Restructured Power System
Restructured Power System
Restructured Power System
Mid Term-2
Ans :- Congestion, as used in deregulation phrase, generally refers to a transmission line hitting
its limit. The ability of interconnected transmission networks to reliably transfer electric power
may be limited by the physical and electrical characteristics of the systems including any or more
of the following:
Thermal Limits: Thermal limits establish the maximum amount of electrical current that a
transmission line or electrical facility can conduct over a specified time period before it sustains
permanent damage by overheating.
Voltage Limits: System voltages and changes in voltages must be maintained within the range
of acceptable minimum and maximum limits. The lower voltage limits determine the maximum
amount of electric power that can be transferred.
Stability Limits: The transmission network must be capable of surviving disturbances through
the transient and dynamic time periods (from milliseconds to several minutes, respectively).
Immediately following a system disturbance, generators begin to oscillate relative to each other,
causing fluctuations in system frequency, line loadings, and system voltages. For the system to
be stable, the oscillations must diminish as the electric system attains a new stable operating
point. The line loadings prior to the disturbance should be at such a level that its tripping does
not cause system-wide dynamic instability.
Ans :- The network congestion essentially leads to out-of-merit dispatch. The main results of
these can be stated as follows:
Market Inefficiency: Market efficiency, in the short term, refers to a market outcome that
maximizes the sum of the producer surplus and consumer surplus, which is generally known as
social welfare. With respect to generation, market efficiency will result when the most cost-
effective generation resources are used to serve the load. The difference in social welfare
between a perfect market and a real market is a measure of the efficiency of the real market. The
effect of transmission congestion is to create market inefficiency.
Market Power: If the generator can successfully increase its profits by strategic bidding or by
any means other than lowering its costs, it is said to have market power. Imagine a two area
system with cheaper generation in area 1 and relatively costlier generation in area 2. Buyers in
both the areas would prefer the generation in area 1 and eventually the tie-lines between the two
areas would start operating at full capacity such that no further power transfer from area 1 to 2 is
possible. The sellers in area 2 are then said to possess market power. By exercising market
power, these sellers can charge higher price to buyers if the loads are inelastic. Thus, congestion
may lead to market power which ultimately results in market inefficiency.
Ques. 3. Describe the Desired Features of Congestion Management Schemes.
Ans:-
Non - market Methods Market Based Methods
1 Type of 1 Explicit
contract Auctioning of
network
capacity
2 First come 2 Nodal pricing
first serve (OPF based
congestion
management)
3 Pro - rata 3 Zonal pricing
methods
4 Curtailment 4 Price area
congestion
management
The congestion management schemes are strongly coupled with the overall market design.
Efficient allocation of scarce transmission capacity to the desired participants of the market is
one of the main objectives of congestion management schemes. Thus, distinction among them
can be made based on market based congestion management methods and other methods.
Market-based solutions to congestion are deemed fairer as they contribute better to economic
efficiency than other methods. Methods other than market based make use of some criteria to
allocate the transmission capacity.
Out of several congestion management techniques listed above, following are exclusively termed
as congestion alleviation methods:
1. Re-dispatch
2. Counter Trade
3. Curtailment
Ans: - Locational marginal pricing is a centralized process of market clearing, where it is the
responsibility of the Independent System Operator (ISO) to determine the power dispatch
schedules as well as the energy prices. Unlike system uniform pricing (i.e., unconstrained
bidding) approach, network limits have to be considered while scheduling generators, loads and
bilateral transactions. Since network constraints are considered in the market clearing process, it
is not possible to determine the market equilibrium simply by the intersection of a cumulative
supply curve and a cumulative demand curve. Instead, the power dispatch schedules and energy
prices are calculated through an optimization approach consisting of network and power flow
related constraints.
An LMP market may be a single settlement or two settlement market. In case of a single
settlement market, scheduling is done only in day-ahead, whereas both day-ahead and real-time
scheduling is done for a two settlement market. A real-time market is essentially within the hour
market. The real-time scheduling and settlement are further done in different time blocks. For
example, in PJM, real-time scheduling is done in 5- minute time blocks. The real-time
scheduling starts with the state-estimation solution at the beginning of each time block. The
state-estimation solution gives the actual injection by each generator and actual withdrawal by
each load at the current point of time. It should be noted that the above time frames of settlement
are not strict and change depending upon the market needs.
Ques. 6. Explain the Types of Ancillary Services and start Capability service.
2. Load Following: This service refers to load-generation balance towards end of a scheduling
period.
3. Energy Imbalance: The use of generation to meet the hour-to-hour and daily variations in
load.
4. Operating Reserve (Spinning): The provision of unloaded generating capacity that is
synchronized to the grid and can immediately respond to correct for generation-load imbalances,
caused by generation and /or transmission outages and that is fully available for several minutes.
5. Operating Reserve (Supplemental): The provision of generating capacity and curtailable
load to correct for generation-load imbalances, caused by generation and /or transmission
outages, and that is fully available for several minutes. However, unlike spinning reserves,
supplemental reserve is not required to respond immediately.
6. Backup Supply: This service consists of supply guarantee contracted by generators with other
generators or with electrical systems, to ensure they are able to supply their consumers in case of
scheduled or unscheduled unavailability.
7. System Control: This activity can be compared with the functions of the brain in the human
body. System control is all about control area operator functions that schedule generation and
transactions and control generation in real time to maintain generation load balance.
8. Dynamic Scheduling: It includes real-time metering, tele-metering along with computer
software and hardware to virtually transfer some or all of generator’s output or a customer’s load
from one control area to another.
9. Reactive Power and Voltage Control Support: The injection or absorption of reactive
power from generators or capacitors to maintain system voltages within required ranges.
10. Real Power Transmission Losses: This service is necessary to compensate for the
difference existing between energy supplied to the network by the generator and the energy taken
from the network by the consumer.
11. Network Stability Services from Generation Sources: Maintenance and use of special
equipment (e.g., PSS, dynamic braking resistances) to maintain secure transmission system.
12. System Black Start Capability: The ability of generating unit to proceed from a shutdown
condition to an operating condition without assistance from the grid and then to energize the grid
to help other units start after a blackout occurs.
Ques. 8. Writes down short note on the Mandatory provision of ancillary services.
Ans:- In this approach, before a participant is connected to the grid, it has to make sure that it is
in a position to provide the ancillary services mandated by the system operator. The system
operator lays down the rules to be followed by the participants. The rules for the connection to
the grid can be:
The generator should be equipped with droop characteristics of 5%. This helps in
frequency regulation.
The generator should be able to operate in a power factor range of 0.85 lead to 0.9 lag. It
should be equipped with Automatic Voltage Regulator (AVR).
These types of compulsions act more or less like the rules existing in the vertically integrated
utility. This will ensure that enough resources will be available towards system security. This
approach is a simpler one; however, it does not lead to economic efficiency. Some of the
problems associated with this approach are as follows-
1. There is a chance that more than sufficient sources are likely to be developed, which is
not desired. For example, each and every generating unit need not take part in the
frequency regulation process.
2. The participants may think that they are denied the profits of the competitive market just
because they are forced to supply services at an additional cost.
3. The approach does not leave room for technological or commercial innovation.
4. Some units may be unable to provide some of the services. For example, nuclear power
plants can not be subjected to rapid changes in its output. Hence, same set of rules can
not be applied to all the participants.
Ques. 9. What do you understand by Loss of Opportunity Cost.
Figure 6.9 describes the calculation of the lost opportunity cost for a generator which decreases
its real power output to provide more reactive power service. PRT is the Long-term Based
Marginal Price (LBMP), and f(P) is the bid curve of the generator supplying reactive power
support. D1 and D2 are the original and new dispatch points respectively while B1 and B2 are
the corresponding bid prices at D1 and D2. This sum is divided by the annual forecasted
transmission usage for the year as projected by the NYISO including the system load, exports
and power wheeling. NYISO calculates this payment hourly. Transmission customers engaged in
power wheeling or exporting, pay the NYISO a charge, which is equal to the value determined as
mentioned above, multiplied by the wheeled energy at that hour.
Ques. 10. International Comparison with Voltage Control, Frequency and power factor on
the following countries
(a) England and Wales
(b) Nordic Countries
(c) California, USA