Power System Optimization

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POWER SYSTEM OPTIMIZATION

• Introduction
• Problem of economic load scheduling
• Performance curves
• Constraints in economic operation of power systems
• Spinning reserve
• Solution to economic load dispatch
(i) Solution to ELD without inequality constraints
(ii) Solution to ELD with capacity constraints
(iii) Solution to ELD with Transmission losses considered- PENALTY
FACTOR METHOD
(iv) Solution to ELD with Transmission losses considered- LOSS
COEFFICIENTS METHOD (Transmission loss as a function of plant
generation- B Coefficients)
• Examples
INTRODUCTION
Electric Power Systems (EPS): Economic Aspects:

In EPS, the first step is to properly assess the load requirement of a given area where
electrical power is to be supplied. This power is to be supplied using the available
units such as thermal, hydroelectric, nuclear, etc. Many factors are required to be
considered while choosing a type of generation such as: kind of fuel available, fuel
cost, availability of suitable sites for major station, nature of load to be supplied, etc.
Variable load: The load is not constant due to the varying demands at the different
times of the day. The EPS is expected to supply reliable and quality power. It should
ensure the continuity of power supply at all times.
{Qn.: write a note on the choice of the number and size of the generating units at a
power station from economic operation point of view}
Single unit Vs. multiple units: the use of a single unit to supply the complete load
demand is not practical since, it would not be a reliable one. Alternately, a large
number of smaller units can be used to fit the load curve as closely as possible. Again,
with a large number of units, the operation and maintenance costs will increase.
Further, the capital cost of large number of units of smaller size is more as compared
to a small number of units of larger size. Thus, there has to be compromise in the
selection of size and number of generating units within a power plant or a station.
Electric Power Systems (EPS): Operational Aspects:

Electric energy is generated at large power stations that are far away from the load
centers. Large and long transmission lines (grid lines) wheel the generated power to
the substations at load centers. Many electrical equipment are used for proper
transmission and distribution of the generated power. The grid lines are such that:
• GRID: The transmission system of a given area.
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• Regional GRID: Different grids are interconnected through transmission lines.

• National GRID: Interconnection of several regional grids through tie lines.
Each grid operates independently, although power can be exchanged between various
grids.
Economic loading of generators and interconnected stations:
Optimum economic efficiency is achieved when all the generators which are running
in parallel are loaded in such a way that the fuel cost of their power generation is the
minimum. The units then share the load to minimize the overall cost of generation.
This economical approach of catering to the load requirement is called as ‘economic
dispatch’. The main factor in economic operation of power systems is the cost of
generating the real power. In any EPS, the cost has two components as under:
• The Fixed Costs: Capital investment, interest charged on the money borrowed,
tax paid, labour, salary, etc. which are independent of the load variations.
• The Variable Costs: which are dependant on the load on the generating units,
the losses, daily load requirements, purchase or sale of power, etc.
The current discussion on economic operation of power systems is concerned about
minimizing the variable costs only.
Further, the factors affecting the operating cost of the generating units are: generator
efficiency, transmission losses, fuel cost, etc. Of these, the fuel cost is the most
important factor.
Since a given power system is a mix of various types of generating units, such as
hydel, thermal, nuclear, hydro-thermal, wind, etc., each type of unit contributes its
share for the total operating cost. Since fuel cost is a predominating factor in thermal
(coal fired) plants, economic load dispatch (ELD) is considered usually for a given set
of thermal plants in the foregoing discussion.
PROBLEM OF ECONOMIC LOAD SCHEDULING:
There are two problem areas of operation strategy to obtain the economic operation of
power systems. They are: problem of economic scheduling and the problem of
optimal power flow.
* The problem of economic scheduling: This is again divided into two categories:
• The unit commitment problem (UCP): Here, the objective is to determine the
various generators to be in operation among the available ones in the system,
satisfying the constraints, so that the total operating cost is the minimum. This
problem is solved for specified time duration, usually a day in advance, based
on the forecasted load for that time duration.
• The economic load dispatch (ELD): Here, the objective is to determine the
generation (MW power output) of each presently operating (committed or put
on) units to meet the specified load demand (including the losses), such hat the
total fuel cost s minimized.
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* The problem of optimal power flow: Here, it deals with delivering the real power
to the load points with minimum loss. For this, the power flow in each line is to be
optimized to minimize the system losses.
{Qn.: compare ELD and UCP and hence bring out their importance and objectives.}
PERFORMANCE CURVES:
The Performance Curves useful for economic load dispatch studies include many
different types of input-output curves as under:
1. Input Output Curve: A plot of fuel input in Btu/Hr. as a function of the MW

output of the unit.
2. Heat Rate Curve: A plot of heat rate in Btu/kWH, as a function of the MW
output of the unit. Thus, it is the slope of the I-O curve at any point. The
reciprocal of heat rate is termed as the ‘Fuel Efficiency’.
3. Incremental Fuel Rate Curve: A plot of incremental fuel rate (IFC) in
Btu/kWH as a function of the MW output of the unit, where,
IFC= ∆input/∆output = Incremental change in fuel
input/ Incremental change in power output (1)
4. Incremental Fuel Cost Curve: A plot of incremental fuel cost (IFC) in
Rs./kWH as a function of the MW output of the unit, where,
IFC in Rs./kWH = (Incremental fuel rate
in Btu/kWH) (Fuel cost in Rs./Btu) (2)
The IFC is a measure of how costlier it will be to produce an increment of power
output by that unit.
The Cost Curve can be approximated by:

* Quadratic Curve by the function: Ci(Pi) = ai+biPi+ciPi2 Rs./Hr. (3)
* Linear curve by the function: d(Ci)/dPi =bi+2ciPi Rs./MWHr. (4)
Generally, the quadratic curve is used widely to represent the cost curve, with the IC
curve given by the linear curve as above.
CONSTRAINTS IN ECONOMIC OPERATION OF POWER SYSTEMS:
Various constraints are imposed on the problem of economic operation of power

systems as listed below:
1. Primary constraints (equality constraints):

Power balance equations:
Pi - PDi - Pl =0; Qi - QDi - Ql =0; i=buses of the system (5)
where, Pl= Σ‖ViVjYij‖ cos (δij-θij);
Ql= Σ‖ViVjYij‖ sin (δij-θij);
j = 1,2,….n, are the power flow to the neighboring system. (6)
The above constraints arise due to the need for the system to balance the generation
and load demand of the system.
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2. Secondary constraints (inequality constraints):

These arise due to physical and operational limitations of the units and components.
Pimin ≤ Pi ≤ Pimax
Qimin ≤ Qi ≤ Qimax
i = 1,2,….n, the number of generating units in the system. (7)
3. Spare Capacity Constraints:

These are used to account for the errors in load prediction, any sudden or fast
change in load demand, inadvertent loss of scheduled generation, etc. Here, the total
generation available at any time should be in excess of the total anticipated load
demand and any system loss by an amount not less than a specified minimum spare
capacity, PSP (called the Spinning Reserve) given by:
PlG (Generation) ≥ Σ Pl (Losses) + PSP + PDj (Load) (8)
4. Thermal Constraints:
For transmission lines of the given system:
- Simin ≤ Sbi ≤ Simax i = 1,2,….nb, the number of branches,
where, Sbi is the branch transfer MVA. (9)
5. Bus voltage and Bus angle Constraints:

Bus voltage and Bus angle Constraints are needed to maintain a flat bus voltage
profile and to limit the overloading respectively.
- Vimin ≤ Vi ≤ Vimax i = 1,2,….n
min max
- δij ≤ δij ≤ δij i = 1,2,….n; j = 1,2,….m (10)
where, n is the number of nodes and m is the number of nodes neighboring each node
with interconnecting branches.
6. Other Constraints:
In case of transformer taps, during optimization, it is required to satisfy the constraint:
Timin ≤ Ti ≤ Timax (11)
where Ti is the percentage tap setting of the tap changing transformer used.
In case of phase shifting transformers, it is required to satisfy the constraint:

PSimin ≤ PSi ≤ PSimax (12)
where PSi is the phase shift obtained from the phase shifting transformer used.
SPINNING RESERVE
Spinning reserve (SR) is the term used to describe the total amount of generation
available from all the synchronized (spinning) units of the system minus the present
load plus the losses being supplied. i.e.,
Sp.Res., PSP = {Total generation, Σ PlG} - { Σ PDj(load) + Σ Pl (losses)} (13)
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The SR must be made available in the system so that the loss of one or more units
does not cause a large drop in system frequency. SR must be allocated to different
units based on typical Council rules. One such rule is as follows:
‘SR must be capable of making up for the loss
of the most heavily loaded unit in the system’
Reserves must be spread around the system to avoid the problem of ‘bottling of
reserves’ and to allow for the various parts of the system to run as ‘islands’, whenever
they become electrically disconnected.
{Qn.: Write a brief note on the following: Spinning Reserve, constraints in economic
operation, performance curves}
SOLUTION TO ECONOMIC LOAD DISPATCH
{Qn.: Derive the EIC criterion for economic operation of power systems with
transmission losses neglected, MW limits considered/ not considered}
The solution to economic load dispatch problem is obtained as per the equal
incremental cost criterion (EIC), which states that:
‘All the units must operate at the same incremental fuel cost for economic operation’
This EIC criterion can be derived as per LaGrangian multiplier method for different
cases as under.
CASE (i) Solution to ELD without inequality constraints:

Consider a system with N generating units supplying a load PD MW. Let the unit MW
limits and the transmission losses are negligible. Suppose the fuel cost of unit ‘i’ is
given by:
Ci(Pi) = ai+ biPi+ ciPi2 Rs./Hr. so that
ICi = d(Ci)/dPi = bi+ 2ciPi Rs./MWHr. (14)
Hence, the total cost, CT = Σ Ci(Pi) i= 1,2,… N

The ELD problem can thus be stated mathematically as follows:
Minimize CT = Σ Ci(Pi) i = 1,2,… N

Such that Σ Pi = PD (15)
where, CT is the total fuel cost of the system in Rs./Hr., PD is the total demand in MW
and Pi is the MW power output of unit i. The above optimization problem can be
solved by LaGranje’s method as follows.
The LaGranje function L is given by:

L = CT + λ (PD – ΣPi) (16)
The minimum cost value is obtained when:

∂L/∂Pi = 0; and ∂L/∂λ = 0 (17)
∂CT/∂Pi – λ = 0 and PD - Σ Pi = 0 (which is same as the constraint given)
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Further, since the cost of a given unit depends only on its own power output, we have,
∂CT/∂Pi = ∂Ci/∂Pi = dCi/dPi i= 1,2,… N (18)
Thus,
dCi/dPi – λ = 0 i = 1,2,… N or
dC1/dP1 = dC2/dP2 = … .. = dCi/dPi = …. … = dCN/dPN (19)

= λ, a common value of the incremental fuel cost of generator I, in Rs./MWHr.
The equation above is stated in words as under:

‘For the optimum generation (power output) of the generating units, all the
units must operate at equal incremental cost (EIC)’
Expression for System Lambda, λ:
Consider equation (14); ICi = d(Ci)/dPi = bi+2ciPi Rs./MWHr.

Simplifying, we get, Pi = [λ-bi]/2ci MW so that
ΣPi = PD = Σ [λ-bi]/2ci
Solving, we get, λ = {PD + Σ [bi/2ci]}/ {Σ [1/2ci]} (20)
CASE (ii) Solution to ELD with capacity constraints:

Consider a system with N generating units supplying a load PD MW. Let the unit MW
limits be considerable and the transmission losses be negligible. Suppose the fuel cost
of unit ‘i’ is given by:
Ci(Pi) = ai+ biPi+ ciPi2 Rs./Hr. so that the total cost,
CT = Σ Ci(Pi) i= 1,2,… N
The ELD problem can now be stated mathematically as follows:

Such that Σ Pi = PD and
Pimin ≤ Pi ≤ Pimax (21)
where, CT is the total fuel cost of the system in Rs./Hr., PD is the total demand in MW,
Pi is the MW power output of unit i, Pimin is the minimum MW power output and
Pimax is the maximum power output by the unit i.
The necessary conditions for the solution of the above optimization problem can be
obtained as follows:
λi = dCi/dPi = λ Rs./MWHr. for Pimin ≤ Pi ≤ Pimax

λi = dCi/dPi ≤ λ Rs./MWHr. for Pi = Pimax
λi = dCi/dPi ≥ λ Rs./MWHr. for Pi = Pimin (22)
From the above equations, if the outputs of the unit, according to optimality rule, is:
* Less than its minimum value, then it is set to Pimin, the corresponding IC will be
greater than the system λ,
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* More than its maximum value, then it is set to Pimax, the corresponding IC will be
less than the system λ,
* With in its maximum and minimum values, then the corresponding IC will be equal
to the system λ.
In other words, the sequential procedural steps are as follows:
1. First, find the power output according to the optimality rule (EIC Criterion)
2. If the power output of any unit is less than its minimum value, then set the
value to be equal to its Pimin,
3. Similarly, if the power output of any unit is more than its maximum value, then
set the value to be equal to its Pimax,
4. Adjust the demand for the remaining units after accounting for the settings
made for the above units (those units which have violated the limits)
5. Finally, apply the EIC criterion, for the remaining units. Here, the system
lambda is determined by only those units whose power output values are with
in the specified MW limits.
CASE (iii) Solution to ELD with Transmission losses considered- PENALTY

FACTOR METHOD
transmission losses considered. Use penalty factor method}
Consider a system with N generating units supplying a load PD MW. Let the
transmission losses be considerable. Suppose the fuel cost of unit ‘i’ is given by:
Ci(Pi) = ai+ biPi+ ciPi2 Rs./Hr. so that the total cost,
CT = Σ Ci(Pi) i= 1,2,… N
Let PL be the total transmission losses in the system. The ELD problem can now be
stated mathematically as follows:

Such that Σ Pi = PD + PL (23)
where, CT is the total fuel cost of the system in Rs./Hr., PD is the total demand in MW,
Pi is the MW power output of unit i, PL is the transmission losses in the system. This
above optimization problem can be solved by LaGranje’s method as follows.
The LaGranje function L is given by:

L = CT - λ (ΣPi - PD – PL) (24)
The minimum cost value is obtained when:

∂L/∂Pi = 0; and ∂L/∂λ = 0 (25)
∂CT/∂Pi –λ(1-∂PL/∂Pi)=0 and ΣPi-PD–PL=0 (which is same as the constraint given)
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Further, since the cost of a given unit depends only on its own power output, we have,
∂CT/∂Pi = ∂Ci/∂Pi = dCi/dPi i= 1,2,… N
Thus,
dCi/dPi – λ (1- dPL/dPi) = 0 i = 1,2,… N or
dCi/dPi = ICi = λ (1- dPL/dPi)

So that we have for optimal operation,
λ = ICi /(1- dPL/dPi) = ICi (1- dPL/dPi)-1 = Pni ICi
Where, Pni is the penalty factor of unit i = (1- dPL/dPi)-1 = (1-ITLi)-1 ; ITLi = dPL/dPi
is the Incremental Transmission Loss of unit i, and λ is in Rs./MWHr. (26)
The equation above is stated in words as under:
‘For the optimum generation (power output) of the generating units, when the
transmission losses are considered, all the units must operate such that the product of
the incremental fuel cost and their penalty factor must be the same for all units’
Note: in equation (26), if losses are negligible as in case (i) above, then,
ITLi = dPL/dPi = 0, Pni=1.0 so that λ = ICi i = 1,2,… N, as before.
CASE (iv) Solution to ELD with Transmission losses considered- LOSS

COEFFICIENTS METHOD
transmission losses considered. Use B- Coefficients method OR
Derive an expression for the transmission loss as a function of the plant
generations.}
Consider a system with two generating units supplying currents I1 and I2 respectively
to the load current IL. Let Ik1 and Ik2 be the respective currents flowing through a
general transmission branch element k of resistance Rk, with current Ik as shown in
figure 1 below.
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Figure 1. Branch currents in a 2 unit system
Ik = Ik1 + Ik2 = Nk1 I1 + Nk2I2 (27)
Where, Nk1 and Nk2 (assumed to be real values) are the current distribution factors
of units 1 and 2 respectively.
It is assumed that the currents Ik1 and IL as well as Ik2 and IL have the same phase angle
or they have a zero phase shift. Thus, they can be added as real numbers as under.
Let I1 = │I1│∠σ1 = │I1│cos σ1+ j│I1│sin σ1

I2 = │I2│∠σ2 = │I2│cos σ2+ j│I2│sin σ2 (28)
Where σ1 and σ2 are the phase angles of currents. Consider now, the magnitude of
current Ik, in branch k, given by
Ik = {Nk1│I1│cos σ1+ j Nk1│I1│sin σ1} + {Nk2│I2│cos σ2+ j Nk2│I2│sin σ2}

= {Nk1│I1│cos σ1+ Nk2│I2│cos σ2} + j{Nk1│I1│sin σ1+ Nk2│I2│sin σ2}
Thus,
│Ik│2 = Nk1│I1│2 + Nk2│I2│2 + 2 Nk1Nk2│I1││I2│ cos(σ1-σ2) (29)
However, we have,
P1 = √3V1I1cosθ1; P2 = √3V2I2cosθ2; PL = Σ3│Ik│2Rk (30)
where, P1 and P2 are the MW power output values by the units 1 and 2 respectively,
V1 and V2 are the respective line voltages and θ1, θ2 are the respective power factor
angles and PL is the transmission loss in the system. From equations (29) and (30),
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after simplification, an expression for the transmission loss as a function of plant

generation can be obtained as:
PL = ΣNk12RkP12/(V12cos2θ1) + ΣNk22RkP22/(V22cos2θ2) +
2 ΣNk1Nk2RkP1P2 cos(σ1-σ2)/ (V1V2cosθ1cosθ2)
= B11P12 + B22P22 + 2 B12P1P2 (31)
Where, the B coefficients are called as the loss coefficients. Thus, in general, for a
system of n units we have,
PL = Σ Σ PiBijPj Where,
i j
Bij = Σ {cos(σi-σj)/ (ViVjcosθicosθj) NkiNkjRk (32)
Note:
1. The B coefficients are represented in units of reciprocal MW, (MW-1)
2. For a three unit system , equation (32) takes the form:
PL = B11P12 + B22P22 + B33P32 + 2 B12P1P2+2 B13P1P3+ 2 B23P2P3
= PTBP (33)
Where, P = [P1 P2 P3], the vector of unit power output values and
B = [B11 B12 B13; B21 B22 B23; B31 B32 B33]
the loss coefficient matrix for the 3 unit system.
3. The B coefficient matrix is a square, symmetric matrix of order n, n being the
number of generating units present in the system.
4. The following are the assumptions made during the above analysis:
• All load currents maintain a constant ratio to load current (Nki=constant).
• The voltage at any bus remains constant.
• The power factor of each bus source is constant (θi=constant).
• The voltage phase angle at load buses is constant (σi=constant).
5. The Incremental Transmission loss, ITLi of a given unit can be expressed in
terms of its MW power output values as under:
Consider, PL = Σ Σ PjBjkPk
j k
= Σ Σ PjBjkPk + Σ PjBjiPi
j k≠i j
= Σ Σ PjBjkPk + Σ PjBjiPi + BiiPi2
j k≠i j≠i
= Σ Σ PjBjkPk + Σ PiBikPk + Σ PjBjiPi + BiiPi2
j≠i k≠i k≠i j≠i
(34)
Thus,
ITLi = dPL/dPi = 0+ Σ BikPk + Σ PjBji + 2 BiiPi
k≠i j≠i
= 2 Σ PkBik
k (35)
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Examples on Economic operation of power systems

Part A: Transmission losses negligible
Example-1:
The I-O characteristics of two steam plants can be expressed analytically as under
(with P1 and P2 in MW):
F1 =(2.3P1+0.0062 P12 + 25)106 kCals/Hr.
F2 =(1.5P1+0.01 P22 + 35)106 kCals/Hr.
The calorific value of coal at plant#1 and plant#2 are respectively equal to 4000
kCals/kg. and 5000 kCals/kg. The corresponding cost of coal is Rs.55/- and Rs.65/-
per Ton. Find the following: (i)Incremental Fuel Rate in kCals/MWHr (ii)Incremental
Fuel Cost in Rs./MWHr and (iii)Incremental Production Cost in Rs./MWHr if the cost
of other items can be taken as 10% of the incremental fuel cost/plant.
Solution:
(i)Incremental Fuel Rate in kCals/MWHr
IFR1=dF1/dP1 = (2.3+0.0124P1)106 kCals/MWHr
IFR2=dF2/dP2 = (1.5+0.02P2)106 kCals/MWHr
(ii)Incremental Fuel Cost in Rs./MWHr

IC1= [dF1/dP1 in kCals/MWHr] [cost of coal in Rs./ton] [calorific value-1 in kg./kCals] 10-3
= (2.3+0.0124P1)106 (55) (1/4000) (10-3)
= 31.625 + 0.1705 P1 Rs./MWHr.
IC2= [dF2/dP2 in kCals/MWHr] [cost of coal in Rs./ton] [calorific value-1 in kg./kCals] 10-3
= (1.5+0.02P2)106 (65) (1/5000) (10-3)
= 19.9 + 0.26 P2 Rs./MWHr.
(iii)Incremental Production Cost in Rs./MWHr if the cost of other items can be taken
as 10% of the incremental fuel cost/plant.
Effective value of IC are given by:
IC1eff = 1.1 (IC1)
= 1.1 (31.625 + 0.1705 P1) Rs./MWHr.
= 34.7878 + 0.1875 P2 Rs./MWHr.
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IC2eff = 1.1 (IC2)

= 1.1 (19.9 + 0.26 P2) Rs./MWHr.
= 21.45 + 0.286 P2 Rs./MWHr.
Example-2:
The incremental costs of a two unit system are given by: IC1 = (0.008 PG1 + 8.0);
IC2 = (0.0096 PG2 + 6.4) Find the incremental cost and the distribution of loads
between the two units for optimal operation for a total load of 1000 MW. What is this
value if the same total load is equally shared among the two units?
Solution:
For the total load values of PT = 1000 MW, if the load is shared equally among the
two units then:
PG1 = 500 MW; PG2 = 500 MW with
λ1 = 12 Rs./MWHr and λ2 = 11.2 Rs./MWHr. (unequal lambda values)
Now, for optimal operation, we have as per EIC principle, the IC’s to be equal.
i.e., IC1=IC2; PT = P1+P2 = 1000
are the equations to be solved for the output power values. Thus,
IC1 =0.008 PG1 + 8.0= IC2 = 0.0096 PG2 + 6.4
= 0.0096 (1000 - PG1) + 6.4
Solving, we get, PG1 = 454.54 MW; PG2 = 545.45 MW
Further, λsystem is calculated using any one of the IC equations as:
λsystem = λ1 = λ2 = 11.64 Rs./MWHr.
Thus, with λsystem = λ1 = λ2 = 11.64 Rs./MWHr, the total load is optimally shared
between the two units and the operating cost would be at its minimum.
Example-3:
The fuel costs in Rs./Hr. for a plant of three units are given by:
C1=(0.1P12+40P1+100); C2=(0.125P22+30P2+80); C3=(0.15P32+20P3+150); Find
the incremental cost and the distribution of loads between the three units for optimal
operation for a total load of 400 MW, given that the max. and min. capacity limits for
each of the units as 150 MW and 20 MW respectively.
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Solution:
Consider the incremental cost curves given by: ICi= dCi/dPi = (2ciPi+bi) Rs./MWHr
IC1=dC1/dP1 = (0.20P1+40) Rs./MWHr
IC2=dC2/dP2 = (0.25P2+30) Rs./MWHr and
IC3=dC3/dP3 = (0.30P3+20) Rs./MWHr
For the total load values of PT = 400 MW, for optimal operation, as per EIC
principle, the IC’s are equal. i.e., IC1=IC2=IC3; and PT = P1+P2+P3 = 400 MW. Also,
the system lambda is given by:
λ = {PD+Σ(bi/2ci)}/ {Σ(1/2ci)} ∀ i= 1,2,3
Substituting the values, we get after simplification,
λ = 63.78 Rs./MWHr.
Using this value of common system lambda, the MW output values of all the 3 units
are obtained from their IC curves as:
P1= 118.9 MW, P2= 135.12 MW and P3=91.90 MW.
(All the MW output values are found to be within their capacity limits specified)
Thus, with λsystem = λ1 = λ2 = λ3 =63.78 Rs./MWHr, the total load is optimally shared
between the three units and the operating cost would be at its minimum.
Example-4:
The incremental costs of a two unit system are given by:
IC1 =0.008 PG1 + 8.0 ; IC2 =0.0096 PG2 + 6.4
Find the incremental cost and the distribution of loads between the two units for
optimal operation for a total load of 900 MW. Also determine the annual saving in
cost in optimal operation as compared to equal sharing of the same total load.
Solution:
For a total load of PT = 900 MW, if the load is shared equally among the two units
then: PG1 = PG2 = 450 MW.
Now, for optimal operation, we have as per EIC principle, the IC’s to be equal. i.e.,
IC1=IC2; PT = P1+P2 = 900 are the equations to be solved for the output power values.
Thus, IC1 =0.008 PG1 + 8.0 = IC2 = 0.0096 (900 - PG1) + 6.4 Solving, we get,
PG1 = 400 MW; PG2 = 500 MW. (λ= 11.2 Rs./MWHr.)
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The increase in cost of operation by Unit 1 if it supplies 450 MW (equal sharing)

instead of 400 MW (optimal sharing) is given by:
C1= ∫ IC1 dPG1 = ∫ (0.008PG1+8) dPG1 = |(0.004PG12+8PG1)|400450 = Rs.570/hr.
Similarly, the decrease in cost of operation by Unit 2 if it supplies 450 MW (equal
sharing) instead of 500 MW (optimal sharing) is given by:
C2= ∫ IC2 dPG2 = ∫ (0.0096PG2+6.4) dPG2 = |(0.0096PG22+6.4PG2)|500450 = Rs. - 548/hr.
Thus, the net saving in cost in optimal operation is given by:
Rs. 570 – 548 = Rs. 22/- per hour or it is equivalent to an annual saving in cost of
(assuming continuous operation): Rs.(22)(24)(365) = Rs. 1,92, 720/- PA.
Example-5:
The fuel costs of a two generator system are given by:
C1 =α1 + β1P1+ γ1P12; C2 =α2 + β2P2+ γ2P22
Where, β1=40, β2=30, γ1=0.1, γ2=0.125, and α1,α2 are constants. How will the load of
150 MW be shared optimally between the two units? Also determine the saving in cost
in Rs./Hr. in optimal operation as compared to equal sharing of the same total load.
Solution:
Consider the incremental cost curves given by:
IC1=dC1/dP1 = β1+ γ1P1 = 40+0.2P1 Rs./MWHr
IC2=dC2/dP2 = β2+ γ2P2 = 30+0.25P2 Rs./MWHr
For a total load of PT = 150 MW, if the load is shared equally among the two units
then: PG1 = PG2 = 75 MW.
Now, for optimal operation, we have as per EIC principle, the IC’s to be equal. i.e.,
IC1=IC2; PT = P1+P2 = 150 are the equations to be solved for the output power values.
Thus, IC1 =40+0.2P1 = IC2 = 30+0.25P2 = 30+0.25 (150-P1) Solving, we get,
P1 = 61.11 MW; P2 = 88.89 MW (λ= 52.222 Rs./MWHr.)
The increase in cost of operation by Unit 1 if it supplies 75 MW (equal sharing)
instead of 61.11 MW (optimal sharing) is given by:
C1= ∫ IC1 dPG1 = ∫ (40+0.2P1) dP1 = |(40P1+0.1P12)|61.1175 = Rs.737.344/hr.
Similarly, the decrease in cost of operation by Unit 2 if it supplies 75 MW (equal
sharing) instead of 88.89 MW (optimal sharing) is given by:
C2= ∫ IC2 dPG2 = ∫ (30+0.25P2) dPG2 = |(30P2+0.125P22)|88.8975 = Rs. - 707/hr.
14
Thus, the net saving in cost in optimal operation is given by:

Rs. 737.344 – 707 = Rs. 30.344/- per hour
(or it is equivalent to an annual saving in cost of (assuming continuous operation):
Rs.(30.3)(24)(365) = Rs. 2,62,800/- PA)
Example-6:
The fuel cost function in Rs./Hr. for three thermal plants is given by the following
(with P’s in MW):
F1 = 350 + 7.20 P1 + 0.0040 P12
F2 = 500 + 7.30 P2 + 0.0025 P22
F3 = 600 + 6.74 P3 + 0.0030 P32
Find the optimal schedule for a total load of 450 MW. Also compute the costs of
operation for this schedule. Compare the same when the three generators share the
same total load equally among them.
Solution:
Consider the IC curves in Rs./MWHr for the 3 units as under:
IC1=dF1/dP1 = 7.2+0.008P1 Rs./MWHr
IC2=dF2/dP2 = 7.3 + 0.005P2 Rs./MWHr and
IC3=dF3/dP3 = 6.74 + 0.006P3 Rs./MWHr
For optimal operation, we have as per EIC, the common lambda of the system given
by: λ = {PD+Σ(bi/2ci)}/ {Σ(1/2ci)} ∀ i= 1,2,3
Substituting the values, we get after simplification, λ = Rs. 8/ MWHr.
P1= 100 MW, P2= 140 MW and P3=210 MW.
The operating costs for this schedule are found by using the cost curves as:
FT(Optimal operation) = F1+F2+F3 = 1110+1571+2147.7 = 4828 Rs./Hr.
Similarly, the operating costs for the equal sharing of total load are also found by
using the cost curves as: (with P1= P2= P3=150 MW.
FT(Equal sharing) = F1+F2+F3 = 1520+1621.25+1078.5 = 4849.5 Rs./Hr.
Thus, saving in cost in optimal operation is: 4849.5 – 4828 = Rs.21.75/- per hour.
15
Example-7:
Given that IC =(40+0.2P1) ; IC2 =(30+0.25P2) Calculate and tabulate the load
1
shared by each unit for optimal operation if the total load varies from 50 to 250MW,
in steps of 50MW, given that max.MW is 125 and min. MW is 20 for both the units.
Solution:
Stage 1: Consider the IC’s at Pmin:
IC1|P1=P1min = 20MW = 40+0.2(20) = 44 Rs./MWHr
IC2|P2=P2min = 20MW = 30+0.25(20) = 35 Rs./MWHr
Thus, IC2 < IC1; i.e., the EIC holds good only from the stage where, the system
lambda is equal to 44 Rs./MWHr. Now find P2 corresponding to this Lambda:
P2|λ2=44 = (44 – 30)/0.25 = 56 MW so that then PTotal = 20 + 56 = 76 MW
Thus, until PT=76 MW, EIC will not be feasible, Unit 1 will work at its minimum
load 20 MW and all the additional load is shared by unit 2 alone till λ=44 Rs./MWHr.
Stage 2: Consider the IC’s at Pmax: since the Unit 2 is expected to reach its max.
limit earlier, find:
IC2|P2=P2max = 125MW = 30+0.25(125) = 61.25 Rs./MWHr
P1|λ1=61.25 = (61.25 – 40)/0.2 = 106.25 MW so that then
PTotal = 106.25+125= 231.25 MW
Thus, after PT=231.25MW, EIC ceases to hold good; Unit 2 will work at its
maximum load sharing of 125 MW only and all the additional load variations are
shared by unit 1 alone untill P1 also reaches 125 MW.
Stage 3: In summary, EIC holds good only for PT and λsystem values which satisfy the
limits: 76 ≤ PT ≤ 231.25 MW and 44 ≤ λsystem ≤ 61.25 Rs./MWHr
For the total load values of PT = 100, 150 and 200 MW, the equations to be solved for
the output power values are: IC1=IC2; PT = P1+P2 and λsystem is calculated using any
one of the IC equations. The values so obtained for the said range of load values are
tabulated as under.
16
Sl. No. PT P1 P2 λsystem Remarks

20 44 Unit 2 only shares
1. 50 30
(fixed) (fixed) the additional load
2. 76 20 56 44 Unit 1 and Unit 2 share
3. 100 33.33 66.67 46.67 the total load as per EIC
4. 150 61.11 88.99 52.22 Criterion. The system
5. 200 88.88 111.11 57.78 works with a common
6. 231.25 106.25 125 61.25 system lambda
125 61.25 Unit 1 only shares
7. 250 125
Example-8:
Given that F1 =110 + 30P1+ 0.09P12 12 ≤ P1 ≤ 125 MW
F2 =135 + 12P2+ 0.1P22 25 ≤ P2 ≤ 125 MW
Calculate and tabulate the load shared by each unit for optimal sharing of the total
load in the range 50-250 MW in steps of 100 MW. Also find λsystem in each case.
Solution:
IC1=dC1/dP1 = 30+0.18 P1 Rs./MWHr
IC2=dC2/dP2 = 12+0.2 P2 Rs./MWHr

IC1|P1=P1min = 12MW = 32.16 Rs./MWHr
IC2|P2=P2min = 25 MW = 17 Rs./MWHr
lambda is equal to 32.16 Rs./MWHr. Now find P2 corresponding to this Lambda:
P2|λ2=32.16 = 100.8 MW so that then PTotal = 112.8 MW
Thus, until PT=112.8 MW, EIC will not be feasible, Unit 1 will work at its minimum
load, 12 MW and the additional load is shared by unit 2 alone till λ=32.16 Rs./MWHr.
Stage 2: Consider the IC’s at Pmax: since the Unit 2 is expected to reach its max.
limit earlier, find:
IC2|P2=P2max = 125MW = 37 Rs./MWHr
P1|λ1=37 = 38.88 MW so that then
PTotal = 163.88 MW
17
Thus, after PT= 163.88 MW, EIC ceases to hold good; Unit 2 will work at its
maximum load sharing of 125 MW only and all the additional load variations are
shared by unit 1 alone untill P1 also reaches 125 MW.
Stage 3: In summary, EIC holds good only for PT and λsystem values which satisfy the
limits: 112.8 ≤ PT ≤ 163.88 MW and 32.16 ≤ λsystem ≤ 37 Rs./MWHr
For the total load value of PT = 150 MW, where the EIC holds good, the equations to
be solved for the output power values are: IC1=IC2; PT = P1+P2 and λsystem is
calculated using any one of the IC equations. The values so obtained for the said
range of load values are tabulated as under.
Sl. No. PT P1 P2 λsystem Remarks

12 32.16 Unit 2 only shares
1. 50 38
2. 112.8 12 100.8 32.16 Unit 1 and Unit 2 share
the total load as per EIC
3. 150 31.58 118.42 35.67 Criterion. The system
works with a common
4. 163.88 38.88 125 37 system lambda
125 37 Unit 1 only shares
5. 250 125
Example-9:
A system is fed by two steam plants with IC functions as under:
IC1= 28+0.16P1 Rs./MWHr ; IC2= 20+0.25P2 Rs./MWHr
The maximum and minimum loads on the units are 100 MW and 10 MW respectively.
Determine the minimum cost of generation for supplying a load as follows based on
the EIC criterion:
Load 12 Midnight 6 am 12 noon 2-6 6-9 9pm –
Duration – 6 am – 12 noon -2 pm pm pm 12 Midnight
Load in
60 100 80 120 175 50
MW
Solution:
IC2|P2=P2min = 10 MW = 22.5 Rs./MWHr
18
lambda is equal to 29.6 Rs./MWHr. Now find P2 corresponding to this Lambda:
P2|λ2=29.6 = 38.4 MW so that then PTotal = 48.4 MW
However all the required loads to be supplied are above this total load of 48.4 MW!
Stage 2: Consider the IC’s at Pmax:

P2|λ1=44 = 96 MW so that then PTotal = 196 MW
Again, it is observed that all the required loads to be supplied are below this total
load of 196 MW!
In summary, EIC holds good for all the load values specified. Now for the total load
value of PT = P1+P2, where EIC is shown to holds good, the equations to be solved
for the output power values are: IC1=IC2; PT = P1+P2 and λsystem is calculated using
any one of the IC equations. The values so obtained for the said range of load values
are tabulated as under.
PT P1 P2 λsystem
48.4 10 (min.) 38.40 29.60
50 10.97 39.03 29.75
60 17.07 42.13 30.73
80 29.27 50.73 32.68
100 41.47 58.53 34.63
120 53.66 66.34 38.59
175 87.20 87.80 41.95
196 100 (max.) 96.00 44.00
Example-10:
Assume that the fuel input in Btu/Hr. for unit 1 and unit 2 of a plant are given by:
F1 = {P1+ 0. 024P12+80}106; F2={6P2+ 0.04P22 +120)106
The maximum and minimum loads on the units are 100 MW and 10 MW respectively.
Determine the minimum cost of generation for supplying a load as follows with the
fuel cost at Rs.2 per MBtu.
Load 12 Midnight – 6 am – 6 pm –
Duration 6 am 6 pm 12 Midnight
Load 50 MW 150 MW 50 MW
19
Solution:
IC1=dC1/dP1 = 2+0.096 P1 Rs./MWHr
IC2=dC2/dP2 = 12+0.16 P2 Rs./MWHr
Consider the IC’s at Pmin:
IC2|P2=P2min = 10 MW = 13.6 Rs./MWHr
Thus, IC2 >IC1; i.e., the EIC holds good only from the stage where, the system lambda
is equal to 13.6 Rs./MWHr. Now find P1 corresponding to this Lambda:
P1|λ1=13.6 = 120.833 MW (>P1max) (so that then PTotal = 130.833 MW)
Thus, until PT=130.833 MW, EIC will not be feasible, Unit 2 will work at its
minimum load of 10 MW and the additional load is shared by unit 2 alone till λ=13.6
Rs./MWHr. However, this is not further feasible since the unit 1 reaches its max.
value of 100 MW within this range!!! Hence, EIC ceases to exist for any given range
of load. The load sharing is thus constrained by the MW limits for the various loads
specified: 50 MW and 150 MW, as shown by the table below:
PT MW P1 MW P2 MW Remarks
<20 Infeasible
20 10 10 Here unit 2 is at its min. limit of 10
50 40 10 MW, only unit 1 shares the load till it
100 90 10 hits its own max. limit of 100 MW and
unit 1
110 100 10 determines the system λ
150 100 50 Here unit 1 is at its max. limit of 100
180 100 80 MW, only unit 2 shares the load and
200 100 100 determines the system λ
>200 Infeasible
Example-11:
Determine the economic operating point for the system of three units when delivering
a total load of 850 MW, with the unit details as follows:
I/O Curve (MBtu/Hr.)
Sl. Type of Max. Min. Fuel Cost Hi=(ai+biPi+ciPi2)
No. plant MW MW Rs./MBtu
ai bi ci
1 Coal fired Steam Plant 600 150 1.1 510 7.2 0.000142
2 Oil fired Steam Plant 400 100 1.0 310 7.85 0.00194
20
Solution:
IC1=dH1/dP1 = (1.1) (7.2+0.000284P1) Rs./MWHr
IC2=dH2/dP2 = (1.0) (7.85 + 0.00388P2) Rs./MWHr and
IC3=dH3/dP3 = (1.0) (7.97 + 0.00964P3) Rs./MWHr
by:
λ = {PD+Σ(bi/2ci)}/ {Σ(1/2ci)} ∀ i= 1,2,3
λ = 9.148 Rs./MWHr.
P1= 393.2 MW, P2= 334.6 MW and P3=122.2 MW.
(All the MW output values are within their capacity limits specified)
Example-12:
Three plants of total capacity 500 MW are scheduled for operation to supply a total
load of 310 MW. Find the optimal load schedule if the IC curves and limitations are: :
IFC1 = 30+ 0.12P1 30 ≤ P1 ≤ 150 MW
IFC2 = 40+ 0.20P2 20 ≤ P2 ≤ 100 MW
IFC3 = 10+ 0.16P3 50 ≤ P3 ≤ 250 MW
Solution:
For optimal operation, we have as per EIC, the λsystem given by:
λsystem = {PD+Σ(bi/2ci)}/ {Σ(1/2ci)} ∀ i= 1,2,3
λsystem = 42 Rs./MWHr.
Using this value of λsystem, the MW output values of all the 3 units are obtained from
their IC curves as:
P1= 100 MW, P2= 10 MW and P3= 200 MW.
Thus, P2<P2min (of 20 MW) and P1,P3 are within the limits.
In such cases, for optimal operation, we set P2=P2min = 20
21
And hence the total load to be shared only between the unit 1 and unit 3 is:
310-10=290 MW;
Now, for optimal operation, IC1=IC3. i.e., 30+ 0.12P1= 10+ 0.16P3 and P1+P3=290.
Solution thus yields:
λ1= λ3= 41.316 Rs./MWHr.;

P1= 94.3 MW; P3 = 195.7 MW with P2=P2min = 20 MW (fixed).
Example-13:
Determine the economic operating point for the system of three units when delivering
a total load of 850 MW, with the unit details as follows:
I/O Curve (MBtu/Hr.)
Sl. Type of Max. Min. Fuel Cost Hi=(ai+biPi+ciPi2)
No. plant MW MW Rs./MBtu
ai bi ci
1 Coal fired Steam Plant 600 150 0.9 510 7.2 0.000142
Solution:
IC1=dH1/dP1 = (0.9) (7.2+0.000284P1) Rs./MWHr
IC2=dH2/dP2 = (1.0) (7.85 + 0.00388P2) Rs./MWHr and
IC3=dH3/dP3 = (1.0) (7.97 + 0.00964P3) Rs./MWHr
by:
λ = {PD+Σ(bi/2ci)}/ {Σ(1/2ci)} ∀ i= 1,2,3
λ = 8.284 Rs./MWHr.
P1= 704.6 MW, P2= 111.8 MW and P3= 32.6 MW.
Thus, P1>P1max (of 600 MW) ; P3<P3min (of 50 MW)

and P2 is within the limits.
22
In such cases, for optimal operation, we have:

P1=P1max = 600 so that λ1=8.016 Rs./MWHr;
P3=P3min = 50 so that λ3=8.458 Rs./MWHr and thus
P2=PD-600-50 = 850-650=200, so that λ2=8.626 Rs./MWHr
Thus between units 2 and 3, the optimal operation may be feasible since IC3<IC2.
For this, we solve the equations:
7.85+0.00388P2=7.97+0.00964P3 and PT= P2+P3=250.
The solution thus yields:
λ2= λ3=8.576 Rs./MWHr.;
P2= 187.13 MW; P3 = 62.82 MW
with P1=P1max = 600 MW (fixed).
Example-14:
If the total load at a certain hour of the day is 400 MW for a 3 unit system, obtain the
optimum generation schedule, if the IC curves of the three units are as under (with
IC’s in Rs./MWHr. and PG’s in MW):
PG1= -100 +50 (IC1)- 2 (IC1)2
PG2= -150 +60 (IC2)- 2.5 (IC2)2
PG3= -80 +40 (IC3)- 1.8 (IC3)2
Solution:
Consider the EIC condition:
IC1=IC2=IC3= λsystem and PT=PG1+PG2+PG3=400
Thus,
400= [-100+50(IC)-2(IC)2]+ [-150+60(IC)-2.5(IC)2]+ [-80+40(IC)-1.8(IC)2]
i.e., 6.3(IC)2-150(IC)+730=0;
Solving we get two solutions: IC=6.82 and IC=16.989 Rs./MWHr.,
of which, the lower and economical value is considered for further analysis:
With IC= 6.82 Rs./MWHr,
we have, PG1= 148 MW, PG2= 142.9 MW and PG3= 109.1 MW.
----
23

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www.bookspar.

com | VTU NOTES | QUESTION PAPERS | NEWS | RESULTS | FORUMS

POWER SYSTEM OPTIMIZATION

Electric Power Systems (EPS): Economic Aspects:

Electric Power Systems (EPS): Operational Aspects:

www.bookspar.com | VTU NOTES | QUESTION PAPERS | NEWS | RESULTS | FORUMS

• Regional GRID: Different grids are interconnected through transmission lines.

Economic loading of generators and interconnected stations:

1. Input Output Curve: A plot of fuel input in Btu/Hr. as a function of the MW

The Cost Curve can be approximated by:

CONSTRAINTS IN ECONOMIC OPERATION OF POWER SYSTEMS:

Various constraints are imposed on the problem of economic operation of power

1. Primary constraints (equality constraints):

2. Secondary constraints (inequality constraints):

3. Spare Capacity Constraints:

5. Bus voltage and Bus angle Constraints:

In case of phase shifting transformers, it is required to satisfy the constraint:

Sp.Res., PSP = {Total generation, Σ PlG} - { Σ PDj(load) + Σ Pl (losses)} (13)

SOLUTION TO ECONOMIC LOAD DISPATCH

CASE (i) Solution to ELD without inequality constraints:

Hence, the total cost, CT = Σ Ci(Pi) i= 1,2,… N

Minimize CT = Σ Ci(Pi) i = 1,2,… N

The LaGranje function L is given by:

The minimum cost value is obtained when:

∂CT/∂Pi – λ = 0 and PD - Σ Pi = 0 (which is same as the constraint given)

dC1/dP1 = dC2/dP2 = … .. = dCi/dPi = …. … = dCN/dPN (19)

The equation above is stated in words as under:

Expression for System Lambda, λ:

Consider equation (14); ICi = d(Ci)/dPi = bi+2ciPi Rs./MWHr.

Solving, we get, λ = {PD + Σ [bi/2ci]}/ {Σ [1/2ci]} (20)

CASE (ii) Solution to ELD with capacity constraints:

Minimize CT = Σ Ci(Pi) i = 1,2,… N

λi = dCi/dPi = λ Rs./MWHr. for Pimin ≤ Pi ≤ Pimax

In other words, the sequential procedural steps are as follows:

CASE (iii) Solution to ELD with Transmission losses considered- PENALTY

Minimize CT = Σ Ci(Pi) i = 1,2,… N

The LaGranje function L is given by:

The minimum cost value is obtained when:

∂CT/∂Pi –λ(1-∂PL/∂Pi)=0 and ΣPi-PD–PL=0 (which is same as the constraint given)

dCi/dPi = ICi = λ (1- dPL/dPi)

The equation above is stated in words as under:

CASE (iv) Solution to ELD with Transmission losses considered- LOSS

Figure 1. Branch currents in a 2 unit system

Ik = Ik1 + Ik2 = Nk1 I1 + Nk2I2 (27)

Let I1 = │I1│∠σ1 = │I1│cos σ1+ j│I1│sin σ1

Ik = {Nk1│I1│cos σ1+ j Nk1│I1│sin σ1} + {Nk2│I2│cos σ2+ j Nk2│I2│sin σ2}

after simplification, an expression for the transmission loss as a function of plant

Examples on Economic operation of power systems

(ii)Incremental Fuel Cost in Rs./MWHr

IC2eff = 1.1 (IC2)

The increase in cost of operation by Unit 1 if it supplies 450 MW (equal sharing)

Thus, the net saving in cost in optimal operation is given by:

Sl. No. PT P1 P2 λsystem Remarks

Stage 1: Consider the IC’s at Pmin:

Sl. No. PT P1 P2 λsystem Remarks

Stage 2: Consider the IC’s at Pmax:

λ1= λ3= 41.316 Rs./MWHr.;

Thus, P1>P1max (of 600 MW) ; P3<P3min (of 50 MW)

In such cases, for optimal operation, we have: