1
2006 IEEE PES Transmission and Distribution Conference and Exposition Latin America, Venezuela
Expected Mid Term Optimal Operational
Planning of the Venezuelan Interconnected
Power System
A. Freitez, E. Alcalá, Student Member, IEEE, J. Toledo and, J. D. Jiménez
Index Terms--Average demand marginal cost, Energy
planning, expected least cost operation, optimal generation
dispatch, planned generation RTT, SDDP, Venezuelan power
system.
I. NOMENCLATURE
RTT: transmission main network
SDDP: stochastic dynamic dual programming
II. INTRODUCTION
T HE Venezuelan power system (VPS) is composed by
hydro generation (70% of total) and thermal generation
(30% of total). The system is strongly dependent of
hydrological uncertainties moreover, that the system demand
has been growing at unexpected rates last two years. These
conditions make energy planning of the system a crucial task
in order to anticipate problems in demand supply for next
years.
The energy planning of an electrical generation power
system is related basically with defining the generation
production schedule in order to meet the system electrical
demand following least cost criteria. Least cost operating is
achieved thanks to a optimization criteria that assign the
generation according to its direct variable cost or opportunity
cost in case of hydro plants. Operational planning has
different implications according to the planning period, for
A. Freitez, J. Toledo and J.D. Jimenez are with CVG EDELCA, Caracas-
Venezuela (e-mail: afreitez@edelca.com.ve; jtoledo@edelca.com.ve;
jujimenez@edelca.com.ve). E. Alcala (student) with Universidad Simon
Bolívar, Caracas-Venezuela (e-mail: ealcala@ieee.org).
1-4244-0288-3/06/$20.00 ©2006 IEEE
example the Mid and Long Term planning are related to the
energy balance an reservoir manage of the system taking into
account system demand growth and systems changes in future
time. Nowadays a Varity of mathematical models in the forms
of software applications are available to assist the planner in
the analysis of the system operation.
This paper presents the expected energy planning of the
Venezuelan Interconnected power for the period 2006-2010.
The simulation of the system takes into account the planned
expansion of the generation and transmission systems
expected to occur in the study period. The operational
planning of the Venezuelan system was made with SDDP®
as the simulation model. Results like energy balance, marginal
cost of the energy, expected energy not served, and so on are
used to show the expected behavior of the system under
hydrological uncertainties and demand growth.
III. THE VENEZUELAN POWER SYSTEM
The Venezuelan power system is composed by the
generation and transmission recourses needed to supply the
power demand all around the country. The power system is
interconnected by means of a high voltage transmission
network knew as the RTT. Table I shows the generation
installed capacity of the system and the composition of the
main generation resources.
As showed in Table I the power generation is composed
basically by hydro generation located in Guayana in the
Caroni river. This makes the demand supply highly dependent
of the hydrological behavior of the river and the optimal
operation of the power plants. The river is repressed by the
dam in the power station Guri. This dam regulates the water
flow to the other power stations downstream. Fig. 1 shows the
location of each power station in the Caroni River. Fig. 2
shows the main power plants in Venezuela.
The energy produced in EDELCA´s power plants is
transmitted to the eastern, central and western regions of the
country by means of a high voltage transmission grid
composed basically by 765kV lines that also provides the
interconnections links between the main subsystems. This grid
is the backbone of the transmissions system. Fig.3 shows over
the country map the main corridors.
The Interconnected power system is composed basically
for grids and generation plants owned by four main utilities
(EDELCA, EDC, ENELVEN and CADAFE) that signed in
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1988 the interconnection contract to establish the rules to TRANSMISION

operate the interconnection. VENEZUELAN
VENEZUELAN RTT
RTT
El Isiro
MAR
Isla de
Margarita L.
Cuestecitas Cuatricentenario
PeoníasPta. Palma
Cáceres CARIBE
TABLE I Trinidad
Cabimas
El Tablazo Yaracuy Pta.
Centro
Mácaro
C. de
Tacoa Convent

Azúcar
Boyacao
La
Junquito Pedrera
Chacopat
a

Rincón Manzano Casanay

Papelón

INSTALLED GENERATION CAPACITY OF VENEZUELAN POWER SYSTEM

Valencia Tiara Barbacoa
Morochas Barquisimeto Carabobo
Aragua OMZ
Cabudare La Jos
San
ArenosaDiego| Cdad. Santa e
Tinaquillo Losada Teresa

San
Juan
La de los El
Acarigua II Furrial
Buena Vista Morro
Horqueta San
s Gerónimo Palital
El
El Vigía II Tigre

C Mérida
Pta.
Uribante Páez
Guayana A Macagua II
San La Canoa
O Agatón
Cdad.
Bolívar
Guayana B
Caruachi
San Mateo El Malena
Corozo Guayana
L Guri
El Callao

O Las
Claritas
ZONA EN
M RECLAMACIO
N
B
I Santa
Elena

A
BRASIL
Boa
Vista

765 kV 2.083 Kms

400 kV 4.188 Kms
Febrero 2002

230 kV 5.703 Kms

Fig. 3. Main Transmission System

For Thermal generation the main fossil fuel burned is

natural gas for gas turbines and steam turbines. Natural gas is
Elevation msnm
mt 300
GURI II
EL. 270
not available all over the country for electricity generation so
sEL
E
250
200
EL. 215 in this case gas turbines burns diesel and steam plants burns
TOCOMA

A
V 150 EL. 128 CARUACHI
EL. 91 MACAGUA I-II Y III RIO
Fuel oil. These fuels are also used as backup fuel in power
100 EL. 54,5
Sea Level
NIVEL DEL MAR
CI
O
50
ORINOCO
plants where gas is available. One import issue about fossil
0
110 100 90 80 70 60 50 40 30 20 10 0
fuel is that prices are highly subsided by government so in
DISTANCIA Kmts.
Distance in Kms most cases prices makes inefficient plants highly competitive
in terms of variable cost. This distorts the signals for
efficiencies.
The demand have experience a high rate growth last three
years with a average rate of 7% and a 8% growth expected
for year 2006. Table II shows the energy balance of the
GURI CARUACHI Venezuelan power system for year 2005.
TOCOMA
TABLE II
MACAGUA ENERGY BALANCE FOR YEAR 2005

Fig. 1. Location of EDELCA´s Power Plants in Caroni River

T Luisa Caceres
250 MW
Planta Centro
2000 MW
T T CRZ y OAM
2.316 MW
T
R.Laguna, Urdaneta
Termzulia
1359 MW
Planta
P.Larga
From Table II hydro represents 74% of total generation.
Tachira T H H
235 MW
80 MW
Guri
For thermal units 50% of total energy produce was based on
S.Agaton H
PPaez
540 MW
Macagua
Caruachi natural gas at an average efficiency of 337 m3/MWh (11,900
12.565 MW
BTU/kWh).
Utility Plant Type We can resume the basic features of the Venezuelan power
CADAFE H Hydro system as:
EDC x Highly dependent of hydro generation located in the
T Therm
ENELBAR
Caroni River. It makes the power supply highly
ENELVEN
dependent of weather and hydrological behavior;
EDELCA
x A mean transmission network (RTT) that transmit the
generation produced by plants in Caroni River to all
over the country;
Fig. 2. Location of main Power plants x Natural gas as main fossil fuel for power generation
in thermal plants, but not available in all plants so
diesel and bunker must be used in those plants;
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x Fossil fuel prices with high government subside.
x Important bottle necks in regional transmission
systems especially in the eastern and western part of
the country.
x High rate of demand growth in last two years.
IV. OPTIMAL DISPATCH SIMULATION OF THE VENEZUELAN
POWER SYSTEM
The optimal dispatch simulation of the Venezuelan power
system for years 2006 to 2010 was carried out by means of
software for least cost optimization of hydrothermal system
knew as SDDP® of which EDELCA owns an user license.
The main objective of the study was to calculate the expected
generation dispatch in order to:
x Supply demand at least cost;
x Determinate the expected fuel consumption in
thermal plants;
The operation of the power system was simulated for fifty
five (55) different hydrological series, all of them were took
from the data available form the river history. SDDP simulates
and calculates an optimal dispatch for each hydrological series
but for simplicity the results showed in this document are the
average values from the 55 series simulated.
The system dispatch was calculated with and without the
transmission grid constraints. This was in order to estimate
how much impacts transmission constraints the operating cost
of the system and the energy not served. The simulation
without transmissions constrains was carried out for two
different fuel scenarios, one with the prices approved by
Venezuelan Government and the other for average
international prices just to see how much the operating cost of
the system and merit dispatch of units are affected for fuel
prices. The results are presented and compared in Fig. 4 to 11.
86000.00

x Determinate the expected operation of hydro plants

84000.00
in the Caroni River;
x Determinate the expected energy not served; 82000.00

x Determinate the economical signals in the system as

A v e r a g e H y d r o g e n e r a tio n (G W h )
80000.00
demand marginal cost;
The SDDP® database was fed with the data available by 78000.00

December 2005 including the expected new generation and

76000.00
transmission facilities to enter in service during the study
period. The demand scenario simulated was one of the highest 74000.00

growths. Tables III to V show some of the basic data took into
72000.00
account for the simulation.
70000.00
TABLE III
DEMAND GROWTH SCENARIO 68000.00
2006 2007 2008 2009 2010
Year

Without grid constrains With grid constrains

Fig. 4. Yearly average hydro generation

55000.00

TABLE IV 50000.00
PLANNED GENERATION
45000.00
Average Hydro generation (GWh)

40000.00

35000.00

30000.00

25000.00

20000.00

TABLE V 15000.00

AVERAGE FUEL PRICES IN US$/MMBTU

10000.00
2006 2007 2008 2009 2010
Year

Without grid constrains With grid constrains

Fig. 5. Yearly average thermal generation

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16000.00 2500.00

Average Fuel Oil consumption (millions of Ltr)

14000.00
N a tu r a l g a s c o n s u m p tio n ( m illio n s o f m 3 )

2000.00
12000.00

10000.00
1500.00

8000.00

1000.00
6000.00

4000.00
500.00

2000.00

0.00 0.00
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Year Year

Without grid constrains With grid constrains

Without grid constrains With grid constrains

Fig. 6. Yearly average natural gas consumption Fig. 8. Yearly average fuel oil consumption

1400.00

1800.00
A v e r a g e d ie s e l c o n s u m p tio n (m illio n s o f L tr )

1200.00
1600.00
Average thermal production cost (Millions of US$)

1000.00 1400.00

1200.00
800.00

1000.00
600.00

800.00

400.00
600.00

200.00
400.00

0.00 200.00
2006 2007 2008 2009 2010
Year
0.00
Without grid constrains With grid constrains 2006 2007 2008 2009 2010

Without grid constrains and national fuel prices Without grid constrains With grid constrains

Fig. 7. Yearly average diesel consumption

Fig. 9. Yearly average thermal operating cost

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x Transmission constrains force to dispatch inefficient

units where hydro generation can’t reach. Most of the
1800.00
units dispatched are those operated with diesel;
1600.00 x The average demand marginal cost of the system
reflects the effect of transmission constrains. This
1400.00
cost is higher when transmissions constrains are
Average Energy Not Served (GWh)

1200.00
taken into account;
x The high subside that government maintains over
1000.00 fossil fuels distorts the signal for efficient. The
thermal operation cost at national prices represent
800.00
50% of the cost with international prices;
600.00

400.00
V. CONCLUSIONS
200.00 The expected optimal dispatch of the Venezuelan
Interconnected Power system by means of the optimization
0.00
2006 2007 2008 2009 2010 tool (SDDP) reflects that the entrance in operation of 2000
Without grid constrains With grid constrains MW or more of efficient thermal generation will help to
attend the demand growth, permitting a better balance
Fig. 10. Yearly average energy not served between hydro and thermal generation in order to preserved
the hydro resources and reduce the risk and expected quantity
of deficit.
Transmissions constrains that existed n the system force to
dispatch inefficient units in order to prevent deficit but deficit
120.00 is and will be present in the system especially due to
subsystems transmission constrains.
100.00
The subside of fossil fuels makes in terms of variable cost
competitive some units that are inefficient, this is a wrong
Average demand margial cost ($/MWh)

signal to improve efficiency. We must keep in mind that the

80.00
benefits of healthy signals are less fuel consumption in
electrical plants and more opportunities to use or sell these
60.00 fuels in other markets. From the simulations the gas
consumption for case where national prices fossil fuels were
used was 1040 millions m3 of natural gas more than the case
40.00
with international prices, and additional 27 millions of liters of
Diesel are expected to be burned.
20.00

VI. REFERENCES
0.00
2006 2007 2008
Year
2009 2010
.Technical Reports:
[1] OPSIS, Boletin mensual Diciembre 200, www.opsis.org.ve;
Without grid constrains With grid constrains
[2] OPSIS, Informe anual 2004, www.opsis.org.ve;
[3] MEP, Plan de desarrollo del Servicio Eléctrico Nacional (PDSEN) 2005-
Fig. 11. Yearly average demand marginal cost 2024;
[4] Rojas Ana M. y Rodriguez, F. “Plan de expansión de generación periodo
From the results the following analysis arises: 2005-2020” VI Jornadas profesionales CVG EDELCA, mayo 2005;
[5] Dias, J y Palacios, C. “Plan de ampliaciones de transmisor CVG
x Between years 2006 and 2008 a reduction in hydro EDELCA 2004-2009” VI Jornadas profesionales CVG EDELCA, mayo
generation is expected with the entrance of almost 2005;
2000 MW of new efficient thermal generation; Manuals:
x Some deficit is expected by year 2008 due to [6] PSR, Manual de Usuario del modelo SDDP V 8.03, www.psr-inc.com
insufficient generation. The average deficit expected [7] Gaceta Oficial de la Republica Bolivariana de Venezuela Año CXXXIII,
mes V 13 de febrero 2006, No. 38.378
represents 0,03% of the year demand. The maximum [8] Gaceta Oficial de la Republica Bolivariana de Venezuela Año CXXXIII,
deficit expected for this year represents 2.11% of the mes V 23 de febrero 2000 No. 38.386
year demand with a probability of 0.02;
x Constrains in transmission network are responsible
for any deficit due to insufficient transmission
capacity. The amount of deficit due to transmission
represents 0.6% of total demand;

VII. BIOGRAPHIES
Alberto Freitez was born in Ciudad Guayana-
Venezuela, on December 25, 1965. He graduated
from Universidad Central de Venezuela .
All his employment experience in CVG
EDELCA since 1995. His special field of interest is
business and power transactions.
Juan D. Jimenez was born in Caracas-Venezuela,
on June 25, 1967. He graduated from Universidad
Metropolitana, and MSc form Universidad Central
de Venezuela.
His employment experience included debarr
C.A. a consulting firm, Universidad Central de
Venezuela as professor and CVG EDELCA. His
special fields of interest are power system generation
and transmission planning and simulation models for
optimal resource planning and management.
6
Juan Toledo (SM-89,M-01) was born in Caracas-
Venezuela, on March18, 1961. He graduated from
Universidad Simon Bolivar, and MsC from
Universidad Central de Venezuela.
All his employment experience in CVG
EDELCA in Department of Electrical Engineering in
Carucahi power Plant. His fields of interest are
power plants design and operation.
Elayne Alcala was born in Caracas-Venezuela, on
August 7, 1980. She is studying electrical
engineering at the USB. Her special field of interest
is power markets operation and regulation and
sustentable energy.