ECONOMIC DISPATCH

Dr.Eng. Rony Seto Wibowo

Power System Simulation Laboratory

Electrical Engineering Department
Sepuluh Nopember Institute of Technology
 Generator Cost Function (GCF)
• Generator Cost Function reflect correlation
between input (Primer Energy : Gas, Coal, Oil
etc) and output (Electricity) of generator.
• Generator cost Function is different one to
another depend on type of Power Plant
(Hydro PP, Steam Turbine PP, and primer
energy used by PP)
GCF of Steam Turbine Generator

H : Heat (Kkal, Btu)

F : Fuel Cost (Dollar, Rupiah)
P : Power (MW, KW)
Incremental and Net Heat Rate

Incremental Heat Rate Net Heat Rate

 Example
• A Steam Turbine Generator unit with :
Load (MW) Heatrate (kcal/MWh)
225 2855000
260 2752000
300 2681000
370 2630000

• Energy Content = 4800 Kkal / Kg

• Fuel Price = IDR 500 per Kg
• How to develop Generation cost function from data
above?
GFC of STG with Multiple Nozzle

Generation Cost Function Incremental Heat Rate

GCF of Combine Cycle Power Plant
 Definition of Economic Dispatch
• The aim of Economic Dispatch is to determine
power output of committed generators with
least cost principal
• Economic Dispatch neglects transmission line
capacity
• Economic Dispatch is the next step of Unit
Commitment
 General Formulation

• FT is Total Fuel Cost

• Fi is Fuel Cost of generator I
• Pi is Power generated by generator i
• Pload is Total system load
The Economic Dispatch Problem
 The Economic Dispatch Problem
• system consists as N thermal generating.
• F (cost rate) as input to each unit ($/h)
• P as Power generate that produce each unit
(MW)
• Total cost rate of this system as follow:

FT  F1  F2  F3    FN   Fi ( Pi )
i 1
 The Economic Dispatch Problem
• But the problem is to minimize FT to the
constraint that the sum of the powers
generated must equal the receive load
• In this case, we are neglected losses and any
operating limits
 The Economic Dispatch Problem
• To solve the problem, we will use a advance
calculus method that involve the lagrange
function
• lagrange function is function that look the
minimum value.
 The Economic Dispatch Problem
N

  0  Pload   Pi
i 1

to get Lagrange function we have to add the

constraint function to the objective function
after the constraint function has been
multiplied by an undetermined multiplier.
 The Economic Dispatch Problem
• To know the extrem value, we have to
derrivate the equation of lagrange.
• As the theory, minimum value is when the first
derrivative is equal to 0
The Economic Dispatch Problem
• That is, the necessary condition for the
existence of a minimum cost- operating
condition for the thermal power system is
that the incremental cost rates of all the
units be equal to some undetermined value,
lamda
The Economic Dispatch Problem
dFi
   N _ equation
dPi
Pi ,min  Pi  Pi ,max  2 N _ equation
N

P  P
i 1
i load  1_ constrain
 Example
• Unit 1: coal-fired steam
– Max output : 600 MW
– Min output : 150 MW
• Unit 2: Oil-fired steam
– Max output : 400 MW
– Min output : 100 MW
• Unit 3: oil-fired steam
– Max output : 200 MW
– Min output : 50 MW
 Example

MBtu
H1 ( )  510  7.2 P1  0.00142 P12
h
MBtu
H2 ( )  310  7.85 P2  0.00194 P2 2

h
MBtu
H3 ( )  78  7.97 P3  0.00482 P3 2

h
 Example 3.A
• Total load 850 MW
• Fuel cost unit 1=1.1 R/Mbtu
• Fuel cost unit 2=1 R/Mbtu
• Fuel cost unit 3=1 R/Mbtu
– Then

F1 ( P1 )  H1 ( P1 ) x1.1  561  7.92 P1  0.001562 P12 ( R / h)

F2 ( P2 )  H 2 ( P2 ) x1.1  561  7.92 P2  0.001562 P2 ( R / h)
2

F3 ( P3 )  H 3 ( P3 ) x1.1  561  7.92 P3  0.001562 P3 2 ( R / h)

 Example 3.A
dF1
 7.92  0.003124 P1  
dP1
dF2
 7.85  0.00388 P2  
dP2
dF3
 7.97  0.00964 P3  
dP3
 Example 3.A
P1  P2  P3  850MW
  9.148( R / MWh)

RESULT:
P1  393.2MW
P2  334.6MW
P3  122.2 MW
THERMAL SYSTEM DISPATCHING WITH
NETWORK LOSSES CONSIDERATION
 THERMAL SYSTEM DISPATCHING WITH
NETWORK LOSSES CONSIDERATION
• Figure above show that al thermal unit
connect to an equivalent load bus through a
transmission line.
• To solve the problem of economic dispatch
that including losses is more complicated than
previous.
• The constraint is expanded as follow:
N

Pload  Ploss   Pi    0
i 1
 THERMAL SYSTEM DISPATCHING WITH
NETWORK LOSSES CONSIDERATION

dFi dPloss
 
dPi dPi
N

PLoad  PLoss   Pi  0
i 1

The same procedure is followed in formal sense to establish the

necessary condition for minimmum-cost operation solution, the
lagrange finction is shown in equation above.
 THERMAL SYSTEM DISPATCHING WITH
NETWORK LOSSES CONSIDERATION
• It is more difficult to solve this set equation
than previous set with no loss.
• there are two approaches to the solution of
this problem
• First, development of mathematical expresion
for the losses in the network.
• Second is using optimal power flow
 Example 3C
• Same parameter as like example 3A:
• Include a simple loss expression:
PLoss  0.00003P12  0.00009 P2 2  0.00012 P3 2
7.92  0.003124 P1  [1  2(0.00003) P1 ]
7.85  0.00388 P2  [1  2(0.00009) P2 ]
7.97  0.00964 P3  [1  2(0.000012) P3 ]
P1  P2  P3  850  Ploss  0
 Example 3C
• There are 5 step to solve ED with losses
• Step 1
– Pick a set of starting values for P1,P2,and P3 that
sum to the load
• Step2
– Calculate the incremental losses as well as the
total loss. The incremental losses and total losses
will be considered constant until we return to step
2
 Example 3C
• Step3
– Calculate the value of lamda that cause P1,P2,and P3
to sum to total load plus losses. This is now as simple
as the calculation in example 3A since the equation are
again linier
• Step 4
– Compare the P1,P2,and P3 from step 3 to value used at
start of step 2. If there is no significant change in any
one of values, go to step 5, otherwise go back to step 2
• Step 5
– Done
 Example 3C
• Step 1
Pick the P1,P2,and P3 starting value

Total losses are 15.6 MW

 Example 3C

Step 3 :
 Example 3C

Step 4 , since these value for P1,P2 and P3 are

quite different from the starting values, we will
return to step 2
 Example 3C
• Step 2

Total losses are 15.78 MW

 Example 3C
• Step 3
Example 3C
THE LAMDA-ITERATION METHOD
THE LAMDA-ITERATION METHOD
To establish the
operating points of
each of these three
units such that we
have minimum cost
and at the same
time satisfy the
specified demand,
could use this
sketch and a ruler
to find the solution.
THE LAMDA-ITERATION METHOD
• If we have assumed the
value of incremental cost
such that the total power
output is too low, we must
increase the 3. value and
try another solution. With
two solutions, we can
extrapolate (or interpolate)
the two solutions to get
closer to the desired value
of total received power