Optimal System Operation

Optimal System Operation

Introduction
The optimal system operation involves the consideration of economy of operation,
system security, emission at certain fossil-fuel plants, optimal releases of water at hydro
generation etc. All these considerations make for conflicting requirements and a compromise
is to be made for optimal system operation. Here we consider the economy of operation i.e.
the economic dispatch problem.
The main aim in the economic dispatch problem is to minimize the total cost of
generating real power (production cost) at various stations while satisfying the loads and the
losses in the transmission links. Economy of operation is naturally predominant in
determining allocation of generation to each station for various system load levels. The first
problem in power system parlance is called the ‘unit commitment’ (UC) problem and second
is called the ‘load scheduling’ (LS) problem. One must first solve UC problem before
proceeding with the LS problem.
Optimal Operation of Generators on a Bus Bar
Generator Operation Cost
The major component of generator operating cost is the fuel input/ hour, while
maintenance contributes only to a small extent. The fuel cost is meaningful in case of thermal
and nuclear stations, but for the hydro stations where the energy storage is ‘apparently free’,
the operating cost as such is not meaningful.
Fuel in million kilocalories / hr
Operating cost in Rs / hr
or

0 (MW) min (MW) max

Power output, MW

Input output curve of a generating unit

Here (MW)min is the minimum loading limit below which it is uneconomical to
operate the unit and (MW)max is the maximum output limit. By fitting a suitable degree
polynomial, an analytical expression for operating cost can be written as
Ci(PG ) Rs / hour at output PGi
Where the suffix i stands for the unit number. It generally suffices to fit a second degree
polynomial i.e.
1
Ci ai pGi2  bi PGi  d i Rs / hour
2
dCi
The slope of the cost curve, i.e. is called the incremental fuel cost and is expressed in
dPGi
units of rupees per megawatt hour (Rs/MWh).
(IC)i = ai PGi + b i

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Optimal System Operation

Actual

Incremental fuel cost (IC),

incremental cost

approximation
Linear
Rs / MWh
0 (MW) min (MW) max
Power output, MW

Incremental fuel cost versus power output for the unit

For better accuracy incremental fuel cost may be expressed by a number of short line
segments. Or we can fit a polynomial of suitable degree to represent IC curve in the inverse
form.
2
PGi   i   i  IC i   i  IC i  ......
Optimal Unit Commitment (UC):
As we know it is not economical to run all the units available all the time. Therefore,
to determine the units of a plant that should operate for a particular load is the problem of unit
commitment (UC).
A simple but sub-optimal approach to the problem is to impose priority ordering,
wherein the most efficient unit is loaded first to be followed by the less efficient units in
order as the load increases. A straight but highly time consuming way of finding the most
economical combination of units to meet a particular load demand, is to try all the possible
combinations of units that can supply this load. Considerable computational saving can be
achieved by dynamic programming method for comparing the economics of combinations as
certain combinations need not be tried at all.
Reliability Consideration:
With the increasing dependence of industry, agriculture and day to day household
comfort upon the continuity of electric supply, the reliability of power systems has assumed
great importance. Every electric utility is normally under obligation to provide to its
consumers a certain degree of continuity and quality of service. Therefore, economy and
reliability (security) must be properly coordinated in arriving at the operational unit
commitment decision.
Since the probability of unit outage increases with operating time and the unit which
has to provide the spinning reserve at a particular time has to be started several hours ahead,
and the loads are never known with complete certainty. Also, the spinning reserve has to be
provided at suitable generating stations of the system. A simplified treatment of the problem
is presented.
t1(down) t2(down) t3(down)

Up Time
1(up state)
t1(up) Repair

0 Failure t2(up) t3(up)

(down state) Down Time Time

Random unit performance neglecting scheduled outages

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Optimal System Operation
The length of individual operating and repair periods are a random phenomenon with
operating periods which are much longer than repair periods. When a unit has been operating
for a long time, the random phenomenon can be described by the following parameters.
Mean time to failure (mean ‘up’ time)
 t (up )
j
j

T (up) 
no. of cycles
Mean time to repair (mean ‘down’ time)
 t (down)
j
j

T ( down) 
no. of cycles
Mean cycle time = T (up ) + T ( down)
Inverse of these times can be defined as ‘rates’
Failure rate,   1 / T (up ) (failures / year)
Repair rate,   1 / T (down) (repairs / year)
Failure and repair rates are to be estimated from the past data of units. The failure
rates are affected by preventive maintenance and the repair rates are sensitive to size,
composition and skill of repair team.
By ratio definition of probability, we can write the probability of a unit being in ‘up’
or ‘down’ states at any time as
T (up) 
p(up )  
T (up)  T ( down)   
T (down) 
p(down)  
T (up )  T (down)   
Obviously,
p(up) + p(down) = 1
p(up) and p(down) are also termed as availability and unavailability, respectively.
When k units are operating, the system state changes because of random outages.
Failure of a unit can be regarded as an event independent of the state of other units. If a
particular system state i is defined as Xi units in ‘down’ state and Yi in ‘up’ states (k = Xi +
Yi), the probability of the system in this state is
pi  II p j (up ) II pi ( down)
j Yi j X i
Patton’s Security Function:
A branch of system security and is defined as some intolerable or undesirable
condition. It quantitatively estimates the probability that the available generation capacity
at a particular hour is less than the system load at that time.
S   pi ri
Where,
pi = probability of system being in state
ri = probability that system state i causes breach of system security.
When system load is deterministic, i.e. ri = 1 if available capacity is less than load and 0
otherwise. S indeed, is a quantitative estimate of system insecurity.
Security Constrained Optimal Unit Commitment:
Once the units are committed at a particular load level are known from purely
economic considerations, the security function S is computed. The computed value should
not exceed a certain maximum tolerable insecurity level (MTIL). MTIL for a system is a

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Optimal System Operation
management decision and is guided by past experience. If the value of S exceeds MTIL the
economic unit commitment schedule is modified by bringing the next most economical unit
as per the UC table. S is then recalculated and checked, the process is continued till S 
MTIL.
For the minimum load of 5 MW according to optimal UC table, only unit 1 is
to be operated. Assuming identical failure rate  of 1/year and repair rate  of 99/year for all
the four units, let us check if the system is secure for the period E. Further assume the system
MTIL to be 0.0005. Unit 1 can be only in two possible states – operating or on forced outage.

Unit Number
Period
1 2 3 4
A 1 1 1 1
B 1 1 1 0
C 1 1 0 0
D 1 1 1 0
E 1 0 0 0
F 1 1 0 0
Economically optimal UC table for the sample system for the load curve

A
20

B D
15
Load in MW

C F
10

E
5

0 4 8 12 16 20 24
(Noon) (Noon)

Time in hours

Daily load curve

Therefore,
2
S   pi ri  p1r1  p2 r2
i 1
Where

p1  p (up )   0.99 , r1 = 0 (unit 1 = 12 MW > 5 MW)
 

p2  p( down)   0.01 , r2 = 1 (With unit 1 down load
  demand can not be met)
Hence
S = 0.99 x 0 + 0.01 x 1 = 0.01 > 0.005 (MTIL)
Thus unit 1 alone supplying 5 MW loads fails to satisfy the prescribed security
criterion. In order to obtain optimal and yet secure UC, it is necessary to run the next most
economical unit, i.e. unit 2 along with unit 1.
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Optimal System Operation
With both units operating, security function is contributed only by the state when both
the units are on forced outage. The states with both unit operating or either one failed can
meet the load demand of 5 MW and so do not contribute to the security function. Therefore,
S = p(down) x p(down) x 1 = 0.0001
This combination does meet the prescribed MTIL of 0.005, i.e. S < MTIL.
Proceeding similarly and checking security functions for periods A, B, C, D and F, we
obtain the following optimal and secure UC table for the sample system for the given load
curve.
Optimal and Secure UC Table
Unit Number
Period
1 2 3 4
A 1 1 1 1
B 1 1 1 0
C 1 1 0 0
D 1 1 1 0
E 1 1* 0 0
F 1 1 0 0
* Unit was started due to security consideration
Start-up Consideration:
The UC table as obtained is secure and economically optimal over each individual
period of the load curve. Such a table may require that certain units have to be started and
stopped more than once. Therefore, start up cost must be taken into consideration from the
point of view of overall economy. For example unit 3 has to be stopped and restarted twice
during the cycle. We must therefore, examine whether or not it will be more economical to
avoid one restarting by continuing to run the unit in period C.
Case a When unit 3 is not operating in period C.
Total fuel cost for periods B, C and D as obtained by most economic load sharing are as
under
= 1,690.756 + 1,075.356 + 1,690.756 = Rs 4,456.868
Start up cost of unit 3 = Rs 50.000 (say)
Total operating cost = Rs 4,506.868
Case b When all three units are running in period C i.e.unit 3 is not stopped at the end of
period B
Total operating cost =1,690.756+ 1,081.704 + 1,690.756
= Rs 4,463.216
Therefore start up cost = 0
Clearly case b results in overall economy. Therefore, the optimal and secure UC table
for this load cycle is modified as under, with due consideration to the overall cost.
Overall optimal and secure UC table
Unit Number
Period
1 2 3 4
A 1 1 1 1
B 1 1 1 0
C 1 1 1* 0
D 1 1 1 0
E 1 1 0 0
F 1 1 0 0
* Unit was started due to start up consideration

Optimal Generation Scheduling:

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Optimal System Operation
From the UC commitment table of a given plant, the fuel cost curve of the plant can
be determined in the form of a polynomial of suitable degree by the method of least square
fit.
If the transmission losses are neglected, the total system load can be optimally
divided among the various generating plants using the equal incremental cost criterion.
Unrealistic to neglect transmission losses particularly for long distance
transmission of power is involved.
The transmission losses may very from 5 to 15% of the total load, and therefore, it is
essential to account for losses while developing an economic load dispatch policy. But when
losses are present, we can not use the simple ‘equal incremental cost’ criterion.
Considering two bus system with identical generators at each bus. Assume that the load is
located near plant 1 and plant 2 has to deliver power via a lose line. Equal incremental cost
criterion would dictate that each plant should carry half the total load; while it is obvious in
this case that the plant 1 should carry a greater share of the load demand thereby reducing
transmission losses.
To minimize the overall cost of generation, how the load should be shared among the
various plants when the line losses are accounted for.
k
C   Ci ( PGi )
i 1
k

P
i 1
Gi  PD  PL  0

Where,
k = total number of generating plants
PGi = generation of ith plant
PD = sum of load demand at all buses (system load demand)
PL = total system transmission loss
k
 k 
L   Ci ( PGi )     PGi  PD  PL 
i 1  i 1 
For optimum real power dispatch,
L dCi P
     L  0, i  1, 2, ......k
PGi dPGi PGi
dCi
dPGi dCi
  or Li   , i  1, 2, ......k
 PL  dPGi
1  
 PGi 
Where
1
Li  is called the penalty factor of the ith plant
 PL 
1  
 PGi 
The minimum fuel cost is obtained when the incremental fuel cost of each plant
multiplied by its penalty factor is the same for all the plants.
PL
The partial derivative is known as incremental transmission loss (ITL)i and is
PGi
associated with the ith generating plant.
 IC i   1   ITL i  , i  1, 2, ...................k
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Optimal System Operation
This equation is referred as the exact coordination equation.
Hence to solve the optimum load scheduling problem it is must to compute ITL for
each plant.
The most important, simple but approximate method of expressing transmission loss
as a function of generator powers is through B coefficients. The general form of the loss
formula using B coefficients is
k k
PL =  P
m = 1n = 1
Gm Bmn PGn

Where,
PGm , PGn = real power generation at m, nth plant
Bmn = Loss coefficient which are constants under certain assumed operating condition
The above equation can be written in matrix form as
PL  PGT BPG
Where
PL  B11PG21  B22 PG22  B33 PG23  2 B12 PG1PG 2  2 B23 PG 2 PG 3  2 B31PG 3 PG1
Now we can write
PL  k k
=   PGmBmn PGn
PGi PGi m = 1 n = 1
 
  k k
  PGi Bin PGn   PGm Bmi PGi  PGi Bii PGi 

PGi n = 1 m=1

 n  i mi 
Other terms are independent of PGi hence left out
k
PL
  2 Bij PGj
PGi j  1
Let quadratic plant cost curve are as
1
Ci  PGi   ai PGi2  bi PGi  di then
2
dCi
 ai PGi  bi
dPGi
Now from coordination equation we have
k
ai PGi  bi    2 Bij PGj  
j 1
Collecting all terms of PGi and solving for PGi we obtain
k
( ai  2 Bii ) PGi     2 Bij PGj  bi  
j 1
j i

bi k
1   2B P
 j  1 ij Gj
j i
PGi 
ai
 2 Bii

Derivation of Transmission Losses:

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Optimal System Operation
Let’s consider the case of two generating plants connected to an arbitrary number of
loads through a transmission network. One line within the network is designated as branch p.
Imagine that the total load current ID is supplied by plant 1 only. Let the current in line p be
Ip1. Define
I p1
M p1 
ID
ID
1 1
Ip1 ID Ip2 ID
2 2
ID
(a) (b)

IG1
1
Ip ID
2
IG2 (c)
Schematic diagram showing two plants connected through a
power network to a number of loads

Similarly, with plant 2 alone supplying the total load current, one can define
I p2
M p2 
ID
M p1 and M p 2 are called current distribution factors. The value of current distribution
factors depend upon the impedances of the lines and their interconnection and are
independent of the current ID.
When both generators 1 and 2 are supplying current into the network, applying the
principle of superposition the current in the line p can be expressed as
Ip = Mp1 IG1 + Mp2 IG2
Where IG1 and IG2 are the currents supplied by plants 1 and 2 respectively.
Optimal Load Flow Solution:
First given by Dommel and Tinney. It is based on load flow solution by the NR
method, a first order gradient adjustment algorithm for minimizing the objective function and
use of penalty functions to account for inequality constraints on dependent variables. The
problem of unconstrained optimal load flow is first tackled. Later the inequality constraints
are introduced, first on control variable and then on dependent variables.
Optimal Hydro Thermal Scheduling:
In this problem we try to find out the hydro generations. In each subinterval of the
scheduling interval such that the total thermal production (over the scheduling interval) is
minimized.
Depending on whether it is short range ofr long range problem the constraints may
differ but the overall solution methodology remains same.
Input output characteristics of hydro thermal plant:
Dandeno has done considerable work on this

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Optimal System Operation

450'

Obtain through
400'
curve tracing

500'

Q
m3 / hr

PMW

Input Output Characteristics

In actual case these curves are not like this. But there is change due to different valve
openings i.e. due to discontinuity.
400’, 450’, 500’ – shows the variation in head.
In actual curve these are programs of production cost. In such programs we have to
take care of discontinuity. Because at these points there may be convergence problem.

Sraight line segments

m3
MWhr

PWM

Incremental water line characteristics

We opt for economical method from complicated one.
In dispatch centre, time to time they change the generation from economical point of
view. AGC – economic dispatch is continuous process and is on line decision.
Hydro thermal scheduling is much more complex & demanding (storage and time)
(because there are a large number of optimization variables) than static thermal problem (low
number of optimization variables, we take off line decision). However we don’t require a real
time solution for this problem.
Classical method for hydro thermal scheduling:
Assumption: Variable head operation or cascaded plants not considered. But the extension of
this method for these problems is possible.
Statement of the problem:
T NT
Min. FTh    FThi dT
0 i 1
NI NT
FT   FTij
j 1 i 1

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Optimal System Operation
The continuous problem is modified into a discretised problem. Decisions regarding
hourly generations are to be taken.
FT = total cost of thermal generators over scheduling interval.
NI = Number of scheduling sub-interval for example – 24 hourly subinterval (short range
problem)
NT = Number of thermal generators
Minimization is subject to:
1. Power balance in every subinterval
NT NH

 PTij   PHij  PLj  PDj

i 1 i 1

j  1, 2, ....................NJ
NH = number of Hydro plants
PT, PH = Thermal and Hydro generators
PL Loss PD = demand
j is used because in every subinterval loss & demand will be different.

2. Water availability constraint

NI

Q
j 1
Hij  Ki i  1, 2, ....................NH

QHij = Water discharge for power generation in subinterval j for hydro plant i
Ki = Total water availability during the scheduling interval for ith hydro plant

Inequality Constraints:
PTij min  PTij  PTij max
PHij min  PHij  PHij max
QHij min  QHij  QHij max
Method of Solution:
Augmenting the objective function using the Lagrangian multipliers.
For Lagrangian function using js and is as Lagrangian multiplier.
NI NT NI
 NT NH
 NH  NI 
L   FTij    j   PTij   PHij  PLj  PDj     i   QHij  Ki 
j 1 i 1 J 1  i 1 i 1  i 1  j 1 
L L
For optimum conditions  0 and 0
PTij PHij
L FTij  P 
   j  1  Lj   0
PTij PTij  P 
 Tij 

 
FTij  1 
 
j
PTij  PLj 
 1  P 
 Tij 
FTij j = 1, 2, ……………….NI
PFij   j i = 1, 2, ………………NT
PTij

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Optimal System Operation

dQij j = 1, 2, ……………….NI
i PFij   j
dPHij i = 1, 2, ………………NH
These co-ordination equations are solved such that all the equality constraints are
satisfied.
Where, i is the incremental worth of hydro power which controls the water use.  j is the
incremental cost of thermal generation at a fictitious load centre controls power balance.
 j - depends on the hydro generation actually we use hydro generation i for that subinterval
where it is beneficial for use. We push the hydro power generation in that subinterval where
net worth of hydropower is maximum.

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