Birla Institute of Technology and Sciences-Pilani K.K.

Birla Goa Campus

A Project Report on BIDDING

STRATEGY IN DEREGULATED POWER SYSTEM In

Partial fulfillment of Requirements of EEE F266 Study Oriented Project

Submitted to M.K Deshmukh

Submitted by Kumar Avinish 2011A3PS050G

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CONTENTS 1. Introduction 3 a. Regulation b. Deregulation 2. Market Models.. 4 a. Poolco b. The Open Access Model c. Bilateral Exchange 3. Bidding. 5 a. Market Clearing Price 4. Bidding Strategy 6

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ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals. I would like to extend my sincere thanks to all of them. I am highly indebted to Prof MK Deshmukh for his guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project.

History of space research program in India

Though ancient Indians were known to have knowledge about rocket science- it being used in during wars- it was only after independence that the process of exploring space really accelerated. It was Dr. Vikram Sarabhai who founded the Physical Research Laboratory (PRL) in Ahmedabad on November 11, 1947. This was the first step that India took towards becoming a space power. Our first biggest success was on April 19, 1975, when India launched its first satellite into space. It was launched by the Soviet Union from Kapustin Yar using a Cosmos-3M launch vehicle. The Aryabhata was named after a 5th century Indian mathematician, who founded concepts of the numerical value zero and many astronomical calculations in around 500 AD. After that India has sent a number of satellites into space, notably the Apple (1981), Bhaskara I (1979) and Bhaskara II (1981), INSAT-1 series (1A, -1B, -1C and -1D), INSAT-2 series (2A, -2B, -2C and -2D), IRS-Series (1A, -IB, -1E, -P2, -1C, -P3, -1D), Rohini (1A, 1B, 2 and 3) and Sross. Also, India has developed various Launch vehicles that make a space programme independent and are the most important technological measure of its advancement. Prominent among them are Satellite Launch Vehicle (SLV), Augmented Satellite Launch Vehicle (ASLV), Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle (GSLV).

Indian Space Research Organization

The Indian Space Research Organisation is the primary space agency of India. ISRO is amongst the largest government space agencies in the world. Its primary objective is to advance space technology and use its applications for national benefit. Established in 1969, ISRO superseded the erstwhile Indian National Committee for Space Research (INCOSPAR). Headquartered in Bangalore, ISRO is under the administrative control of the Department of Space, Government of India. Since its establishment, ISRO has achieved numerous milestones. It built India's first satellite, Aryabhata, which was launched by the Soviet Union in 1975. In 1980, Rohini became the first satellite to be placed in orbit by an Indian-made launch vehicle, SLV-3. ISRO subsequently developed two other rockets: the Polar Satellite Launch Vehicle (PSLV) for launching satellites into polar orbits and the Geosynchronous Satellite Launch Vehicle (GSLV) for placing satellites into geostationary orbits. These rockets have launched numerous communications satellites and earth observation satellite. In 2008, Chandrayaan-1, India sent its first mission to the Moon. Over the years, ISRO has conducted a variety of operations for both Indian and foreign clients. ISRO's satellite launch capability is mostly provided by indigenous launch vehicles and launch sites. In 2008, ISRO successfully launched its first lunar probe, Chandrayaan-1, while future plans include indigenous development of GSLV, manned space missions, further lunar exploration, mars exploration and interplanetary probes. ISRO has several field installations as assets, and cooperates with

the international community as a part of several bilateral and multilateral agreements. In 2013, ISRO launched its Mars Orbiter Mission, which is currently on-route to Mars.

ISRO
Established Headquarters Primary Spaceport Administrator Budget Website August 15,1969 Bangalore Satish Dhawan Space Centre K.Radhakrishnan 6,600 crore www.Isro.org

GOALS AND OBJECTIVES

The prime objective of ISRO is to develop space technology and its application to various national tasks. The Indian space programme was driven by the vision of Dr Vikram Sarabhai, considered the father of Indian Space Programme. Indias economic progress has made its space programme more visible and active as the country aims for greater self-reliance in space technology. Hennock etc. hold that India also connects space exploration to national prestige, further stating: "This year India has launched 11 satellites, including nine from other countries and it became the first nation to launch 10 satellites on one rocket." Indian space Research Organisation (ISRO) has successfully put into operation two major satellite systems namely Indian National Satellites (INSAT) for communication services and Indian Remote Sensing (IRS) satellites for management of natural resources; also, Polar Satellite Launch Vehicle (PSLV) for launching IRS type of satellites and Geostationary Satellite Launch Vehicle (GSLV) for launching INSAT type of satellites. On July 2012, former president, A. P. J. Abdul Kalam said that research by ISRO and DRDO is under way for developing cost reduction technologies for access to space.

LAUNCH VEHICLE FLEET

During the 1960s and 1970s, India initiated its own launch vehicle programme owing to geopolitical and economic considerations. In the 1960s1970s, the country successfully developed a sounding rockets programme, and by the 1980s, research had yielded the Satellite Launch Vehicle-3 and the more advanced Augmented Satellite Launch Vehicle (ASLV), complete with operational supporting infrastructure. ISRO further applied its energies to the advancement of launch vehicle technology resulting in the creation of PSLV and GSLV technologies.

SATELLITE LAUNCH VEHICLE(SLV)

The Satellite Launch Vehicle, usually known by its abbreviation SLV or SLV-3 was a 4stage solid-fuel light launcher. It was intended to reach a height of 500 km and carry a payload of 40 kg.Its first launch took place in 1979 with 2 more in each subsequent year, and the final launch in 1983. Only two of its four test flights were successful.

LEFT TO RIGHT:SLV,ASLV,PSLV,GSLV,GSLVIII

Augmented Satellite Launch Vehicle (ASLV)

The Augmented Satellite Launch Vehicle, usually known by its abbreviation ASLV was a 5-stage solid propellant rocket with the capability of placing a 150 kg satellite into LEO. This project was started by the ISRO during the early 1980s to develop technologies needed for a payload to be placed into a geostationary orbit. Its design was based on Satellite Launch Vehicle. The first launch test was held in 1987, and after that 3 others followed in 1988, 1992 and 1994, out of which only 2 were successful, before it was decommissioned.

Polar Satellite Launch Vehicle (PSLV)

The Polar Satellite Launch Vehicle, usually known by its abbreviation PSLV, is an expendable launch system developed to allow India to launch its Indian Remote Sensing (IRS) satellites into Sun synchronous orbits, a service that was, until the advent of the PSLV, commercially viable only from Russia. PSLV can also launch small satellites into geostationary transfer orbit (GTO). The reliability and versatility of the PSLV is proven by the fact that it has launched 65 satellites / spacecraft ( 30 Indian and 35 Foreign Satellites) into a variety of orbits so far. In April 2008, it successfully launched 10 satellites at once, breaking a world record held by Russia. On 5 November 2013 the PSLV flew its 24th consecutive successful launch mission. ] Its only failure in 25 flights was its maiden voyage in September 1993, providing the rocket with a 96 percent success rate. TYPICAL PARAMETERS OF PSLV
Lift-off weight Pay Load
295 tonne 1600 kg in to 620 km Polar Orbit, 1060 kg in to Geosynchronous Transfer Orbit (GTO)

Height

44 metre

Geosynchronous Satellite Launch Vehicle (GSLV)

Geosynchronous Satellite Launch Vehicle(GSLV)-Mark I&II ,is capable of placing INSATII class of satellites (2000 2,500 kg) into Geosynchronous Transfer Orbit (GTO). GSLV is a three stage vehicle GSLV is 49 m tall, with 414 t lift off weight. It has a maximum diameter of 3.4 m at the payload fairing. First stage comprises S125 solid booster with four liquid (L40) strap-ons. Second stage (GS2) is liquid engine and the third stage (GS3) is a cryo stage. The vehicle develops a lift off thrust of 6573 kn. The first flight of GSLV took place from SHAR on April 18, 2001 by launching 1540 kg GSAT-1. It was followed by six more launches , GSLVD2 on May 8, 2003 (GSAT-2 1825 kg), GSLV-F01 on September 20, 2004 (EDUSAT 1950 kg), GSLV-F02 on July 10, 2006, GSLV-F04 on September 2, 2007 (INSAT-4CR 2130 kg), GSLV-D3 on April 15, 2010, GSLV-F06 on December 25, 2010 and GSLV-D5 on January 05, 2014 (GSAT-14 1982 kg). TYPICAL PARAMETERS OF GSLV

Lift-off weight Pay Load Height

414 tonne 2 to 2.5 Tonne in to Geosynchronous Transfer Orbit (GTO) 49 metre

Geosynchronous Satellite Launch Vehicle Mark-III (GSLV III)

The Geosynchronous Satellite Launch Vehicle Mark-III is a launch vehicle currently under development by the Indian Space Research Organisation. It is intended to launch heavy satellites into geostationary orbit, and will allow India to become less dependent on foreign rockets for heavy lifting. The rocket, though the technological successor to the GSLV, however is not derived from its predecessor.

TYPICAL PARAMETERS OF GSLV-III

Lift-off weight Pay Load
630 Tonne 4 Tonne in to Geosynchronous Transfer Orbit (GTO)

Height

42.4 metre

LANDMARK ACHIEVEMENTS DEVELOPMENTS 1 2 3 4 5

IN

ISROS

LAUNCH

VEHICLE

PSLV has 24 consecutively successful flights out of 25 launches PSLV used for launching a total of 27 satellites for foreign customers under commercial

agreements, demonstrating its multi-satellite launch capability

PSLV used to launch Space capsule Recovery Experiment (SRE-1), Chandrayaan-1 and ISRO's exclusive

meteorological satellite, KALPANA-1, proving its versatility

GSLV with five successful flights of eight launches can launch 2 to 2.5 tonne satellite into Geo-synchronous

Transfer Orbit (GTO) Successful testing of indigenously developed cryogenic upper stage on November 15, 2007.

ISROS LAUNCH FLEET 1 2 3

ISRO developed two experimental satellite launch vehicles, SLV-3 and ASLV
Polar Satellite Launch Vehicle(PSLV) commissioned in 1997

Geosynchronous Satellite Launch Vehicle (GSLV-Mk I) commissioned after second successful flight in May 2003

4 5

GSLV - MK II will use indigenously developed cryogenic Upper Stage

GSLV - MK III is under development

TECHNOLOGICAL DEVELOPMENT
For the past four decades, ISRO has launched 70 satellites for various scientific and technological applications like mobile communications, Direct-to-Home services, meteorological observations, telemedicine, tele-education, disaster warning, radio networking, search and rescue operations, remote sensing and scientific studies of the space. ISRO has established two major space systems, the Indian National Satellite System (INSAT) series for communication, television broadcasting and meteorological services which is Geo-Stationary Satellites, and Indian Remote Sensing Satellites (IRS) system for resources monitoring and management which is Earth Observation Satellites. ISRO has launched many Experimental Satellites which are generally small comparing to INSAT or IRS, Space Missions to explore the space and Navigation Satellite to provide accurate position information service to users.

SPACE SYSTEM ESTABLISHED BY ISRO

GEO STATIONARY SATELLITES EARTH OBSERVING SATELLITES NAVIGATION SATELLITES SPACE MISSIONS EXPERIMENTAL SATELLITES

GEOSTATIONARY SATELLITES SATELLITE GSAT-14 GSAT-7 INSAT-3D GSAT-10 GSAT-12 LAUNCH DATE 05.01.2014 30.08.2013 26.07.2013 23.09.2012 15.07.2011 LAUNCH VEHICLE
GSLV-D5 Ariane-5 VA-215 Ariane-5 VA-214 Ariane-5 VA-209 PSLV-C17

GSAT-8

21.05.2011

Ariane-5 VA-202

EARTH OBSERVING SATELLITES Indian Remote Sensing (IRS) satellite system was commissioned with the launch of IRS1A, in 1988. With eleven satellites in operation, IRS is the largest civilian remote sensing satellite constellation in the world providing imageries in a variety of spatial resolutions, spectral bands and swaths. The data is used for several applications covering agriculture, water resources, urban development, mineral prospecting, environment, forestry, drought and flood forecasting, ocean resources and disaster management. SATELLITE
SARAL RISAT-1 Megha-Tropiques RESOURCESAT-2 CARTOSAT-2B

LAUNCH DATE
25.02.2013 26.04.2012 12.10.2011 20.04.2011 12.07.2010

LAUNCH VEHICLE
PSLV-C20 PSLV-C19 PSLV-C18 PSLV-C16 PSLV-C15

NAVIGATION SATELLITES
Indian Regional Navigation Satellite System (IRNSS)

IRNSS is an independent regional navigation satellite system being developed by India. It is designed to provide accurate position information service to users in India as well as the region extending up to 1500 km from its boundary, which is its primary service area. IRNSS will provide two types of services, namely, Standard Positioning Service (SPS) and Restricted Service (RS) and is expected to provide a position accuracy of better than 20 m in the primary service area. SATELLITE
IRNSS-1A

LAUNCH DATE
01.07.2013

LAUNCH VEHICLE
PSLV-C22

SPACE MISSIONS Indian space programme encompasses research in areas like astronomy, astrophysics, planetary and earth sciences, atmospheric sciences and

theoretical physics. Balloons, sounding rockets, space platforms and groundbased facilities support these research efforts. A series of sounding rockets are available for atmospheric experiments. Several scientific instruments have been flown on satellites especially LAUNCH VEHICLE to direct celestial X-ray and gamma-ray bursts. Major space missions are Chandrayaan-l and Mars Orbiter Mission. SATELLITE
Mars Orbiter Mission Spacecraft Chandrayaan-1

LAUNCH DATE
05.11.2013 22.10.2008

LAUNCH VEHICLE
PSLV-C25 PSLV-C11

EXPERIMENTAL SATELLITES

ISRO has launched many small satellites mainly for the experimental purposes. This experiment include Remote Sensing, Atmospheric Studies, Payload Development, Orbit Controls, recovery technology etc.

SATELLITE
Jugnu SRMSat STUDSAT

LAUNCH DATE
12.10.2011 12.10.2011 12.07.2010

LAUNCH VEHICLE
PSLV-C18 PSLV-C18 PSLV-C15

INSAT-1B

SARAL SATELLITE

Technology demonstration
The Space Capsule Recovery Experiment (SCRE or more commonly SRE or SRE-1) is an experimental Indian spacecraft which was launched using the PSLV C7 rocket, along with three other satellites. It remained in orbit for 12 days before re-entering the Earth's atmosphere and splashing down into the Bay of Bengal. The SRE-1 was designed to

demonstrate the capability to recover an orbiting space capsule, and the technology for performing experiments in the microgravity conditions of an orbiting platform. It was also intended to test thermal protection, navigation, guidance, control, deceleration and flotation systems, as well as study hypersonic aero-thermodynamics, management of communication blackouts, and recovery operations. ISRO also plans to launch SRE-2 and SRE-3 in the near future to test advanced re-entry technology for future manned missions.

Development of crew vehicle

The Indian Space Research Organisation (ISRO) is working towards a maiden manned Indian space mission vehicle that can carry three astronauts for seven days in a near earth orbit. The Indian manned spacecraft temporarily named as Orbital Vehicle intends to be the basis of indigenous Indian human spaceflight programme. The capsule will be designed to carry three people, and a planned upgraded version will be equipped with a rendezvous and docking capability. In its maiden manned mission, ISRO's largely autonomous 3-ton capsule will orbit the Earth at 248 miles (400 km) in altitude for up to seven days with a two-person crew on board. The crew vehicle would launch atop of ISRO's GSLV Mk II, currently under development. The GSLV Mk II features an indigenously developed cryogenic upper-stage engine. The first test of the cryogenic engine, held on 15 April 2010, failed as the cryogenic phase did not perform as expected and rocket deviated from the planned trajectory. However the second test of the indigenous cryogenic engine was successful on 5 January 2014.

FUTURE PLANS
ISRO plans to launch a number of new-generation Earth Observation Satellites in the near future. It will also undertake the development of new launch vehicles and spacecraft. ISRO has stated that it will send unmanned missions to Mars and Near-Earth Objects. ISRO has planned 58 missions during 201217; 33 satellites missions in next two years and 25 launch vehicles missions thereafter, costing 20000 crore (US$3 billion) FORTHCOMING SATELLITES
Satellite Name ASTROSAT Details ASTROSAT is a first dedicated Indian Astronomy satellite mission, which will enable multi-wavelength observations of the celestial bodies and cosmic sources in X-ray and UV spectral bands simultaneously. The scientific payloads cover the Visible (35006000 ), UV (13003000 ), soft and hard X-ray regimes (0.58 keV; 3 80 keV). The uniqueness of ASTROSAT lies in its wide spectral coverage extending over visible, UV, soft and hard X-ray regions. The primary goal of GSAT-6/INSAT-4E, which is a Multimedia broadcast satellite, is to cater to the consumer requirements of providing entertainment and information services to vehicles through Digital Multimedia consoles and to the Multimedia mobile Phones. The satellite carries a 5 spot beam BSS and 5 spot beam MSS. It will be

GSAT-6 / INSAT4E

positioned at 83 East longitude with a mission life of 12 years. GSAT-7/INSAT-4F It is a multi-band satellite carrying payloads in UHF, S-band, C-band and Ku band. The satellite weighs 2330 kg with a payload power of 2000W and mission life of 9 years GSAT-9 will carry 6 C band and 24 Ku band transponders with India coverage beam. The satellite is planned to be launched during 2011 12 with a mission life of 12 years and positioned at 48 East longitude. This I-2K satellite has a liftoff mass of 2330 kg and payload power of 2300 W GSAT-11 is based on I-4K bus which is under advanced stage of development. The spacecraft can generate 1012 KW of power and can support payload power of 8KW. The payload configuration is on-going. It consists of 16 spot beams covering entire country including Andaman & Nicobar islands. The communication link to the userend terminals operate in Ku-band while the communication link to the hubs operate in Ka-band. The payload is configured to be operated as a high data throughput satellite, to be realised in orbit in 2013 time frame GSAT-15 is an Indian communication satellite similar to GSAT-10 to augment the capacity of transponders to provided more bandwidth for Direct-to-Home television and VSAT services. The satellite will be the 10th one in the series of GSAT satellites. GSAT-16 will be the 11th Indian communication satellite similar to GSAT-15 meant to increase the number of transponders that in turn enhance the satellite based telecommunication, television, VSAT services in India

GSAT-9

GSAT-11

GSAT-15

GSAT-16

FUTURE LAUNCH VEHICLES

1.GSLV-Mk III

GSLV-Mk III is envisaged to launch four tonne satellite into geosynchronous transfer orbit. GSLV-Mk III is a three-stage vehicle with a 110 tonne core liquid propellant stage (L-110) and a strap-on stage with two solid propellant motors, each with 200 tonne propellant (S-200). The upper stage will be cryogenic with a propellant loading of 25 tonne (C-25). GSLV Mk-III will have a lift-off weight of about 626 tonne and will be 43.43 m tall. The payload fairing will have a diameter of 5-metre and a payload volume of 100 cubic metre. GSLV Mk III is planned to be launched in April, 2014. It will weigh 640 tonnes at the time of lift-off, which will make it the heaviest rocket ever to be built in India.

2. Reusable Launch Vehicle-Technology Demonstrator (RLV-TD)

As a first step towards realising a Two Stage To Orbit (TSTO) fully re-usable launch vehicle, a series of technology demonstration missions have been conceived. For this purpose a Winged Reusable Launch Vehicle technology Demonstrator (RLV-TD) has been configured. The RLV-TD will act as a flying test bed to evaluate various technologies viz., hypersonic flight, autonomous landing, powered cruise flight and hypersonic flight using air-breathing propulsion. First in the series of demonstration trials is the hypersonic flight experiment (HEX).

Extraterrestrial exploration
India's first mission beyond Earth's orbit was Chandrayaan-1. ISRO plans to follow up Chandrayaan-2 with unmanned missions to Mars, Venus and Near-Earth objects such as asteroids and comets.

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Bidding
As per the layman language bidding stands for the auction. During the bidding the suppliers of the power (electricity and energy) bid at what rate they want to sell their product and the buyers bid at what rate they want to buy the product. The sellers and buyers submits bid for energy buy and sell. The bids are generally in the form of price and quantity quotations and specify how much the seller or buyer is willing to buy or sell and at what price. Once the buyer and seller bid the amount of energy and the price, the power exchange form an aggregate supply bid curve for suppliers and aggregate demand bid curve for consumers. The curves are plotted on the coordinates of, supply and demand energy and price as shown in figure. The point of intersection of the two curves determines the market-clearing price (MCP). The MCP is the price of electric energy that is paid by consumers at all the places. The sellers are also paid the price equal to the MCP.

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Bidding strategies
While a genco has no control over the bids of its competitors and the energy demand, it can make its own strategy to place such a bid that provides it highest profit at lowest risk. A bid is called highly risky if it can yield large profit but its probability of being selected is low, a low risk bid is such bid, which may have lower profit earning capability but high probability of being selected. The methods by which the optimal bidding problem is solved are as follows: 1. Optimization based bidding strategies: A binary representation
scheme is adopted in order to seal with the complementarily constraints. A commercial mixed linear-integer solver is used to solve the resulting problem.

2. Game theory: Several game theories have been applied to the problem of
deriving the optimal bidding strategies for a set of generators. Few algorithms have also been developed to solve the Nash-Equilibrium in a bilateral trading.

3. A genetic algorithm based method: Sampling rivals bidding strategies

with the Monte carlo method. A probability distribution is thus obtained for the companys profits both in day-ahead and the spinning reserve market.

4. Markov Decision Process :A Markov Decision Process (MDP)

contains: A set of possible world states S A set of possible actions A A real valued reward function R(s,a) A description T of each actions effects in each state

model

5. Nash equilibrium: A universal solution in game theory. Each players

strategy is an optimal response with respect to the other entire players strategy

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