault conditions, such as generating unit forced outages, transmission line outages, and interconnection
emergency demands.
A fundamental measure of system reliability is generating capacity reserve (GCR), the additional
amount of MWs of capacity required beyond the forecast load demand. There are two types of GCR:
on-line (or spinning) and off-line or stand-by (or quick-start). Spinning reserve is the amount of
additional capacity that results from operating generating units at less than full output.
The spinning reserve requirement (Rt) can be represented as follows:
N

∑u
i =1
t
g ,i Pgmax
,i ≥ Pdt + R t ; for every t = 1, 2, ….., T

Other system constraints include transmission capacity constraints and environmental constraints.
On the basis of the above discussion, the unit commitment problem can be modelled mathematically
as follows:

EE 315: TOPIC #4 (2015-2016) 28

 [ ( ) ]
T N
Minimise TOC = ∑ ∑ u i C i Pg ,i + S g ,i
t t t

t =1 i =1

N
Subject to: ∑u
i =1
t
g ,i Pgt,i = Pdt - Demand constraint

,i ≤ Pg , i ≤ u g , i Pg ,i
u gt ,i Pgmin t max
- Unit capacity limits
N

∑u
i =1
t
g ,i Pgmax
,i ≥ Pdt + R t - Reliability constraint

The solution of this unit commitment model is a particularly challenging planning problem, because
of the astronomical number of possible combinations of the ‘on’ and ‘off’ states of the generators in
the power system over all the time-points in the study time span. There are, however, a number of
optimisation techniques which have been developed for the solution of this problem. This, however, is
a material outside the scope of this particular course. It will, however, be discussed in the elective
course on power generation.
4.5.METHODS OF GENERATION CONTROL
The ability to maintain each generating unit’s output power at the most economic value assumes that
there are technical means/methods available for controlling or varying the outputs in response to
changing load demand.
For an electromechanical generator, output power can be changed (increased or decreased) by
changing the unit’s rotational speed, ω; a parameter which is affected by two opposing torques –
mechanical torque, Tm and electrical torque, Te. The former normally acts to increase ω, while the
latter acts to slow it down. Thus, when Tm and Te are equal in magnitude, the rotational speed, ω will
be constant. If the electrical load is increased so that Te is larger than Tm, the net torque, Tnet, will be
negative and the generating unit’s rotating mass will begin to decelerate or slow down. Since it would
be damaging to let the unit slow down too far, something must be done to increase the mechanical
torque to restore equilibrium; that is, to bring the rotational speed back to an acceptable value and the
torques to equality so that the speed is again held constant.
Similarly, if electrical load on a generating unit is decreased so that Te is smaller than Tm, the net
torque, Tnet, will be positive and the unit’s rotating mass will begin to accelerate. Since it would be
damaging to let the unit accelerate too far, something must be done to reduce the mechanical torque to
restore equilibrium; that is, to bring the rotational speed back to an acceptable value and the torques to
equality so that the speed is again held constant.
The main sources of mechanical torque in most utility-scale generating units are steam turbines and
hydroturbines (i.e., the prime movers driving utility-scale generators). The mechanical torque/power
of these prime movers are factors of steam supply (i.e., the position of the valve controlling the
emission of steam into the turbine) and boiler control characteristics, in the case of a steam turbine, or
the penstock characteristics for a hydro turbine.
Details of how such control is effected is the subject of a course on power system dynamics and
control, and is, therefore, outside the scope of this particular course.

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