DET308: POWER SYSTEM II

CHAPTER 1
ECONOMICS OF GENERATIONS
Introduction: Modern Power System

• The power system of today is a complex

interconnected network.
• A power system can be subdivided into four
major parts:
• Generation
• Transmission and Subtransmission
• Distribution
• Loads

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 Generation
• Generators: Device that converts
mechanical energy to electrical energy.
• Generator is one of the essential
components of power system is the three
phase ac generator known as
synchronous generator or alternator.
• In power plant, the size of generators can
vary from 50 MW to 1500 MW.

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• Transformer: device that changes AC
electric power at one voltage level into AC
electric power at another voltage level
through action of magnetic field.
• Another major component of a power
system. It transfer power with very high
efficiency.

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Figure 1. Power Generation Plant to
transmission line

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 Figure 5. Nuclear power plant
Figure 2. Fossil fuel power plant

Figure 3. Hydroelectric power plant Figure 6. Geothermal power plant

Figure 4. Solar thermal power plant Figure 7. Wind power towers

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 Transmission and
sub-transmission
• The purpose of an overhead transmission network is to
transfer electric energy from generating units at various
locations to the distribution system which ultimately
supplies the load
• Transmission lines also interconnect neighboring utilities
which permits not only economic dispatch of power
within regions during normal conditions, but also to
transfer of power between regions during emergencies.
• They can carry alternating current or direct current or a
system can be a combination of both.
• Also, electric current can be carried by either overhead
or underground lines.

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• Standard transmission voltages are established
in the US by American National Standard
Institute (ANSI) and in Europe by IEC.
• Transmission voltage lines operating at more
than 60 kV are standardized at 69 kV, 115 kV,
138 kV, 161 kV, 230 kV, 345 kV, 500 kV, and
765 kV line-to-line.
• Transmission voltages above 230 kV are
usually referred to as extra-high voltage (EHV)

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• Subtransmission lines carry voltages reduced
from the major transmission line system.
• Sometimes the subtransmission voltage is
tapped along the way for use in industrial or
large commercial operations.
• Some utilities categorize these as transmission
lines.
• In Malaysia, the transmission voltage networks
are 500kV,275kV and 132kV.
• Supply frequency: 50Hz ± 1%

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Figure 8. Some typical transmission line
structures

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 Distribution
• The distribution system is the part that
connects the distribution substations to the
consumers’ service-entrance equipment.
• Distribution system can be categorized as
overhead and underground
• In Malaysia, Distribution voltages are
33kV, 11kV and 415/240 Volts. (Johor &
Perak may also include 22kV and 6.6kV) .

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Example of distribution systems components

Figure 9. Energy flow through a typical substation

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 NATIONAL
GRID
The National Grid is interconnected
to Thailand’s transmission system
operated by Electricity Generating
Authority of Thailand (EGAT) in the
North via a HVDC interconnection
with a transmission capacity of 300
MW and a 132 kV HVAC overhead
line with maximum transmission
capacity of 80 MW. The National
Grid is also connected to
Singapore’s transmission system at
Senoko in the South via two 230 kV
submarine cables with a firm
transmission capacity of 200 MW
[2]. 14
The electricity supply and installation practice in Peninsular Malaysia
are governed by the following:
1 Electricity supply Act 1990-Act 447
2 Licensee supply Regulations 1990
3 Electricity Regulations, 1994
4 Occupational, Safety & Health Act 1994
5 Malaysian Standard MS IEC 60364 Electrical Installation of
buildings.

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Table 2: Voltage classes as applied to industrial and commercial power

Voltage Class Nominal System Voltage

Low Voltage (LV) 120/240V
1kV
Medium Voltage (MV) Up to 69kV
High Voltage (HV) Up to 230kV
Extra High Voltage (EHV) Up to 765kV

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 Loads
• Loads of power systems are divided into
industrial, commercial, and residential.
• The load may be given in kilowatts, kilovars,
kilovoltamperes, kiloamperes or amperes.
• Very large industrial loads may be served from
transmission system.
• Large industrial loads are served directly from
subtransmission network, and small industrial
loads are served from the primary distribution
network.
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• The industrial loads are composite loads and
induction motors form a high proportion of these
loads.
• These composite loads are functions of voltage
and frequency and form a major part of the
system load.
• Commercial and residential loads consist largely
of lighting, heating, and cooling
• These loads are independent of frequency and
consume negligibly small reactive power.

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Industrial Customer -Most industries need 2,400 to
4,160 volts to run heavy machinery and usually their
own substation or substations to reduce the voltage
from the transmission line to the desired level for
distribution throughout the plant area. They usually
require 3-phase lines to power 3-phase motors.

Commercial Customer Commercial customers are

usually served at distribution voltages, ranging from
14.4 kV to 7.2 kV through a service drop line which
leads from a transformer on or near the distribution pole
to the customer's end use structure. They may require
3-phase lines to power 3-phase motors.

Residential Customer The distribution electricity is

reduced to the end use voltage (120/240 volts single
phase) via a pole mounted or pad-mounted transformer.
Power is delivered to the residential customer through a
service drop line which leads from the distribution pole
transformer to the customer's structure, for overhead
lines, or underground. 19
Load – duration characteristic

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Figure 10 A daily demand variation curve
• The real power loads are expressed in
terms of kilowatts or megawatts.
• The magnitude of load varies throughout
the day and the power must be available
to consumers on demand.
• The daily load curve of a utility is a
composite of demands made by various
classes of users.

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• The greatest value of load during a 24- hours
period is called “peak or maximum demand”.
• Demand factor is the ratio of the maximum
demand of a system to the total connected load
of the system.
• Smaller peaking generators may be
commissioned to meat the peak load that occurs
for only a few hours.
• In order to assess the usefulness of the
generating plant, the “load factor” is defined.

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 Load factor

• The load factor is the ratio of average

energy demand (load) to the maximum
demand (peak load) during the period.
• Load factors may be given for a day, a month or
a year. The yearly or annual load factor is the
most useful since a year represents a full cycle
of a time.

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• The daily load factor is:

• Multiplying above by a time period of 24 hr:

• The annual load factor is:

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• Generally there is diversity in the peak load
between different classes of loads, which
improves the overall system load factor.

• In order for a power plant to operate

economically, it must have a high system load
factor. Today’s typical system load factors are in
the range of 55 to 70%

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• There are a few other factors used by utilities:
(a) Utilization factor is the ratio of maximum demand to
the installed capacity.

(b) Plant factor is the ratio of annual energy to the plant

capacity x 8760 hr.

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 Load profile
• Load profile is a broad term that can refer to a
number of different forms of data.
• It can refer to demand and consumption data or
it can be a reference to derived data types such
as regression and profile coefficients.
• All these data types have one thing in common
which is they represent the pattern of electricity
usage of a segment of supply market customers.

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Figure 10. Load profile and consumption per day

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 Example
The daily load on a power system varies as shown in
Table 1. Determine the average load , peak load and the
daily load factor.
Table 1: Daily System Load
Interval (hr) Load (MW)
12:00 AM 2:00 AM 6
2 6 5
6 9 10
9 12 15
12:00 PM 2:00 PM 14
2 4 13
4 6 14
6 8 18
8 10 16
10 11 12
11 12:00 AM 6
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 Economic dispatch
What is Economic Dispatch?

Power output of each

plant which can
minimize the overall
cost of fuel needed to
serve the system load.

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 Economic dispatch (cont.)
• Power system operation worldwide
• Experiencing dramatic change due to the ongoing of
industry. These visible changes have:
 Shifting of responsibilities
 Changes in the area of influence
 Shift in the operating objectives and strategies
 Distribution of work
 Power system operation
 For example: TNB

• Power system operation from classical

perspective view – single entity
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 Economic dispatch (cont.)
• Economic power system operation is
important for profit return on the capital
investment.
• Capital investment comprises:
Cost of land and buildings
Cost of generating equipment
Cost of transmission system
Cost of distribution system, etc

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 Economic dispatch (cont.)
• Reasons for power companies have to
achieve the maximum efficiency of power
system operation:
Rates fixed by regulatory bodies
TNB new tariff for all sector
Important of conservation fuel
Minimizes the cost of kWh to the consumer

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 Economic dispatch (cont.)
• Economics operation involving power generation
and delivery can divided into two parts:
– Dealing with the minimum cost of power
production called economic dispatch (ED)
– Dealing with minimum loss (ML) delivery of
the generated power to the loads

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 The Cost of Electricity
• The production, transmission and distribution of
electricity energy comprises important costs that
may be divided into 2 main categories:
Fixed cost comprise the depreciation against
buildings, dams, turbines, generators, circuit
breakers, transformers, transmission lines and
other equipments used in the production,
transmission and distribution of electrical energy.
Operating cost include salaries, fuel costs,
administration, and other daily or weekly
expenses.

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• Utility companies have established rate
structures for these two types of cost that
attempt to be as equitable as possible for
their customers.
• The rates are based upon the following
guidelines:
– The amount of energy consumed (KWh)
– The demand, or rate at which energy is
consumed (KWh)
– The power factor of the load

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 Tariff
• The cost of electricity depends upon:
(a) Amount of energy (kWh) consumed.
- However, even if the customer uses no energy at
all, they have to pay a minimum service charge
because it costs money to keep connected to the
line.
(b) Rate at which energy is consumed
- The cost also depends upon the active power (kW)
drawn from the line.
• Electric power utility rates vary greatly from one area to
another area.

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 Tariff (cont.)
• Most companies divide their customers
into categories according to their power
demand.
• For example:
 Domestic power – houses and rented apartments.
 Small power – power less than 100 kW
 Medium power – power of 100 kW to 5000 kW
 Large power – power in excess of 5000 kW

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 Electricity Tariff in Malaysia

• Tariffs are subjected to change as may be

published from time to time.
• Refer to Tariff booklet and new Tariff rate
by Suruhanjaya Tenaga updated on 1
June 2011.

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 Example

Figure 11. Comparison between two factories consuming the same

energy but having different demands

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• Two factories A and B are connected to a high voltage
line by transformers TA and TB respectively.
• Factory A operates at full load, night and day, including
Saturdays and Sundays, constantly drawing 1000kW of
active power. At the end of the month (720h), it has
consumed a total of 1000kW x 720h = 720 000 kWh.
• Factory B consumes the same amount of energy, but its
load is continually changing. Thus power fluctuates
between 50 kW and 3000 kW.
• Obviously the capacity of transformer and the
transmission line supplying factory B must be greater
than that supplying factory A. Thus B must pay more
compared to A.

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End of Chapter 1

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