Economics and Planning of Energy

Systems: ESL 750

Demand Supply Balancing

1
2
3
 Electrical Demand and Supply Options
Supply
• Thermal
Demand
– Coal
– Gas
– Lignite • Industrial
– Hybrid • Commercial
• Hydro
• Nuclear • Residential
• Wind • Transportation
• Solar
• Agriculture
• Small Hydro
• Diesel
• Other (Geo, Thermal,
Biomass, OTEC etc. )
• Storage

4
Typical Structure of Power Supply System
 Overview of Indian Power Sector
Installed Capacity
MW % of Total
State Sector: 1,05,314 MW (26.7%) Fuel
Total Thermal 2,35,929 59.7%
Central Sector: 98,327 MW (24.9%) 2,03,900 51.6%
Coal
Private Sector: 1,91,434 MW (48.5%) Lignite 1.7%
Annual Peak Load Demand of the Country: 6,620
183 GW Gas 24,900 6.3%

The Government of India has set a target of

Diesel 510 0.1%
installing of installing 175 GW of renewable Hydro (Renewable) 46, 512 11.8%
energy capacity by the year 2022. Nuclear 6,780 1.7%
Peak Demand to Increase : 690 GW by 2035-36 RES* (MNRE) 105,854 26.8%
(CEA, Reviews) Total 3,95,075

Status as on: Jan, 2022, Source: Ministry of Power website

6
Overview of Indian Power Sector
MW % of Total
Fuel
RES (Including Hydro) 1,52,366 38.5%
Hydro 46,512 11.8%
Wind 10.2%
40,101
Solar 50,304 12.7%
BM Power/Cogen 10,176 2.6%
Waste to Energy 434 0.1%
Small Hydro Power 4,840 1.2%
Status as on: Jan, 2022, Source: Ministry of Power website

Peak power demand deficit in the country was almost wiped out in 2020-
21 period. Providing statistics, the ministry said the deficit stood at 0.4 per
cent in 2020-21 compared to 16.6 per cent in 2007-08 and 10.6 per cent
in 2011-12.08-Nov-2021
7
 Demand Supply Balancing
▪ What is Electricity Demand and Supply Balancing
Real Power Load-Generation Balance
Reactive Power Load- Generation Balance

▪ What if Electricity Demand and Supply is not balanced

??

▪ Reflections: Frequency/Voltage Change…

….. Cascading of the events may lead to
eventual system collapse

▪ Why Electricity Demand Supply Balancing is different

from other commodities ???
8
9
10
Frequency Variations (Indian Grid)

Allowed Range
49.90-50.05 Hz

11
 Frequency Variations (Indian Grid)

Allowed Range
49.90-50.05 Hz

https://www.youtube.com/watch?v=slDAvewWfrA : British Electricity Demand

Increase (TV show)
12
 Swiss Grid (real time
frequency supply) Who is disrupting the utility frequency? (next-
kraftwerke.com)
1. Frequency (swissgrid.ch)
The massive frequency collapse was the result of a chain of events with multiple causes (Right
Hand Side)

•Failures at large power plants in France and Spain destabilized the integrated European grid.

•A grid controller data error from the TSO TenneT starts up the pumps at the Goldisthal pumped
hydro plant – even though the necessary power is not available in the grid.

•The normal hourly handoff between large power plants causes a predictable frequency
fluctuation of 0.1 hertz.

•A feed-in shortfall, which can possibly be traced back to the data error. 13
Frequency Control Response

Questions to Answer

1. Who provides Primary,

Secondary and Tertiary
control
2. Incentives for voluntarily
participation for frequency
response

14
 Demand Supply Balancing
▪ Need for Minute-to-Minute Balancing
▪ Need for organizational structure
▪ Markets, Regulation
▪ Optimization
Various Stake holders in power Supply Chain

15
Major Changes in Power System Operations
in Past Years

• Deregulation in Power Sector

• Addition of more fragile generation sources

and loads

16
Various Stake holders in Power Supply Chain
• Generation Companies : GENCOs
(Public, Private, State/Central Government)

• DISCOMS
Public, Private, State/Central Government)

• TRANSCOs
(State/Central Government)

• Independent System Operator (ISO), POSOCO

(Managing the National and Regional grid from National Load Dispatch
Centre (NLDC))

• Regulatory Authorities (CERC, SERC)

Various Stake holders in Power Supply Chain
State Government
State Electricity Board
A Unbundled Utilities
– Minimum Generating Co, Transmission Co and Distribution Co
– For example,
AP has 4 DISCOMs, TRANSCO and GENCO
Rajasthan has 3 DISCOMs, TRANSCO and GENCO
MP unbundled in 3 DISCOMs, TRANSCO and GENCO
B State Electricity Regulatory Commissions
– Members are appointed by state government. Autonomous
working.
C Independent Power Producers (IPPs)
– IPPs operate under Build-Own-Operate mode. No IPPs under central
government
 Scheduling Power Supply Chain
Scheduling

S.No. Time slot Rated Declared Allocated

Capacity Capacity Capacity
1 00:00- 00:15
2 00:15- 00:30
..
.. Forecasting of
generation/load
..
..
96 11.45-00.00
Similar Type of Declaration from the loads.
System Operator Calculates the schedule on the basis of Predefined
optimization criteria
 Objectives of Energy Management System
• Security and Stability of the system: Primary
• Economic Operation and Control, Secondary
• Operational Planning and Maintenance Scheduling: Tertiary

Energy Management System employees a supervisory control systems normally

consist of a computer system and several remote terminal units (RTUs), located in the
power stations and substations.
The data through various meters is obtained for further analysis and processing.

Three Level Approach for Real and reactive power Load/Generation

Balancing (Tertiary Control)

Unit Commitment

Economic Dispatch

Optimal Power Flow

20
 Steady State System Operation
Balancing • Scheduling: Day Ahead: Unit Commitment, Economic Dispatch
• Real Time Operation: State Estimator , real time monitoring and
control
• i. Control in response to frequency change : Generation as well
as Demand Side can respond to keep the frequency within
limits
ii. Control in response to voltage change : Regulate the reactive
power generation and demand of the system

Security • Analysing the system parameters like voltage, line power flows,
transformer loading etc. to be within permissible limits or not.
• Planning for the predictive measures: Power flow based analysis
• Real time security assessment and control: Scada based Energy
Management Systems

Optimal Power • Optimal setting of the controls in the system with the objective of
better operation: can be economics, loss reduction, stability
Flow
enhancement etc.
 Unit Commitment (UC)
Basics:
• Unit commitment problem states that out of 𝑁𝑔 generating units
available which of them should be committed in order to satisfy the
forecasted demand with the objective of minimum operating
cost/or dependent on the system operators objective.

• The solution involves integer variables i.e. either the unit is ON (1)
or OFF (0) hence difficult to solve.

• Suppose 𝑁 generators are to be committed and dispatched for a

loading pattern of 𝑀 periods. Each generator can be either ON or
OFF (2 possibilities).

• For a period of 𝑀 intervals the total combinations possible are

𝑀
2𝑁 − 1 .
 Algorithms for UC
• Commitment by enumeration (brute force). The total
number of combinations we need to try each hour is,

For a period of 𝑀 intervals the

total combinations possible are
𝑀
2𝑁 − 1 .

Thermal
Plants:399
Hydro: 197
Nuclear
Reactors: 22…..
..
 Algorithms for UC
• Need for Optimization?
• Heuristics
• Binary coded Algorithms
• Classical Methods like Dynamic Programming, Lagrange
Relaxation
 Important factors to be considered in UC
Reserve Requirement
• Spinning reserve
Some generators in the system are synchronized to the grid but are
not generating any power. This is termed as spinning reserve.
Spinning reserves are necessary so that loss of one or more
generating units do not cause a significant loss in system frequency.

• Offline reserves
It consists of generating units which are not connected to grid but
can be brought on-line and synchronized quickly, e.g. pumped
storage.

• Unit on banking
 Important factors to be considered in UC
For Thermal Units
• Minimum uptime: Once the unit is turned ON, it should be kept ON
for a minimum amount of time before turning OFF.

• Minimum downtime: Once the unit is turned OFF, there is a

minimum time before it can be turned ON again.
• Crew Constraint

For Hydro Units:

• Minimum Reservoir Level
• Maximum Reservoir level
• Discharge rate constraint
• Must run
 Important factors to be considered in UC
Additional Factors:

For Renewable based generations

• Wind/Solar:
Must run if no storage

• Biomass/Biogas: Storage constraints , makes a better case for the

time being in microgrid environment

• Large Scale storage (Electrical/thermal)

– May have constraints related to charging/discharging, storage capacity etc.
 Important factors to be considered in UC
• Start-up cost (thermal)
A certain amount of energy is required to bring a generating unit on-line. This
energy forms the basis of start-up cost.
• Start-up cost when cooling = 𝐶𝑐 1 − e−𝑡/α ∗ 𝐹 + 𝐶𝑓 where,
𝐶𝑐 = Cold start cost (MJ)
𝐹 = fuel cost (Rs/MJ)
𝐶𝑓 = Fixed cost (Rs.)
α = thermal time constant for the unit
𝑡 = time for which unit was cooled (hr)
• In case of start-up when banking, start-up cost includes cost of maintaining
unit at operating temperature and fixed cost.
• Start-up cost when banking = 𝐶𝑡 ∗ 𝑡 ∗ 𝐹 + 𝐶𝑓
𝐶𝑡 = Cost of maintaining operating temperature (MJ/hr)
𝑡 = time for which unit was on banking (hr)
Power Generation, Operation and Control, By Allen J. Wood and B.F. Wollenberg,
2nd Edition, John Wiley & Sons.
 Algorithms for UC
• Need for Optimization?
• Heuristics
• Binary coded Algorithms
• Classical Methods like Dynamic Programming, Lagrange
Relaxation
 Algorithms for UC
Priority List Method (Heuristics): Also known as Merit Order Dispatch
In this method a priority list of generating units is made according to
their production cost. A simple algorithm for implementing this method
is operated as follows:
1. At each hour when load is dropping, determine whether dropping
the next unit on the priority list will leave enough generation to
supply the load plus spinning reserve requirements. If not, continue
operating as is; if yes, go on to the next step

2. Determine the number of hours, H, before the unit will be needed

again, that is, assuming that the load is dropping and will then go
back up some hours later.

3. If H is less than the minimum shutdown time for the unit, keep the
commitment as is and go to the last step; if not, go to the next step.
 Priority based Method for UC
Priority List Method (Heuristics): Also known as Merit Order Dispatch
4. Calculate two costs. The first is the sum of the hourly production costs
for the next H hours with the unit up. Then recalculate the same sum for
the unit down and add in the start-up cost for either cooling the unit or
banking it, whichever is less expensive. If there is enough savings from
shutting down the unit, it should be shut down; otherwise, keep it on.

5. Repeat this entire procedure for the next unit on the priority list. If it
is also dropped, go to the next and so forth.

Disadvantage of the Method: Suboptimal , decision taken from unit to

unit basis, all decision variables not considered at the same time.

For a 4 unit problem, enumeration technique 24-1= 15 combinations.

 Priority based Method for UC
Priority List Method (Heuristics): Also known as Merit Order Dispatch
Priority based dispatch would yield
Priority 1 Unit
Priority 1Unit+Priority 2 Unit
Priority 1Unit+Priority 2 Unit+ Priority 3 Unit
Priority 1Unit+Priority 2 Unit+ Priority 3 Unit+ Priority 4 Unit
Disadvantage of the Method: Suboptimal , decision taken from unit to
unit basis, all decision variables not considered at the same time.
The dispatch obtains the optimal only if
1. No load costs are zero
2. The input/output characteristics are linear
3. No other constraints /restrictions present
4. Start up costs are fixed amount
 Other Method for scheduling
Conventional optimization, Metaheuristics, Machine Learning

Challenges in future power sector:

Change in
1. Uncertain generation, load patterns Scheduling
✓ Deregulated Market Operation Practices,
✓ Renewable based Generation Ramp Rates,
Financial
✓ Dynamic Loads like Electric Vehicles
Mechanisms
2. More controllability required

3. Inertial Response

4. Deregulated Market Operations

Who is disrupting the utility frequency? (next-kraftwerke.com)

Primary control reserves alone would not be enough to halt the drop, and
reserve power plants could not be started quickly enough.

The French transmission system operator, RTE, sprang into action, issuing
emergency rolling blackout requests to all of France’s 22 large industrial
demand response consumers that reduced power consumption by 1,500
MW.

The utility frequency stabilized and was heading back toward normal levels
at 21:10; by 21:25, the frequency was back to 50 hertz.

34
 Delhi’s Load Curve

10th July, 2019 28th, December, 2019

35
50 Hz_Committee1.pdf (cercind.gov.in)

36
Thank You

37