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generation-reliability-impacts-of-industryowned-distributed-gene
generation-reliability-impacts-of-industryowned-distributed-gene
generation-reliability-impacts-of-industryowned-distributed-gene
Abstract: The successful integration of industry-owned operations and market functions independent of owners of
distributed generation (DG) sources into the power facilities. In the new competitive environment, power
systems of deregulated electric utilities involves generation is no longer a natural monopoly. Generation
fundamental long-term issues, conflicting objectives and expansion will be decided by the market forces and new
important uncertainties. Presently, corporate financial players such as independent power producer (IPP) and
difficulties, public environmental concern and deregulation industrial distributed generators will make their presence
of electric utility industry are making base load thermal felt in the generation arena.
and nuclear plants more and more difficult to build. As a
result, industry-owned distributed generator is a source of Smaller and environmentally friendlier DG can now be
electrical energy commonly considered as a part of the built economically by independent power producers and
solution to this problem. Most of the available literature on large industrial customers. DG consists of small generators
DG has focused on its economic and interconnection typically ranging in capacity form 15 to 80,000 kW
impacts on a utility or on a ratepayer, or on an owner of connected to the electric utility system [5]. DG can be
distributed generating unit. What is missing from existing installed at utility or at customer sites. DG technologies
DG analysis is a relatively simple and understandable include conventional and non-conventional energy
method examining the generation reliability impacts of technologies such as diesel engine driven generators, gas
industry-owned DG sources on utility systems. This paper turbines, wind turbines, fuel cells and micro-turbines.
presents industry schedule related models for modeling Recent technical advances have significantly reduced the
distributed generators for use in conventional generating cost of DG and could eventually compete with central
capacity reliability assessment. The developed models are stations. Reference 6 indicates that a generator selling into
illustrated using the Institute of Electrical and Electronics the real-time market could have made more than
Engineers (IEEE) Reliability Test System (RTS) [1]. $3,068/MWh during just 5 hours on July 21, and would
have made more than twice as much money if it could
have earned the real-time price on the days when the real-
I. INTRODUCTION time price averaged more than $35/MWh. Reference 7
indicates that in the next 10 to 15 years DG could capture
At present, the electric power industry is undergoing 10% to 15% of new generating capacity in the United
considerable change with respect to structure, operation States. The growing demand for power could reach 60,000
and regulation [2-4]. The various electric utility acts to 120,000 MW of generation over the next 10 to 15 years
introduced in different countries have initiated the of which DG will be an increasing component. This could
restructuring process and the traditional vertically amount to 6,000 to 12,000 MW of DG over the next 10 to
integrated utility structure consisting of generation, 15 years. Reference 8 presents a probabilistic area
transmission and distribution functions has been investment model for the determination of whether or not
dismantled. Instead distinct generation, transmission and DG is an economic option in the overall distribution
distribution companies have been established in which system expansion planning. Reference 9 states that many
each company performs a single function in the overall DG technologies are expected to see 25-40% decreases in
electricity supply task. As a result, the overall capital costs and 10-15% increases in efficiency. In
responsibility of serving the individual customer needs addition, Reference 9 predicts that over the next 10 years,
does no longer reside in a single electric utility, as was the DG will emerge worldwide in many different shapes and
case in the vertically integrated utility structure. sizes, possibly accounting for 8-14% of all additions.
In order to appreciate the reliability issues arising in the Interconnections between utility supply systems and
present electric power industry environment, it is industrial DG units create concerns for utility system
necessary to recognize the many faces and actions that are planners. The utilities want to maintain dispatching control
shaping the environment. The deregulation legislations over the electric power entering the system in order to
establish the many new entities to facilitate system
n
EENS = ∑ Pk * Ak (1)
k =1
of DGs on utility generation systems. This paper is
concerned with the reliability impacts of industrial DG on
the overall utility generation systems. As industrial DG where:
sources are integrated into existing power systems to
satisfying base load, peaking and cycling requirements, Pk = probability of having a capacity outage equal to Ok
Ok = magnitude of the capacity outage
electric utilities need planning models that are capable of
Ak = energy not supplied due to the capacity outage Ok
accurately representing these technologies. This paper
presents industry-owned DG models that reflect
intermittent nature of energy production of DG sources.
The practical applications of the developed models in
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The load modification technique formula is [10 -14]: the generation reliability impacts of industry-owned DG
n
sources.
D(L) = ∑ d ( L) * P
i i (2)
i 100
where, Load Duration
80 Peaking
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A. A Peaking Model for Industry-Owned DG Sources the seasonality of the resource, a system percentage of
industry-owned DG was studied from 0 per cent to 22 per
A model reflecting effects on the utility system reliability
cent of the total system capacity for the sensitivity studies.
using the expected energy not supplied (EENS) index by
The system reliability depends on many factors one of
adding industrial DG sources to a system as peaking units
which is the penetration of DG capacity. The term
instead of large base load plants is presented in this
'penetration' is defined as the ratio of the DG capacity to
subsection. The test system used to illustrate the concepts
the total installed capacity (DG plus conventional). A 0 per
involved for both load and generation is the IEEE-RTS.
cent penetration is used for a base case. Distributed
The Reliability Test System Task Force of the Application
generating units usually tend to be small and therefore, this
of Probability Methods Subcommittee has developed the
is the reason for using a DG of 50 MW capacity. In order
IEEE–RTS. This system was developed to test or compare
to judge the effects of the DG sources, the following
methods for reliability analysis of power systems. The
procedure was used:
operating system is comprised of 32 units of 9 distinct
size/type with a total of 3405 MW capacity. This
1) The expected energy not supplied for the system
generation model is shown in Table I.
without any industrial DG was computed using the
load modification approach. This becomes the base
case.
TABLE I.
IEEE – RTS GENERATION SYSTEM
2) Units whose total capacity equates to the desired
amount of DG were removed from the system. Table
No. of Unit
Unit Type F. O. R. II details the amount of DG used in the study.
Units Capacity
6 Hydro 50 0.01 3) The amount of DG for peaking operation is added.
Since the DG resource is tied to the process steam, it
2 Nuclear 400 0.12 is also tied to the time period when the steam is
1 Coal 350 0.08 generated. This in turn is related to when the industrial
plant is up which can vary over the day from 8 a.m. to
3 Oil 197 0.05 4 p.m. on weekdays. This case therefore, modeled DG
4 Coal 155 0.04 sources such as working day DG, i.e., devices working
from 8 a.m. to 4 p.m. for five days a week.
3 Oil 100 0.04
4 Coal 76 In the model, all distributed generating units were used as
0.02
peaking units, i.e., 100 per cent of the available DG is
5 Oil 12 0.02 running from 8 a.m. to 4 p.m. The DG running from 8 a.m.
to 4 p.m. on weekdays will have 2,080 operating hours in
4 CTU 20 0.10 the study period of 8,736 hours. The energy available to
the DG is the product of its rated capacity and total
operating hours. The energy available to the 50 MW DG in
The IEEE–RTS load model is used in the study. An 8736- peaking operation is therefore 104,000 MWh. The load
hour year is used as the data for 364 days are provided, and modification approach utilizes both capacity and energy
therefore, an 8736 hourly peak load model is used in distribution models for a unit in the computation process.
computing the system EENS index. The weekly, daily and Table III gives the capacity probability table for the 50
hourly load peaking factors are given in Reference 1. The MW DG with a F.O.R. of 2 per cent. The energy
suggested peak load for the IEEE–RTS is 2850 MW. The distribution table for the 50 MW DG running from 8 a.m.
EENS for the base case of the RTS without considering to 4 p.m. on weekdays is provided in Table IV.
any industrial DG and at the suggested peak load of 2850
MW is 1158 MWh. The model for the industrial DG
sources is assumed to be a block of units each with
identical capacities, i.e., 50 MW each, and identical forced
outage rates. The forced outage rate (F. O. R.) of a unit is
defined as the probability of finding the unit on forced
outage at some distant time in the future. The F. O. R. is
the basic generating unit parameter used in static capacity
evaluation. The F.O.R. value of the 50 MW unit was
varied in the range 2 per cent to 16 per cent to investigate
its effects on the system reliability. In order to account for
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TABLE II.
INDUSTRY-OWNED DG PENETRATION LEVELS IN As stated earlier, in order to account for the seasonality of
THE IEEE-RTS the resource, a sensitivity study was performed. A system
percentage of industrial DG was studied from 0 per cent to
Penetration Industrial Removed 22 per cent. The results are shown in Fig. 2. In Fig. 2, PM
of DG Conventional Units from denotes Peaking Model and CSM denotes Combined
Industrial Capacity, Capacity (%) RTS Schedules Model. The Combined Schedules Model is
DG (%) MW (Unit Type) described in the following section. The total system
reliability decayed initially but as more DG was added, the
0 0 100 ----------------- system reliability improved significantly. The results show
that the risk is sensitive to changes in unit F.O.R. values.
For higher F.O.R. values the system EENS is also high.
4.4 150 95.6 1 – 100 (oil) The percentage of DG appears to have a dramatic effect on
1 – 50 (hydro) the risk. Two reasons can be given for improved system
risk, i.e., industrial DG was used for peak shaving
8.8 300 91.2 3 – 100 (oil) purposes and these sources are dispersed and smaller in
size.
1 – 400
13.2 450 86.8 LEGEND
(nuclear)
1 – 50 (hydro) Base case
1000
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TABLE V.
ENERGY DISTRIBUTION TABLE FOR THE 50 MW
B. A Combined Industry Schedules Model for DG DISTRIBUTED GENERATING UNIT RUNNING
Sources FROM 4 A.M. TO 8 P.M. ON WEEKDAYS
OPERATING AS BASED LOADED UNITS
Since the industrial DG is a by-product of large industrial
processes, e. g., paper, chemical, food processing, it seems ENERGY AVAILABLE CUMULATIVE
reasonable to assume that certain percentage of the total (MWH) PROBABILITY
DG is working around the clock. For instance, the food
industry, which is very diverse in character, has some 208,000 1.0
plants that operate twenty-four hours a day for only about
half of the year, depending on agricultural activity; others
operate five to six days a week with one to three shifts of The capacity probability table for the DG is shown in
operation for the whole year. Integrated textile mills and Table III. The capacity models for the unit with different
finishing plants generally operate five to six days a week F.O.R. values considered in the studies can be constructed
with two shifts of manufacturing activity. In contrast, the in the same manner. The system EENS for different
integrated manufacturing plants in the steel, petroleum penetration levels and for different unit F.O.R. values were
refining, and paper industries as well as the majority of computed using the load modification approach. Fig.2
industrial DG candidates in the chemical industry presents comparison of results computed using peaking
generally operate up to twenty four hours a day, 365 days a and combined schedules methods. The system EENS
year, which offers the opportunity for high annual increases as the unit F.O.R. increases. It can be seen that
utilization. Consider a hypothetical case where the the combined schedules method provides the lower system
available DG power can be divided according to the risk in comparison to the peaking method. Since some
following hourly schedule: industry-owned DG capacity was used for satisfying the
base load demand in the combined schedules method, the
1) Units that will be expected to run three shifts, i.e., overall system reliability improved markedly. The initial
24 hours a day, 7 days a week. This basically can higher risk is, however, due to the type/size of the units
be defined as the base load operation of the unit. removed from the system. The general observation is that
the reliability improves significantly for a system with
2) Units that will run two shifts, i.e., from 4 a.m. to 8 industrial DG.
p.m. on weekdays.
IV. CONCLUSIONS
3) Units that will run one shift, i.e., 8 a.m. to 4 p.m. This paper has presented industry schedule related models
on weekdays. to estimate the impacts of industry-owned DG sources on
the generation system reliability. A range of comparative
studies has been conducted to show the difference in the
This division seems reasonable since the industry-owned
peaking and combined schedules DG models, and their
DG is a by-product of large industrial process whose work
impacts in different application types. The studies
schedule can be one to three shifts long. Assume that the
conducted show that the system EENS is very sensitive to
available DG can be split three ways, with one-third of the
changes in F.O.R. of DG sources and their energy
capacity going to each of the three time periods. The total
availabilities. A mix of industrial DG power sources can
operating hours for the DG running 24 hours a day and
be used to replace an equal amount of conventional
seven days a week are 8,736. For the case where the DG
generation without causing a degradation of system
runs two shifts on weekdays, the operating hours are
reliability.
4,160. The energy available to the DG running for 8,736
hours is 436,800 MWh. This is the maximum energy
Industry-owned DG units tend to be small in size. The
requirement from the 50 MW DG and the unit was used as
lower system risk obtained is mainly due to the small and
a base loaded unit in this application. The unit that is
dispersed DG sources. Industrial DG is a resource with
running for 4,160 hours has 208,000 MWh energy
few environmental problems. In most cases, the system is
available to it. The energy distribution model for the 50
already in existence, so adding a turbine/generator will not
MW DG running for 4,160 hours is given in Table V.
aggravate the pollution problem. The higher efficiency of
Table IV provides the energy distribution model for the
industrial DG, together with its ability to use fuels
unit running from 8 a.m. to 4 p.m.
unavailable to utilities, makes it an attractive alternative. In
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addition to the conventional fuels such as gas and diesel, [6]. S. M. Harvey, “Source DG: Market Rules and
DG in general can make use of biomass, alcohol and other Market Penetration”, Proceedings of DG Conference
fuels that utilities cannot use without expensive equipment (CDROM), Denver, CO, September 1999.
modification. Further savings can be realized by industrial
DG from waste energy streams. [7]. Electric Power Research Institute, ”Strategic
Market Assessment of Distributed Resources”,
In conclusion, industrial DG plants can be used as peaking Palo Alto, CA, December 1995.
units since their typical on / off cycles corresponds well
with the load demand. In addition, industrial DG can
[8]. Electric Power Research Institute, ”Applications
replace planned conventional base load plants without
causing a decrease in system reliability as long as some Guide: Distribution Capacity Planning with
DG operates around the clock to meet the off-peak loads. Distributed Resources”, Palo Alto, CA, January
The studies conducted show that the system EENS is very 2000.
sensitive to changes in the system percentage of DG and to
changes in unit F.O.R. The use of an industry schedule [9]. Jean-Louis, Poirier, ” Domestic and International
related analysis for DG sources is necessary to obtain a Markets for DG”, Proceedings of DG Conference
realistic assessment of the impacts of these units on the (CDROM), Denver, CO, September 1999.
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