DEC

Department of Electrical Power Engineering

Power System Planning : EP-6071

By: Dr. Milkias B. (Ph.D.)

Asssociate Professor, Adama Science And Technology

University
Electrical Power and Control Engineering Program
Adama, Ethiopia

Milkias B. 11/15/2023 1
EP-6071 _ Power System
Planning

Lecture One:
1. Introduction

Dr. Milkias B.
Dept. of Electrical Power and Control Engineering
Adama Science and Technologyy University
mil_ber2000@astu.edu.et
EP-6071 _ Power System Planning

Introduction on
Power System Planning
 EP-6071_ Power System Planning

Learning Outcomes:
This course will introduce the fundamentals of Power System Planning and
power system Management. After this course the students should be able to:
▪Understand the general power system structure;
▪Understand load forecasting techniques;
▪Learn and understand basics design concepts and methods of
generating stations, switchyards, and transmission lines;
▪Understand and carry out cost analysis of generation systems;
▪Understand the planning of power systems;
▪Analysis of transmission losses for a power system;
▪Learn and understand the concepts and terminology used in
interchange evaluation;
▪Understand power pools issues;
▪Understand and carry out power system reliability analysis;
 EP-6071_ Power System Planning
▪ 1. Introduction and FUNDAMENTALS
 Introduction
 Planning & economics
▪ 2. Load data and Forecasting
▪ 3. G, T&D Planning
▪ 4. DESIGN PRINCIPLES & PRACTICE OF
SUBSTATION
 Substation sizing and spacing
 Substation location
 Effect of changing load density
 Effect of changing primary voltage
 Cost interaction of substation size and spacing vs primary voltage and
load density
▪ 5. Power quality and Reliability analysis
▪ 6. PROJECT MANAGEMENT and UNIT COMMITMENT
 Project evaluation
 Financing
 Project phases
 Key points
 Unit commitment
 Spinning reserve
 Priority list method/Merit
Milkiasorder
B. scheduling 11/15/2023 5
 Texts and References
Text Book
Sullivan, Power System Planning, McGraw-hill International
Book Company
References
1. Roy Billinton and Allan Ronald, “Power System
Reliability.”
Text books 2. Turan Gonen, Electric power distribution system
and Engineering McGraw Hill,1986
References 3. Hossein_Seifi, Mohammad_Sadegh_Electric Power
System Planning, Issues,Algorithms & Solutions
4. Arthur Mazer, Electric Power Planning for Regulated and
Deregulated Markets, WILEY-INTERSCIENCE, A John
Wiley & Sons, Inc., Publication, IEEE PRESS
5. Pansini, Anthony J. Power transmission and
distribution/Anthony J. Pansini 2nd ed.
EP-6071_ Power System Planning

Lecture 1
Course Introduction

Lecture Outline:

o Basic Structure of Power System

o Ethiopian Power System Overview

o Objectives of Power System

o Brief introduction of the Course

 EP-6071_ Power System Planning
1.1 Basic Structure of Power System
• Power System is a network of high tension wires/cables by which Electrical power
transmitted and distributed throughout a region.
• Planning is a powerful tool for the improvement and development of a nation.
• Power crises today is partly attributed to poor planning for power in fifties and sixties.
• The first job of a planning engineer is to predict the future load.
• It has been found from experience that it takes nearly five years to put up a thermal unit or
hydel unit associated with a dam into commercial operation from the blue print stage.
Power System consists of the following main components:
❑Generation System- Energy Conversion Methods
❑Switchgear – Step-up transformer in the Generation station
❑Transmission System- Ultra-high, Extra-high, High and Medium Voltage levels
❑Substation-Step up or step down Transformer or switching substation
❑Distribution System- Low voltage levels
Single line diagram of a Power System Structure

Generation Transmission
System System
15,20 kV 400,500 kV 400,500 kV 66,45 kV
Generator-1
Large
Consumers

Step-up Step-down
Transformer 132,230 kV Transformer

Distribution
System
Generator-2 400,500 kV
15,20 kV 132,230 kV
66,45 kV
Step-down
Transformer
Step-up
Transformer 33,15 kV

11,11.5 kV
400/220 V
33/15 kV
Medium
Generator-3 and small
Consumers
Milkias B. 11/15/2023 10
Brief description of the main Power System Components:

1.Generation System
Types of Energy Resources:
•Oil, Natural Gas, Coal, Atomic energy (Fossil fuel resources)
•Solar, Hydro, wind, hot water/spring, Biomass (Renewable energy
Resources)
Types of Energy Conversion Methods/Generation Systems:
•Diesel Generator, Gas Turbine, Steam Turbine, Combined Cycle Gas
Turbine (CCGT), Steam Injected Gas Turbine, Nuclear power (Conventional
systems)
•PV System, Solar Thermal, Hydropower, Wind Power, Geothermal,
Biomass (Renewable conversion systems)
 2. Transmission Systems:
This component of the power system transmits bulk electrical energy from
generation stations where it is produced to the main load centres. The
transmission system is composed of:
• Step-up and Step-don substations
• Transmission lines

3.Distribution Systems
The distribution system gives out the energy from the medium voltage
substations to customers’ location. It is composed of:
• Medium Voltage (MV) lines (33kV, 15 kV)
• MV/LV transformer substations (33/15/ kV to 400/380/220 V)
• Distribution lines (33/15 kV, 380 V 3-phase and 220 v single phase)

4. Load or Energy Sink:

Load is the end equipment of the power system where the transmitted electrical
energy is converted to other forms of useful energy.
 1.2 Objectives of Power System Planning
The main objectives of power system planning are:

1. To generate adequate energy for supplying the customers’ demand at low

price, efficient conversion system and low environmental and social impacts
2. To transmit this energy from long distances of generation stations to the load
centres at low price, more efficient, stable and reliable conditions.
3. To distribute the transmitted energy from substations to customers’ at a
quality service, low price and efficient utilization of the energy.
4. To make the system economical while conforming to the national electrical
codes, rules and regulation.
5. To minimise losses and maintain regulation with in permissible limits.

Definition:
Power system Planning is optimization of facilities necessary to provide adequate
electrical energy in a power system network at a least cost, low environmental
and social impacts through which a sustainable energy supply to customers is
attained.
Thus, power system planning gives the necessary basis and jumpstart for a detail
 The Purpose of Planning Is:
A proper planning can be performed necessarily through:
1. Load survey; - The present load requirement and the expected
load growth over a period of 5-10 years.
- power system design starts with load forecasting
For starting this work the following data should be collected:
1. A detailed map of the area
2. Nos.of houses, population and new construction.
3 Details of hospitals, transportations, railway station
4. The expected nos.of shops, post offices,….
5. Types and nos. of industries,…
6. The cultivated area and irrigation facilities,..
7. implemented and to be implemented projects
7. Development programs implemented.
 1.3 Brief introduction of the Course
• Power system planning encompasses a broad collection of activities spanning
several time horizons and can be divided into categories of analysis such as
demand, generation, transmission and distribution.
• Thus, bulk power system planning includes Load Forecast, Generation
Planning, Transmission&Distribution planning at reasonable expansion cost.
• Power system planning is usually done on a long-term planning horizon up to
20 to 25 years.

A. Load Forecasting:
• It determines the future trend of electricity consumption of each demand sectors starting
from the base year for the whole projection period.
• It determines the total annual consumption as well as its discissions in to local and
interconnection power pool loads.
• It depends mainly on the historical and current data of the base year, national GDP
growth, population growmodelingmers’ income growth, government plan on rural
electrification, government policies and view on climate issues etc.
• It includes the historical data analysis and modelling annual forecast of energy demand
and peak capacity demand of a power system network within the projection period.
B. Generation Planning:

Generation planning determines the sequence or schedule of future generation

plants that serve the forecasted energy and peak power capacity demand in a
sustainable and economic manner.
During generation planning the following issues shall be addressed
▪ The Generation type, location, technology, size, potential, construction
period and timing of future generation plants that will be added to the power
system.
▪ The generation investment cost, Operating and Maintenance (O&M) cost
both fixed and variable costs
▪ Generation fuel consumption or running cost for thermal power plants
▪ Environmental and social impacts and their associative costs
▪ Retirement plan for existing generation stations
▪ The annual average and firm energy of the generation plants for the expected
life time of each generation plants.
▪ Long-run marginal generation cost for each kWh energy unit.
▪ Etc…
C. Transmission Planning:
The transmission planning determines the expansion or rehabilitation plan of
transmission system based on the existing system, forecasted demand, generation
schedule and generation location at a least cost, stable, reliable and efficient
planning criteria.
In the transmission network planning some of the following issues, but not limited,
shall be appraised:
▪ The need for new substations and transmission lines as well as the need for
reinforcement in the existing system
▪ The voltage levels and right-of-way constraints
▪ The investment cost, O&M cost
▪ Line loadability, reliability, stability analysis
▪ substation Capacity, reliability and switching stability
▪ Compensating equipment requirements for voltage stability
▪ System network stability (Voltage magnitude, generator angle or voltage
angle and Frequency) and reliability during contingency and fault cases
▪ Modelling each component of a power system and analysis the steady state
and transient stabilities as well as the fault levels at each node of the network.
D. Power system Operation

▪ Power System operation is the act of managing the power system network in
a low cost, efficient, stable, reliable, low-cost sustainable manner.

▪ The time frame for power system operation varies from a few seconds to a
few weeks.
▪ To assist with the operation of the system, modern power systems are
equipped with Energy Management Systems which coordinate various
control functions in system operation.

▪ The prime goal of Energy Management systems is the secure and economic
operation of power systems to ensure an uninterrupted, safe flow of power to
customers at minimum cost.
 FUNDAMENTALS

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 1.2.
FUNDAMENTALS

2.1. INTRODUCTION

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 1. 2. FUNDAMENTALS
1. 2.1 INTRODUCTION

 Retail sale of electric energy involves the delivery of power in ready to use form

to the final consumers.

 This transmission and distribution (T&D) system consists of thousands of

transmission and distribution lines, substations, transformers, and other

equipment scattered over a wide geographical area and interconnected so that all

function in concert to deliver power as needed to the utility's customers.

 A T&D system's primary mission is to deliver power to electrical consumers at

their place of consumption and in ready-to-use form & it must be reliable, too,
so that it provides an uninterrupted flow of stable power to the utility's
customers.

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 Methods of Power System Planning
The steps taken in the method of power system planning studies are
1. Forecast of annual energy and power demand
2. Load modelling
3. Generation and choice of mixing the various types of generating stations
4. Optimization of power plant characteristics
5. New substations; their capacity and location
6. New power plants and their subdivision in the main areas
7. Network expansion
8. Optimization of equipment characteristics

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• The complex interaction of a T&D system is governed by a number of
physical laws relating to the natural phenomena that have been harnessed to
produce and move electric power.

• These interactions have created a number of "truths" that dominate the design
of T&D systems:
▪ It is more economical to move power at high voltage, and It is costly to change voltage
level.

▪ Power is more economical to produce in very large amounts.

▪ Power must be delivered in relatively small quantities at a low voltage level.

• An economical transmission and distribution system builds upon these

concepts. It must pick up power at a few, large sites (generating plants) and
deliver it to many more small sites (customers).

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 Definitions and nomenclature defining "transmission" and "distribution" vary
greatly among different countries, companies, and power systems.
Traditionally, three types of distinction between the two were made:
 By voltage class: transmission is anything above 34.5 kV; distribution is anything below that.
 By function: distribution includes all utilization voltage equipment, plus all lines that feed power to service
transformers.
 By configuration: transmission includes a network; distribution is all the radial equipment in the system.

 Typically, a substation occupies an acre or more of land, on which the various

necessary substation equipment is located.
 Substation equipment consists of high and low voltage racks and busses for
the power flow, circuit breakers for both the transmission and distribution
level, metering equipment, and the "control house," where the relaying,
measurement, and control equipment is located.
 But the most important equipment – what gives this substation its capacity
rating, are the substation transformers, which convert the incoming power
from transmission voltage levels to the lower primary voltage for distribution.
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 1.2.2
PLANNING AND
ECONOMICS

11/15/2023 Milkias B. 25
 1. 2.2 PLANNING AND ECONOMICS
 Power system planning is complex because each unit of equipment in every
hierarchical level, generating units, transmission lines, substation
equipment/protective equipment, voltage regulators, power transformers/,
distribution lines, distribution transformers etc, influences the electrical
behaviour of its neighbours, and must be designed to function well in
conjunction with the rest of the system under a variety of different conditions,
regardless of shifts in the normal pattern of loads or the status of equipment
nearby.

 A major attribute of planning in almost all endeavours is the reduction of cost.

 Every alternative plan contains or implies certain costs: equipment, installation,

labour, and operating cost, but often, equally important, when the costs are
incurred – how much must be spent now, and how much later?
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• Regulated prices are based on all the costs and reasonable return of the investment.

• A power system can be expensive to design, build, and operate. Equipment at every
level incurs two types of costs.

o Initial costs /one time cost-include the equipment and land, labour for site preparation,
construction, assembly and installation, and any other costs associated with building
and putting the equipment into operation.

o Operating costs /continuous cost- include labour and equipment for operation,
maintenance and service, taxes and fees, as well as the value of the power lost to
electrical losses.

11/15/2023 Milkias B. 27
• Initial cost of equipment can always be traded against long-term loss costs.
• Highly efficient transformers can be purchased to use considerably less power to
perform their function than standard designs.

• Larger conductors can be used in any transmission or distribution line, which will
lower impedance and thus losses for any level of power delivery.

• But both examples here cost more money initially - the efficient transformer may
cost three times what a standard design does; the larger conductor might entail a
need for not only large wire but heavier hardware to hold it in place and stronger
towers and poles to keep it in the air.

• In addition, these changes may produce other costs - for example, the use of a larger
conductor has a higher fault duty (short circuit current), which increases the required
rating and cost for circuit breakers.

• Regardless, initial equipment costs can be balanced against long-term losses

costs through careful study of needs, performance, and costs to establish a
minimum overall (present worth) cost.
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• In order to operate as a business, an electric utility must take in sufficient
revenue to cover its continuing operating costs, pay for its equipment and
system, cover its debt payments (loans and bonds), and provide earnings for
its owners (shareholders).

• Minimum Revenue Requirement (MRR) planning is aimed at keeping

customer bills as low as possible — it seeks to minimize the amount of
money the utility must collectively charge its customers in order to cover its
costs.

▪ While similar in some cases, particularly

capital expansion planning, revenue
minimization, and cost minimization will lead
to slightly different decisions with regard to
selection of alternatives and timing of
expenses.
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• Any utility planner must deal with two types of time versus money decisions.
• The first involves deciding whether a present expense is justified because it cancels the
need for a future expense of a different amount.

• A second and related cost decision involves determining if a present expense is justified
because it will reduce future operating expenses by some amount.

• For planning purposes, the present worth factor should be regarded simply as a
value that sums up all the reasons why a company would prefer to spend money
tomorrow rather than today.

• It is a planning tool used to evaluate and rank alternatives based on when they call
for expenditures and leads to prioritization of options.
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Q.2. Suppose a new feeder is to be built along with
the new substation. If built with 336 MCM(Million
Cubic Meter) conductor at a cost of $437,000, the
new feeder will be able to satisfy all loading,
voltage drop, contingency, and other criteria.
However, if built with 600 MCM conductor, at a
total cost of $597,000, it will lower annual losses
costs every year in the future by an estimated
$27,000. Are the planners justified in
recommending that $160,000 be spent on the
larger, based on the long term continuing savings?
Present worth factor = 0.83, 0.9
11/15/2023 Milkias B.
Q.1.Suppose it has been determined that
a new substation must be built in an area
of the service territory which is the site
of much new customer growth. Present
needs can be met by completing this
new substation with only one
transformer, at a total initial cost of
$1,000,000. Alternatively, it could be
built with two transformers - twice as
much capacity - at a cost of $1,800,000.
Although not needed immediately, this
second transformer will be required
within four years because of continuing
growth. If added at that time, it will cost
$1,284,000 - a reflection of the
additional start-up cost for a new project
and of working at an already-energized
and in service substation rather than at a
"cold" site. Which plan is best? Should
planners recommend that the utility
spend $800,000 now to save $1,284,000
four years from now? Present worth
factor = 0.83, 0.9
31
• Adding 1% - or whatever is appropriate based on analysis of the uncertainty
and the planning method being used - to the PWF biases all planning
decisions so that they reflect this imperfection of planning.

• Rather than analyze planning alternatives over a short-term construction

period – for example the seven-year period during which the schedule of
transformer installations may vary - planners or budget administrators often
wish to look at a new addition to the system over the period in which it will be
in service or be financed.

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▪ Cost to deliver power varies depending on location within a power system. Variations
are both due to "natural" reasons - it is difficult to deliver power to some locations like
the tops of mountains, etc., and due to "system characteristic" reasons: no matter how
a delivery system is laid out, some consumers will be close to a substation and others
will be farther away from it.
▪ In some sense, those farthest from it are most expensive to serve, those closest to it
less expensive to serve.
▪ One must bear in mind that traditional and established regulatory opinion holds that
such variations do not automatically justify proportional pricing of electric service.

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• All cost evaluation for power delivery planning should be based upon
economic evaluation that is consistent over the range of all alternatives.
• Usually, this means that present and future costs must be compared.
• Present worth analysis, lifetime levellized costing, or some similar method of
putting present and future value on a comparable basis will be used.
• One complication in determining the most economical equipment for a power
system is that its various levels — transmission, substation, and distribution –
are interconnected, with the distribution, in turn, connected to the customers.
• This means that the best size and equipment type at each level and location in
the system is a function not only of the local load but of the types of
equipment selected for the other levels of the system nearby, their locations,
and characteristics, as well as the loads they serve.

11/15/2023 Milkias B. 34
▪ Two Q method: A complication of modern, non-traditional distribution
planning is that reliability is often a key design element.

▪ Planners are challenged to reduce overall cost while achieving designs that
achieve targets for both capacity and reliability.

▪ Planning methods and concepts that deal simultaneously with a

distribution system's quantity (demand and capacity) and quality
(continuity of sufficient service - reliability) are labelled as Two-Q
methods.

▪ Hence, the essence of Two-Q planning is to add

cost as a third dimension and then "optimize"

either rigorously or through trial, error, and

judgement, until the most effective cost to

obtain both Q target levels is achieved.

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• The basic concept behind all Two-Q methods is to extend the planning
analysis and evaluation, and cost minimization approaches, to cover the
additional dimension of reliability from a performance standpoint.

• This means they plan and design systems to numerical reliability targets in
addition to, as traditional methods do, planning and designing to numerical
demand targets.

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 Any Question??
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Any Question ?

Any Question ?
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 NEXT

Lecture 02

Load data and Forecasting

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