GENERATION PLANNING

UNIT 2
POWER POOLING AND TRADING
 Power cannot be stored, hence generation = demand
 Sample system of UK :
 Regional and national grid companies form a pool
 The companies compete for wholesale generation
 Energy is sold in bulk in wholesale market
 Spot price is determined for half-hour basis in national power load curve
period through competitive bidding by individual generators
 Pool is a mechanism to allow trading or sharing between power utilities and
generators
 Long term contracts in sales and purchase are made between utilites and
generating companies based on set of rules evolved
 Spot trading in short term market reflect supply and demand on short term
basis
POWER POOLING AND TRADING
Settlement system in UK :
 Price and payments are calculated under pool wheeling arrangements
 Grid operator seeks to schedule and despatch generating units subject to
constraints , to meet demand and maintain reserve
 It is done on merit order on generators’ offer of price and availability of
units
 Before 10am on the day ahead of actual operation, each utility submits to
the grid operator an offer for generating sets :
 Generators’ price
 Availability
 Operating characteristics of the set
POWER POOLING AND TRADING
 All offers of the period + demand forecast + planned reserve are fed to
the computer to match the demand and supply at least cost
 Physical constraints at this point are ignored
 The schedule is generated – pool purchase price (PPP) is decided for half
hour
 PPP consists of :
 system marginal price :
 price derived from offer prices of the marginal generating sets scheduled in the
unconstrained schedule for the relevent period
 Capacity element :
 calculated according to Loss of Load Probability (LOLP)

 At end of day, reconciliation between unconstrained schedule and the

actual events of the day
POWER POOLING AND TRADING
 Pool input price – national grid company pays to generators
 Pool output price – price charged from public electricity suppliers

 Pool is a spot market which operates in real time

 Tariff for retail market is decided observing the pool output system
 The consumers are made aware of efficiency and load management
through tariffs

 Non-fossil fuel obligations entitles consumers to purchase power from

renewable energy sources
 The public electricity suppliers purchase electricity from the RES
generators
 Fossil fuel levy is charged to the consumers to recover the cost
POWER POOLING AND TRADING
 On any day , payments must be balanced in the pool

 Pool selling price (PSP)– to be recovered from the suppliers

 PPP-PSP = uplift

 Uplift is to pay for :

 Cost of ancillary services
 Payments for reserve
 Difference between unconstrained scheduling and actual operation
POWER POOLING AND TRADING
 USA:
 Vertically integrated utilities in each state with independent power
generators
 Sell bulk power to utilities
 Competition to construct and operate new power stations
 Limited spot market and wholesale generation
 Utilities have monopoly in retail supplies

 India :
 Yet to formulate commercial guidelines for wheeling of power
 A rational tariff structure to encourage selling and buying of power
 Measures are devised to discourage high frequency operation of grid
 COGENERATION / CAPTIVE POWER
Potential industries Mandatory industries
Sugar Cement
Textile Aluminium
Alcohol Fertilizers
Paper Chemical plants
Petrochemicals Heavy industries
Metallurgical Induction / arc furnace

 The above plants (above 5 MW) must install cogeneration plants for
economical power generation
 COGENERATION / CAPTIVE POWER
 A cogeneration facility produces useful thermal energy through various means
for product development which is inefficiently utilised
 This waste steam is recaptured and used for power generation
 Cogeneration is a conventional technology, modern technology is more
efficient
 With advanced packed cogeneration units, hospitals, complexes have involved
in cogeneration
 To determine the feasibility of cogeneration :
 Economic and energy factors must be considered
 Rates of purchase and sale of electrical energy are important
 Cost of equipments v/s energy saving cost is a major economic factor
 Other factors : Degree of waste recovery, duty cycle, capital cost,
fuel and electricity prices, taxes , reliability and size
 COGENERATION / CAPTIVE POWER
Process , which cogeneration facility can utilize :
 Topping cycle :
 Electricity is produced first and waster energy is recovered in the form of thermal energy
 Common configurations used :
 boiler produces steam which is used to power a steam turbine generator
 Steam required is obtained from the exhaust of the turbine

 Gas turbine burns fuel to rotate a generator

 The waste heat from fuel burning is recovered in a waste heat recovery boiler to produce steam
from hot exhaust gas
 The hot exhaust gas can also be directly used in a thermal process

 Choice of configuration depends on :

 nature of fuel available
 quantity of process heat required by the plant
 Electricity requirement of the plant
 Buying and selling price of electrical energy
 COGENERATION / CAPTIVE POWER
 Bottoming cycle :
 Thermal energy is first used in the process, waste energy is used to generate electricity
 E.g. furnace is used in smelting or forming process. Waste heat recovery boiler recaptures
the unused energy, produces steam to drive a steam turbine for electricity

 Choice of configuration facilities depend on :

 Electrical and thermal energy needs of the plant
 Nature of fuel available : solid , liquid or gaseous state
 Bottom cycle : process steam / heat is required at high temperature
 Topping cycle : process steam / heat is required at low temperature
 COGENERATION / CAPTIVE POWER
 Advantages :
 Sugar industries have the ability to produce power year round
 Agricultural biomass is capable of contributing to a large extent
 Reduced environmental degradation
 Minimized pressure on fossil fuels and transportation systems
 Reduced T & D systems

 Regulations in USA : PURPA(Public Utilities Regulatory Policies Act)

 Encourages conservation and effective use of energy resources
 Utilities should purchase power from co-generators as well as provide them with back up
service at a reasonable rate
 Hence cogeneration is economically very viable in USA
 COGENERATION / CAPTIVE POWER
 Provisions that utilities must follow :
 Buy power from qualifying co-generator facilities at a rate related to the utility’s avoided cost of
power generation
 Provide backup power to the co-generator at non discriminatory rates
 Exempt qualifying co-generators from state and federal regulations with regard to public utilities

 Avoided cost
= rate at which utilities are obligated to purchase cogeneration power
= cost that the utilities will incur if it were to make arrangements to supply an equivalent amount of
power

 The avoided cost provision is generating interest in participants to produce

power
 COGENERATION / CAPTIVE POWER
 Qualifying criterion to identify potential contributors :
 Efficiency
 Standard
 ownership

 Efficiency standard :
 Applicable only if oil or natural gas is used
 Annual electric power + half of useful thermal energy = 42.5 % of total natural gas and oil
energy input
 If thermal energy output < 15 % of total energy output, then 45 %
 For bottoming cycle facilities, annual useful power output must be atleast 45 % of energy
input of oil and gas used for preheating the water / steam
 COGENERATION / CAPTIVE POWER
 Operating standard :
 New topping cycle facility must produce at least 5 % of the total energy output as useful
thermal energy

 Ownership :
 Utility may not own more than 50 % of the cogeneration facility
 For selling power to the utility, useful thermal output and PURPA efficiency standards must
be satisfied
 COGENERATION / CAPTIVE POWER
DECIDING PURCHASE PRICE FOR COGENERATION

Involves consideration of three costs of generation:

 Unit cost of generation from conventional source

 Unit cost of generation form conventional alternative in case of short supply

 Unit cost of generation from biomass based power generation system

 COGENERATION / CAPTIVE POWER
DECIDING PURCHASE PRICE FOR COGENERATION
 Unit cost of generation from conventional source
Consists of three major components:
 Fuel cost - represented as specific coal consumption
 Capital charges – represented in terms of percentage charge on capital investment divided
by the annual generation
 O & M charges - represented in terms of percentage charge on capital investment divided
by the annual generation

Typical correlation :
 COGENERATION / CAPTIVE POWER
DECIDING PURCHASE PRICE FOR COGENERATION
 Unit cost of generation form conventional alternative in case of short supply
Consists of three major components:
 Fuel and lubricating oil charges
 Capital charges
 O & M charges

Typical correlation :
 COGENERATION / CAPTIVE POWER
DECIDING PURCHASE PRICE FOR COGENERATION
 Unit cost of generation from biomass based power generation system

Typical correlation :
TRANSMISSION AND DISTRIBUTION
PLANNING
  Transmission
system:
Transfers bulk power
from the generating
system to
distribution system

 Sub transmission
system:
segregates power into
dist. systems

 Distribution
system:
Between transmission
and consumers
 VOLTAGE LEVELS
 Generation :
 11 KV
 Primary transmission :
 220 KV

 Secondary transmission :
 33 KV

 Primary distribution :
 6.6 KV
 Secondary distribution :
 415 V
 Consumers :
 415 / 230 V
 TRANSMISSION NETWORK
 Interconnection permits power exchange

 Planning of transmission system involves :

 Power flow requirements
 System stability
 Selection of voltage levels
 Voltage and reactive power flow
 Conductor selection
 Losses
 Insulation levels
 Type of structure
 Right of way
 TRANSMISSION NETWORK
 Criteria for planning of transmission system :
 Availability of generation and demand
 Voltage levels
 Size and configuration of systems
 Distance
 Right of ways
 Resource constraints

 Due to increasing demand, network interconnection are done

 Indian loading  90 % ( Healthy loading  50 % )

 Network reaches alert state of operation at peak load
 Small disturbance causes major network collapse
 DISTRIBUTION NETWORK
 Sub transmission system:
 33 – 220 KV
 Delivers energy to distribution substation
 Distribution substation :
 converts to lower primary distribution system voltage
 Boosts voltages for better voltage regulation of primary voltage
 Primary circuits of feeders :
 11-33 KV
 Supplies bulk load directly and distribution transformers
 Distribution transformers :
 10 – 2500 KVA
 Transform the primary voltage to utilisation voltage at 110 – 440 V
 Secondary circuits :
 carry energy from the D.T along streets
 Service lines :
 deliver energy from secondary circuits to consumer premises
TYPE OF DISTRIBUTION NETWORK
 RADIAL
 Only one supply source
 Vulnerable to long interupption
 Low reliability
 Suitable for small loads
TYPE OF DISTRIBUTION NETWORK

 PRIMARY LOOP
 Provides power from 2 feeders
 Supply depends on switch status of sectionalizes and reclosers
 Loop is normally operated with tie sectionalize switch open
 Outage time due to fault is reduced
 Additional line increases frequency of faults
TYPE OF DISTRIBUTION NETWORK
 PRIMARY SELECTIVE
 Each transformer gets supplied from two
sources (feeders)
 Transfer of feeder in event of fault is
automatic , therefore fault duration is
minimised
 System reliability is high
 Used for large essential or continous
process industrial consumers
TYPE OF DISTRIBUTION NETWORK
 SECONDARY SELECTIVE
 A primary feeder has its own transformer, feeding a
load each
 Tie Switch is normally open and interlocked between
secondary feeder switches
 Used for industrial plants and large institutions like
hospitals
 Primary operational switching is eliminated
 Duplicate transformers eliminate interupption time
 Each feeder + transformer system must have capacity
to supply entire load
 Transfer is automatic upon loss of voltage on either
feeder with static switching equipment
TYPE OF DISTRIBUTION NETWORK
 SPOT NETWORK
 Has maximum service reliability
 Transformers are operated in parallel
 The LV bus is continuously energized by all D.Ts
operating in parallel
 Automatic disconnection is obtained by reverse
power relays
 Feeder fault is eliminated by isolating the feeder,
while supply is continued through remaining lines
 Used in high load density , metropolitan areas, for
essential services
 Long duration outages don’t exist in this system
TYPE OF DISTRIBUTION NETWORK
 GRID NETWORK
 Has maximum service reliability
and operational flexibility
 Most economical and effective
method
 For high density loads in
metropolitan cities
 Grid is supplied from multiple
feeders
 No outage even during feeder maintenance
 Improved voltage regulation due to parallel operation of transformers
 Grid can handle abrupt load changes and disturbances
 Voltage fluctuation due to fault is very localized
 HV TRANSMISSION (HVAC / HVDC)
 HV preferred due to :
 increasing requirement of bulk power transfer over long distances
 Feasibility i.e. economical and ecological advantages of generating power
near the fuel source instead of load centres

 Voltage level of transmission Power handling capacity of a line :

depends on : P
0.5V 2
and PL 
53.6 * r
X*D X
 Quantity of power where P  Total power (MW)
 Distance to be transmitted PL  Power loss (MW)
V  Line - line voltage (kV)
D  Distance (km)
X  Reactance( ohm/km)
r  Resistance (ohm/km)
 HV TRANSMISSION (HVAC / HVDC)
V (kV) X (ohm/km) r (ohm/km) PL (in %)
400 0.327 0.031 5.12
800 0.272 0.0136 2.7
1000 0.231 0.0036 0.85
1200 0.231 0.0027 0.64

 Observation :
 The capital cost per MW-km decreases with Higher Voltage
 P(1*800 KV line) = P(4*400 KV lines) for same distance
 For PL(800KV) = 1/10th of PL(400 KV)
 HVDC LINKS
 Asynchronous HVDC links is used where
 Connecting system widely differs
 AC mode of connecting systems is impossible

 HVDC operation procedure:

 AC ® DC ©AC
 Uses 2-wires (bipolar transmission) instead of 3-wires for same power
 Economical only for long distances
 TYPES OF DC LINKS
 Based on location of
converting stations :

 Two terminal D.C. line

Power transfer is economical
over long distances

 Back-to-back D.C. line

with long A.C. feeder
along the border
Power transfer between areas is easy
HVDC V/S HVAC TRANSMISSION
 HVDC TRANSMISSION
 Technical advantages of HVDC links :
 Power flow can be controlled independent of system operating conditions.
 System operating at different frequencies may be interlinked
 Improves stability

 Common reasons for using HVDC links:

 Lower line costs – 2 wire system
 Lower losses – no reactive power flow
 Asynchronous connection-two different frequencies
 Controllability- semiconductor technology yielded better reliability ,controllability
 Major electrical networks –
 long distance transmission
 interconnection between systems
 high power underground distribution system feeders
HVDC TRANSMISSION
 Increased transferability :
 the same voltage will transfer higher power, with the same infrastructure
 A single AC circuit can be re-arranged into bipolar DC line-
 transmission capacity increases by 150 %
 Right of way retained

 Conversion from AC to DC system is easy :

 Utilize the same infrastructure – same towers and conductors
 Same conductors can be bundled
 DC insulators to be used in place of AC insulators
 HVDC TRANSMISSION
 Other advantages of using HVDC links :
 DC cables are cheaper compared to AC
 One single cable can take up to 500-1000 MW
 A DC cable does not contribute to short circuit power
 Costly and difficult overhead line paths in a city centre can be avoided by cabling
 It ensures better conductor utilization
 It provides for three times the capacity, using the same conductors
 It has an even higher capacity with new towers in an existing right of way
 It makes it possible to control reactive power in a city centre
 It ensures increased system stability
 It provides for increased power capacity in parallel AC lines
 It provides for controlled power flow
 It provides for double circuit performance of a converted single circuit AC line
 There is higher power without increased short circuit power
 There is better control of the line load factor
 HVDC TRANSMISSION
 Disadvantages of using HVDC links :
 Economical only for long distances
 Harmonics are generated due to semiconductor devices used- checked by filters

 Costs in HVDC links :

 Converter stations : the valves made of series connected thyristors modules, no parallel
connection needed
 Converter transformers : to achieve galvanic separation between DC and AC side
 Switchgear : used for clearing faults, must be highly reliable and maintainable
 SELECTION OF VOLTAGE LEVELS
 Economy of supply depends on selection of voltages in the T & D systems

 Factor influencing the selection of voltages :

 Load density
 Transmission distance
 Transmission power
 Steady load growth-varying with time and geographically

 In medium HV range – 11KV is the minimum voltage

 Cities – 11-22 KV
 Rural areas – 11-33 KV
 SELECTION OF VOLTAGE LEVELS
voltage designation Range of application
< 1 KV LV Distribution system for small consumers
1-36 KV MHV Distribution systems for large consumers
36-150 KV HV Distribution and subtransmission systems for
MHV systems, cities, railways
< 150 KV EHV Transmission systems for interconnected
operations

 Economical voltage step :

 3-6 times from medium HV to HV
 can be higher/lower depending on load density
 SELECTION OF VOLTAGE LEVELS
 Problems in selecting HV :
 insulation becomes a problem
 Economical design of HV overhead lines – because line cost is higher in proportion
to total cost
 Availability of existing plant- prevents use of new voltage due to capital already
invested

 Voltage levels should be max 3 Load level Supply voltage

above LV value
Upto 60 KW LT supply
 EHV level / lower level > 3
 HV level / lower level > 5 60 KV - 50 MW 11 KV
5 – 30 MVA 33 / 66 KV
 Reduction in no. of levels allows
30 – 50 MVA 132 KV
increased length of MV systems
>50 MVA 220 KV
 PLANNING CRITERIA : STRATEGY
 SEB : To provide transmission systems for state grids
 POWERGRID :
 To lay the transmission system network for :
 facilitating power transfer by central sector to various constituents
 For strengthening regional power grids
 Formation of national power grid
 Private companies can also develop the transmission system

 Transmission network planning :

 Should be with a long and medium term perspective
 Should have an integrated approach to transfer power from all sources to all beneficiaries
 Optimal design with reliability, security and economy in mind
 Good voltage profile should be maintained
 Network should integrate within the region and inter-regions
 Configuration should be such that optimal dispatch is possible
 THERMAL LOADING
 Loading limit is decided by :
 ambient temperature – varies with location and season
 maximum permissible conductor temperature-specified for standard sizes

Loading(MVA) based on max. conductor temp

of
Ambient temp 65 deg 70 deg

258 sq. mm 40 deg 225 257

ACSR
45 deg 189 225
345sq. mm 40 deg 943 1077
ACSR
45 deg 785 943
 DESPATCHABILITY : LOADING

 System should be planned such that :

 It is self sufficient as well as suitable for sharing with neighbours
 Maximum angular separation between bases : 40 deg for steady state
 Should stand outage of 2 circuits of 220 KV system/1 circuit of 400KV / 1 pole of
HVDC bipole / 1 EHV transformer without load shedding or rescheduling of
generation
 Should ensure full evacuation of maximum possible output from generating stations
even under transmission line outage
 Transmission lines should not pose any constraint on scheduling of generation
during outage
 Reactive compensation should be possible
 DESPATCHABILITY : TRANSMISSION
SYSTEM OUTAGE CAPABILITY

 Transmission system should be capable of withstanding the

following outages :

 Simultaneous outage of two 220 KV circuits

 Outage of one 400 KV SC
 Outage of a 800/765 KV SC
 Outage of one bipolar HVDC line
 Outage of one generating unit
 DESPATCHABILITY : SECURITY
 System should be able to survive without loosing synchronism of :
 Single L-G fault close to a bus on a trunk transmission link
Single L-L fault cleared by 3P opening of CB on either end within
100ms from initiation of fault
 Fault in HVDC converter station equipment resulting in permanent loss of
one of the poles of an HVDC dipole
 For 800KV system, SLG fault for transient stability with a fault clearance
time of 5 cycles (=100ms for 50cycle systems) is to be adopted
 If double contingency of single L-G / L-L fault with primary protection
failing , and second zone protection clears - system should return to
stable operation after load shedding
 Extreme case of outage of 2 circuits emanating from the same generating
station - protection should be coordinated to island the zones
 DESPATCHABILITY : RIGHT-OF-WAY
 Transmission lines should be constructed as double circuit or multi
circuit lines where ever feasible :
 Due to increase in difficulty in obtaining R-o-W for transmission lines
 Due to problems in routing transmission lines in forest areas

DESPATCHABILITY : ECONOMIC EVALUATION

 Economic evaluation should take into account cost of the total system
including terminal equipment
 Cost of energy should be based on marginal cost
 PLANNING OF DISTRIBUTION NETWORKS
 Utilities should plan their investment 5 years in advance
 Detailed list of investment should be charted depending on
resources , objectives, trends, policies
 Parameters considered for planning :
 Load density
 Expected load growth
 Voltage level
 Circuit configuration
 No. of feeding points
 PLANNING OF DISTRIBUTION NETWORKS
 Cost / benefit analysis is performed considering :
 System voltage
 System losses
 Estimated non-distributed energy due to system faults
 Annual maintenance cost
 Safety
 Sensitivity analysis for future – unknown factors as of now

 Starting point of planning : existing network – its components are

put to use for 50 years, hence cant be discarded easily
 Good planning requires sound knowledge of existing system in
order to provide a base for expansion planning
 PLANNING OF DISTRIBUTION NETWORKS
 Consideration should be given for incorporating technical
innovation:
 Insulated overhead conductors
 New type of CB
 Use of microcontrollers in protection
 Local automation schemes
 Network tele-control

 MV networks are built primary for cost benefit

 HV transmission line / components cost is very high
 Can connect substantial load
 Voltage level is decided based on long term studies
 PLANNING OF DISTRIBUTION NETWORKS
 HV network planning :
 Design and construction period is long
 Includes negotiations to obtain routes for overhead lines , underground
cables
 Due to the overall lead time, estimation can be accurate

 MV network planning :
 Half the review period goes in planning general load growth
 New additions will have to be incorporated in middle of planning period
 SUBSTATION DEVELOPMENT
 Technical and economical considerations for planning the density and size of substations :
 Load density
 Load growth
 Utilization of transformer capacity
 Maximum fault levels
 Flexibility
 Siting

 Size of substation depends on :

 Load density
 Density of cities > rural
 Hence size is higher in cities since cost of distributing power is lower if density is higher
 SUBSTATION DEVELOPMENT
 Presence of intermediate voltage level
 For higher levels – higher size , less density of substations
 For lower levels – lower size, more density of substations
 Subtransmission voltage levels can be selected in cities profitably due to fast development, unlike rural areas

 Technical – economical analysis for determining the size, number of substations :

 Average distance between substation : total area

no. of substation s
 Need for firm capacity with the substation
 Implications on reliability standards to be met
 Emergency overload capacity of transformers can be used as instantaneous capacity reserve
 Due to scarcity of sites and environmental issues, optimal techo-economical solutions cant be
considered alone , but can be approached as near as possible
 SUBSTATION DEVELOPMENT
 Practical considerations :
 (N-1) design criterion is used for optimisation process of subtransmission network planning
 Majority of substations can have 1-2 transformers
 If transfer of load is possible between feeding points, one transformer is adequate
 Economical considerations
 Optimal successive transformer sizes, between same voltage levels, have ratio of 1.5 – 2.5
 This is done so that only when load grows by the above factor, transformers size should be
increased
 Transformers are rested half way through their life
 Reliability, quality criteria and loss reduction policies decide time of changing transformers
 Load density
 Big substations are planned if load is expected to increase in long term
 Small substations are preferred so that parameter changing , dealing with circumstances is easy
 New technology
 SF6 CBs make it possible to put HV substations inside buildings or underground
 Substations closer to the load centres are smaller , simple in design
 Modern protection schemes allow complex operation with better security
 SUBSTATION SCHEMES
 Arrangement of bus bar and CBs play very important role in determining efficiency of T & D

 Type of arrangement is decided by :

 Flexibility of operation
 Immunity from total shutdown
 Importance and nature of loads
 Security
 Capital cost
 Minimisation of fault level by way of sectionalisation
 Maintainance
 Area of extension
 Land area
SUBSTATION BUSBAR SCHEMES
SUBSTATION BUSBAR SCHEMES
SUBSTATION BUSBAR SCHEMES
SUBSTATION BUSBAR SCHEMES