Power System Control | SEEE4453 | SET 1 | Group 1

1
OPTIMAL ECONOMIC DISPATCH IN
POWER SYSTEM

Mohamad Aminuddin Bin Abd Mutalib, Alia Karmila Binti Mohd Nazlan,
Muhammad Syafiq Aiman Bin Mazlan, Noor Safwanah Binti Mohd Zin,

1.1 ABSTRACT

The operational efficiency of the power grid relies heavily on the functionalities of the control
center, notably Economic Dispatch (ED). ED represents a comprehensive optimization process
conducted by system operators to ensure a balanced supply-load equilibrium while upholding
reliability constraints. This case study endeavors to identify the optimal ED and total cost across
various scenarios, taking into account transmission line capacities and generator output
constraints. A notable factor in the analysis is the inherent unpredictability of Large Scale Solar
(LSS) output power, influenced by site conditions and the absence of storage facilities. Utilizing
Power World software, a 132kV network simulation is performed with three generators, two LSS
units, and connected loads. The study further explores different transmission line distances for
each case, aiming to draw meaningful conclusions and recommend optimal solutions. The
findings from this investigation contribute valuable insights to enhance the operational efficiency
and decision-making processes within the power grid infrastructure.
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1.2 INTRODUCTION

Economic dispatch, denoted as ED, is the process of distributing the entire load on a system
among the different generating plants in order to maximize operational economy [1]. In other
words, as a way to reduce fuel costs while satisfying system constraints, economic dispatch
organized the outputs of all available generation units in a power system.

Next, power economic dispatch's main goal is to minimize the total operating cost of a system by
determining the overall output of power generation across its various generating units. This
involves coordinating the output schedule of the committed generating units to meet the
necessary load demand at the lowest possible operating cost and following different restrictions
on equality and inequality both inside the units and throughout the system. In addition to cost
minimization, other objectives are considered to enhance the sustainability and profitability of
the power system. These include the minimization of emissions, such as SO2, NOx, CO, and
CO2, generated by thermal power plants, contributing to environmental considerations. Profit
maximization is another critical aspect, which is accomplished by lowering the total costs
associated with power generation. Furthermore, sustaining system stability and security
constraints is critical to ensuring the power system's reliability and resilience [3].

In the realm of contemporary power systems, the integration of renewable energy sources
alongside conventional generators introduces new challenges and opportunities for optimizing
economic dispatch. This report focuses on the economic dispatch of a 275kV network
comprising three generators and two large-scale solar (LSS) installations.

The primary goal of this study is to determine the optimal economic dispatch while adhering to
transmission line capacity constraints and respecting the minimum and maximum output limits
of the generators. It's important to note that the LSS units, driven by uncontrollable variations in
solar irradiance and lacking energy storage, add a layer of complexity to the economic dispatch
problem.

The specific cases under examination include various load and Large-Scale Solar (LSS) unit
output configurations. Scenarios range from full load with no LSS 1 & 2 output to 50% load with
various LSS output levels. These diverse cases assess the economic dispatch capabilities of the
275kV network while considering the uncontrollable nature of LSS output due to solar irradiance
and lack of energy storage. The analysis aims to identify optimal economic dispatch solutions,
ensuring compliance with transmission line capacity constraints and generator output limits. This
exploration is crucial for determining effective and reliable solutions in this intricate network
configuration.
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2.0 METHODOLOGY

Based on source online guidance, we learned how to use the PowerWorld Simulator for optimal
economic dispatch load with given parameters.

Table 2.1: Generators parameters

Generator α β γ Min (MW) Max (MW)

G1 5500 8 0.05 20 300

G2 7500 8 0.04 30 450

G3 6500 7 0.06 25 700

Table 2.2: Setting for transmission lines parameters

Transmission Impedances/ Distances Max capacity Impedance per Per unit value
line 2000km (km) (MVA) distance

1 0.015 + j0.5 Ω 200 200 0.000008+ 0.000009+

/2000 j0.000250 Ω j0.000287

2 0.025 + j0.6 Ω 400 100 0.000013+ 0.000029+j0.0

J0.000300 Ω 00689

3 0.015 + j0.5 Ω 250 300 0.000008+ 0.000011+j0.0

j0.000250 Ω 00359

4 0.025 + j0.6 Ω 250 100 0.000013+ 0.000019+j0.0

j0.000300 Ω 00430

5 0.015 + j0.5 Ω 100 200 0.000008+ 0.000005+j0.0

j0.000250 Ω 00143

6 0.025 + j0.6 Ω 200 200 0.000013+ 0.000015+j0.0

j0.000300 Ω 00344

Table 2.3: Setting for the load parameters

Load Load P (MW) 50% of load P Load Q (MVAr) 50% of load Q

1 200 100 20 10

2 250 125 30 15

3 450 225 80 40

4 250 125 60 30
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Table 2.4: Setting for LSS parameters

LSS Active Power P Power Factor 50% active Price
(MW) power (MW) (RM/MWh)

1 100 0.95 50 1000

2 50 0.90 25 1200

PowerWorld Simulator Step-by-Step

1. Open PowerWorld Simulator, click ‘File’ and ‘New case’.

Figure 2.1: Open a new case.

2. Make sure you are in ‘Edit Mode’ and under the ‘Draw’ tab, click ‘Network’, choose ‘Bus’.

Figure 2.2: Inserting a bus.

3. A new window will pop up. Rename ‘1’ in the ‘Bus Name’ box field to ‘Bus 1’ and set
the value for nominal voltage to 275kV in ‘Nominal Voltage’ field.

Figure 2.3: Bus setting

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4. Repeat step 2 but this time choose ‘Generator’ to insert.

Figure 2.4: Inserting a generator.

5. Under the ‘Power and Voltage Control’ tab, insert minimum and maximum value for the
generator. Insert the setpoint as minimum power or any value within the range. Set the
generator MVA base as 100 MVA.

Figure 2.5: Generator setting.

6. Under ‘Cost’ tab → ‘Cost Model’, tick Cubic Cost Model and insert the value for:
 Power System Control | SEEE4453 | SET 1 | Group 1

Figure 2.6: Generator output cost setting.

7. To insert a load, repeat step 2 but click ‘load’.

Figure 2.7: Inserting load.

8. Insert the MW value and MVar value for the load under constant power.
 Power System Control | SEEE4453 | SET 1 | Group 1

Figure 2.8: Load setting

9. For the LSS generator, repeat step 4 and a window will open. Under the ‘Power and
Voltage Control’ → Voltage Control → Mode → Constant Power Factor, change the
power factor to 0.95 for LSS 1 and 0.9 for LSS 2. Under the ‘Power and Voltage Control’
→ Power Control, insert the setpoint as the parameters given.

Figure 2.9: LSS generator setting.

10. Under the ‘Cost’ tab, insert the cost for ‘Variable O&M (RM/MWh).

Figure 2.10: LSS generator output cost setting.

11. Change the symbol and color of the LSS under ‘Display Information’.
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Figure 2.11: Changing symbol for LSS generator.

12. To display AGC status for each generator, click Field → Generator Field and click a
generator. A window will pop up as in figure 2.13, tick ‘Gen AGC Status’ and click
‘OK’.

Figure 2.12: Inserting AGC status for generators.

Figure 2.13: Display AGC status for generator.

13. To activate the economic dispatch mode to perform optimal dispatch of generators. Go to
Case Information → Aggregation → Area. Change the OFF AGC mode to ED mode.
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Figure 2.14: Activating economic dispatch mode.

Figure 2.15: Changing OFF AGC to ED

14. To display total hourly cost, go to Field → Area Field and click anywhere on the drawing
area.

Figure 2.16: Inserting area field for total hourly cost.

15. Tick ‘Hourly Cost’ and click ‘OK’.

Figure 2.17: Hourly cost display

16. To display total load, repeat step 13 and the same window as in figure 2.17 will pop up
but tick ‘MW Load’.
17. To display incremental cost, repeat step 13 and the same window as in figure 2.17 will
pop up but tick ‘Select a Field’ and choose OPF\Lambda.
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Figure 2.18: Display incremental cost.

18. To insert text, go to Background → Text and click anywhere on the drawing area. A
window will pop up as in figure 2.20, enter a text and click ‘OK’.

Figure 2.19: Inserting text.

Figure 2.20: Text box.

19. To insert a transmission line, repeat step 2 and choose ‘Transmission Line’.
20. Under the ‘Geography’ tab, enter the line length under km field and save.

Figure 2.21: Inserting transmission line length.

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21. Under the ‘Parameters’ tab, click ‘Calculate Impedances ’

Figure 2.22: Calculating the impedance for transmission line setting.

22. Under the ‘Length Units’, tick kilometers. Insert impedances per distance value as in
Table 2.2 under ‘Actual Impedance and Current Limits’. Finally, enter the value of max
MVA capacity under ‘Per Unit Impedance and MVA Limits’ → ‘Limit A (MVA)’.

Figure 2.23: Impedances setting.

23. To display power flow through the transmission line, go to Field → transmission Line
Field and click on any transmission line.
24. A window will appear and click ‘OK’.

Figure 2.24: Transmission line power flow setting.

25. To run the simulation, go to Run Mode → Tools → Play button.

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3.0 RESULT AND DISCUSSION

To identify the optimal economic dispatch and total cost based on the following cases as
well as does not violate the transmission line capacity and generator minimum and maximum
output, we have studied through video tutorials on online sources. Also, the results obtained and
the best solution for results were analyzed.

3.1 Base Circuit (with violation)

a) 50% Load as per Table 4 with no output from LSS 1 & 2

b) Full Load as per Table 4 with full output from LSS 1 only
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c) Full Load as per Table 4 with 50% output from LSS 1 only

d) 50% Load as per Table 4 with full output from LSS 1 only
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e) 50% Load as per Table 4 with 50% output from LSS 1 only

f) Full Load as per Table 4 with full output from LSS 2 only
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g) Full Load as per Table 4 with 50% output from LSS 2 only

h) 50% Load as per Table 4 with full output from LSS 2 only
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i) 50% Load as per Table 4 with 50% output from LSS 2 only

j) Full Load as per Table 4 with full output from LSS 1 & 2
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k) Full Load as per Table 4 with 50% output from LSS 1 & 2

l) 50% Load as per Table 4 with full output from LSS 1 & 2
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m) 50% Load as per Table 4 with 50% output from LSS 1 & 2

Table 3.1: Simulation results for full loads and 50% of load condition.

Full Load Condition

G1 (MW) G2 (MW) G3 (MW) Total Increment Overload Violation

hourly al cost
cost (RM/MW
(RM/h) h)

Full 300 305 445 45597.98 43.60 Yes No

output
from LSS
1

50% 300 350 450 47901.34 49.00 Yes No

output
from LSS
1

Full 300 350 450 47901.48 49.00 Yes No

output
from LSS
2
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50% 300 375 450 49163.72 52.00 Yes No

output
from LSS
2

Full 300 285 415 43478.80 41.20 Yes No

output
from LSS
1&2

50% 300 325 450 46713.59 46.00 Yes No

output
from LSS
1&2

50 % Load Condition

No output 184 161 230 29303.25 26.38 No No

from LSS
1&2

Full 151 134 189 26827.49 23.13 No No

output
from LSS
1

50% 168 148 209 28024.83 24.76 No No

output
from LSS
1

Full 168 148 209 28024.92 24.76 No No

output
from LSS
2

50% 176 155 220 28653.96 25.57 No No

output
from LSS
2

Full 135 121 169 25711.29 21.51 No No

output
from LSS
1&2
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50% 159 141 199 27416.06 23.95 No No

output
from LSS
1&2

From observation in Table 3.1, The additional cost is significantly smaller as compared to
the full load and 50% load states. This is due to the situations when LSS 1 and LSS 2 are fully
operational. The data demonstrate that the highest price is seen when LSS 1 and LSS 2 do not
produce. The electricity generated will be sold to the grid. Higher returns can be obtained by
selling more on-site generated electricity to the grid. Without both LSS, the generator must run at
full capacity to meet the system's demands. When both LSS 1 and LSS 2 are fully utilized, it will
be one of the causes contributing to the price being much lower. This is also tolerable if the cost
of the full output from LSS 1 alone is significantly less than the cost of the 50% output from LSS
1. It is nearly impossible to control because there is no storage and the LSS output power is
dependent on the availability of a sunlight source.

Furthermore, all of the generators' values are between the minimum and maximum
requirements. As a result, the simulation circuits do not go over the generator limit. Overloads
are discovered under full load conditions throughout the simulation. Overload problems are
taken into account when the MW of the transmission line exceeds 100%. An overload can occur
in real life due to a lack of reactive power, a limit on the amount of power that can be generated,
a limit on the capacity of transmission lines or transformers, a supply disruption, and etc [2]. If
nothing changes, blackouts, destabilization, and cascade outages may occur [4]. This can also
increase load demand, which raises the cost. Overload problems can be solved in a variety of
methods, including the addition of parallel transmission lines, parallel generators to the main
generators, distribution generators near severely laden equipment, and parallel distribution
transformers to replace old equipment [2].

To obtain the highest economic dispatch, these overload issues must be resolved. As part
of the suggested options, three more transmission lines—TL1, TL3, and TL5—are to be built in
parallel with the overloaded line, as well as the addition of a second generator at bus 4 due to its
 Power System Control | SEEE4453 | SET 1 | Group 1

greater load value. The results of simulating these two approaches are displayed in the table
below.

3.2 Propose solution for violation circuit

Method 1: Add transmission line

Table 3.2: Simulation results after adding transmission line with full load condition and 50%
load condition.

Full Load Condition

G1 G2 G3 Total Incremental Overload Violation

(MW) (MW) (MW) hourly cost
cost (RM/MWh)
(RM/h)

Full output 300 445 305 45597.83 43.60 No No

from LSS 1

50% output 300 450 350 47900.20 49.00 No No

from LSS 1

Full output 300 450 350 47900.24 49.00 No No

from LSS 2
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50% output 300 450 375 49162.72 52.00 No No

from LSS 2

Full output 300 415 285 43477.74 41.20 No No

from LSS 1
&2

50% output 300 450 325 46712.70 46.00 No No

from LSS 1
&2

50 % Load Condition

No output 183.78 229.73 161.49 29303.09 26.38 No No

from LSS 1
&2

Full output 151.35 189.19 1334.46 26827.41 23.14 No No

from LSS 1

50% output 167.57 209.46 147.97 28024.70 24.76 No No

from LSS 1

Full output 167.57 209.46 147.97 28024.72 24.76 No No

from LSS 2

50% output 175.68 219.60 154.73 28653.76 25.57 No No

from LSS 2

Full output 135.14 168.92 120.95 25711.18 21.51 No No

from LSS 1
&2

50% output 159.46 199.33 141.22 27415.91 23.95 No No

from LSS 1
&2
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Method 2: Add generator at Bus 4

Table 3.3: Simulation results after adding generator at bus 4 with full load condition and 50%
load condition.

Full Load Condition

G1 G2 G3 Total Incremental Overload Violation

(MW) (MW) (MW) hourly cost
cost (RM/MWh)
(RM/h)

Full output 232 290 202 33624.74 31.24 No No

from LSS 1

50% output 248 310 215 35227.47 32.86 No No

from LSS 1

Full output 248 310 215 35227.51 32.86 No No

from LSS 2

50% output 256 320 222 36059.25 33.68 No No

from LSS 2

Full output 216 270 188 32103.14 29.62 No No

from LSS 1
&2
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50% output 240 300 208 34415.99 32.05 No No

from LSS 1
&2

50 % Load Condition

No output 78.38 97.97 73.65 22442.91 15.84 No No

from LSS 1
&2

Full output 45.95 57.43 46.62 21021.29 12.59 No No

from LSS 1

50% output 62.16 77.70 60.13 21691.56 14.22 No No

from LSS 1

Full output 62.16 77.70 60.13 21691.56 14.22 No No

from LSS 2

50% output 70.27 87.84 66.89 22057.10 15.03 No No

from LSS 2

Full output 29.73 37.16 33.11 20432.10 10.97 No No

from LSS 1
&2

50% output 54.05 67.57 53.38 21346.29 13.41 No No

from LSS 1
&2

In method 1, the transmission line can then be used to prevent the base circuit from overflowing.
Parallel to the TL1, TL3, and TL5, three transmission lines have been added. This is because
these three specific lines experience the most overload. The figures in table 3.3 show that while
the total load decreases, the overall price for a 50% load is much cheaper than the price for a full
load. The cost is highest when LSS 1 and 2 do not have any output. The cost is lowest when they
generate all of their production. The sole difference is the modification of absence overload
conditions.

A 325 MW generator has been added at bus 4, according to Method 2. Following the inclusion of
a generator, it has been proved that the circuit does not overflow under full load conditions.
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Reading data at the base circuit, on the other hand, is far better for situations with half load.
Since the load decreases to 50%, the price is much less than the price for a full load.

Two techniques to bypass the overflow circuit were simulated, and both were successful in
removing overload problems while keeping generator constraints. Furthermore, the technique of
adding an additional generator at bus 4 has the best outcomes when compared to building three
new transmission lines and has a lower incremental cost when compared to method 1.

The total hourly cost and incremental cost for method 2 at full load conditions with full output
from LSS 1 & 2 are 32103.14 RM/h and 29.62 RM/MWh, respectively. It is significantly less
expensive than method 1, where the total hourly cost is 43477.74 RM/h and the incremental cost
is 41.20 RM/MWh. Furthermore, installing a generator will be cheaper than installing three new
transmission lines.. As a result, installing a generator strengthens the system and allows for the
most economical dispatch.
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4.0 CONCLUSION

In summary, for Case A, addressing the conditions of full load with no output from LSS 1
& 2, full load with 50% output from LSS 1 & 2, full load with full output from LSS 1 & 2, full
load with full output from LSS 1 only, and full load with 50% output from LSS 1 only involved
the strategic addition of transmission lines between specific buses. Notably, for conditions
involving LSS 2 only, one transmission line was added between Bus 1 and Bus 2, Bus 2 and Bus
4, and Bus 3 and Bus 5. In Case B, the proposed solutions for all conditions align with those
identified in Case A.

Following the implementation of these solutions, it is evident that the addition of

transmission lines effectively resolves the identified violations in transmission line capacity. The
simulation results demonstrate the absence of further violations in transmission line maximum
capacity after the proposed solution implementation. Notably, optimal economic dispatch ensures
that generation power outputs and transmission line maximum capacities are within acceptable
limits. This successful resolution of the identified issues attests to the achievement of the
objectives set forth in this assignment, contributing to enhanced operational efficiency and
reliability in the power grid network.

5.0 ACKNOWLEDGEMENT

We extend our sincere appreciation to Dr. Mohd. Hafiz Habibuddin, our esteemed
lecturer, for his invaluable guidance and patient supervision, which proved instrumental in the
successful completion of this assignment. Our gratitude is also extended to the entire team whose
collaborative efforts and unwavering cooperation significantly contributed to the
accomplishment of our goals. Special thanks are due to each team member who played a crucial
role in this endeavor. Their dedication and collective contributions were pivotal in navigating the
challenges and ensuring the successful fulfillment of the assignment requirements. We
acknowledge the integral role played by our lecturer and team members, making this a
collaborative and rewarding experience.
 Power System Control | SEEE4453 | SET 1 | Group 1

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