EEP309

POWER SYSTEMS LABORATORY

EXPERIMENT - 7

(Economics of Real-Time Power Generation)

Date of Experiment : 8 April, 2016 - 15 April, 2016

Date of Submission : 22 April, 2016

Submitted by : Submitted to :

Akshat Jain (2013EEB1045) Prof. Sanjay Roy

Viren Agarwal (2013EEB1078)

Objective:
In this experiment, we study the three basic, real-time economic implications
of load variation of a moderate sized network, namely:

a) Cost of generation
b) Losses in the area
c) Area control error

Prerequisites:
1. The three factors i.e. cost of generation, losses in the area and the
area control error have great impact on the network management by
the utility.

2. Average cost of generation in Rs/MWh decides the overall economics

of the real time operation. It is further noted that this figure of merit
depends on cost-of-generation of each individual generator in the area,
as well as the amount of energy being actually generator by each
generator.

3. The second feature is the losses in the area. Larger amount of the
power being transferred over the network invariably imply higher
currents in the lines and thus higher losses are incurred. In order to
cope up with the loss, additional generation is required and this makes
bulk power transmission progressively expensive.

4. The last figure of merit is the area control error (ACE) which is
basically the indicator of how much a utility is unable to generate and
hence how much it needs to buy from the neighboring utilities.

5. For generation utilities, the Area Control Error or ACE signal is the
difference between the scheduled interchange power and the actual
generation being consumed by a control area or load in MW. It also
includes the difference of scheduled frequency and the actual frequency
going through the transmission lines times a frequency bias K [MW/O.1
Hz], It is summarized in the following formula:
ACE = (Pactual Pscheduled) K(factual fscheduled)

6. Ideally, as the load varies, the ACE in real time must be maintained at
zero value. This will really happen only if the incumbent generators
have adequate capacity, and also if the AGC mechanism itself is fast
enough and as can be expected, neither of the two is true absolutely.
7. Hence, as the load grows, the real utility network may periodically
encounter significant and positive ACE, indicating that the price
charged by neighboring utilities may become an issue there.
 8. An important concept of power management is wheeling. Wheeling
implies the situation when a utility buys certain units of power from
neighboring utility and then sells the same units to another
neighboring utility.

9. It should be noted that it is possible to minimize all the three aspects

as part of the network operation and management task. As for the
present scenario, the average cost of generation is minimized by
optimization problems such as the economic load dispatch and unit
commitment. Losses in the network can be minimized using optical
power flows. Minimization of ACE is more of real time issue. For such
requirement, various optimally controlled AGC schemes are available.

10. Initially, in the simulation setup we introduce the ACE chart, Area
Losses chart and Area Average Cost chart and execute the simulation
in the base case to familiarize ourselves with the plots which come out
to be horizontal lines for each chart.

OBSERVATIONS

Case 1: All lines are connected and multiplier at 0400hrs is 1.5

25.00

23.00
$ / MWh

21.00

19.00

17.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 15.0
Area Losses (MW)

11.3

7.5

3.8

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case, all the lines are connected. This setting of the multiplier values creates
no abnormality for this network and the network operates without any blackout.
This makes all the plots continuous.

Average Cost:
o We see that this plot decreases with time even when the total cost is
increasing.
o This owes to the fact that even though the cost is steadily increasing
the power that is generated is increasing at a far greater rate due how
the DLC was set.
o Hence the average cost (in $/MWH) is decreasing.

Area Control Error:

o The ACE remains more or less constant.
o Even though there are a few spikes due to the constantly changing
values of the parameters, the value remains around a steady figure.
o This is due to the fact that no lines were disconnected and hence there
was no sudden need of excess power in the area.

Area Losses:
o The area losses are steadily increasing.
o This is because as the power generation goes up, the current also goes
up.
o This leads to an increase in the I2R losses.
Case 2: Line between buses 1 and 2 is disconnected

25.0

21.3
$ / MWh

17.5

13.8

10.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

0
Area Control Error (MW)

-125

-250

-375

-500
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 25.0
Area Losses (MW)

18.8

12.5

6.3

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case, all the power that is generated at Bus 1 is transferred to Bus 3. Hence
no power flows into bus 2 and eventually, into the left area.

Average Cost:
o We see that this plot sees a sudden decrease when one of the lines
overheats.
o This is due to the fact that the generator at Bus 1 gets disconnected
and hence we see a drop in the average cost.
o The average cost keeps on decreasing following the usual dynamics as
analysed in Case 1.

Area Control Error:

o Once the line overheats, the increasing load leads to more negative
values of ACE.
o It is seen to gradually decrease.

Area Losses:
o The area losses are steadily increasing.
o This is because as the power generation goes up, the current also goes
up.
o This leads to an increase in the I2R losses.
Case 3: Line between buses 2 and 3 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 20.0
Area Losses (MW)

15.0

10.0

5.0

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

Here, the line between buses 2 and 3 is disconnected. Here we see no subsequent
disconnections happening owing to the fact that even though the line is
disconnected there are several other paths that were available for power to flow
without disrupting the network operations. These include lines 1-2, 2-4 and 2-5

Average Cost:
o Here too we see a steady decline in the value of the average cost.
o The drop here is steeper than in case 1 possibly due to the fact that
the multiplier was changed.
o This makes the power generated rise more sharply and hence the
average cost goes down more quickly.

Area Control Error:

o There is no change in the value of ACE.
o We though see periodic spikes in the plot.

Area losses:
o The inference here is the same as Case 1.
o We see the losses increasing due to increasing currents due to
increasing power.
Case 4: Line between buses 2 and 4 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM
Time
 20.0
Area Losses (MW)

15.0

10.0

5.0

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case the power flow in the system is only re-arranged.

Average Cost:
o There is not much change in the Average cost.
o The cost slowly decreases.
o This is because most of the power is generated locally in this case.

Area Control Error:

o The ACE in this case is almost equal to zero.
o It shows no negligible change during the complete period.
o This is owing to the fact that most of the power is generated locally
and hence most of it is consumed within the area.

Area losses:
o The rate at which losses increase is higher
o This is because Line 2-5 reaches starts at alert mode and moves into
emergency mode thus showing a very large amount of power in the
network.
Case 5: Line between buses 2 and 5 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 25.0
Area Losses (MW)

18.8

12.5

6.3

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case we see a jump in the cost in the right area by a very big margin when
line 4-5 disconnects at around 0313hrs.

Average Cost:
o The cost decreases gradually till 0313hrs.
o We then see a sudden drop and then the previous trend continues.

Area Control Error:

o The ACE remains at 0 initially.
o Once line 4-5 disconnects we see a decrease in the ACE due to the
power flowing out of the network.

Area losses:
o The power increases as normal till 0313hrs.
o We then see a sudden large drop in the losses.
o This is because the power flowing decreases very rapidly, and this
decreases the current which in turn leads to a decrease in the losses.
Case 6: Line between buses 4 and 5 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 25.0
Area Losses (MW)

18.8

12.5

6.3

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case one of the lines (line 2-5) starts at alert mode, overheats and
disconnects. This makes a few more lines reach alert modes.

Average Cost:
o The average cost sees a gradual decrease.
o This follows the same analysis as in case 1.

Area Control Error:

o The ACE first stays at zero suggesting local power generation.
o When line 2-5 disconnects we see a sudden drop in the ACE value.
o But then it adjusts itself to regain the value of around zero.

Area losses:
o The losses increase as seen in previous cases.
o There is a very slight jump when line 2-5 disconnects.
o This is due to the fact that there is a huge flow of current due to a few
lines going into the contingency mode.
Case 7: Line between buses 3 and 4 is disconnected

35.0

31.3
$ / MWh

27.5

23.8

20.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

170
Area Control Error (MW)

126

82

37

-7
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 35.0
Area Losses (M W )

27.5

20.0

12.5

5.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case the power flow in the system is only re-arranged.

Average Cost:
o Here we see a normal decrease in average cost till when line 1-3
disconnects.
o There is a very significant rise in the ACE value.
o This is because when it disconnects all the power flows into the second
bus.
o This sudden decrease in power leads to this sudden rise in average
cost.
o When line 4-5 disconnects the power value returns to a comparable
value thus showing a normal trend.

Area Control Error:

o The ACE value shows that there is a decrease initially.
o The sudden disconnection of line 1-3 decreases the power in the
network, as suggested by the lines going into emergency mode,
making the ACE value shoot up.
o Once line 4-5 disconnects, the trends sets back to normal due to
gradual increase in the load.

Area losses:
o The losses in this case change very erratically.
o Initially the losses increase as expected due to the increase in current.
o Once line 1-3 gets disconnected the power increases sharply, as
discussed above, and hence, there is a sharp increases in the losses as
well.
o Once line 4-5 disconnects, the losses shoot down due to the decrease
of the power and reaches a lower value.
 o The trend is that it then does not change much and remains around a
constant value.

Case 8: Line between buses 1 and 3 is disconnected

25.00

22.50
$ / MWh

20.00

17.50

15.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
 25.0
Area Losses (MW)

18.8

12.5

6.3

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

In this case, the trend is a very generic one with only one disconnection occurring
towards the end of the simulation.

Average Cost:
o Here we see a gradual decrease in average cost.
o There is a very slight jump towards the end of the simulation due to
the sudden decrease in power when the line disconnects.
o We then see a gradual decreasing trend again.

Area Control Error:

o The ACE remains constant till the line disconnects.
o When the line disconnects then local generation is not enough and
hence the ACE shoots up.
o It then sees a decreasing trend towards zero.

Area losses:
o There is the generic increase in the losses.
o The sudden disconnection makes the losses shoot up but then they
continue the normal increasing trend.
Case 9: Generator at bus 1 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
15.0
Area Losses (MW)

11.3

7.5

3.8

0.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

Average Cost:
o Here we see the average cost decreasing gradually.
o This is because even though a generator is turned off, the DLC of the
other generator is active and hence the rate of increase in power is
greater than how the cost is going up.

Area Control Error:

o The ACE value remains constant around zero.
o This is because the other generator is sufficient for the power demand
in the top area.

Area losses:
o The losses increase as seen in the other cases with no different
explanation than the rest.
Case 10: Generator at bus 2 is disconnected

30.0

25.0
$ / MWh

20.0

15.0

10.0
01:30 AM 01:00 AM 00:30 AM 00:00 AM
Time

15
Area Control Error (MW)

-59

-133

-206

-280
01:30 AM 01:00 AM 00:30 AM 00:00 AM
Time
100.0Area Losses (M W )

75.0

50.0

25.0

0.0
01:30 AM 01:00 AM 00:30 AM 00:00 AM
Time

Average Cost:
o There is a normal decreasing trend in the value of average cost till line
1-2 disconnects.
o We then see a sharp increase in the value due to the sudden drop in
power in the network though the power in 1-3 shoots up.
o Shortly, when line 1-3 disconnects the value of cost shoots down to
regain its previous decreasing trend, but at a much lower value due to
the high amount of current flowing in the network.
o This continues till the blackout at 0159hrs.

Area Control Error:

o The ACE first remains constant at around a small positive quantity.
o Once line 1-2 disconnects and shortly after when line 1-3 disconnects
we see a sharp fall in the value of the ACE.
o This is because the power that is being generated in the top area is not
enough to meet the demand and hence, starts drawing power from the
adjacent areas.

Area losses:
o The losses increase gradually at first.
o But then we see a sharp peak during the disconnections.
o This is due to the momentary high power in the network between the
two disconnections which in turn lead to high losses.
o The losses come down later till the blackout occurs at 0159hrs.
Case 11: Generator at bus 4 is disconnected

25.00

23.75
$ / MWh

22.50

21.25

20.00
03:00 AM 02:00 AM 01:00 AM 00:00 AM
Time

5.0
Area Control Error (MW)

-6.3

-17.5

-28.8

-40.0
03:00 AM 02:00 AM 01:00 AM 00:00 AM
Time
100.0
Area Losses (MW)

75.0

50.0

25.0

0.0
03:00 AM 02:00 AM 01:00 AM 00:00 AM
Time

Average Cost:
o The average cost decreases till line 1-3 disconnects.
o It then shoots up due to the decrease in power in the lines when line 1-
3 disconnects.
o The cost then continues its decreasing trend until the disconnection of
line 2-3.

Area Control Error:

o The ACE stays put at a small positive value.
o There is no special trend here and it continues till line 2-3 disconnects.

Area losses:
o The losses increase as seen in the previous cases.
o Once line 1-3 disconnects we see the losses shoot up.
o Finally when line 2-3 disconnects, we can just make out the
overwhelming losses that the network incurs due to the high amount of
power that flows for the infinitesimal amount of time.
Case 12: All lines connected; multiplier at 0400hrs = 2

23.00

22.25
$ / MWh

21.50

20.75

20.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

1.00
Area Control Error (MW)

0.50

0.00

-0.50

-1.00
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time
25.0
Area Losses (MW)

20.0

15.0

10.0

5.0
04:00 AM 03:00 AM 02:00 AM 01:00 AM
Time

Average Cost:
o The average cost decreases till line 1-3 disconnects.
o It then shoots up due to the decrease in power in the lines when line 1-
3 disconnects.
o The cost then continues its decreasing trend until the disconnection of
line 2-3.

Area Control Error:

o The ACE stays put at a small positive value.
o There is no special trend here and it continues till line 2-3 disconnects.

Area losses:
o The losses increase as seen in the previous cases.
o Once line 1-3 disconnects we see the losses shoot up.
o Finally when line 2-3 disconnects, we can just make out the
overwhelming losses that the network incurs due to the high amount of
power that flows for the infinitesimal amount of time.
Discussion and Conclusions:
Apart from power flow and voltage considerations, the economics aspect of
the power transmission is also very important for a power utility. Damage
needs to be minimized as any damage to the utility will not be profitable.

During a contingency power should be bought from neighboring utilities and

the network should not be overloaded.

If a line disconnects the power flow is re-arranged so as to minimize costs.

Economically this should be our first aim. The Cost Curve is generally falling
as cost advantages that enterprises obtain due to large size (Economies of
Scale) overrule the losses incurred.

One contingency may lead to multiple contingencies since power cannot stop
flowing. This is because the first disconnection can change the power level in
the network drastically which makes other lines go into contingency mode.

Possible Remedies:
The utilities should decide which generator should supply how much. They
must also decide that how much to produce locally and how much to buy
from neighboring (cheapest) utility.

As we have learned in the power engineering course about various

generators in a utility (e.g. gas turbine, hydro, thermal etc.). But the
problem arises in when one should use power from which type of
generators. This should be decided by studying the Daily Load Curves by the
utility.

The marginal cost of the generators should be made equal by a utility.

In simulations the major problems occurring were that of overheating of

lines leading to contingencies which further led to blackouts. This can be
avoided by increasing the capacity of the lines or by providing multiple lines
(cheaper) for the problem area.

Also some reserve power generation sources should be kept so as to provide

power during emergencies such as blackouts.