Power System Restructuring and Deregulation

Edited by Loi Lei Lai

Copyright 2001 John Wiley & Sons Ltd
ISBNs: 0-471-49500-X (Hardback); 0-470-84611-9 (Electronic)

Power System Restructuring

and Deregulation

Power System Restructuring

and Deregulation
Trading, Performance and
Information Technology

Edited by
Loi Lei Lai

City University, London, UK

JOHN WILEY & SONS, LTD

Chichester . New York . Weinheirn . Brisbane . Singapore . Toronto

Copyright C 2001 by John Wiley & Sons Ltd

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Library of Congress Cataloging-in-Publication Data
Power system restructuring and deregulation : trading, performance, and information
technology/ edited by L.L. Lai .
p . cm
includes bibliographical references and index .
ISBN 0 471 49500 X
1 . Electrical power systems- Control . 2 . Electric utilities-Cost control . 3 . Electric
Utilities - Deregulation . 4 . Electric utilities-Technological innovations. 1 . Lai, Loi Lei
TK1007 . P68. 2001
.333 .793'2 - dc21

2001045404

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library
ISBN 0 47149500 X
Produced from Word files supplied by the Editor
Printed and bound in Great Britain by Antony Rowe Ltd ., Chippenham, Wilts
This book is printed on acid-free paper responsibly manufactured from sustainable forestry,
in which at least two trees are planted for each one used for paper production .

Contents
Foreword ...................................................................................................... ...................... xv
Preface ............................................................................................................................... xvii
Acknowledgements ............................................................................................................ xxi
Contributors ..................................................................................................................... xxiii
1 Energy Generation under the New Environment ........................................ .................. 1
1 .1
Introduction . . . ....... .. .. ...... .. .. .. .. .. .. .. .. .. .. .. . ...... .. .. .. .. .. .. .. .. .. .... . ...... .. .. .. .. .. .. .. ..... .. .. .. .. .. . 1
1 .2
Competitive Market for Generation . .. . . .. .. ....... .. .... .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. .... . ...... . 2
1 .3
The Advantages of Competitive Generation ... . . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. .. . ...... . 3
1 .4
The Role of the Existing Power Industry . ....... . . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . ...... . 4
1 .4.1
Reconfiguring the Electricity System . ..... . . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . ...... . 5
1 .4.2
Trends in Conventional Electricity Generation Technologies ... .. .. .. .. .. .. .. .. .... 6
1 .5
Electricity Demand Operation and Reliability . . . ... .. .. .. .. .. .. .. .. ........ . .... .. .. .. .. .. .. .. ..... . 6
1 .5 .1
Power Plant Operation . . .... .. .. . . .. .. .. .. .. ....... .. .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . ...... . 7
1 .5 .2
Reliability Assessment . . ... .. .. .. .. .. . . .. .. .. ..... . . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . ...... . 7
1 .5 .3
Availability of Fuel..... . . . ..... .. .. .. .. . . .. .. ....... . . .... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .... . ...... . 9
1 .6
Renewables Generation Technologies . .. .. .. ...... . . ..... .. .. .. .. .. .. .. .. ..... .. .... .. .. .. .. .. .. .. .... 12
1 .6.1
Biomass . .. .. .. .... . . ......... . . .... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. ... . . ..... 12
1 .6.2
Fuel Cell .. .. .. .... .. ......... . . ...... .. .. .. .. .. .. .. ....... . . .. .. .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . ..... 13
1 .6.3
Wind .. .. .. .. .. .. .... .. .......... . . ... .. .. .. .. .. . . .. .. ....... . . .... .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. .... . ..... 14
1 .6.4
Photovoltaics (PVs) ..... .. .. ..... .. .. .. . . .. .. .. ...... . . ..... .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. .. .. .. .... 14
1 .6.5
Solar. .. .. .. .. .. .. .. .. .. .. ........ . .... .. .. .. .. .. . . .. .. .. ...... . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . .... .14
1 .7
Combined Heat and Power. .. .... .. .. .. . . ... . . . .. ..... .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. ... .. .. .. .. . 15
1 .8
Energy Policy and Government Intervention .. . . .... .. .. .. .. .. .. . . .. ..... .. .. .. .. .. .. .. .. ... . . . ... . 16
1 .9
Costs .. .. .. ...... . ...... .. .. . . .... .. .. .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. .. .... .. ..... .. .. .. .. .. . 17
1 .9.1
Capital Costs for New Plants .. .. .. .. .. .. .. ..... .. .... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. ..... . . .... . 17
1 .9.2
Technology Advances - Clean Coal Technologies . .. .. .. .. ..... . . ...... .. .. .. .. .. .. .... 18
1 .9.3
Environmental Considerations . .. .. .. .. .. .. ... . . ...... .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. ... . . . .... 18
1 .10
Distributed Generation .. ..... . . ...... .. .. .. .. .. .. .. .. ... .. .. ...... .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. ..... . . .... . 20
1 .10.1
Market Regulation . ..... . . ...... .. .. .. .. .. .. .. .. ..... . . ...... .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. .... . . .... 21
1 .10.2
The Power Pool . .. .. .. .... . ...... .. .. .. .. .. .. .. .. .. ... . . ...... .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. .... . . .... 22
1 .10.3
Ancillary Services . .. .... . . ....... .. .. .. .. .. .. .. .. .... . ...... .. .. .. .. .. .. .. .. ..... .. .... .. .. .. .. .... . . .... 25
1 .10.4
Technical Issues. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. .... . . ....... .. .. .. .. .. .. .. ..... .. ... . . . .. .. .. .. .. . . .. ..25
Implications and Opportunities for Network Operators and Generators . .. .. 26
1 .10.5
1 .10.6
Connection and Use of System Charges .. .. .. ....... . . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. 26
1 .11
Case Study l : Phase Balancing for a Self-excited Induction Generator [50] ... .. .. 27
1 .11 .1
Introduction . .. .. .. .. .. .. .. .. .. .. .. ...... . .... .. .. .. .. .. .. .. .. ....... . . .. .. .. .. . . .. .. .. . . ....... .. .. .. .. .. .. .. 27
v

vi

Contents

1 .11 .2
Circuit Connection and Principle . .. .. .. ...... . . ..... .. .. . . . ..... .. .. .. .. .. .. .. .. ..... . . .... .. .. ..
1 .11 .3
Performance Analysis . .. .. .. . . .. .. .. ... . . . .. ....... . . .. .. .. .. .. . . .... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..
1 .11 .4
Solution Technique . .. .. .. .... .. .. .. .. .... . . .. ....... . . . ... .. .. .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. ..
1 .11 .5
Results and Discussion . .. .. .. .. .. .. .. .. .. .. .. ...... .... ..... .. . . . ..... .. .. .. .. .. .. .. .. .. ... . . . ... .. .. ..
1 .11 .6
Simplified Phase-balancing Scheme .. .. .... .. .. ..... .. . . . .. ..... .. .. .. .. .. .. .. .. ... . . . ... .. .. ..
1 .11 .7
Appendix .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. . . ... . . . . . ....... . . .... .. .. .. . . .... .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. ..
1 .12
Case Study 2 : Controlling a Solar Power Plant [59] .... . . .. .. ..... . . ...... .. .. .. .. .. .. .. ... .. ..
1 .12.1
Introduction .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ........ . . .. ... .. .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . . .. .. .. ..
1 .12.2
The Solar Power Plant .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. ..... .. . . . .. ... .. .. .. .. .. .. .. .. .. .... . . ... .. .. ..
1 .12.3
Control Structure of the Plant. .. .. .. .. .. .. .. .... .. .. .. ..... . . . .. ... .. .. .. ...... .. .. .. .. .. . . .. ... .. ..
1 .12.4
GA Formulation .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... . . .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . ..... .. ..
1 .12 .5
Experimental Results .. . . . .. .. ... .. . . ...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. .. ...
1 .13
Conclusions . . ........ .. . . . ... .. .. .. . . . ..... .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. .....
1 .14
References .. . . ........... . .... .. .. .. . . . ... .. .. .. . . .... .. .. .. .. .. .. .. .. .. .. .. . . . . .. .. . ..... .. .. ..... .. . . .. .. .. .. .. .....

28
30
31
32
35
37
37
37
38
39
40
42
45
46

2 Deregulation of Electric Utilities .................................................................................... 50

2 .1
Introduction . . . .......... . . ... .. .. .. . . . .. . .... .. . . .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. ..... .. .. .. .. .. .. .. ..... 50
2 .2
Traditional Central Utility Model... . . . .. ....... . . . ..... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. .. ... 52
2 .3
Reform Motivations . . . .. .. ..... . . . .. ..... .. . . ........ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. ..... 52
2 .4
Separation of Ownership and Operation .... . . . ..... .. .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. ... 53
2 .4.1
Central Dispatch Versus Market Solution .... .. . . .... .. .. .. .. .. .. .. .. .. .. .. .. . . ... .. .. .. .. ... 53
2 .5
Competition and Direct Access in the Electricity Market .. .. .... .. .. .. .. .. .. . . .. ... .. .. .. .. . 54
2 .5.1
Competition in the Energy Market ..... . . .... .. .. .. . . .... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. ... 54
2 .5.2
Competition and Auction Mechanisms . .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. ... 55
2 .5.3
Direct Access/Wheeling .. . . ..... . . . ....... .. . . .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. ..... 57
2.6
Independent System Operator . . . ..... . . . ......... . . .... .. .. .. .. . . . . . . .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. ..... 60
2 .6.1
Pricing and Market Clearing .. . . ........ .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . . ... .. .. .. .. ... 61
2 .6.2
Risk Taking..... . . . .. ... .. .. . . . ..... .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. ..... .. .. .. .. .. .. ..... .. 61
2.7
Retail Electric Providers .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. ... . . . ....... .. .. .. .. .. .. .. .. .. .. .. ....... .. .. .. . 63
2.8
Different Experiences .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . .. .. ... .. . . ...... .. .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. . 64
2.8 .1
England and Wales .. .. .. .. .. . . .. . ... .. .. .. ..... . . . .. ..... .. . . ...... .. .. .. .. .. .. .. .. .. .... . . ..... .. .. .. .. . 64
2.8 .2
Norway .. .. .. .. .. .. .. .. .. .. .. .. . . .. . . .... .. .. .. .. ..... . . . ..... .. .. .. .... .. .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. ... 68
2.8 .3
California . .. .. .... . . .. .. .. .. .. .. .. ........ . . .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. ...71
2.8 .4
Scotland . .. .. ..... . . . .. .. .. .. .. . . ......... . . .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. ... .. 72
2.8 .5
New Zealand . .. . . . .. .. ..... . . . .. ..... .. . . . ... .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. ... .. .. .. .. .. .. .. ..... 72
2.8.6
The European Union and Germany .. .. . . .. .. .. .. .. .. .. . . . . .. .. .. .. .. .. .. .. .. . .. . . .... .. .. .. .. ... 73
2.9
References .. . . . ... .. .. .. . . . .. ..... .. .. ...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. ... .. .. 74
3 Competitive Wholesale Electricity Markets .................................................................
3 .1
Introduction .. .. .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ........ . . .. ... .. .. . . . ... .. .. .. .. .... . .... .. .. ..
3 .2
The Independent System Operator . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .... .. ... .. .. ..
3 .3
Wholesale Electricity Market Characteristics .. .. .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. .. .... .. .. ... .. ..
3 .3.1
Small Test System .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ......... . . . .. ... .. .. .. .. .. .. .. .. .. . ... . .. .. .. .. ..
3 .3 .2
Central Auction .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . .......... . . ... .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. ..

76
76
79
80
81
82

Contents
3 .3 .3
3 .3 .4

vii
Bidding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Market Clearing and Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

3 .3 .5

Market Timing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

3 .3 .6

Sequential and Simultaneous Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

3 .3 .7

Bilateral Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

3 .3 .8

Scheduling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

3 .3 .9

Gaming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Ancillary Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Physical and Financial Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

3 .3 .10
3 .3 .11
3 .4
3 .4 .1
3 .4 .2
3 .5

Market models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Maximalist ISO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Minimalist ISO Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

3 .5 .1

Market Power Evaluation and Mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

3 .5 .2

System Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

3 .5 .3

Reliability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Technical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

3 .5 .4
3 .6
3 .7

Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

4 Distribution in a Deregulated Market . . .. .. .. . . . . .. .. . . .. . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. 110

4 .1

Introduction to the UK Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

4 .2

The Development of Competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

4 .2 .1
4 .2 .2
4 .2 .3

Competition in Supply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

The Responsibilities of Retail and Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Why Separate Distribution and Supply? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

4 .2 .4

Key Issues for Distribution Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

4 .2 .5

Information Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

4 .2 .6

Use of System Billing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

4 .2 .7

Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

4 .2 .8

Competition in Metering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

Scope for Demand-side Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

4 .2 .9

4 .3

4 .3 .1

4 .3 .2
4 .3 .3
4 .3 .4
4 .3 .5
4 .3 .6
4 .3 .7
4 .3 .8
4 .3 .9
4 .3 .10

Maintaining Distribution Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Regulatory Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Technical Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .117
Planning Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Long-term Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Network Planning Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Asset Replacement Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Skills and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Network Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126

Distribution Automation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

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Contents

4 .3 .11
Automation Case Study - Remote Control in London Electricity .. ..... .. .. ..
4 .4
Future Development .. .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. .. ... . . .... .. .. .. .. ..
4 .5
Appendix : Distribution Automation in a Deregulated Environment . .. .. ..... .. .. ..
4 .5.1
Introduction . .. .. .. .. .. .. .. .. .. .. .. . . .. ....... .. .. .. .. .. .. .. .. .. . . .. ....... . . .. .. .. .. .. .. .. .. . ...... .. .. .. ..
4 .5.2
Remote Terminal Units . .. .. .. .. .. ..... . . .. .. .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. .. ..... .. .. .. ..
4 .5.3
SCADA Master Station . .. .. .. .. .. ...... . .... .. .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .. .. ..... .. .. .. ..
4 .5.4
Software Functionality .. .. .. .. . . .. . . .... . .. .. .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. .. ..... .. .. .. ..
4 .5.5
Operations and Maintenance (O&M) ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
4 .5.6
System Integration, Design and Management .. .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. ..... .. ..
4 .5.7
Communication Systems . .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. ..... .. .. ..
4 .6
References .. .. . . ....... .. . . .. .. .. .. .. .. .. .. .. .. .. ..... . . . ... .. .. .. .. .. .. .. .. .. ...... . .... .. .. .. .. .. .. . . ..... .. .. .. ..

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5 Transmission Expansion in the New Environment ....................................................

5 .1
Introduction .. .. .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .. .. .. .. .. .... .. ... .. .. .. .. .. .. . . ..... .. .. .. ..
5 .2
Role of the TP . .. ..... .. . . .... .. .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .. .. .. .. .. .... .. .. ... .. .. .. .. .. .. ..... .. .. .. ..
5 .2.1
Vertically Integrated Utility .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..... . . ..
5 .2.2
Three Models of the Electricity Market ... . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .... . ..
For-profit TP ..... . . ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. . . .. .. .. .. ... .. .. . . .. .. .. .. ..... .. .. ..
5 .2.3
5 .3
New Market Organisation . .. . . . ... .. .. .. .. .. .. .. .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. . .. .. . . .. .. .. .. ....... . . ..
5 .3.1
Incentive Rate Design - Price-cap Regulation ... .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .... . . .
5 .3.2
Priority Insurance Scheme . .. .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..... .. ..
5 .3.3
Transmission Expansion . ... .. .. .. .. .. .. .. .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. ..
5 .4
Conclusions .. .. .. ........ . . ..... .. .. . . .. .. .. .. .. .. .... .. .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
5 .5
References .. .. .. .. .. ..... . . . ... .. .. .. . . .. .. .. .. .. .. .... .. .. ... .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..

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6 Transmission Open Access ...........................................................................................

6.1
Introduction .. .. .. . . ...... . . .. . .. .. .. . . .... .. .. .. .. .... .. .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
6.1 .1
The Traditional Power Industry .. .. .. .. .. .. ... . . . .. ... .. .. .. .. .. .. .. .. ..... . . .... .. .. .. ...... . ..
6.1 .2
Motivations for Restructuring the Power Industry . .... .. .. .. .. .. .. . . ... .. .. .. .. .... . . .
6.1 .3
Unbundling Generation, Transmission and Distribution . .. .. .. . . .. ... .. .. .. .... . . .
6.2
Components of Restructured Systems . .. .. .. .. .. ... . . . .. ... .. .. .. .. .. .. .. .. ..... . . .... .. .. .. ..... . . ..
6.2.1
Gencos .. .. .. .. ...... . . .. ... .. .. . . .. .. .. .. .. .. .... .. .. ..... .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
6.2.2
BOT Plant Operators and Contracted IPPs . .. ... .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .... . . .
6.2.3
Discos and Retailers .. .. . . . ... .. .. .. .. .. .. .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ....... .. ..
6.2.4
Transmission Owners (TOs) .. .. .. .. .. .. .. .. ..... . . . ... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..... . . ..
6.2.5
Independent System Operator (ISO) . .. ... .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. ..... . . ..
6.2.6
Power Exchange (PX) . . . .... .. .. .. .. .. .. .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. .. . . .. .. .. ..... . . . . ..
6 .2.7
Scheduling Coordinators (SCs) . .. .. .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. ..... .. ..
6.3
PX and ISO: Functions and Responsibilities ... . . . ... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..... . . ..
6 .3.1
PX Functions and Responsibilities .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..... .. .. ..
6 .3.2
California Power Exchange . .. .. .. .... .. .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
6 .3.3
ISO Functions and Responsibilities .. .. ... .. . . .... .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..... .. .. ..
6 .3.4
Classification of ISO types .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. ..
6.4
Trading Arrangements ... .. .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. .. ..

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6.4.1
6.4 .2
6.4 .3
6.5
6.5 .1
6.5 .2
6.5 .3
6.5 .4
6.5 .5
6.6
6.6.1
6.6.2
6.6 .3
6.6 .4
6.7
6.7.1
6.7 .2
6.7 .3
6.7 .4
6.7 .5
6.8
6.8.1
6.8 .2
6.8 .3
6.8.4
6.8.5
6.9
6.10
6.11
6.12

lx
The Pool . ....... .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. .... . . .. ..... .. .. .... .. .. .. ...... . . ... .. .. .. .. ...
Pool and Bilateral Trades . .. .. .. ..... .. ...... .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. ..... . . . ..... .. .. .. .. .
Multilateral Trades . .. .. .. .... . . .. .. ... .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .....
Transmission Pricing in Open-access Systems . .... . . .. ..... .. .. .. .. .. .. .. ..... . . . ... .. .. .. .. ...
Introduction .. .. .. .... .. .. .. ..... . . .... .. .. .. .. .... .. .. ..... .. . . .... .. .. .. .. .... . . ..... .. .. .. .. .. .. .. .. .....
Rolled-in Pricing Methods . .. .. ...... . .... .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .... . . ....... .. .. .. .
Incremental (Marginal) Pricing Methods .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. . . ....... .. .. .. .
Embedded Cost Recovery . . .. .. . . . .. .. .. .. .. .. .. .. .. . . . . .... . . . .. .. .. .. .. .. .. ..... . . .... .. .. .. .. ...
Transmission Pricing Method in the NGC, UK ..... .. .. .. .. .. .. .. .. .... . ...... .. .. .. .. .
Open Transmission System Operation .. .. .. .. .. .. .. ... . . ...... .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. ...
Dispatch .. .. .. .. .. .. ... . . . .. ... .. .. .. .... .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. .... .. .. ..... ..
Transmission Loss Compensation . . ... .. .. .. .. .. .. .. .. ..... .. . . .... .. .. .. .. .... . . ..... .. .. .. .. .
System Control . .. .. .. .. .. .. .... .. .. ... .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. ...
Ancillary Service Provision .. ... .. .. .. .. .. .. .. .. ...... . . ..... .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. ...
Congestion Management in Open-access Transmission Systems ...... . . ..... .. .. .. .. .
Congestion Management in Normal Operation .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. ...
Integrated Transmission Dispatch Strategy . .. .. .. .. .. ... . . ...... .. .. .. .. .. . . .. ... .. .. .. .. .
Illustration Using a Small Power System .. .. .. .. .. .. ..... .. .. .. .. .. .. .. ... . . . ..... .. .. .. ...
Static Security-constrained Rescheduling . .... . . .. ... .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. ...
Dynamic Security-constrained Rescheduling . ..... .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. .. ...
Open-access Coordination Strategies .. . . .. .. .. .. .. ... .. .. .. .. .. .. .. .. .... .. ..... .. .. .. .. .. .. .. .. .....
Price Elasticity as a Means to Relieve Congestion .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .....
Relieving Congestion by ISO Executed Price Signalling .. .. .. .. .. . . ..... .. .. .. .. .
Coordination between Transactions .. .. .. .. .. .. .. . . ..... .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. ...
Illustration of Transaction Coordination . .. ... . . . ..... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. ...
Integrated Coordination Procedure . .. .. .. .. ..... . . ...... .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. .. .....
Conclusions .. .... .. .. .. ... . . . . . ..... .. .. .. .. .. .. .. .. .. ... . . . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. . . .. . . .. . ..... . . ... .. .. ..
Acknowledgements .. .. . . .. . . .. . . .... .. .. ... .. .. .. .. .. .. . . . . ...... . . .. . .. .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. .. ...
Appendix .. .. .. .. .. .. .. .. .. .. .. .. .. ....... . . . ... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .. .. .. .. ... ..
References .. .. .. .. .. .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. .. .. .. . . .. ..... .. .. .. .. .. .. .. .. ... . . .... .. .. .. .. .. .. . . .. ..... ..

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7 Electric Power Industry Restructuring in China .......................................................

7.1
Introduction .. .... . . .. .. ..... . . ...... .. .. .. .. .. .. .. .. .. ... . . ...... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... . . . ..... .. ..
7.2
Development of Electric Power Industry in China . .. ... .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .
Successive Growth of Power Production and Installed Capacity .. . .. .. .. .. .. .
7.2 .1
7.2 .2
Further Expansion of Power Networks . .. ..... . . . ... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .....
7.2.3
Continuous Increase of Electricity Consumption . .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. .....
7.3
Management System of Electric Power Industry in China .. .. .. .. ... .. .. .. .. .. .. .. .. .....
The State Power Corporation .. .. .. .. .... . . ..... .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. .. .. .. .. ..... ..
7 .3.1
7.3 .2
Philosophy and Strategy of the SP' .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. ...
7.4
Power Market in China. .. .. .. ..... . . .... .. .. .. .. .. .. .. .. .. ... .. .. .... .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. ... ..
7.4.1
Motivations for Reformation ... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. .. .....
7.4.2
Reform Plan of the SP ... .. .. .... .. .. .. .. ... . . . .. ... .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .. .. .. ..... ..

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Obstacles in Establishing the Power Market in China ... .. .. .. .. .. .. .. .. .. ..... .. .. .
Electricity Pricing . . . . .. .. .. .... .. .. .. . . .... . . .. .. ... .. . . . ..... .. .. .. ...... .. .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .
Basic Theory of Predicting Electricity Costs . .... .. .. .. .. .. .. .. .. .. .. ... . . . .. ..... .. .. .. .
Electricity Cost Derivation . .. . . ...... .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . .... .. .. .. .. ...
Electricity Pricing of Inter-provincial Power Market .... .. .. .. .. .. .. . . .. ..... .. .. .. .
Transmission pricing . .. ... .. . . . .. .. .. ... . . . ....... .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. ...
Current Decomposition Axioms ....... . . . .. ... .. .. . . . ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .
Mathematical Models . . .. .. . . .. .. .. .. .. ...... . . .. ... .. .. . . . ... .. .. .. .. . . .. .. .. .. .. . . . . . . .. .. ... .. .. .. .
Methodology ofGraph Theory .. .. .. .... .. .. .. ..... . . . .. ..... .. .. ...... .. .. .. .. .. .. .. .. ... .. .. .. .
Algorithms and Case Studies . .. .. .. .. .. .. .. .. .. ..... . . . .. ..... .. . . ...... .. .. .. .. .. .. .. .. ... .. .. .. .
Conclusions . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. .. ...... . . .. .. ... .. . . . .. ... .. .. .. .. .. .. .. .. .. .. .. . . .. .. ... .. .. .. .
Acknowledgements . .. ....... . . . .. ..... .. . . . ..... .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. ...
References . . . .. .. ..... . . . .. ....... . . . .. ... .. .. . . . ... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. .. .

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8 Flexible AC Transmission Systems (FACTS) .............................................................

8 .1
Introduction . .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. . . .. .. ... .. . . ........ .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .
8.1 .1
Benefits of FACTS Technology .. .. .. .. .. .. .. .. .... . . .. .. . .. .. . . . ... .. .. .. .. .. .. .. .. .. ... .. .. .. .
8.2
Transmission System Limitations . .. .. .. .. .. .. .. .. .. .. ... . . . .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. . . .. .
8 .2 .1
System Stability . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. ...... . . .. ... .. .. . . . ... .. .. .. .. .. . . . . .. ..... .. . . .. .
8.2 .2
Loop Flows .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... . . .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .
8.2 .3
Voltage Limits . .. .. .. ... . . . .. .. ..... . . . ... .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .
8.2 .4
Thermal Limits .. .. .. .. .. . . .. .. ...... . . .. ... .. .. . . . ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .
8.2 .5
High Short-circuit Level Limits .. ... .. . . . .. ... .. .. .. ...... .. .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .
8.3
FACTS Technology. .. .. .. .. .. .. .. .. .. .... . . .. .. . .. .. . . . ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .
8.3 .1
Power Switching Devices and PWM Inverter . .. .. ... .. . . .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .
8.3 .2
Control Methods and DSP/Microprocessor Technology . .. .. . . .. .. .. .. .. ..... .. .. .
8.3 .3
Present Status on FACTS Activities.. . . .. .. .. . .. . . . ....... .. . . .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .
8.4
Solution Options with FACTS .. .. .. .. .. .. .. .. .. . . .. .. ... .. . . ...... .. .. . . .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .
8 .4.1
Fundamental Concepts ofTransmission .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. . . . ... .. .. .. .. ...
8 .4.2
Shunt Controllers .. .. .. . . . ... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . .. . .. .. .. .. .. .. .. .. .. .....
8 .4.3
Series Controllers . .. .. . . . . .. .. .. .. . . .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. .. .....
8 .4.4
Combined Series/Shunt Controllers . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. .....
8 .4.5
Phase Angle Controllers ... .. .. .. .... .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. . . .. .. .. .. .. . . . ..
8 .4.6
HVDC Transmission Controllers ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. . . .. .. .. .. .. .....
8 .4.7
Other Controllers .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. .. .. .. .....
8 .5
FACTS Applications .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .. .. .. .. ... ..
8.5.1
SVC .. .. .. .. . . .. .. ...... . . .. .. .. .. . . . . .. .. .. ... . . . ....... .. . . .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..
8.5 .2
STATCOM . .. .. .. .. .. .. .. .. .... . . .. .. .. ... . . . ....... .. . . .. .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..
8.5 .3
TCSC .. .. .. .. .. .. ...... .. .. .. .. .. . . . . .. .. .. . .. . . . .. ..... .. . . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ..
8.5 .4
UPFC .. .. .. . . . . . ....... .. .. .. .. .. . . . . .. .. .. . .. . . . ....... .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ..
8.6
Concluding Remarks .. .. .. .. .. .. .. . . .. .. .. .. . . . . .. .. ..... . . . . .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..
8.7
Acknowledgements .. .. .. .. .. .. .. . . . . .. .. .. .. .. . . .. .. ..... . . . ... .. .. .. . . . . .. .. .. .. .. .. .. .. .. .. ... .. . . . . .. .. .. ..
8.8
References .. .. .. .. .. .. .. .... .. .. .. .. .. .. . . .. .. ..... . . . .. ....... . . . ... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. ..

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7 .4.3
7 .5
7.5.1
7 .5.2
7 .5.3
7 .6
7 .6.1
7 .6.2
7 .6.3
7.6 .4
7.7
7 .8
7 .9

Contents

xi

9 Asset Management. .. . . . . .. . . .. .. . . . . .. .. .. .. .. . . .. .. .. .. .. . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. .. .. .. . . .. .. . 287

9 .1
9 .2
9 .3
9 .4

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Pre-privatisation (1990) : The Public Purse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Post-privatisation (1990) : Freedom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
Early-mid 1990s : Getting the Same for Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288

9 .5

1994/5+ : Getting More for Less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

9 .6

Late 1990s : Capital Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289

9 .7

August 1999 Interim Report : All Chan,ge? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290

9 .8

The 1990/2000 Regulatory Settlement and a Major Challenge . . . . . . . . . . . . . . . . . . . . . . . . . 290

Asset Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
Asset Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291

9 .9
9 .10
9 .11
9 .12

Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

Asset Information and the Ageing Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294

9 .13

Condition Monitoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295

9 .13 .1
9 .13 .2

Transformers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .296
On-load Tap Changers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

9 .13 .3

Switchgear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

9 .13 .4

Other Plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

9 .13 .5

Understanding Long-term Asset Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

9 .13 .6

Underground Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

9 .13 .7
9 .13 .8

HV Cables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Partial Discharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

9 .13 .9
9 .14

Zero Sequence Impedance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 301

Asset Replacement Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

9 .14 .1

Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .304

9 .14 .2

Asset Lifecycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305

9 .14 .3

Asset Replacement Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307

9 .14 .5

Technology Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 311

9 .15

Refurbishment and Replacements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312

9 .16
Risk Management and Insurance Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
9 .16 .1
Risk Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
9 .16 .2

Major Incidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314

9 .16 .3

Type Failures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315

9 .16 .4

Common Mode Failure . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315

Financial Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316

9 .16 .5

9 .17

9 .17 .1
9 .17 .2
9 .17 .3
9 .17 .4
9 .17 .5
9 .17 .6
9 .17 .7

Asset Information Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317

Asset Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Data Gathering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
Property Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
Data Cleaning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321

Confidential Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321

Quality of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322

Xii

Contents

9.18
Conclusions . .. .. .. .. .. .. ....... . . .... .. . . . . .. .. .. .. .. .. ...... . . ... .. .. .. . . .. .. .. .. .. . . .... . . ..... .. .. .. . . .. . .... .. . 322
9.19
Appendix : Fuzzy DGA for Diagnosis of Multiple Incipient Faults .. ... . . .. .. .. .. .. .. 323
9.19 .1
The IEC DGA Codes . .. .. ... . . . . .... . . . . .. .. .. .. .. .. .. ... .. . . . ..... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .... 323
9 .19 .2
The Fuzzy IEC Code - Key Gas Method ...... .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .. . . .. ... . 323
9.19.3
Fuzzy Diagnosis Results . .. .. .. .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .. . . .. ... . 325
9.19.4
Trend Analysis of Individual Faults . .. .. .. .. ..... .. .. .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. 327
9.19.5
Comments . .. . . .. .. .. ... . . ...... .. .. .. .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. .. .. .. . . ..... .. .. .. .. .. . . .. ... .328
9.20
References . .. .. .. .. .. . . .. .. ..... . . ...... .. .. .. .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. . . .. .. . . .. ... .. .. .. .. .. . . .. ... . 329
10 Power Quality ................................. .... ........... .................... . . .......... ..................... . ........
10.1
Introduction . .. .. .. .. . . .. . . .. .. .. . . .. ...... . . . . ... .. .. .. .. .. .. .. .. . . ..... . . . ... .. .. .. . . .. .. .. .. ..... .. .. .. .. .. .. ....
10.1 .1
A General Overview . .... .. .. . . .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .. .. .. .. .. .... . . ..... .. .. .. .. .. .. ... .. .
10.1 .2
PQ Issues During System Disturbances . .. .. .. ... . . .... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ....
10.1 .3
Voltage Sags .. .. .. ..... . . . .. ... .. .. .. .. .. .. .. .. .. .... . . .. ..... .. .. .. .. .. .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. ... .
10.2
Disturbance Assessment .. . . .. ..... .. . . .... .. .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ... .
10.2.1
The Wavelet Transform . ..... . . ...... .. .. .. .. .. .. .. .. .. ... . . ...... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..
10.2.2
Wavelet Analysis . .. .. . . .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. .. ... . . . ....... .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..
10.2.3
Application to PQ [25] .. .. .... . . ....... .. .. .. .. .. .. .. .. .. .. . . .. ..... .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. ..
10.2.4
Automated Disturbance Assessment .. .. .. .. .. .. .. .. .. .. .. ..... . . . ... .. .. .. .. .. .. . . ... .. .. .. ..
Waveform Distortion . . . .. .. .. . . .. .. . . .. . . ....... .. . . .. .. . . .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .. . .. . . .... .. .. .. ..
10 .3
10.3 .1
Harmonic Sources ... . . ..... .. .. . . .. .. .. .. .. .. .... . . .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ..... .
10.3 .2
Characterisation of Harmonic Sources . .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..
10.3 .3
Harmonic Flows [30] . .. ..... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. ....
10.3 .4
Aperiodic Distortion .. .. .. ..... . . . ... .. .. .. .. .. .. .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ....
10.4
Need for Adequate PQ Indices and Standards . .. .. .. .. . . .. ..... .. .. .. .. .. .. .. .. ... . . .... .. .. .. ..
10 .5
Need for Adequate PQ Monitoring [70,71] .. .. .. .. .. .. .. .. .. ..... .. .. .... .. .. .. .. ... . . . ... .. .. .. ..
10 .6
References . .. .. .. .. .. .. .. .. .. .. . . . . .. .. ... .. . . . ..... .. .. .. .. .. .. .. .. ..... . . . .. ... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. ....

330
330
330
333
334
336
336
338
339
341
342
342
345
346
346
347
348
349

11 Information Technology Application ........................................................................ 353

11 .1
Introduction . .. .. .. .. . . .. .. ..... .. .... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .. .. .. .. . . ... . . .... .. .. .. .. ... . . . ... .. . 353
11 .2
Software Agents .. . . .. .. ..... . . ...... .. .. .. .. .. .. .. .. .. .... . . ....... .. .. .. .. .. .. .. .. ... . . ...... .. .. .. ... . . . ... .. . 354
11 .2.1
Types of Agents . .. ... . . . ..... .. .. .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. .. .. .. . . ... .. .. .. .. .. .. . . ... .. . 354
11 .2.2
General Issues and the Future of Agents .. .. ...... . . ... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. .... 360
Electricity Options Markets with Agents . .. .. .. .. ....... . . .. .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. ... . 360
11 .3
11 .3 .1
Electricity Markets and Options . .. .. .. .. .. .. .. ....... . . .... .. .. .. . . .. .. .. . . . . . . . .. .. .. .. .. .. ... . 362
11 .3 .2
Agent-Based Computational Economics .. .. ...... . . ..... .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. 364
11 .3 .3
Valuing Options with Agents ... .. .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. ... . 365
11 .4
Evolutionary Programming-based Optimal Power Flow Algorithm . .. .. .. .. .. ... .. . 371
11 .4.1
OPF .. .. .. ....... . . . ... .. .. .. .. .. .. .. .. .. .. .... .. .. ... .. .. . . .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. .. .. ..... .. .. .. .. .. . 373
11 .4.2
EP. .. .. .. .. ....... . . . ... .. .. .. .. .. .. .. .. .. .. .... .. ..... .. .. .. .. .. .. .. .. .. .... . . .. ... .. .. .. .. .. . . . . ..... .. .. .. .. .. . 373
11 .4.3
EP-OPF .. ..... . . . ... .. .. .. . . .. .. .. .. .. .. .... .. .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ..... .. .. .. .. .. .374
11 .4 .4
Load flow Solution . . . .... .. .. .. .. .. .. .. .. .. ..... . . . .. ... .. .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. ..... . . .. .. .. . 377
11 .4.5
Gradient Acceleration ... .. .. .. .. .. .. . . . . .. .. ... . . . .. . . . .. .. .. .. .. .. .. .. ... .. . . .... .. .. .. . . ... . . . . .. .. . 378
11 .4.6
Application Studies . . . .. ... .. .. .. .. .. .. .. .. .. .. .. . . .. .. ... .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .... . . ... .. . 379

Contents

xiii

11 .5
11 .5 .1
11 .5 .2
11 .5 .3
11 .5 .4
11 .6
11 .6.1
11 .6.2
11 .6.3
11 .6.4
11 .6.5
11 .6.6
11 .6.7
11 .6.8
11 .6.9
11 .7
11 .7.1
11 .7.2
11 .7.3
11 .7.4
11 .8
11 .9
11 .10
11 .11

Complex Artificial Neural Networks for Load Flow Analysis .... . . .. ... .. .. . . . ..... .. . 383
Conventional ANN for Real Numbers . .. ..... . . . .. .. ...... . . ....... .. . . .... .. .. .. .. .... .. .. . 384
New ANN for Complex Numbers .... .. .. .. ...... . . .. .. .. .... . ........ .. . . ...... .. .. .. .... .. .. . 385
Comparison of the two ANNs by Computer Simulation . .... .. .. ....... . . . .. .. .... 388
Application of "Complex" ANN to Load Flow Analysis . .... .. .. .. ..... . . . .. .. .... 390
Virtual Reality ...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... .. .. ... .. .. . . . .. .. ..... . . ...... .. .. .. .... .. .. .. .. .. .. .. .. . 395
Types of VR systems .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... . . .. .. .. ... . . . ......... . . ........ .. .. .... .. .. . 395
Non-immersive (Desktop) Systems .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ........ .. .. .. ..... . . . .. ..... . 396
Fully Immersive Head-mounted Display Systems . .. .. .. .. .. .... .. .. .. .. .... . . .. .. .... 396
Semi-immersive Projection Systems .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... .. .. .. .. .... . . .. ..... . 396
Comparison between Different VR Systems .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... . . .. .. .... 397
Cave . .. ...... .. .. .. ........ .. . . ...... .. .. . . . .. ... .. .. .. .... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .398
Telepresence . . . .......... . . .. ....... . . . .. ....... . . ........ .. . . .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .398
Augmented .. . . . .......... . . .. .. ... .. . . . .. ....... . . ........ .. . . .... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 398
Applications. . . . .......... .. .. .. ..... . . . .. ....... . . ........ .. . . .... .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .398
3-D Thermal Imaging for Power Equipment Monitoring .. .. .. ..... . . .......... . . .... .. .. . 400
The Hardware . .. ....... . .. . . . . . . . ... .. .. .. .. .... . . .......... . ...... .. .. . . .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 401
The Correspondence . .. .. .. .. . . .. .. .. .. .. .. .. .. .. ........ . . ....... .. . . ...... .. .. .. . . .. . . .. .. .. .. .. .. .. . 402
Display with VR . ...... .. .. .. .. . . .. .. .. .. .. .... .. .. ........ .. .. ... . . .. . . ...... .. .. .. ...... .. .. .. .. .. .. .. . 405
Implementation Example.. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. ...... . . .. .. ..... .. ...... .. .. .. .. .. .. .. . 407
Conclusions .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ........ .. .. ....... . . . ..... .. .. .. ...... .. .. .. .. .. .. .. . 410
Acknowledgements .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . . .. .. ..... . . ........ .. .. .. .. .. .. . 411
Appendix : System Data and Parameter Settings . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. ....... . 411
References .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . . . ......... . . .. .. .. .. . 411

12 Application of the Internet to Power System Monitoring and Trading................. 416

12 .1
Introduction .. .. . . . . . . .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. . . . . . . . . .. .. .. .. .. .. .. .. .. .. . . . . .. .. .... .. .. ..... . 416
12.2
The Internet . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... 416
12.2.1
What Is the Internet? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ...... . . .. .. .. .... . . ........ 416
12.2.2
How Does the Internet Work? .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .... 417
12.2.3
What Would Happen Without the Internet? . .. .. .. .. ...... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 417
12.2.4
How Can the Power Industry Benefit from the Internet? . . ... .. .. .. . . ...... .. .. .. .. 418
12.2.5
How Can I Find the Information I Need? . . .. ....... . . . ......... .. .... .. .. .. . . . ..... .. .. .. .. 419
12.3
Usability of the Internet ...... . . .. . . . . ... . . . .. . . . ..... .. .. . . . .. ... .. .. .. ...... .. .. . . .... .. .. .. . . .. .. .. .. .. .. .. 419
12 .3.1
Scientific Use for Researchers ..... . . .. .. ..... . . . .. .. ...... . . .. ........ . . ....... .. . . . .. .. ...... . . . 419
12 .3.2
Educational Use .. . . . .. .. ...... . . .......... . . .. ....... . . . .. .. ..... . . . .......... . . ....... .. . . . .. .. ...... . .. 420
12 .3.3
Internet Products . . . . .. .. .. .... .. .......... .. .. .. ...... .. .. .. .. .... .. . . .. ...... .. .. .. ...... . . .. .. .. .. .. .. . 420
Business Competition .. .. .. .. .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. . 420
12 .3.4
12 .3 .5
Multimedia Access .. .. .. .. .. .. .. .. .. .... .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 421
12 .3.6
On-line Services .. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 421
12 .3.7
Support for Professionals .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 422
12 .3.8
The Power Industry and the Internet . .. .. .. .. .. .. .. .. .. .. .. .. .. ...... .. .. .. .. .. .. .. .. . . ...... . 422
12 .3.9
Recent Improvements on the Internet . .. .. .. .. .. .. .... .. .. .. .. ...... .. .. .. ...... .. .. . . . ...... 424

xiv
12.4
12 .4.1
12 .4.2
12 .4.3
12 .4.4
12 .4.5
12 .4.6
12 .4.7
12 .4.8
12 .5
12 .5 .1
12.5.2
12 .5.3
12.5.4
12.6
12.6.1
12.6.2
12.6.3
12.6.4
12.6.5
12 .7
12.7.1
12.7.2
12.7.3
12.7.4
12.7.5
12.8
12.8.1
12.8.2
12.8.3
12.9
12.9.1
12.10
12.11
12.12

Contents
Internet Technology .. ....... . . .... .. .. .. .. . . .. .. . . . . . ..... . .. .. .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. . . ... .. 424
Access to the Internet . ..... .. .. .. .. .. .. .. .. ...... . . .. ... .. .. .. .. .. .. .. .. .. .... . .... .. .. .. .. .. .. . . ..... 425
Operating Platforms on the Internet .. .... .. ..... .. .. .. .. .. .. .. .. .. .... . . ... .. .. .. .. .. .. .. ..... 426
Web Clients .. .. ......... . . .... .. .. .. . . .. .. .. .. .. ..... . . .... .. .. .. . . .. .. .. .. . . ...... . . ... .. .. .. .. .. .. . .... .. 426
Web Servers .. .. ....... .. . . .... .. .. .. . . .. .. .. .. .. ..... . . .... .. .. .. .. .. .. .. .. .. ...... . .... .. .. .. .. .. .. . .... .. 427
Web Protocols .. ....... .. .... .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. . . ..... 427
E-mail . .. .. .. .... . . ......... . . .... .. .. .. .. .. .. .. .. .. ..... . . . ... .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. ... . . .... ..427
Internet Security ...... . . .... .. .. .. .. .. .. .. .. .. ...... . . ..... .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. . . ..... 428
Internet Bandwidth ... . . ..... .. .. . . .. .. .. . . . . ... . . . . . ... .. .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. . . ..... 431
Internet Programming Languages . .. .. .. .. .. .. .... .. .. ... .. .. .. .. .. .. .. .. .. .... .. ..... .. .. .. .. .. .. ..... 433
HTML . . . . . .. .... . . ......... . . .... .. .. .. . . .. .. .. .. ....... . . .... .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. ... . . .... . .433
Interpreted Versus Compiled Languages .. .. .. .. .. .. .. .. ...... . . ... .. .. .. .. .. .. . . ..... .. .. . 433
What Is JavaScript? .. .. .. .. .. .. .. . . ..... .. . . .. .. . . .. . . . . .. .. .. . . ...... . .. . . .. .. .. .. .. .. ... . . .... .. .. .. . 434
What Is Java'? .. .. .. .. . . .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. .. .. . . . . ..... .. .. .. .. .. .. .. .. ... .. .... .. .. .. .. . 435
Web Pages .... .. .. .... .. .. .. .. .. .. .. .. .. .. .... . . ..... .. .. .. .. .. .. .. .. .. .. .. . . ....... .. .. .. .. .. .. .. ..... .. .... .. .. .. . 436
Setting up a Web Page .. .. .. .. .. .. .. ..... .. . . .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. ... . . .... .. .. .. . 437
Difference Between a Static and a Dynamic Web Page . .. ... .. .. .. .. .. .. ..... .. .. . 437
Displaying Database Content . .. .. ..... . . .. .. .. .. .. .. .. .. .. .. ....... . . .... .. .. .. .. .. .. . . ... .. .. .. . 438
Web Pages with Functionality .. ....... . . .. .. .. .. .. .. .. .. .. .. ....... . . .... .. .. .. .. .. .. . . ... .. .. .. . 440
Web Pages with Integrated Applications .. .. .. .. .. .. .. .. .. .... . . ..... .. .. .. .. .. . . ..... .. .. . 441
XML . .. . . . .. ... .. . . .. . . .. .. .. .. .. .. .. .. .. . . .. ... . . . . .... .. . . .. .. .. .. .. .. .. ... . . . ..... .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. . 441
Why the Need for XML? .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .. .. .. .. .. ..... .. .. .. .. .. .. .. ... . . .... .. .. .. . 441
Reasons for XML . .. .. .. .. .. .. .. .. .. ....... .. .. .. .. .. .. .. .. .. .. . . ....... .. . . .. .. .. .. .. .. ... . . .... .. .. .. . 441
Separation of Content and Layout ... . . .. .. .. .. .. .. .. .. .. .. ....... . . .. .. .. .. .. .. .. .. . . ..... .. .. . 442
XML Layout Validation with DTD . . . .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. .... . . ..... .. .. . 444
Stylesheets .. .. .. .. .. .. .. .. .. .. .. .. .... . . ..... .. .. .. .. .. .. .. .. .. .... . . ....... .. .. .. .. .. .. .. ... .. . . .. .. .. .. .. . 444
Case Study 1 : Power Station Monitoring [8] . .. .. .. .. .. .. .. .. .. ..... . . .... .. .. .. .. .. .. . . ..... .. .. . 445
Requirements of Airport Substation .. .. .. .. .. .. .. .. .. .. .. .. ..... . . .. .. .. .. .. .. .. .. . . ... .. .. .. . 445
System Implementation .. .. .. .. .. .. .. .. .... . . .. ..... .. . . .... .. .. .. .. .. .. . . .. ... .. .. .. .. .. .. .. ..... .. . 447
Monitoring Power Station Equipment .. .. ... .. .. .... .. .. .. .. .. .. .. .. .. ... .. .. .. .. .. .. .. ... .. . 454
Case Study 2: Power Trading Application . .. .. ... .. .. .... .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. .. .. ... .. . 457
Trading Platform Architecture . .. .. .. . . . . .. ... .. .. .. .. .. .. .. .. .. .. .. . . .. ..... .. .. .. .. .. .. .. . .. .. . 458
Conclusions . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ... .. .. . . .. .. .. .. .. .. .. .. .. .. .. .. ... . . .. .. .. .. .. .. .... . . ... .. .. .. . 459
Acknowledgements .. .. .. .. .. .. .. .. .. .. .. .. ... .. . . . ... .. .. .. .. .. .. .. .. .. .. ... . . . ... .. .. .. .. .. .. .. .. ... .. .. . 460
References .. .. .. .. .. .. .. .. .. .. .. .. .. . . ... . .. .. ... .. .. . . .. .. .. .. .. .. .... .. .. .. .. . .. . . .. .. .. .. .. .. .... . . . .. .. .. .. . 460

Index ............................................................................................................................... ... 461

Foreword
The electricity power utilities in many countries have been, or are being, restructured.
There are many reasons for restructuring . In some countries restructuring has been driven
by the desire of government to meet increasing demands for electricity by encouraging
independent power production, which relieves government of a financial obligation . In
countries where ownership of assests are in private hands, restructuring has been driven by
mergers and acquisitions, as companies seek to gain competitive advantage .
In the most advanced countries, restructuring is being driven by the desire to allow
consumers to choose their electricity supplier on the basis of price and service provided .
These dramatic changes in the organisation of electricity power utilities bring with them
new challenges and opportunities, as the previous centrally designed and operated systems
are dismantled and replaced by a new competitive framework .
Companies operating in a competitive market need more sophisticated control and
management systems to ensure that their business objectives can be achieved. The
development and application of new technologies is also accelerated in this new
environment, as companies seek to improve their effectiveness and efficiency .
This book is contributed by a group of world authorities . It explains in depth the reason
for restructuring, without including superfluous detail . Examples are given from various
countries. Details are provided on new strategies and technologies which are being applied
in the areas of generation, transmission and supply . The implications for the environment
are also reviewed. Tools being utilised for asset management and for the effective
management of infrastructure are illustrated with practical examples. The analytical
modelling and general analysis of competitive power markets are also illustrated.
This book provides a comprehensive review of all the many facets of change taking
place in a dynamic industry. It is compulsory reading for graduates and engineers, and
other professionals, who are entering or involved in the electricity power industry.
David G. Jefferies CBE, FREng, HonFIEE
IEE President 1997/8
Former Chairman, The National Grid Group plc, UK

xv

Preface
This book was written as a result of the ongoing stimulating world-wide deregulation and
restructuring of the power industry. This move away from the traditional monopolies and
towards greater competition, in the form of increased numbers of independent power
producers and an unbundling of the main service, started in the United Kingdom in 1989
and this change was driven by the large differences in electricity tariffs across regions, by
advancements in technologies which allow small producers to compete with large ones,
and by a strong beliefthat competition will produce an all-win situation .
The book was contributed by an international group of experts to produce a broad and
detailed coverage of the main issues . The intent has been to provide the reader with an in
depth treatment but without excessive specialisation, to avoid a purely qualitative treatment
by including some analytical and numerical methods, and to offer, whenever possible, real
case studies, worked examples and project discussions .
Since each power utility is unique, it will not be possible to present the best path to
follow in the restructuring exercise. The market models, regulation and tariffs used by
transmission networks, and the mechanism for maintaining a high level of reliability, will
be different . Because of the advancement of communications technology and increased
computing power, it is possible to consider different market structures. Without such
advancement, no information could be available in time for the business operation .
Different markets have been considered in the book. In brief, they could be summarised
as three types. In the completely market-driven environment, market forces seek to
moderate the behaviour of various players in the market, e.g. the suppliers, consumers and
statutory regulators. In the transitional market, there is a process of transition from a highly
regulated environment to a deregulated environment . In the embryonic free market, the
state retains ownership of the generators and some of the transmission infrastructure, but
opens up the market to limited competition at the distribution level.
As there is much uncertainty in these environments, due to the structure of the market,
planning over a long-term horizon is perceived as very difficult at present. Yet, without
long-term planning, it is unlikely that the electricity power industry would be at great risk,
as it might not be able to supply the growing demand, or to maintain the same quality of
service as it is currently providing to its consumers . The recent chaos in California is an
example . This could have very serious consequences to the long-term viability of the entire
industry .
This book shows how new technology will allow us to change today's highly regulated
market structure to one that relies on competition to set the energy price. By using new
technologies, we can use less energy, resulting in lower energy bills for customers, and
avoid or defer additional expensive plant construction. The addition of new participants,
such as independent power producers, power marketers and brokers, has added a new
dimension to the task of maintaining a reliable electric system . This book will detail
methods by taking into account some ofthese issues .
In the new market environment, generation represents most of the cost. Chapter 1
reports on the development of new strategies and compares different technologies for
electricity generation with environmental and political considerations . This includes
xvii

xviii

Preface

decentralised power supplies, renewables, regulatory constraints, new technical challenges

and solutions . Different mechanisms, such as the pool, have been set up for the operation of
the new emerging electrical market. The market should dictate when new generation is
needed and where it is located.
Since there is a large number of players in the market, it is important to work out the
type of bidding, or negotiation strategies that each player can use . It is especially important
to work out the information content of the bidding strategies . Chapter 2 covers experience
from various countries on power utility restructuring and deregulation . Analytical tools for
the modelling and analysis of competitive power markets are presented. Chapter 3 also
discusses several wholesale electricity markets around the world and most of these are in a
continuous process of change . This evolutionary process is being driven by the need to
address some of the outstanding issues in the design and implementation of these markets .
Some challenges, such as reliability, market power evaluation and mitigation, are outlined.
Chapter 4 reports on the change in distribution business in a deregulated market.
Various issues such as planning, control, load forecasting, metering, customer services and
risk assessment have been considered. A case study on the remote control of London
Electricity is included .
Chapter 5 deals with transmission expansion . Following development of the market, the
transmission provider transforms into the independent transmission company (ITC) so as to
admit a highly sophisticated market. The ITC is required to make complex business
decisions over a wide range of time scales, such as the long-term, short-term and near realtime. This chapter discusses future directions and modifications to the regulatory policies
to make the ITC serve as both a market maker and a service provider.
Chapter 6 presents the economic issues associated with transmission open access. The
chapter also provides a discussion of some important operational issues in the emerging
market environment . Normal dispatch, congestion management and the effects of security
considerations have all been discussed with examples from the open-access viewpoint .
Chapter 7 deals with the Chinese market. A detailed background on the change of
industry is given . It also explains why the approaches adopted by the developed countries
are not suitable . The chapter also proposes a new approach to calculate transmission loss.
To operate the ever increasingly complex power systems with better efficiency, an accurate
transmission loss model is indispensable .
In the rapidly deregulating utility environment, reactive power control to assure voltage
stability and power flow control to avoid line overloading and congestion have become
necessary considerations in power system operation . Flexibility AC transmission systems
(FACTS), which are based on power electronics technology, have revolutionised the field
of electric power engineering . Chapter 8 presents the application of FACTS to utilise the
capability of existing transmission systems . The impact of FACTS for new generation
entrants is discussed .
Chapter 9 deals with asset management. A comprehensive asset management model is
required to support business in the deregulated electricity market. The main purpose and
characteristics of the model components are described in detail . It will benefit all internal
and external users in the open-access environment, resulting in realistic and transparent
open-access charges, and bring long-term economic benefits to all parties . Tools for
effective asset management in power industry restructuring are illustrated with practical
examples .

Preface

xix

Electricity industry restructuring has had a dramatic impact on the energy market . To
gain a competitive advantage, today's energy providers need to focus on value-added
products and services, such as power quality . Power quality is a critical issue for industrial
customers, especially in the high-tech sector. In order to understand power quality, many
customers or energy providers have installed power quality monitoring systems to record
electrical system performance and/or facility equipment reactions, and the analysis of the
monitored data has become a challenge . Chapter 10 reports on the techniques, methods and
standards used or proposed for power quality issues .
The explosion in the use of information technology has seen the introduction of
computer-based work management systems, Basset management systems, and control
systems to manage system operation . Information technology is making markets more
efficient, resource production less speculative and costly, and the delivery and monitoring
of energy more effective, while enfranchising customers to make more intelligent choices .
Improvements in information technology will continue to allow economical and reliable
solutions to problems facing the power industry . Chapter 11 introduces intelligent agents,
genetic algorithms, evolutionary programming, artificial neural networks and virtual reality
technology, and reports on their applications to load flow, valuing electrical options and
power equipment diagnosis . The chapter highlights the technology behind the new market
brought about by deregulation . Energy service companies will continue to make increasing
demands for more sophisticated software and equipment to monitor and control various
aspects of power delivery.
In just a few years, Java has taken the networked world by storm . Java combines
powerful, object-oriented programming with the ability to run on any computer platform
without the need for recompiling or translating . Java promises to play a yet more
fundamental role in the future of on-line computing, including electronic commerce, for it
can allow anyone to make use of powerful applications anywhere . One result of its
platform independence is that a scrap of code called a Java applet can be embedded in a
World Wide Web page. Chapter 12 deals with the application of the Internet to power
station monitoring and discusses its use for energy trading. It also presents an introduction
to Web technology and its applications.
This book addresses the most up-to-date problems and their solutions in the area of
power system restructuring and deregulation in a cohesive manner. It will provide
invaluable information for power engineers, educators, system operators, managers,
planners and researchers.
Loi Lei Lai

Acknowledgements
The editor wishes to thank Mr Peter Mitchell of Wiley and his team in supporting this
project .
The editor also wishes to thank all the contributors, without whose support this book
could not have been completed. In particular, the editor thanks Harald Braun in managing
to complete the manuscript despite great difficulties caused by software incompatibility .
The editor also wishes to thank Mrs Vinay Sood and Professor Sood for their creation of
the initial manuscript. The editor is very grateful to Dr David Jefferies for writing the
Foreword . The permission to reproduce copyright materials by the IEEE and IEE for a
number of papers mentioned in some of the chapters is most helpful. The arrangement of
the index by Miss Qi Ling Lai and Chun Sing Lai is much appreciated.
Last but not least, we all thank Wiley for supporting the preparation of this book and for
the extremely pleasant co-operation .

xxi

Contributors
Dr Loi Lei Lai was appointed Senior Lecturer at Staffordshire Polytechnic (now
Staffordshire University) in 1984. From 1986 to 1987, he was a Royal Academy of
Engineering Industrial Fellow to both GEC Alsthom Turbine Generators Ltd and its
Engineering Research Centre . He is currently Head of Energy Systems Group and Reader
in Electrical Engineering at City University, London . He is also an Honorary Professor at
the North China Electric Power University, Beijing. Dr Lai is a Senior Member of the
IEEE and a Corporate Member of the IEE. He has authored/co-authored over 100 technical
papers . In 1998, he also wrote a book entitled Intelligent System Applications in Power
Engineering - Evolutionary Programming and Neural Networks published by Wiley.
Recently, he was awarded the IEEE Third Millennium Medal and 2000 IEEE Power
Engineering Society UKRI Chapter Outstanding Engineer Award . In 1995, he received a
high-quality paper prize from the International Association of Desalination, USA . Among
his professional activities are his contributions to the organisation of several international
conferences in power engineering and evolutionary computing, and he was the Conference
Chairman of the International Conference on Power Utility Deregulation, Restructuring
and Power Technologies 2000. Recently, he was invited by the Hong Kong Institution of
Engineers to be the Chairman of an Accreditation Visit to accredit the University BEng
(Hons) degree in electrical engineering . Dr Lai is also Student Recruitment Officer, IEEE
UKRI Section . In 1999, he was included in The Dictionary ofContemporary Celebrities of
Worldwide Chinese . In 2000, his biography was included in the 18th Edition of Who's Who
in the World, Marquis, USA . His biography has also been selected for inclusion in the 2001
Who's Who in Science and Engineering, Marquis, USA .
Professor Jos Arrillaga obtained his MSc, PhD and DSc from UMIST, Manchester, UK.
He is a Fellow of the IEEE and a Fellow of the Royal Society of New Zealand . From 1970
to 1975, he was Head of the Power Systems and High Voltage Groups, UMIST. From 1975
to 1999 he was Professor of Electrical Engineering, University of Canterbury,
Christchurch, New Zealand . From 1982 to 1995, he was also the Director of Systems
Software & Instrumentation (a Christchurch-based consulting company established in
1982). From 1985 to 1990, he was Head of Department, Electrical and Electronic
Engineering, University of Canterbury. From 1988 to 1995, he was a Member of the
CIGRE-14 Working Group on HVdc harmonics (14-03) . From 1989 to 1995, he was
Convenor of CIGRE Task Force 36-05/14-03-03 on AC System Harmonic Modelling for
AC Filter Design . From 1990 to 1996, he was a Member of CIGRE JWG 11/14-09 on Unit
Connection . From 1996 to 1999, he was Convenor of CIGRE Task Force 14.25 on
Harmonic Cross-modulation in HVdc Transmission . Since 1990 and 1995 respectively, he
has been Director of CHART Instruments, Christchurch and Director of Power Quality
Consulting, a Christchurch-based consulting company. Professor Arrillaga has received
many awards, such as John Hopkins Premium of the IEE, UK, 1975; the Best Paper
Premium, IEEE Conference on Harmonics and Quality of Power, ICHQP94, 1994; the Best
Electrotechnical Paper, IPENZ Annual Conference, 1996 ; Uno Lamm High Voltage Direct
Current Award, IEEE, 1997 ; John Munganest International Power Quality Award of the
Power Industry, 1997; President's (Gold Medal) Award, Annual Meeting of IPENZ, 1998;
xxiii

xxiv

Biography

the Best electrotechnical paper, IPENZ Annual Conference, 1999; Silver Medal of the New
Zealand Royal Society for Innovation in Science and Technology, 2000; and CIGRE
(Paris) Technical Committees Award, 2000.
Mr Harald Braun trained in the area of power electronics with Siemens, Frankfurt,
Germany, from 1985 to 1989. He obtained his Diploma in Telecommunication at
Friedberg-Giessen University, Germany, in 1994. He was a part-time lecturer at City
University, London, from 1994 to 1996 in teaching object-oriented programming in C++ .
He was a Senior Programmer at A.M . BEST International Ltd, London, from 1996 to 2000.
At present, he is a Senior Software Engineer with ALTIO, London, developing new
Internet technology software. He is working for his PhD at City University on a part-time
basis and expects to achieve it in July 2001 . His research interest is the extraction of
information from data using neural network technology.
Professor A. Kumar David is Chair Professor and hHad of the Department of Electrical
Engineering, The Hong Kong Polytechnic University . His BE degree is from the University
of Ceylon and PhD from Imperial College, London . He has previously worked in Sri
Lanka, USA, Zimbabwe and Sweden and his research interests are in power system
restructuring, pricing, control, HVDC, transient stability, protection and reliability .
Professor David was elected an IEEE Fellow in 2000 for his outstanding contributions to
electricity supply industry reform and open transmission access . He is the regional editor
for Asia of the InternationalJournal of'Electric Power Systems Research .
Mr Robert Friel is responsible for strategy development in LPN (London Power
Networks), which is the distribution company of the London Electricity Group . Mr Friel
has extensive experience of the planning and development of both private and public
electricity distribution systems in the UK and abroad. He joined London Electricity in 1997
and helped develop the distribution businesses, response to the last regulatory price control .
Mr Friel is a Chartered Engineer and a Member of the IEE.
Professor Marija Ilic has been at MIT since 1987 as a Senior Research Scientist in the
EELS Department where she conducts research and teaches graduate courses in the area of
electric power systems . Since September 1999 she has had a joint appointment at the
National Science Foundation as a Program Director for Control, Networks and
Computational Intelligence . Prior to coming to MIT, she was a tenured faculty at the
University of Illinois at Urbana-Champaign . Professor Ilic is a recipient of the First
Presidential Young Investigator Award for Power Systems ; she is also an IEEE Fellow and
an IEEE Distinguished Lecturer . Professor Ilic has co-authored several books on the
subject of large-scale electric power systems (Ilic, M . and Zaborszky, J ., Dynarnics and
Control of'Large Electric Power Svstems, John Wiley & Sons, New York, 2000 ; llic, M .,
Galiana, F. and Fink, L. (Editors), Power Svstems Restructuring: Engineering and
Economics, Kluwer Academic Publishers, Second printing 2000; Allen, E. and Ilic, M.,
Price-Based Commitment Decisions in the Electricity Markets, Springer-Verlag, London,
1999; Ilic, M. and Liu, S., Hierarchical Power Systems Control: Its Value in a Changing
Industr-v, Springer-Verlag, London, 1996) . She is also a contributor to the edited book
Blue Print,fbr Transmission (PU Reports, 2000). Her interest is in control and design of
large-scale systems .

Biography

xxv

Dr David G. Jefferies, CBE has been Chairman of the National Grid Company plc since
1990, when the Company was formed as part of the privatisation of the UK electricity
sector. His bold and far-sighted leadership has been a key ingredient in its success of the
National Grid Group plc from the performance of the transmission system during a decade
of major change in the industry, through the conception and development of Energis, to the
growth of the group internationally. He retired as the Chairman of the National Grid Group
plc in July 1999. Dr Jefferies was previously Chairman of the London Electricity Board
and of Viridian plc . He was the 1997/98 IEE President . Owing to his huge contribution
made to the Institution, he is an Honorary Fellow of the IEE. He is also a Fellow of the
Royal Academy of Engineering . He was a pioneer in the restructuring and deregulation of
the UK electric power utility .
Professor Chen-Ching Liu received his PhD from the University of California, Berkeley,
in 1983 . Since then, he has been at the University of Washington, Seattle . He is currently
Professor of Electrical Engineering and Associate Dean of Engineering at the University .
Dr Liu is a Fellow of the IEEE and the US representative on CIGRE Study Committee 38 .
His areas of interest include power system economics, intelligent system applications and
vulnerability assessment.
Professor K.L. Lo obtained his MSc and PhD from the University of Manchester Institute
of Science and Technology . He is currently the Head of the Power Systems Research
Group at the University of Strathclyde . His group specialises in energy management
systems, issues concerning the electricity market and deregulation, simulation, analysis,
monitoring and control of power networks . Professor Lo has been an international advisor
and member of many organising committees of international conferences,
consultant/visiting professor to over 12 educational institutions, and has lectured
extensively in the Far East, Europe and America . He is the author of over 260 technical
publications . He is a Fellow of the IEE and a Fellow ofthe Royal Society of Edinburgh .
Mr Kevin Morton is a member of London Electricity's Executive and is currently the
Managing Director of both London Power Networks (LPN), which is the distribution
business of London Electricity, and London Electricity Services (LES), which is the private
networks business of London Electricity . As Head of the Public Distribution Business he
led the work during 1999 which culminated in the formation of 24seven, the joint venture
network management services provider formed by LE and TXU Europe (Eastern
Electricity) . He has been in the electricity supply industry for 25 years in a variety of both
operational and strategic roles within the distribution business . He has a practical
engineering background having worked in a number of operational, project manager and
leadership roles in utility power distribution. Mr Morton is a Chartered Electrical Engineer
and a Fellow of the IEE. He also represents the UK in the business area of distribution at
EURELECTRIC, the pan-European association of electricity companies .
Professor Mark O'Malley received his BE and PhD degrees from the National University
of Ireland, Dublin, in 1983 and 1987 respectively. He is currently a Professor at the
National University of Ireland, Dublin, with research interests in power systems, control
theory and biomedical engineering .

xxvi

Biography

Professor Gerald B. Sheble is a Professor of Electrical and Computer Engineering, Iowa

State University, Ames, Iowa. He received his BS and MS degrees in electrical engineering
from Purdue University and his PhD in electrical engineering from Virginia Tech . His
industrial experience includes over 15 years with a public utility (Commonwealth Edison),
with a research and development firm (Systems Control), with a computer vendor (Control
Data Corporation) and with a consulting firm (Energy and Control Consultants) . He has
participated in the functional definition, analysis and design of power system applications
for several energy management systems since 1971 . Dr Sheble also designed the
optimisation package in use at over 50 electric utilities to schedule electrical production .
He has consulted since entering the academic world with companies in North America and
Europe on electric industry deregulation as well as expert witness testimony on the
National Electric Code and Intellectual Property Rights . His consulting experience
includes significant projects with over 40 companies . He developed and implemented one
of the first electric market simulators for the Electric Power Research Institute using
genetic algorithms to simulate the competing players . He conducts approximately 24
seminars each year on optimisation, artificial neural networks, genetic algorithms and
genetic programming, and electric power deregulation around the world. His primary
expertise is in power system optimisation, scheduling and control. Dr Sheble has been
awarded over 1 million dollars of research support over the last 10 years, primarily in the
application of adaptive agents to market bidding . He has authored a review of adaptive
agent market-playing algorithms for the Kluwer press release Power Systems
Restructuring : Engineering and Economics edited by Ilic, Galiana and Fink. He has
written a monograph on tools and techniques for energy deregulation entitled
Computational Auction Mechanisms for Restructured Power Industrv . He has also been an
invited guest on radio talk shows and a resource for several news articles on electric power
deregulation and industrial trends.
His research interests include power system
optimisation, scheduling and control. Professor Sheble is an IEEE Fellow .
Professor Vijay Sood obtained his BSc from University College, Nairobi, and his MSc
degree from Strathclyde University, Glasgow, in 1969. He obtained his PhD degree in
power electronics from the University of Bradford, England, in 1977 . From 1969 to 1976,
Dr Sood was employed at the Railway Technical Centre, Derby. Since 1976, he has been
employed as a Researcher at IREQ (Hydro-Quebec) in Montreal. Dr Sood also has held
Adjunct Professorship at Concordia University, Montreal, since 1979. Dr Sood is a
Member of the Ordre des ingenieurs du Quebec, a Senior Member of the IEEE, a member
of the IEE and a Fellow of the Engineering Institute of Canada. He is the recipient of the
1998 Outstanding Service Award from IEEE Canada, the 1999 Meritas Award from the
Ordre des Ingenieurs du Quebec, and the IEEE Third Millennium Medal. Dr Sood is
presently the Managing Editor of the IEEE Canadian Review (a quarterly journal for IEEE
Canada) . He is a Director and Treasurer of IEEE Montreal Conferences Inc. He has worked
on the analog and digital modelling of electrical power systems and their controllers for
over 25 years . His research interests are focused on the monitoring, control and protection
of power systems using artificial intelligence techniques . Recently, Dr Sood has been
interested in the Internet and its applications for teaching purposes and was mandated by
IEEE Canada to publish the journal IEEE Canadian Review on the Internet (www.ieee.ca) .
Dr Sood has published over 70 articles and written two book chapters . He has supervised
14 postgraduate students and examined 17 PhD candidates from universities all over the
world. He is well known amongst the electrical engineering community in Canada .

Biography

xxvii

Mr Cliff Walton is Technical & Regulation Manager of London Power Networks (LPN).
LPN is the distribution business of the London Electricity Group. In his current position, he
is responsible for all technical and regulatory matters regarding the public electricity
distribution system in London and particularly the quality of supply and reliability
performance that sets London apart. He has previously been Strategy Manager, Asset
Manager and Planning Manager for London Electricity's Public Networks Group. In his
recent roles he has championed the development of an integrated technology strategy,
strategic asset management, fault causation analysis, incipient fault detection and location
techniques, as well as creating the strategies behind the implementation of one of the
largest distribution remote control, telemetry and automation projects . Mr Walton joined
LPN when it was established in April 2000; his career in electricity distribution spans 29
years. He has worked with a number of overseas utilities and has written and presented
many papers on a wide variety of technical and asset governance and management issues .
He is a Chartered Electrical Engineer and a Member of both the IEE and IEEE.
Professor Xifan Wang was born in May 1936. He graduated from Xi'an Jiaotong
University in 1957. He has since been with the School of Electrical Engineering of the
university, where he now holds the rank of Professor and is the Director of the Electric
Power System Department . He is a Senior Member of the IEEE. From September 1981 to
September 1983, he worked in the School of Electrical Engineering at Comell University
in Ithaca, New York, USA as a Visiting Scientist. From September 1991 to September
1993 he worked at the Kyushu Institute of Technology in Kitakyushu, Japan, as a Visiting
Professor . Prof Wang has a 40-year experience of researching and teaching in electric
power system analysis and planning . His main research fields include reliability evaluation,
generation and transmission network planning, operation planning, system contingency
analysis, dynamic and transient stability, short-circuit current calculation, optimal load
flow, and probabilistic load flow. He is especially proficient in constructing mathematical
models and developing application software in the above areas. He also took part in many
research and planning tasks of key electric power projects in China, such as the Three
Gorges Hydro-Power Station . He proposed a new transmission system, namely the
fractional frequency transmission system (FFTS) which uses a lower frequency to reduce
the reactance of AC transmission systems . In recent years, he has been researching the
electric power market .
Dr Neville R. Watson received his BE (Hons) and PhD degrees from the University of
Canterbury (New Zealand), where he is now a Senior Lecturer . Dr Watson has authored
and co-authored approximately 100 technical papers and 3 books. Paper awards received
include ; Best Paper Award (The Sixth International Conference on Harmonics in Power
Systems, 1994), the William Perry Award (IPENZ) and Finalist for the Carter Holt Harvey
Packing Award for Innovative Technology (IPENZ) . He has also given a number of invited
lectures in Singapore, Australia and Canada .
Professor Fushuan Wen received his BEng and MEng degrees from Tianjin University,
China, in 1985 and 1988, respectively, and his PhD from Zhejiang University, China, in
1991, all in electrical engineering . He was a Postdoctoral Fellow at Zhejiang University
from 1991 to 1993. He joined the faculty of Zhejiang University in 1993, and has been a
Professor of Electrical Engineering since 1997. He held a visiting position at the National

xxviii

Biograp hy

University of Singapore from 1995 to 1997. He is on leave from Zhejiang University and is
now with Hong Kong Polytechnic University as a research fellow . Dr Wen is recipient of
the National Natural Science Award of China, Zhejiang Provincial Top Young Scientist
Award and several other awards from the Ministry of Education (China), Zhejiang
provincial government, Zhejiang University and the National University of Singapore . He
is a member of the editorial board of the Journal ofAutomation ofElectric Power Systems
(in Chinese) and was a guest editor of a special issue on `Artificial intelligence applications
in power systems' . His research interests are in power system restructuring and artificial
intelligence applications in power systems .
Professor Kit Po Wong obtained MSc, PhD and DEng from University of Manchester
Institute of Science and Technology in 1971, 1974 and 2001 respectively . Currently he is
Professor in Electrical Engineering at the University of Western Australia. He has worked
on power system dynamics, protection, electromagnetic transient evaluation, long-distance
transmission, artificial intelligence and computational intelligence in power system
operation and planning . Professor Wong has published over 160 research papers and has
been awarded the Sir John Madsen Medal of the Institution of Engineers Australia. He was
the Founding Chairman of the Western Australia Chapter of the IEEE Power Engineering
Society and was the Chairman of the Western Australia Section of the IEEE from 1999 to
2000 . He has been a member of numerous technical committees for international
conferences . Professor Wong was the General Chairman of the IEEE PES/CSEE 2000
International Conference on Power Systems Technology (Powercon 2000). He is an
editorial board member of the international journal Electric Power Systems Research and
the Australian Journal of Intelligent Information Processing Systems . In 1999, he was
awarded the Outstanding Engineer Award of the IEEE Power Engineering Society WA
Chapter. He was a recipient of the IEEE Third Millennium Medal in 2000. Professor Wong
is a Fellow of the Hong Kong Institution of Engineers, Fellow of Institution of Engineers
Australia, Senior Member of the IEEE, and Member ofthe IEE.
Miss Yee Shan Cherry Yuen acquired her degree of Bachelor of Engineering in Electrical
Energy Systems Engineering at The University of Hong Kong in 1996. In the same year
Miss Yuen was awarded The China Light & Power Company Prize in Electrical Energy,
because of the distinction of her final year project entitled `The application of artificial
neural networks on the detection of high impedance faults' . During 1996 to 1998 Miss
Yuen pursued the degree of Master of Philosophy with a thesis entitled `Fault detection and
overvoltage protection in low voltage power systems'. In 1998 she was awarded the China
Light & Power Co. Ltd . Electrical Energy Postgraduate Scholarship . In the same year she
was awarded John Swire & Sons Ltd . James Henry Scott Scholarship for Engineering
Studies at the University of Strathclyde which enabled her to pursue the degree of Doctor
of Philosophy in Scotland. Miss Yuen is also an Associate Member of the IEE. Her current
research interests include the analysis of international energy markets, congestion
management, transmission pricing and the application of information technology in energy
markets .

Mr Yong T. Yoon received SB degrees in applied mathematics and in electrical

engineering and computer science and MEng degree in electrical engineering and computer

Biography

xxix

science from the Massachusetts Institute of Technology (MIT), Cambridge, in 1995 and in
1997, respectively. He is currently pursuing a PhD degree (February 2001) in electrical
engineering and computer science at MIT, concentrating on electric power system
economics engineering . His thesis is entitled `Electric power network economics :
underlying principles for for-profit independent transmission company (ITC) and designing
architecture for reliability' . His research interests include modelling of energy markets as
stochastic dynamic systems, developing concepts for the ITC and designing software tools
for various energy market participants . He has a strong background in control, estimation,
mathematics, research design and regulatory economics .

Power System Restructuring and Deregulation

Edited by Loi Lei Lai
Copyright 2001 John Wiley & Sons Ltd
ISBNs: 0-471-49500-X (Hardback); 0-470-84611-9 (Electronic)

Index
3-D thermal image, 402
access fees, 162, 165, 167
active reserves, 25
ageing assets, 295
air pollution, 234, 256
allocation factor, 248, 249, 251
amplitude modulation, 344
ancillary service, 25, 46, 61, 65, 76, 78,
79, 80, 86, 87, 92, 93, 94, 96, 97, 98,
99, 100, 101, 104, 106, 107, 139, 179,
180, 186, 191, 192, 193, 194, 195,
198, 199, 218
ancillary services markets, 79, 80, 86,
92, 93, 94, 97, 99, 107
aperiodic component, 346
Application Service Provider, 423
arcing, 299, 323, 334
artificial intelligence, xix, xxi, 121, 354,
413, 414, 415, 424
artificial neural network, xix, 107, 121,
151, 353, 412, 414
asset governance, xx
asset manager, 111, 112, 127, 296, 306,
313,322
asset owner, 111, 289, 293
asset replacement, 116, 117, 122, 124,
125, 130, 290, 307
asset utilisation, 129, 281, 287
asynchronous interconnector, 331
auction mechanisms, 61, 96, 109
auto-change-over devices, 127
automatic generator control, 76
autonomous generation schemes, 27
autonomy, 355, 356, 359
auto-reclosers, 127, 128
auto-regressive moving average, 121
available transfer capability, 138
back-to-back thyristors, 269, 273
balancing market, 68, 78, 85, 113

battery charging, 28
benchmark, 116, 125, 128, 157, 163
bid prices, 23, 98, 176
bilateral contracts, 24, 61, 68, 71, 73, 74,
91, 107, 154, 155, 158, 167, 168, 184,
197, 209, 257
bilateral model, 96
binding day-ahead market, 86
biomass, 9, 12
black-start capability, 93, 194
C++ language, 136
capacity payment, 23, 100
capacity reserve, 240
capacity rights, 215
catastrophic failure, 100, 296, 314, 315
cellular phone, 134, 144
central auction, 82, 83, 84, 86, 89, 90,
91, 95, 96
central control systems, 128
central utility model, 52
CGI, 139, 437, 438, 440, 451
chromosomes, 40, 41
clean coal technologies, 20, 45
client server, 426, 446
climate change, 11, 19
co-generators, 2, 3
collaborative agents, 354, 355, 356, 357
combined heat and power, 5, 15, 45
combined-cycle, 10, 65
common gateway interface, 139, 437
communication systems, 127, 128, 146,
148,259
competition, xii, 1, 2, 4, 5, 8, 9, 11, 15,
16, 20, 45, 47, 50, 51, 52, 53, 54, 55,
56, 57, 60, 63, 67, 72, 73, 76, 77, 78,
79, 100, 110, 111, 114, 125, 126, 127,
142, 145, 151, 153, 154, 155, 163,
167, 173, 174, 183, 185, 226, 228,
229, 236, 254, 258, 262, 290, 293,

462
304, 329, 330, 332, 334, 347, 356,
360, 373, 377, 420, 457
competitive bidding, 1, 65
competitive framework, xi, 110, 353
competitive generation, 2, 3, 4, 107
competitive metering, 114
competitive trading, 24
computational intelligence, xxi, 353
condition monitoring, 129, 132, 295,
300, 304, 312, 313, 320, 322, 328,
445
congestion management, xiii, xxi, 58,
69, 70, 71, 75, 78, 79, 86, 88, 89, 90,
92, 93, 94, 95, 97, 99, 104, 178, 180,
188, 195, 198, 200, 209, 215, 216,
217, 218, 219
congestion management markets, 93, 94
contract market, 10, 61, 68, 179
contract path allocation, 57
corporate restructuring, 293
cost/benefit analysis, 310
crossover, 40, 41, 273, 274, 370
damper, 273, 274
data polling, 451, 452, 454
data security, 458
data streaming, 451, 452, 453, 454
database, 136, 137, 319, 321, 408, 419,
420, 437, 438, 439, 440, 458
day-ahead, 61, 69, 79, 86
day-ahead market, 71, 78, 90, 176, 178,
191
delivery time, 86, 421, 423
demand growth, 123
demand side management, 115
demand-side bidding, 68
deregulation, xii, xiii, xiv, xviii, xix, 1, 2,
5, 6, 7, 9, 10, 15, 19, 45, 48, 50, 51,
52, 55, 57, 58, 64, 70, 71, 73, 108,
111,116,119,133,140,153,161,
167, 171, 173, 175, 202, 217, 218,
232, 259, 283, 316, 330, 331, 332,
334, 348, 353, 360, 457
deregulation of energy market, 418
desalination plant, 38, 49
discrete wavelet transform, 338

Index
dissolved gas analysis, 296, 323, 329
distributed generation, 13, 16, 17, 20, 21,
22, 23, 25, 26, 46, 48, 99, 108, 144,
164
distributed generation technologies, 13
distribution automation, 127, 128, 147,
148, 151, 418
distribution companies, 4, 63, 64, 110,
111,113,115,116,117,119,154,
175, 302, 316, 318, 353, 361
distribution loss, 63
district heating, 21
disturbance recognition, 341, 350
economic dispatch, 53, 77, 78, 82, 109,
121, 133, 374, 414
eddy currents, 325, 326
elasticity, 59, 192, 195, 196, 209, 215,
220
electrical discharge, 296, 300
electricity and gas networks, 111
electricity distribution industry, 111
electronic auction markets, 10
e-mail, 354, 420, 425, 427, 428, 429
embedded cost, 57, 58, 186, 187, 189,
190,194
embedded generators, 112
embedded systems, 128
emissions-free electricity, 19
energy function, 206, 385
energy mix, 6
energy policy, 16, 48
energy purchase cost, 113
energy storage, 5, 13, 259, 264, 269,
270,285
English auction, 55, 56
equilibrium point, 68, 69, 84, 97, 206,
207
ethernet, 348
evolutionary computing, xvi, 353
evolutionary process, xiii, 98, 163
evolutionary programming, 49, 353, 410
ex ante market, 61
ex post market, 61, 73
excitation capacitance, 27, 28, 32, 35
expert systems, 353, 355

Index

facilitators, 359
fiber optic communication, 147
fiber-based transmission, 142
file types, 421
financial markets, 78, 88, 94, 97, 171
financial transmission rights, 95
first rejected offer, 55
flexible AC transmission system, 162
flicker, 266, 331, 342, 346, 347, 352
force-commutated converters, 278
forward markets, 71, 86, 95, 106, 178,
361
fossil fuel, 3, 4, 6, 45, 53
Fourier transform, 336, 347
free space lasers, 141
frequency modulation, 144
fuel cells, 10, 12, 13, 20, 21, 26, 99, 330
full graphics interface, 134
futures market, 8, 68, 74, 104, 186, 361,
362,364
fuzzy diagnosis, 323, 325, 328
fuzzy logic, 38, 49, 341, 412
gaming, 50, 78, 83, 88, 91, 92, 95, 98,
99,107
gas industry, 165
gas turbine technology, 173
generation companies, 22, 67, 72, 73, 99,
175,361
generation mix, 11
generation model, 8
generation scheduling, 53, 104, 109,
156, 180, 412
genetic algorithm, xix, 49, 360, 362,
364, 365, 367, 370, 410, 412, 414
GIF image, 421
government intervention, 16, 45
graph theory, 246, 251
green certificates, 17
green energy, 20
greenhouse gas reduction, 5
GTO, 262, 263, 264, 268, 270, 274, 275,
278, 279, 280, 283

463
harmonic distortion, 13, 26, 331, 346,
348
harmonic instabilities, 344
head-mounted displays, 395
hedging, 65, 95, 360
hedging contracts, 65
hidden nodes, 384, 386, 388, 389
hot spots, 297, 400, 407, 410
hour-ahead market, 158, 176, 178
HVDC, xvii, 73, 260, 263, 264, 266,
274, 277, 278, 279, 280, 281, 286
hybrid agent, 355, 358, 359
hydro, 3, 5, 6, 12, 13, 20, 68, 72, 73,
105, 174, 229, 259, 280, 330
IGBT, 262, 263, 264, 269, 278, 280
immersion, 395, 396, 397, 400, 405
incipient faults, 296, 323, 329
incremental cost, 53, 57, 83, 84, 85, 88,
90, 91, 92, 99, 196
incremental cost allocation, 57
Independent Power Producers, 2, 65, 330
independent system operator, 25, 51,
104, 121, 175, 217
inelastic load, 65, 92
inequality constraints, 198, 211, 212,
373
information technology ., 2, 54, 59
infrared detectors, 297, 401
infrared imager, 400
infrastructure planning, 125, 126
installed capacity, 22, 25, 115, 122, 222,
223, 231, 266
intelligent electronic devices, 139
interface agents, 355, 356, 357, 358
interharmonics, 342
international financing agencies, 124
Internet, xiv, xvii, xix, 114, 118, 140,
141, 143, 144, 145, 358, 416, 417,
418, 419, 420, 421, 422, 423, 424,
425, 426, 427, 428, 429, 431, 432,
433, 434, 435, 436, 437, 440, 441,
445, 446, 449, 451, 452, 453, 457,
458, 459, 460
auction, 55, 56, 60, 61, 65, 67, 82, 84,
90, 91, 95, 96, 98, 105, 108, 109,

464
178, 193, 194, 195, 362, 413, 457,
458,459
bandwidth, 431
education, 143, 354, 399, 420
energy trading, 418, 423, 457
multimedia, 421
on-line training, 420
power trading, 418
real-time data, 138, 417, 421, 427,
431, 449, 453, 454
usability, 419
Internet Service Provider, 418, 423, 427,
431,458
inter-provincial power market, 242, 244
inter-temporal constraints, 77, 91, 96
inter-zonal congestion, 88
investment planning, 307
Java Virtual Machine, 434
JDBC, 439, 440
LANIWAN technology, 134
last accepted offer, 55
liberalisation, 47, 73, 144
load forecasting, xiii, 120, 121, 122, 151,
383,412
load levelling, 21, 270
load management, 21, 135, 145, 150
load pocket, 55
load profiles, 26, 63
load shedding, 80, 145, 334
loading vector, 158
locational marginal prices, 88, 96, 98
locational marginal pricing, 88, 99
long term planning, xii, 122
long-term contract, 8, 18, 93
long-term contracts, 18, 93
loop flow, 8
loss allocation, 246, 247, 248, 249, 251,
253,254
loss ofload probability, 238
magnetising reactance, 30, 31, 32, 37
mandatory system operator model, 158,
159, 160, 162
marginal costs, 3, 53, 58, 210, 240, 242

Index
marginal pricing, 23, 57, 99, 164, 165,
187
market clearing, 65, 71, 85, 87, 89, 90,
91, 96, 177
market clearing price, 177
market mechanism, 53, 155, 160, 167,
219, 231, 234, 236
market operator, 457
market reform, 1
market regulation, 21, 46, 48
market transparency, 22
maximalist ISO, 96, 97, 103
megawatt mile allocation, 57
merit order, 70, 82
meter asset management, 114
meter assets, 111, 114
microeconomic principle, 99
micro-gird, 20
MIME type, 421
minimalist ISO, 96, 97, 103
mitigation, xiii, 6, 10, 98, 107, 125, 231,
335
mobile agents, 354, 357, 358
mother wavelet, 337, 338, 339
multi-converters, 278
multilateral, 56, 59, 158, 160, 161, 179,
184, 185, 192, 195, 196, 197, 198,
199, 200, 212, 214, 361
multilateral trades, 185, 361
multilateral trading, 184
multilateral transactions, 179, 184, 192,
197, 198, 199, 212
multilayer feedforward network, 121
multiple linear regression, 121
multi-tiered structure, 159
mutation, 40, 41, 372, 373, 375, 376,
377,378
negative generator, 115
negative sequence, 344
network automation, 119
network management system, 132, 138
newsgroups, 420
no load bid, 96
nodal pricing, 59, 73, 88, 166, 167, 187,
188

Index
non-discriminatory auction, 55
non-immersive systems, 397
nonparametric regression, 121
non-stationary voltage, 336
nuclear, 3, 4, 5, 6, 9, 19, 45, 55, 64, 72,
154,231
object models, 143
object oriented, xvii, 438
ODBC, 136,439
on-line load forecasting, 122
open access, xiii, 2, 3, 57, 60, 73, 79,
108, 109, 140, 163, 174, 176, 183,
192, 198, 206, 208, 216, 218, 219,
372,459
operating platform, 416, 436, 450
opportunity costs, 83, 170, 186
optimal power flow, 52, 57, 59, 77, 109,
159, 160, 188, 219, 371, 373, 410,
412
options contract, 362
options markets, 412
parallel processing, 139, 348, 459
partial discharge, 300, 311, 323
pattern search method, 32
peak load time, 241
peer-to-peer protocols, 134
penalty payments, 291, 317
phase balancing, 33
phase-locked loop, 272
photovoltaics, 9, 12
planning horizon, 58, 122
plant expansion, 120
pollution, 9, 15, 18, 19, 221
pool selling price, 191
poolco model, 96, 108
positive sequence, 344
postage stamp method, 187, 188
power exchange, 21, 22, 46, 60, 106,
175, 177, 215, 256, 275, 331, 457,
458
power injections, 79, 210, 211
power line carrier, 134, 144, 145, 148,
150

465
power pool, 4, 22, 82, 86, 87, 98, 100,
109, 159, 176, 179, 182, 183, 184,
185,192
power quality, xiv, 21, 25, 117, 127,
143, 258, 259, 270, 330, 331, 332,
333, 335, 339, 346, 347, 348, 349,
350,351
power station monitoring, 418, 445
power swing, 139, 260, 269
PQ monitoring, 348
PQ standards, 348
price cap regulation, 165, 167
price-cap, 72
pricing scheme, 3, 8, 188, 221
priority insurance service, 167, 168, 169,
170
privatisation, 1, 2, 4, 50, 51, 52, 54, 63,
64, 65, 67, 72, 110, 117, 119, 120,
125, 144, 174, 287, 304, 418
probabilistic curve, 308
probabilistic models, 77
probabilistic production simulation, 238,
239,243
programming language, 417, 433, 434,
435, 438, 444, 449, 451, 452
HTML, 138, 417, 428, 433, 434, 436,
437, 441, 442, 443, 444, 445, 458,
459,460
Java, xiv, 417, 433, 434, 435, 436,
439, 440, 451, 460
JavaScript, 417, 433, 434, 440, 452
XML, DTD, XSL, 438, 441, 442, 443,
444, 445, 450, 458, 459, 460
programming language
Java applet, xiv, 435, 436, 451, 452,
454
Java servlet, 440
public electricity suppliers, 1 I 1
pulverised coal combustion, 17, 18
put options, 360, 365, 367, 370, 410
quality ofsupply, 116, 117, 119, 126,
127, 129, 130
ramping rates, 77, 91, 96
reactive reserves, 25

46 6
real time pricing, 218
real-time energy market, 97, 158
real-time markets, 78, 86
regression analysis, 116
regulatory body, 110, 334
regulatory incentives, 293
reliability benefit, 189, 190
reliability constraints, 78, 79
remote meter reading, 134, 147
remote terminal units, 127, 129, 132
remote vision, 447
renewable, xiii, 2, 4, 5, 9, 11, 13, 16, 17,
19, 20, 21, 27, 45, 53, 231, 330
reproduction, 41
reregulation, 1
retail competition, 2, 51, 63, 73
right-of-ways, 169
risk assessment, xiii, 115, 117, 125, 316
risk control, 313
risk management, 106, 292, 311, 314,
316,317
rule base, 38, 40, 42, 49, 412
SCADA, 119, 127, 134, 135, 136, 137,
138, 144, 145, 146, 297
scheduled wheeling transaction, 121
scheduling co-ordinators, 175, 179
search engine, 417, 419, 424, 427, 437
web crawler, 419
second-tier suppliers, 72
security, 24, 47, 117, 139, 140, 152, 202,
205, 219, 320, 358, 414, 424
digital signature, 429
encryption, 429, 430
private key, 429, 430
public key, 430
firewall, 428, 429
password, 429
Secure Socket Layers, 424, 458
security limit, 163
selection, 40, 70, 100, 104, 149, 150,
174, 177, 282, 296, 338, 370, 372,
377,428
self-excited induction generator, 27, 48
sequential electricity market, 86

Index
series compensation, 260, 261, 271, 272,
275, 276, 282, 285, 286, 331
service provider, xiii, 111, 156, 162,
163, 164, 170, 288, 289
settlement, 55, 63, 69, 71, 79, 177, 290,
423
shadow prices, 96
shareholder, 4, 112
shoulder load time, 241
sigmoid function, 384, 386, 387, 392,
410
simultaneous electricity market, 87
single-phase loads, 27, 46
smart agents, 355
smart metering, 63
social welfare, 54, 84, 85, 87, 91, 92, 94,
107, 163, 192
software functionality, 423
solar, 5, 9, 12, 13, 14, 21, 22, 37, 38, 39,
42, 46, 49, 330, 399, 412
solar collectors, 38
solar power plant, 37, 38, 46, 49, 412
solar radiation, 37, 39, 42
spinning reserve, 61, 71, 93, 94, 105,
108, 121, 194, 195, 271
spinning reserve markets, 71
spot markets, 3, 168
spot purchases, 63
spread spectrum, 144, 149
SQL, 136, 437, 438, 439,440
stand-alone generation, 20
start-up bid, 96
state-owned monopoly, 2
stator winding, 28
stock markets, 79, 395
storage heating, 28, 115
stranded costs, 6, 9, 46, 51, 54, 63, 71
strike price, 154, 362, 365, 367, 369
structured query language, 136
sub-synchronous resonance, 271, 285
super-conducting material, 259
supply curve, 56, 68, 69, 84, 98, 159
swing curve, 269
switching element, 264, 265
symmetrical components, 30, 335, 350
system dynamics, xxi, 80, 101

Index
system marginal price, 23, 66
system operator, xiv, 51, 53, 56, 59, 60,
61, 65, 69, 73, 103, 115, 120, 121,
139, 154, 157, 158, 166, 168, 177,
178, 192, 193, 194, 195, 210, 331
system-wide blackouts, 155
take-or-pay, 412
tap-changer, 261, 277
telecommunication industry, 153, 154
telephone network, 114
thermal heating technology, 37
thermal limit, 58, 59, 66, 259, 283
thermography, 400, 410, 415
thermovision cameras, 297
thyristor controlled reactors, 266
thyristor controlled series capacitor, 271,
285
tier supplier, 112
time ofuse, 135, 190
tournament scheme, 377
transient energy margin, 206
transient stability, xvii, xx, 139, 206,
219, 285, 412
transmission access, xvii, 51, 175, 184,
191, 197, 200, 216
transmission channels, 141
transmission charge, 58, 90, 95, 165,
168, 199, 211
transmission loss, xiii, 57, 60, 65, 72,
105, 120, 165, 186, 191, 192, 196,
197, 198, 204, 214, 247, 257, 373,
374, 376, 458
transmission model, 8
transmission open access, xiii, 216, 371
transmission pricing, xxi, 58, 105, 168,
169, 187, 191, 218, 221, 246
transmission protocol, 417, 427
FTP, 428
TCP/IP, 143, 417, 427, 432
transmission revenue, 162, 164
transmission system expansion, 162,
163,170
triplen harmonics, 344
two-tier system, 120

467
UHF radio, 144, 149, 150
unbundling, xii, 50, 52, 53, 73, 194, 371
unconstrained schedule, 65
unified power flow controller, 275, 331
uniform price auction, 55, 68
Uniform Resource Locator, 425
unit commitment, 77, 78, 82, 91, 96, 97,
103, 104, 108, 109, 177, 180
UNIX, 136,426
uplift charge, 55
usage charges, 162, 164, 165, 166, 167
use of system charges, 27, 72, 111, 115
valley load time, 241
vertically integrated, 8, 50, 58, 64, 72,
77, 153, 155, 156, 157, 163, 164, 172,
178, 210, 360
vertically integrated utilities, 77, 153
virtual environments, 395
visual display unit, 395
voice activated messages, 114
voltage collapse, 140, 260
voltage control, 14, 26, 80, 93, 148, 193,
194,284
voltage dip, 117, 333, 350
voltage sags, 13, 331, 332, 334, 335,
348, 349, 350
voltage source converter, 280
voluntary system operator model, 158,
160, 161, 162, 163
WAN, 134, 139, 358, 431, 449
wavelet transform, 336, 337, 339, 350
weather forecasting, 399
Web browser, 426,429
Web page, xiv, 417, 419, 422, 423, 424,
425, 427, 431, 432, 433, 434, 436,
437, 440, 441, 442, 444, 451, 452,
458
design, 423
dynamic, 417,437
static, 417, 433, 437, 442, 451
Web server, 426, 427, 429, 434, 437,
451, 454, 458
web space, 420, 437
website, 75, 114

468
wheeling, 7, 54, 57, 58, 74, 188, 189,
198, 246, 247, 249, 254, 257
wheeling costing, 246, 249
wholesale competition, 2
wide-scale power outages, 114
willingness-to-pay, 59, 178, 198, 199,
200, 201, 208, 215
wind, 5, 9, 12, 13, 14, 17, 20, 21, 22, 26,
45, 49, 53, 147, 259, 280, 330, 349

Index
wireless connection, 417
WAP phone, 424, 425
wires business, 174
XLPE cables, 313
zonal price, 71, 166, 167, 168, 188, 189
zonal pricing, 90, 166, 167, 188