1.

INTRODUCTION

Electrical energy is an essential ingredient for the

industrial and all round development of any country.

It is generated centrally in bulk and transmitted

economically over long distances.

Electrical energy is conserved at every step in the

process of Generation, Transmission, Distribution

and also utilization of electrical energy. It can be said

that the electrical utility industry is probably the

largest and most complex industry in the world and

hence very complex and challenging problems to be

handled by power engineering particularly, to design

future power system to deliver increasing amounts of

electrical energy. This power system operation and

its control play a very important task in the world of

Electrical Power Engineering. (Weedy et al.,

2012)(Grigsby, 2012)(Krause et al., 2013)

Stated simply, the ultimate objective of the power

system is to deliver electric power reliably and

economically from generators to loads. Nowadays,

power systems are large, highly complex, everchanging structures that must respond continuously

in real time.(Gomez-Exposito et al., 2008)(Stoft,

2002) Electricity should be produced and delivered

instantaneously when it is demanded by a load.

Power outages aren’t acceptable, so the system must

also tolerate sudden disruptions caused by weather or

equipment failure. And the system must perform as

economically as possible, with transactions and sales

monitored accurately.(Wood and Wollenberg,

2012)(Glover et al., 2011)

Traditional power system operation relies on the

concept of independent but coordinated functioning

of multiple “control areas.” A control area is a

(usually contiguous) portion of the system (lines,

transformers, generators, loads, and other equipment)

under the supervision and control of a single operator

(or group of operators at a single locations or under a

single administrative structure). Control center

operators maintain the system’s integrity -prevent

outages and insure reliable operation- by following

reliability rules that every control area enforces.

These rules are intended to balance supply and

demand without creating congestion, overloads or

other similar problems.(Machowski et al.,

2011)(Momoh, 2009) Operations are based not only

on maintaining a balance between supply and

generation but also on controlling the frequency of

the system in a distributed manner. Sufficient

reserves are provided throughout the system so that it

can tolerate the loss of any one component at any

time.

2. Traditional System Operation Policies and