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Haytham Ibrahim's Assignment No.2 PDF
Haytham Ibrahim's Assignment No.2 PDF
Assignment no.2
ECE666: Power Systems Operation
Winter 2017
Assignment-2
Last Date of Submission- Monday, 20th March 2017, 4:30 PM
1. Consider a double auction electricity market where two suppliers A and B offer their
energy for sell. There are two customers X and Y bidding to buy energy from the market.
The buy bid and sell offer prices are given below:
Sell = 0.4 ⋅ PG + 15 Buy
ρA A ρX = 235 − 0.45 ⋅ PD X
Sell = 0.15 ⋅ PG + 11
ρB B ρYBuy = 175 − 0.235 ⋅ PDY
Supplier A and customer Y are located in the West Area, while supplier B and customer
X are in the East Area, and the two areas are inter-connected by a transmission line of
capacity TMAX MW.
a. Find the market settlement, as a uniform price market, without considering
transmission constraints.
b. Now taking the transmission line limit into account, derive the general expression
for the two area prices as functions of TMAX.
c. What is the total Congestion Rent and which bus participants will pay this rent?
d. Customer-X holds an FTR of 0.5TMAX from East to West, and Generator-A has an FTR
of 0.75TMAX from West to East. Find the net congestion payment for these
participants.
e. For what value of TMAX does the LMP market converge to a uniform price market?
2. Consider the 4-bus power system shown below. Bus-1 and bus-4 have generators with
10 $/MWh and 20 $/MWh average cost of generation, respectively. Bus-2 has a load of
180 MW while bus-3 has a load of 320 MW. The line impedances have the following
relations: Z1-2 = Z3-4, Z1-3 = Z2-4; and that, Z1-2 = 2Z1-3.
a. Find the LMP at each bus, if the transmission line limits are ignored.
b. Find the power flows on the lines for case (a).
c. Find LMP at each bus, if all transmission lines have a maximum capacity of 250 MW.
G1 = 10 $/MWh
0 ≤ PG1 ≤ 600 MW
180 MW
Bus-1 Bus-2
c
c
c
c
320 MW
Bus-3 Bus-4
G4: 20 $/MWh
Page 1 of 4 0 ≤ PG4 ≤ 200 MW
3. The figure below shows a lossless two generator five bus system where bus 1 and 2 are
generator buses, buses 3, 4 and 5 are load buses. The generation cost of G1 is 10
$/MWh and of G2 is 20 $/MWh. The transmission line 1-4, shown by the thick dotted
line, is congested in the direction from Bus-1 to Bus-4. All the five transmission lines
have equal impedances. Find the LMPs at buses 3, 4 and 5.
G1
Bus 1 Bus 3
Bus 5
Bus 4 Bus 2
G2
4. For the 3-bus system shown below, the generator cost functions are given as:
C1(PG1 ) = 0.001PG21 + 2.5PG1 + 450 $ / hr
5. Consider a double auction electricity market where three suppliers A, B and C offer their
energy for sell at offer prices given below. There are three customers X, Y and Z bidding
to buy energy from the market, and their bid prices are also given below. The
transmission line capacities are shown in the figure.
Page 2 of 4
Area-2
Area-1
B
A PMax = 200 MW
Y X
PMax = 100 MW
Area-3
Z C
6. Consider the small power system shown below. Generators G1 and G2 have incremental
costs of 20 $/MWh and 25 $/MWh, respectively. All transmission lines have the same
impedances, their maximum capacity is 200 MW. The generator limits are as follows:
50 MW ≤ PG1 ≤ 750 MW; 50 MW ≤ PG2 ≤ 500 MW
1 2
1 2
150 MW 200 MW
250 MW
a. Evaluate the power flows on each line and hence find the marginal cost of supplying
power at each bus when transmission limits are ignored.
b. Repeat (a) for the case when transmission limits are considered.
c. Now, in (b), let customer at bus-3 with 250 MW demand has purchased an FTR for
200 MW in the direction from bus-1 to bus-3. Find the FTR credit it receives when
congestion occurs on line1-3, and the net congestion charge it has to pay.
7. There are three supply-side participants (A, B and C) and three demand-side participants
(D, E and F) in a double-auction electricity market, and their supply / demand offers are
given below.
ρ ASELL = 0.5PG A + 25; ρ BSELL = 0.2 PGB + 10; ρCSELL = 0.1PGC + 18
ρ DBUY = −0.25PDD + 180; ρ EBUY = −0.40 PDE + 210; ρ FBUY = −0.37 PDF + 195
(ρA , ρB and ρC are the sell-offer prices, ρD , ρE and ρF are the buy-offer prices)
Page 3 of 4
a) Assuming a perfectly competitive electricity market, determine the uniform market
price and the energy cleared for all participants.
b) Consider that A, B, E and F are located in West-Region while C and D are located in
the East-Region. The tie-line connecting the two regions has a total capacity of 150
MW. Determine the new market clearing conditions (dispatch, price, etc.)
incorporating the transmission line limit.
c) Now consider that the transmission loss on the tie-line is 8%. Also given that the
East-Region bus is the Reference Bus. Find the constraint cost of the tie-line and the
LMP at the East-Region bus and the West-Region bus.
d) How much will be the Congestion Rent, based on the answer of (c), and which bus
participants will pay? Customer
e) Customers-E and F have jointly purchased a Firm Transmission Right (FTR) of 150
MW from East-Bus to West-Bus, while Generator-D has an FTR of 125 MW from
East-Bus to West-Bus. Find the net congestion payment of each participant to the
transmission company.
8. Consider a double auction electricity market where two suppliers A and B offer their
energy for sell at offer prices given below. There are two customers X and Y bidding to
buy energy from the market, and their bid prices are also given below. The transmission
line capacity is 200 MW.
East Area
West Area
B
A PMax = 200 MW
Y X
You are informed that the electricity market price would be 105.24 $/MWh, for the
above set of bids, considering a uniform price settlement, if the transmission limit is
ignored. With this information given, find the electricity market price settlement and
market clearing dispatches of all participants when the transmission line limit is taken
into account. Assuming that Y holds an FTR for 150 MW and X hold an FTR for 50 MW,
both in the in the direction from East to West, find the total congestion rent paid by
each customer.
Page 4 of 4
Problem 1:
0.4 15
0.15 11
235 0.45
175 0.235
a. To find the market settlement with transmission constraints ignored:
. So,
So,
∗ ∗ ∗ ∗
15 11 235 175
0.4 0.15 0.45 0.235
Solving for ∗ , we get:
∗
. $/ at which:
.
.
.
.
b. Taking the transmission limits into account, the market will be split into two regions, east and
west:
West region East region
A Tmax B
Y X
from which we get:
. .
. …
from which we get:
. .
. . …
1
c. ∗
. .
West regions participants (A and Y) will pay this congestion rent.
d. For customer‐X:
0 as it’s not contributing to the congestion. Hence, it’s not liable to
charges.
∗ 0.5 24.394 0.13
. .
This number will be negative. Hence, customer‐X will be earning money.
For generator‐A
0 as it’s not contributing to the congestion. Hence, it’s not liable to
charges.
∗ 0.75 36.59 0.195
. .
This number will be positive. Hence, generator‐A will be paying money.
e. For the LMP market to converge to a uniform‐price market:
from equations (1) & (2) above, we get:
.
2
Problem 2:
a. With the transmission line limits ignored, the total load is 500 MW. Hence, it will be supplied by
the cheaper generator (G1). So,
$/
b. With the impedances of the transmission lines as shown and using superposition, the power flows
will be as follows:
G1 G1
320 MW 180 MW 180 MW
1 2 1 2
2z 2z
120 MW
z z z
+ z
266.67 MW 53.333 MW +
60 MW
2z 2z
3 4 3 4
320 MW
And hence, the resultant power flow is:
G1
500 MW 180 MW
1 2
2z
173.333 MW
z z
326.67 MW 6.67 MW
6.67 MW
2z
3 4
320 MW
3
c. If the transmission lines limit of 250 MW is considered, it can be seen from the results in point (b)
that line 1‐3 is congested. So, generator G2 will have to supply some power so as to restrict the
power flow in line 1‐3 to 250 MW. Due to the transmission line impedances, the power flow for
this additional power (x) from G2 will be:
1 G1 2
2z
x/2
z z
x/2
2z
3 4 x
G2
This power will be relieved from generator G1.
In point (b), line 1‐3 was delivering 326.67 MW and its capacity is 250 MW. Hence,
326.67 250
2
From which we get:
153.33
So, 500 153.33 346.67
The power flow will then be:
G1 346.67 MW 180 MW
1 2
2z
250 MW 96.67 MW z 83.33 MW
z
70 MW
2z
3 4 153.33 MW
320 MW
G2
$/
$/
4
To get , we assume a 1 MW increase in the load at bus‐2 and see the impact on the
generation levels at G1 and G2 (∆ and ∆ ) as follows:
‐ To meet this 1 MW increase in load, the increase in generation levels will be:
∆ ∆ 1 … 1
‐ Also, to keep the power flow in line 1‐3 at its capacity limit of 250 MW, the additional power
flows in line 1‐3 (from 1 to 3) from both generators due to this change in generation should
cancel each other (considering transmission line impedances) as indicated in the figure below:
G1
+∆ +1 MW
1 2
2z
+2∆ /3 z +5∆ /6
+∆ /6 z
+∆ /3
2z
3 4
+∆
G2
1 1
∗∆ ∗∆ 0 … 2
3 6
Solving (1) and (2) simultaneously, we get:
∆ and ∆ . So,
∗ ∗ . $/
Applying the same steps to get , for a 1 MW load increase at bus‐3 we get:
∆ ∆ 1 … 3
5 1
∗∆ ∗∆ 0 … 4
6 3
Solving (3) and (4) simultaneously, we get:
∆ and ∆ . So,
∗ ∗ . $/
5
Problem 3:
G1
1 3
z
z
z 5
z
z
4 2
G2
At bus‐3:
‐ For a 1 MW increase in load and a lossless system:
∆ ∆ 1 … 1
‐ Also, to keep the power flow in line 1‐4 the same and do not increase the congestion, the
additional power flows in line 1‐4 (from 1 to 4) from both generators due to this change in
generation should cancel each other (considering transmission line impedances):
1 2
∗∆ ∗∆ 0 … 2
5 5
Solving (1) and (2) simultaneously, we get:
∆ and ∆ . So,
∗ ∗ . $/
Similarly, at bus‐4:
∆ ∆ 1 … 3
4 1
∗∆ ∗∆ 0 … 4
5 5
Solving (3) and (4) simultaneously, we get:
∆ and ∆ . So,
∗ ∗ . $/
6
Also, at bus‐5:
∆ ∆ 1 … 5
2 1
∗∆ ∗∆ 0 … 6
5 5
Solving (5) and (6) simultaneously, we get:
∆ and ∆ . So,
∗ ∗ . $/
7
Problem 4:
0.001 2.5 450
0.0025 2 250
4.25 500
First, we form the susceptance matrix:
10 0 10
0 5 5
10 5 15
Hence, we can write the DC load flow equations as:
2 10 0 10
1.5 0 5 5
10 5 15
Considering bus‐1 as a reference bus ( 0 :
2 0 10
1.5 5 5
5 15
So, the power flow equations using 100 MVA base will be:
200 1000 … 1
1500 500 500 … 2
500 1500 … 3
Hence, the optimization problem will be to maximize the social welfare defined as:
In other words, the problem can be stated as the minimization of the function .
We can form the lagrangian as follows:
0.001 2.5 450 0.0025 2 250 4.25 500 1000 200
500 500 1500 500 1500
The KKT conditions for optimality are obtained as follows:
0 0.002 2.5 … 4
0 0.005 2 … 5
8
0 4.25 … 6
0 500 500 … 7
0 1000 200 … 9
0 500 1500 … 11
From equation (6), we get: 4.25 $/
From equation (7), we get: 4.25 $/
From equation (8), we get: 4.25 $/
From equation (4), we get: 875
From equation (5), we get: 450
From equation (9), we get: 0.675
From equation (10), we get: 0.075
From equation (11), we get: 975
So,
∗ ∗ 100 675
∗ ∗ 100 300
With 500 MW line capacity, line 1‐3 is congested. So, a new constraint has to be introduced as follows:
∗ ∗ 100 500 so,
1000 500 0
Hence, a new lagrangian is formed as follows:
μ 1000 500
0.001 2.5 450 0.0025 2 250 4.25 500 1000 200
500 500 1500 500 1500 μ 1000 500
9
The KKT conditions for optimality are obtained as follows:
0 0.002 2.5 … 12
0 0.005 2 … 13
0 4.25 … 14
0 500 500 … 15
0 1000 200 … 17
0 500 1500 … 19
0 1000 500 … 20
μ
From equation (14), we get: . $/
From equation (15), we get: . $/
From equation (20), we get: 0.5
From equation (17), we get:
From equation (13), we get:
From equation (12), we get: . $/
From equation (18), we get: 0.1
From equation (16), we get: μ 0.35 $/
From equation (19), we get:
10
Problem 5:
0.5 20
0.2 10
0.4 25
200 0.5
167 0.135
252 0.412
Area‐1 Area‐2
A B
Y Pmax = 200 X
Pmax = 100
Area‐3
C
Z
a. To find the market settlement with transmission constraints ignored:
. So,
So,
∗ ∗ ∗ ∗ ∗ ∗
20 10 25 200 167 252
0.5 0.2 0.4 0.5 0.135 0.412
Solving for ∗ , we get:
∗
. $/ at which:
.
.
.
.
.
.
11
b. From part (a):
337.843
119.6
It can be seen that both lines are congested. So, the market should be split. First, we split the
market into three areas as follows:
i. Market is split into three areas:
Area‐1 Area‐2
A Pmax = 200
B
Y TL‐2 X
Pmax = 100
TL‐1
Area‐3
C
Z
Both TL‐1 and TL‐2 are operating on their capacity limits.
For area‐2: 200
10 200
200
0.2 0.5
So, . $/ at which . and .
For area‐1: 200 100
20 167
200 100
0.5 0.135
So, . $/ at which . and .
For area‐3: 100
25 252
100
0.4 0.412
So, . $/ at which . and .
12
From the results obtained above, it can be seen that:
‐ and line 1‐2 was congested in the direction from area‐2 to area‐1. Hence, this split is
correct.
‐ and line 1‐3 was congested in the direction from area‐1 to area‐3. Hence, this split is
incorrect.
Hence, the market should be split into two areas as follows:
ii. Market is split into two areas:
Area‐1 Area‐2
Pmax = 200
A B
Y TL‐2 X
Pmax = 100
TL‐1
C
Z
TL‐2 is operating at its capacity limit and we will check the power flowing in TL‐1 based on the
solution obtained.
For area‐2: 200
10 200
200
0.2 0.5
So, . $/ at which . and .
For area‐1: 200
20 25 167 252
200
0.5 0.4 0.135 0.412
So, . $/ at which:
.
.
.
.
13
The power flowing in line TL‐1 in the figure above is then:
200 72.22
So, TL‐1 is not congested.
c. For customer‐X:
0 as it’s not contributing to the congestion. Hence, it’s not liable to
charges.
∗ 50 1465.4 $/
. $/
So, customer‐X is earning . $/ .
For customer‐Y:
200 ∗ 5861.6 $/
∗ 150 4396.2 $/
. $/
So, customer‐Y is paying . $/ .
14
Problem 6:
a. When transmission line limits are ignored:
Generator G1 was supposed to supply all the loads since it’s the cheaper generator. However,
generator G2 has a minimum power to be generated of 50 MW. So, generator G1 will supply:
150 200 250 50 550
Generator G1 sees the load at bus‐2 as 150 MW.
And generator G2 will locally supply 50 MW to the load at bus‐2: 50
Using superposition and with equal impedances for all transmission lines:
G1 G1
250 MW 150 MW 150 MW
1 2 1 2
z z
83.33 MW z 100 MW z
166.67 MW + 50 MW
z z
3 250 MW 3
And hence, the resultant power flow is:
G1
550 MW 50 MW 200 MW
1 2
150 MW z
183.33 MW z 33.33 MW
216.67 MW
z
3 250 MW
When the transmission limits are ignored, any additional load will be met by generator G1. Hence,
the marginal costs at all buses will be:
$/
b. If the transmission lines limit of 200 MW is considered, it can be seen from the results in point (a)
that line 1‐3 is congested. So, generator G2 will have to supply some power so as to restrict the
power flow in line 1‐3 to 200 MW. Due to the equal transmission line impedances, the power flow
for this additional power (x) from G2 will be:
15
G2
x
1 G1 2
z
2x/3
z
x/3
z
3
This power will be relieved from generator G1.
In point (b), line 1‐3 was delivering 326.67 MW and its capacity is 250 MW. Hence,
216.67 200
3
From which we get:
50
So, 550 50 500
The power flow will then be:
G1
500 MW 100 MW G2 200 MW
1 2
150 MW z
150 MW z 50 MW
200 MW
z
3 250 MW
$/
$/
To get , we assume a 1 MW increase in the load at bus‐3 and see the impact on the generation
levels at G1 and G2 (∆ and ∆ ) as follows:
‐ To meet this 1 MW increase in load, the increase in generation levels will be:
16
∆ ∆ 1 … 1
‐ Also, to keep the power flow in line 1‐3 at its capacity limit of 200 MW, the additional power
flows in line 1‐3 (from 1 to 3) from both generators due to this change in generation should
cancel each other (considering equal transmission line impedances):
2 1
∗∆ ∗∆ 0 … 2
3 3
Solving (1) and (2) simultaneously, we get:
∆ 1 and ∆ 2 . So,
∗ ∗ $/
c. For the customer at bus‐3:
200 2000 $/
∗ 200 2000 $/
So, the customer at bus‐3 will not pay any money because of the FTR they hold.
17
Problem 7:
0.5 25
0.2 10
0.1 18
180 0.25
210 0.4
195 0.37
West region East region
A B Tmax =150 MW C
E F D
a. To find the market settlement with transmission constraints ignored:
. So,
So,
∗ ∗ ∗ ∗ ∗ ∗
25 10 18 180 210 195
0.5 0.2 0.1 0.25 0.4 0.37
Solving for ∗ , we get:
∗
. $/ at which:
.
.
.
.
.
.
b. From part (a): 196.39 hence, the tie line is congested (its capacity is
150 MW).
So, market is split into east and west regions:
‐ For the east region:
150
18
18 180
150
0.1 0.25
So, $/ at which and
‐ For the west region:
150
25 10 210 195
150
0.5 0.2 0.4 0.37
So, . $/ at which:
.
.
.
.
c. For 8% transmission losses in the tie line:
If the generation at the west region is reduced by 1 MW then, the generation in the east region
should be increased by 1.087
.
The constraint cost (β) is:
∗ . ∗
. $/
So,
1 ∗ ∗ β
Where: 1 (power delivery at the same bus) and 0 (east region bus is the
reference bus). So,
$/
1 ∗ ∗ β
Where: 1.087 (because of the transmission losses) and 1 (1 MW
.
increase in west region generation relieves the tie line congestion by 1 MW). So,
. $/
19
d. ∗
. $/
To be paid by the west region participants.
e. For customer‐D:
0 as it’s not contributing to the congestion. Hence, it’s not liable to
charges.
∗ 125 889.396 $/
. $/
So, customer‐D is earning . $/ .
For customers E and F:
& ∗ 150 ∗ 82.115 75 1067.276 $/
& ∗ 150 1067.276 $/
& & &
So, customers E and F will not pay any money because of the FTR they hold.
20
Problem 8:
0.5 20
0.2 10
200 0.5
167 0.135
105.24 $/ with transmission line limits ignored.
West area East area
A Pmax =200 MW B
Y X
From the data given:
170.48
476.2
189.52
457.48
So, 286.68
hence, the tie line is congested.
So, market is split into east and west regions:
‐ For the east region:
200
10 200
200
0.2 0.5
So, . $/ at which . and .
‐ For the west region:
200
20 167
200
0.5 0.135
So, . $/ at which . and .
21
For customer‐X:
0 as it’s not contributing to the congestion. Hence, it’s not liable to
charges.
∗ 50 1081.55 $/
. $/
So, customer‐X is earning . $/ .
For customer‐Y:
∗ 200 114.488 92.86 4326.21 $/
∗ 150 3244.657 $/
. $/
So, customer‐Y is paying . $/ .
22
Problem 9:
0.6 100 … 1
0.32 440 … 2
535 … 3
To maximize the profits of both A and B in this Cournot model of non‐cooperative game and get the Nash
equilibrium solution, the profits are expressed as follows:
∗
∗
Also, we know that:
… 4
Hence, from equations (3) & (4), we get:
535 … 5
So, to maximize the profits:
0 0
∗ 0 ∗ 0
And using equation (5): And using equation (5):
0 … 6 0 … 7
We should know the cost function of each Genco in order to get the maximum profits. Cost functions are
not explicitly known. However, supply function is known and is indicative to the cost function. So, we’ll
assume that it’s the cost function (though that is not entirely correct). So,
So, from equation (6): So, from equation (6):
2 534.4 2 534.68
23
We can solve these two equations simultaneously to get:
.
And,
.
At which,
.
And,
. $/
24