Psoc Unit IV Fat II

UNIT IV
UNIT COMMITMENT AND

ECONOMIC DISPATCH
EE18601-PSOC VENKATESAN C
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Formulation of economic dispatch problem
I/O cost characterization
Incremental cost curve
Co-ordination equations without and with loss (No derivation

of loss coefficients)
Solution by direct method and λ-iteration method
Statement of unit commitment problem - Constraints
Unit commitment solution methods: Priority-list method
Forward dynamic programming
Unit commitment in deregulated environment

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Formulation of Economic Dispatch Problem
• The main aim of 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.
• For simplicity, only the thermal plants are considered.
• But hydro plants operating in conjunction with the thermal
plants are also considered.
• While there is negligible operating cost at a hydro plant, there
is a limitation of availability of water over a period of time
which must be used to save maximum fuel at the thermal
plants.
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Formulation of Economic Dispatch Problem
• To start with the economic factor in the power system

operation, the main focus is allocation of real power at
generator buses.
• This problem can be partitioned into two sub-problems, viz.
optimum allocation (commitment) of generators at each
generating station at various station load levels and optimum
allocation of generation to each station for various system
load levels.
• The first problem is called the “Unit Commitment (UC)”
problem and the second is called the “Economic Dispatch (ED)
or Load Scheduling (LS)” problem.
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I/O Cost Characterization
• The total generator operating cost includes fuel cost, cost of
transmission loss, labour and maintenance costs
• For simplicity, Fuel Cost is the only one considered to be
variable
• The fuel cost is meaningful in case of thermal and nuclear
stations, but for hydro stations, where the energy storage is
apparently free, it is not meaningful
• Cost of generation depends on the following Operating or
System Constraints
i. Equality constraint (Generation = Demand + Losses)
ii. Inequality constraints
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I/O Cost Characterization
• The Inequality constraints are further subdivided into
a) Generator constraints
b) Voltage constraints
c) Running space capacity constraints
d) Transformer tap settings
e) Transmission line constraints
f) Network security, etc.
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Incremental Cost Curve
• The Input-output curve of a generating unit specifies the input
energy rate, Fi(PGi) (kcal/hr) or cost of fuel used per hour Ci (PGi)
(Rs/hr) as a function of generator power output PGi (MW).
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• The input-output curve can be determined
experimentally.
• It is convenient to express the input-output curves
interms of input energy rate (kcal/hr) rather than fuel
cost per hour (Rs/hr) because fuel cost can change
monthly or daily.
• In Fig. MWmin is the minimum loading limit below which
it is uneconomical (or may be technically infeasible) to
operate the unit and MWmax is the maximum output limit
• [NOTE: Power or Energy Units can be in Mega (M) or Kilo
(k) units]
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Heat rate Curve
• Heat-rate curve Hi(PGi) is the heat energy (obtained by

combustion of fuel) in (Kcal) needed to generate one unit of
electric energy (KWhr), can be determined experimentally.
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• The generating unit is most efficient at the minimum heat-
rate which corresponds to a particular PGi
• The heat-rate (and hence efficiency) varies with the output
power PGi and the curve indicates the increase in the heat-
rate (or drop in efficiency) at low or high power limits
• The input-output curve can be obtained from the heat-rate
curve as
Fi(PGi) = PGiHi(PGi) (kcal/hr)
Where, Hi(PGi) is the heat-rate in kcal/kWhr
• Let the cost of the fuel be ‘K’ Rs/kcal
• Then the input fuel-cost, Ci(PGi) is
Ci(PGi) = KFi(PGi) = KPGiHi(PGi) (Rs/hr)
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• The heat-rate curve may be approximated in the form,
Hi(Pgi) =
(because the initial portion of curve decreases, reaches minimum

point and then increases)
• Where ai’, bi’, ci’ are positive coefficients
• Input energy rate,
• So, input fuel-cost becomes,
→ (1)
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• The slope of the fuel-cost curve, i.e. dCi(PGi)/dPGi is called the
Incremental Fuel Cost (IC),  and is expressed in Rs/MWh
• A typical plot of the IC vs Power output is shown in Fig.
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The assumptions of incremental cost theory are:
➢ Input-output curves are continuous
➢ First derivative of input-output curves are also continuous
➢ The incremental rate increases with increase in input
• From eqn. (1) Ci(PGi) = ai PGi2 + bi PGi + ci Rs/hr
• Slope of the fuel-cost curve,  = dCi(PGi)/dPGi
= 2aiPGi + bi (Rs/MWh)
• This is a linear relationship (shown as dotted line in Fig.)
• The economic optimum load distribution is obtained when all
the generator units operate at the “equal incremental rate”
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• The incremental cost curve for a thermal power plant is
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• The input-output curve and incremental cost curve for hydro
power plant is
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• The fuel-cost curve and the incremental cost curve may have
a number of discontinuities, as shown in Fig.
• The discontinuities occur when the output power has to be
extended by using additional boilers, steam condensers or
other equipments.
• Discontinuities also appear if the cost represents the
operation of an entire power station, so that the cost has
discontinuities on paralleling of generators
• Within the continuity range, the IC may be expressed by a
number of short line segments (piecewise linearization)
• Alternatively, we can fit a polynomial of suitable degree to
represent the IC curve in the inverse form as,
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Co-ordination Equations without Loss
Optimal division of load between Two machines:
• Let PT be the total output of the two machines
• The problem is to find the optimal division of load between
the two machines
• Let P1 = Power output of machine 1 (MW)
P2 = Power output of machine 2 (MW)
C1 = Fuel cost of machine 1 (Rs/hr)
C2 = Fuel cost of machine 2 (Rs/hr)
CT = Total Fuel cost (Rs/hr)
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• If the losses in the transmission network are neglected
Total output, PT = P1 + P2
Total cost, C T = C1 + C2
• The total power output PT is equal to active power demand
and is constant
• It is desired to find the values of P1 and P2 such that CT is
minimum for a given value of PT
→ (1)
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• As P1 = PT – P2
dP1 = -dP2 (since dPT = 0) → (2)
• For minimum total cost CT

→ (3)
• Substituting eqns. (2) and (3) in (1)
• Thus, the input or cost will be a minimum for a specified load

when the two units have the same incremental cost ()
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Large no. of Units:
• Here the loads should be so allocated among the different
units that every unit operates at the same incremental cost
• For a plant with ‘k’ units
• Since total load PT is constant
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• Our aim is to find P1, P2 ….. Pk such that CT is minimum
• The input or cost of a unit is dependent only on the output of
that unit
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• This equation is satisfied only if each term is zero
• For n = 2, 3, ….., k
• Thus optimum economy is achieved if every unit operates at

the “same incremental cost”
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1. The incremental cost in Rs./MWhr of two 250 MW units are
as under:
• The minimum load of each unit is 20 MW. Find the division

between the units as the total load varies from 40 MW to
500 MW
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• Solution: When the total load is 40 MW, it will be shared

equally by the two units.
• The IC of unit 1: Rs.34/MWhr and that of unit 2: Rs.43/MWhr
• As load increases more load will be added to unit 1 till IC of
unit 1 also becomes Rs.43/MWhr.
• This will happen when load on unit 1 is 65 MW and total load
is 85 MW.
• After this, load division is calculated by assuming successively
higher values of IC and finding P1, P2 and the total load.
• The results are given in the table.
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2 4
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• When IC reaches a value of 77.5, unit 2 will supply its

maximum load of 250 MW
• At this point, unit 1 will supply 237.5 MW.
• After this unit 2 will continue to supply 250 MW and
the unit 1 will meet the remaining requirement.
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Solution by Direct Method
1. Analytical Method
• Cost function, Ci = aiPGi2 + biPGi + ci
• Using equal incremental cost, find  = dCi/dPGi
= 2aiPGi + bi (Rs/MWhr)
• Substitute PGi in the power balance equation (without loss),
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• Substitute  in PGi and obtain the optimal generation
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2. Graphical Method
• In this method, the incremental cost of each generator is
plotted on the same graph as shown in fig.
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• Various values of  (increase or decrease  line) are tried till
PGi = total load to be supplied (PD)
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3. Iterative technique using the Gradient method
• Let f() = PD, expand using Taylor’s series,
• This process is continued until Pk  specified accuracy
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Significance of Equality and Inequality
Constraints
Equality constraints:
• Significance: Total power generation = Total Power demand

Inequality constraints:
• Since each generator must not be operated above its rating or below
some minimum value,
PGi,min  PGi  PGi, max for i = 1, 2,……………, N
• If a particular generator loading PGi reaches the limit PGi,min or PGi,max,
its loading from now on is held fixed at this value and the balance
load is then shared between the remaining generators on equal
incremental cost basis.
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Solution by -Iteration Method
without Loss
Case (i): Operating limits for power generation are not specified
• Step 1: Calculate  using
• Step 2: Compute PGi corresponding to  using
• Step 3: Compute
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without Loss
• Step 4: Check the power balance equation,
• If the power balance equation is satisfied, then optimum

solution is obtained, otherwise go to the next step
• Step 5:
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without Loss
• Case (ii) Operating limits for power generation and the
production cost function are given
• Step 1: Calculate  using
• Step 2: Compute Pgi corresponding to  using
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without Loss
• Step 3: If the computed PGi satisfy the operating limits,
PGi,min  PGi  PGi, max for i = 1, 2,……………, N
then the optimum solution is obtained, otherwise go to the
next step
• Step 4: If PGi violates the operating limits, then fix the
generation at the respective limit
• Step 5: Re-distribute the remaining system load, PD

PD new = PD old - sum of the fixed generations
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without Loss
• Step 6: Compute new using PD new and compute the remaining
generations using
• Step 7: Check whether the optimality condition is satisfied, i.e.,
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without Loss
• If the condition is satisfied, then stop. Otherwise release the
generation schedule fixed at PGi,min or PGi, max of those units
not satisfying the optimality condition
• Include these units in the remaining units and modify the new
power demand (PD new)
and go to step (6)
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PGi,min & PGi, max
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1. The fuel cost of two units are given by,
F1 = 0.1 PG12 + 25PG1 + 1.6 Rs/hr
F2 = 0.1 PG22 + 32PG2 + 2.1 Rs/hr
If the total demand on the generators is 250 MW, find the
economic load scheduling of the two units
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→ (1)
→ (2)
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2. Determine the economic generation schedules of three
generating units in a power system to meet the system load
of 925 MW. The operating limit and cost function are given
below:
Operating limits 250 MW  PG1  450 MW
200 MW  PG2  350 MW
125 MW  PG3  225 MW
Cost function is F1 = 0.0045 PG12 + 5.2 PG1 + 580
F2 = 0.0056 PG22 + 4.5 PG2 + 640
F3 = 0.0079 PG32 + 5.8 PG3 + 820
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→ (1)
→ (2)
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→ (3)
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3. Resolve the previous problem (2) and determine the
economic dispatch by changing the limit for the third unit is
180 MW  PG3  225 MW
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→ (1)
→ (2)
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4. The fuel inputs per hour of plants 1 and 2 are given as
F1 = 0.2 P12 + 40 P1 + 120 Rs/hr
F2 = 0.25 P22 + 30 P2 + 150 Rs/hr
Determine the economic operating schedule and the
corresponding cost of generation. The maximum and
minimum loading on each unit is 100 MW and 25 MW.
Assume the transmission losses are ignored and the total
demand is 180 MW. Also determine the saving obtained if the
load is equally shared by both the units.
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= 88.8889 MW
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Effect of Transmission Loss
• The optimum scheduling for different power stations situated
close to each other can be done without considering the
losses in the transmission network
• However the power stations are far from each other, the
economic scheduling must take transmission losses into
account
• Consider the system shown in Fig., two generating units have

identical incremental cost characteristics
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Effect of Transmission Loss
• Neglecting the losses means that each unit should
supply half the load.
• However it is evident that if unit 2 supplies more
load, the transmission line would have to carry less
current resulting in lower transmission loss
• Thus the economic scheduling obtained by neglecting
the transmission loss may not be the most economic
arrangement in actual practice.
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Coordination Equation with Loss
EE18601-PSOC VENKATESAN C → (1) 57

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• For maximum objective function, differentiate equation (1)
with respect to PGi , and equate it to zero
d
d
d
d
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d
IC – Incremental Fuel Cost
d
ITL – Incremental Transmission Loss
→ (2)
Where, Li = Penalty factor of plants =

• Equation (2) is called as exact coordination equation when
transmission losses are considered
• For optimum generation, plants causing lower ITL (or lower penalty
factor) may be allowed to operate with higher IC
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Optimum Allocation of Generator
• Consider a two bus system shown in Fig.
• To include the effect of transmission losses in deciding the

load allocation, it is necessary to represent the loss as a
function of the plant loading.
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• The general form of loss equation is
Where,
• PL = Transmission Losses in p.u.
• PG = Plant loading in p.u.
• B = Loss coefficients in p.u
• indicate independent summation to include all sources
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• For a two generator source system (N = 2)
• For a three generator source system (N = 3)
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• In matrix form
• Let the cost function be
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• For optimum operating condition, coordination equation is
→ (1)
• Further we have equality constraint
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→ (2)
• By solving equations (1) and (2), we get PG1 and PG2

• In general, for N bus system,
• Equality constraint is
• We have ‘N’ non-linear equations, the solution of which gives the

optimum generations PG1,PG2, ………….., PGN.
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Computational Approach for Optimum
Allocation of Generator
• Assume quadratic cost function,
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• Power balance equation,
• Thus optimum generation is found by iterative method
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Solution by -Iteration Method with Loss
• Step 1: Choose Lagrange multiplier  as  or (IC) (OR)
(Initial value of  is obtained by neglecting losses)

• Step 2: Assume PGj = 0, j = 1,2,………..,N (by neglecting losses)
• Step 3: Solve for PGi using
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• Step 4: Check if any PGi is beyond or below the inequality

constraint PGi,min  PGi  PGi, max
• Step 5: Calculate transmission loss,
• Step 6: Check for power balance equation,
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Value of PGi gives the optimum generation otherwise go to

next step
• Step 7: Increase  by , if
• or decrease  by , if
• Repeat from step (3), till the optimum solution is achieved
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, N
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1. A two bus system is shown in Fig. If 50 MW is transmitted
from plant 1 to the load, a transmission loss of 10 MW is
incurred. Find the required generation for each plant and
the power received by load when the system  is
Rs.22/MWhr. The cost function is given by,
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• Since the load is at bus 2 alone, PG2 will not have any effect on
power loss, B22 = 0, B12 = B21 = 0
• Transmission loss will depend on PG1 only,
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Aliter:
• Power generation is given by,
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2. A system consists of two plants connected by a line as shown
in Fig. A load is at plant 1 and 180 MW is transmitted from
plant 2 to the load, a transmission loss of 18 MW is incurred.
Find the optimum schedule considering transmission losses
to supply a load of 200 MW. Also evaluate the amount of loss
that may be incurred, if at the time of scheduling, losses are
not coordinated. Fuel costs are given by,
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• Since the load is connected at bus 1, the transmission loss will
depend on PG2, Let  = 1
i. Transmission losses are considered and coordinated:
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• Iteration 1: Power generations are given by,
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• Iteration 2:
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• Iteration 3:
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ii. Transmission losses are considered and NOT coordinated:
• Iteration 1:
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• Iteration 2:
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• Iteration 3:
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3. For a two unit system, the loss coefficients are
Incremental cost of the two units are given by,
Find the optimal generations PG1 and PG2 for  = 20. Also
compute the transmission loss and received power.
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Power generations are given by,
→ (1)
→ (2)
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Assume initial generations, (since power transmitted to load is not given)
Iteration 1: Substitute PG2 = 100 in eqn.(1)
Substitute PG1 = 50 in eqn.(2)
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Iteration 2: Substitute PG2 = 51.136 in eqn.(1)
Iteration 3:
Iteration 4:
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From the results of iteration 3 and 4, we got the same values of PG1
and PG2
Since load demand is not given, need not to find P and check  < 1
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4. The incremental costs of two units are:
Power loss is given by,
Determine the Optimum scheduling for a load demand of

100 MW
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• Step 1: Determine  using,
• Step 2: Assume initial value of generations,
• Step 3: Using this initial generation, determine the generation

by iterative method
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• From the equation of PL,
• Iteration 1:
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• Repeating this until the previous and current (PGk = PGk-1)
generations are same
>1
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• Iteration 2:
• Determine  and 
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Base Point and Participation Factors
• The economic dispatch problem has to be solved repeatedly
by moving the generators from one economically optimum
schedule to another as the load changes.
• We start from a schedule obtained from equal incremental
cost as base point.
• Next, the scheduler assumes a load change and investigates
how much each generating unit needs to be moved (i.e.,
participate in the load change) in order that the new load be
served at the most economic operating point.
• Assume that both the first and second derivatives in the cost
versus power output function are available (i.e., both Fi' and
Fi" exist)
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• The incremental cost curve of the ith unit is given in Fig.
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• As the unit load is changed by an amount Pi, the system
incremental cost moves from  to  + 
• For a small change in power output on the single unit,
→ (1)
• This is true for each of the N units on the system, so that
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• Let PD be the total demand on the generation

• The total change in generation = Total change in demand
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• Change in demand,
→ (2)
Participation Factor for each unit:

• Combining equations (1) and (2), we get the participation
factor as,
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• Suppose PD increases to PD+PD, the new value of generation is
calculated using,
• Where, PD = Change in load demand

Pbase,i = Old value of generation
Advantages of using Participation Factor:
1. Computer implementation of economic dispatch is straight
forward.
2. Execution time for the economic dispatch is short
3. It will always give consistent answers when units reach limits.
4. It gives linear incremental cost functions or have non-convex cost
curves.
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UNIT IV

UNIT COMMITMENT AND

I/O cost characterization

Incremental cost curve

Co-ordination equations without and with loss (No derivation

Solution by direct method and λ-iteration method

Statement of unit commitment problem - Constraints

Unit commitment solution methods: Priority-list method

Forward dynamic programming

Unit commitment in deregulated environment

• The main aim of economic dispatch problem is to minimize

• To start with the economic factor in the power system

• Heat-rate curve Hi(PGi) is the heat energy (obtained by

(because the initial portion of curve decreases, reaches minimum

• So, input fuel-cost becomes,

• For minimum total cost CT

• Substituting eqns. (2) and (3) in (1)

• Thus, the input or cost will be a minimum for a specified load

• Since total load PT is constant

• Thus optimum economy is achieved if every unit operates at

• The minimum load of each unit is 20 MW. Find the division

• Solution: When the total load is 40 MW, it will be shared

• When IC reaches a value of 77.5, unit 2 will supply its

• Substitute PGi in the power balance equation (without loss),

• Substitute  in PGi and obtain the optimal generation

• This process is continued until Pk  specified accuracy

• Significance: Total power generation = Total Power demand

• Step 2: Compute PGi corresponding to  using

• If the power balance equation is satisfied, then optimum

• Step 2: Compute Pgi corresponding to  using

• Step 5: Re-distribute the remaining system load, PD

• Step 7: Check whether the optimality condition is satisfied, i.e.,

and go to step (6)

• Consider the system shown in Fig., two generating units have

EE18601-PSOC VENKATESAN C → (1) 57

ITL – Incremental Transmission Loss

Where, Li = Penalty factor of plants =

• To include the effect of transmission losses in deciding the

• For a three generator source system (N = 3)

• Let the cost function be

• Further we have equality constraint

• By solving equations (1) and (2), we get PG1 and PG2

• We have ‘N’ non-linear equations, the solution of which gives the

• Power balance equation,

• Thus optimum generation is found by iterative method

(Initial value of  is obtained by neglecting losses)

• Step 4: Check if any PGi is beyond or below the inequality

• Step 5: Calculate transmission loss,

• Step 6: Check for power balance equation,

Value of PGi gives the optimum generation otherwise go to

• Repeat from step (3), till the optimum solution is achieved

i. Transmission losses are considered and coordinated:

Incremental cost of the two units are given by,

Iteration 1: Substitute PG2 = 100 in eqn.(1)

Substitute PG1 = 50 in eqn.(2)

Power loss is given by,

Determine the Optimum scheduling for a load demand of

• Step 2: Assume initial value of generations,

• Step 3: Using this initial generation, determine the generation

• This is true for each of the N units on the system, so that

• Let PD be the total demand on the generation

Participation Factor for each unit:

• Where, PD = Change in load demand