POWER SYSTEM-II

UNIT: 6
Economic operation of steam Power plant: Introduction; Methods of loading turbo -
generators, Thermal plant cost modelling, Input - output curves, incremental cost, cost
curve: Linear and quadratic, method of Lagrangion multiplier, Equality constraints and
inequality constraints, transmission loss, optimum generator allocation with and without
transmission loss; Penalty factors, iterative procedure to solve co ordination equation.
Advantages of combined operation with hydro plants, Introduction with a schematic
diagram having cost and load curve.
• The efficient and optimum economic operation and planning of
electric power generation systems have always occupied an important
position in the electric power industry.
• An idea of the magnitude of the amounts of money under consideration can be obtained
by considering the annual operating expenses of a large utility for purchasing fuel.
Assume the following parameters for a moderately large system:
• Annual peak load: 10,000 MW
• Annual load factor: 60%
• Average annual heat rate for converting fuel to electric energy: 10,500 Btu/kWh
• Average fuel cost: $3.00 per million Btu (MBtu), corresponding to oil priced at 18$/bbl
With these assumptions, the total annual fuel cost for this system is as follows:
• Annual energy produced: 107 kW × 8760 h/year × 0.60 = 5.256 × 1010 kWh
• Annual fuel consumption: 10, 500 Btu/kWh × 5.256 × 1010 kWh = 55.188 × 1013 Btu
• Annual fuel cost: 55.188 × 1013 Btu × 3 × 10− 6 $/Btu = $1.66 billion
• To put this cost in perspective, it represents a direct requirement for revenues
from the average customer of this system of 3.15 cents/kWh just to recover
the expense for fuel.
• A savings in the operation of this system of a small percent represents a
significant reduction in operating cost as well as in the quantities of fuel
consumed. It is no wonder that this area has warranted a great deal of
attention from engineers through the years.
• Periodic changes in basic fuel price levels serve to accentuate the problem
and increase its economic significance. Inflation also causes problems in
developing and presenting methods, techniques, and examples of the
economic operation of electric power generating systems.
DEREGULATION: VERTICAL TO
HORIZONTAL
In a vertically integrated power system, all functions—generation, transmission, and
distribution—are typically managed by a single utility company. This model is often
regulated, meaning that the company controls the entire chain from electricity
production to delivery to consumers.
In the deregulated, or horizontal, model, these functions are separated or
"unbundled" into different entities that can operate independently. This leads to a
competitive environment where:
✓Generation companies focus on producing electricity.
✓Transmission companies are responsible for transporting
electricity over long distances.
✓Distribution companies handle the local delivery to consumers.
•Additionally, there may be retailers that sell electricity directly to consumers.
This structure allows for competition in generation and retail, potentially leading to
more efficient pricing and innovation due to market forces.
 PROBLEMS: NEW AND OLD

The classic problem is the economic dispatch of fossil-fired generation

systems to achieve minimum operating cost. This problem area has
taken on a subtle twist as the public has become increasingly concerned
with environmental matters, so “economic dispatch” now includes the
dispatch of systems to minimize pollutants and conserve various forms
of fuel, as well as to achieve minimum costs.
In addition, there is a need to expand the limited economic optimization
problem to incorporate constraints on system operation to ensure the
“security” of the system, thereby preventing the collapse of the system
due to unforeseen conditions.
In the context of a power system, "security" typically encompasses the following four
key aspects:
1.Adequacy: Ensuring there is sufficient generation and transmission capacity to meet
current and future electricity demand under normal and peak conditions.
2.Reliability: Maintaining consistent power supply and ensuring that the power
system can operate without interruptions. This includes the ability to handle
unexpected equipment failures or sudden changes in load demand.
3.Stability: The power system’s ability to return to normal operation after a
disturbance (such as a fault or sudden load change) without loss of synchronism or
system failure.
4.Resilience: The system's capacity to recover from significant disruptions (like natural
disasters) and to adapt to changing conditions while continuing to deliver power to
consumers.
These four points together contribute to the overall security of a power system,
ensuring a steady, reliable, and robust supply of electricity.
The hydrothermal coordination problem is
another optimum operating problem area that has
received a great deal of attention.
The hydrothermal coordination problem involves optimizing the operation of hydroelectric
power plants in conjunction with thermal power plants to meet electricity demand
efficiently. It can be broken down into four key points:
1.Optimization of Power Generation: The main objective is to determine the optimal
generation schedule for both hydro and thermal plants, ensuring that the combined output
meets the electricity demand at minimum cost while considering the constraints of each
power plant type.
2.Hydroelectric Constraints: Hydroelectric plants are subject to water availability, reservoir
storage levels, and environmental regulations. These constraints impact the scheduling and
output of hydro plants, making their operation more dynamic compared to thermal plants.
3.Thermal Plant Considerations: Thermal plants, while more stable, have their own
constraints, such as fuel cost, operational limits, and minimum load conditions. They
generally provide base-load power, but their flexibility is less than that of hydro plants.
4.Economic Dispatch: The problem aims to balance the operation of the two types of
plants in an economically efficient way, considering fuel costs, water usage, and plant
efficiencies, while also accounting for real-time system requirements like load forecasting,
transmission losses, and reserve margins.
The increasing installation of pumped-storage hydroelectric plants in the developed
countries and a great deal of interest in energy storage systems.

These storage systems involve another difficult aspect of the optimum economic operating
problem.

Methods are available for solving coordination of hydroelectric, thermal, and pumped-
storage electric systems.

However, closely associated with this economic dispatch problem is the problem of the
proper commitment of an array of units out of a total array of units to serve the expected
load demands in an “optimal” manner.
• Loading methods for turbo-generators in a power system vary depending
on operational requirements, efficiency targets, and system stability. Here
are some common methods and strategies used:
1. Base Load Operation
Turbo-generators are often loaded to provide a steady, continuous output
to meet the base demand of the power system.
In base load operation:
o The generator runs at or near full load for extended periods.
o It’s typically used for power plants with low operating costs, such as
coal, nuclear, or large hydro plants.
o Turbo-generators in base load tend to have high efficiency and stability.
In power systems, base load operation refers to the continuous operation of power plants at
or near full capacity to meet the minimum, steady demand. These plants typically include
coal, nuclear, and large hydro due to their efficiency and stability.

❖Continuous Operation: Runs consistently at or near full capacity to meet constant,

minimum demand.
❖High Efficiency: Typically uses cost-effective plants like coal, nuclear, and hydro.
❖Stable Output: Provides reliable power with minimal fluctuations.
❖Low Operating Costs: Economical for prolonged, uninterrupted energy supply.
1. Peak Load Operation
Some turbo-generators are designated to meet peak demand, which is
the highest demand period in the system.
o These generators operate only during periods of peak demand, often
with rapid start-up capabilities.
o They might run for shorter durations, depending on the load curve.
o Gas turbines are commonly used in this mode due to their quick start-
up and shut-down capabilities.
In power systems, peak load operation involves generating units that operate only during
times of highest electricity demand, known as peak periods. These plants, often gas turbines
or hydro units, provide quick-start capabilities to meet short-term demand spikes, ensuring
grid stability despite higher operational costs and lower efficiency than base load plants.

❖High-Demand Operation: Activated only during peak periods of electricity demand.

❖Quick-Start Capability: Uses generators like gas turbines or hydro plants that can start
rapidly.
❖Grid Stability: Helps maintain system reliability during demand spikes.
❖Higher Costs: Operates with higher operational costs and lower efficiency than base load
plants.
1. Load Following (Intermediate Load)
Load-following generators adjust their output to match fluctuations in
demand.
o Turbo-generators operate between base load and peak load, with
variable output as demand changes.
o This method allows for balancing daily or hourly load variations.
o Load-following is suitable for flexible plants that can handle frequent
adjustments.
In a power system, load following (or intermediate load) refers to the operation of power plants that adjust their output to
meet the fluctuating demand for electricity throughout the day. These plants sit between base load plants (which run
continuously at or near full capacity) and peaking plants (which operate only during high demand periods). Load-following
plants are typically used to cover the intermediate portion of the daily demand curve that varies between the base and peak
load levels.
Key Characteristics of Load Following:
1. Flexible Output Adjustment: Load-following plants can adjust their power output over a wide range, allowing them to
increase or decrease generation as demand changes throughout the day.
2. Daily Operation: These plants often start up and shut down once or more each day, in response to predictable load
variations (e.g., the morning rise and evening peak).
3. Medium Efficiency and Cost: Load-following plants usually have moderate efficiency and operational costs, higher than
base load plants but lower than peaking plants.
Role of Load Following in the Power System:
• Balancing Demand and Supply: By adjusting output to match changing demand, load-following plants help maintain
system balance and stability.
• Supporting Renewable Integration: With the increased use of renewable energy sources (like wind and solar) that are
variable, load-following plants provide flexibility to compensate for the fluctuations in renewable output.
• Frequency and Voltage Regulation: Load-following can aid in frequency and voltage regulation by responding to demand
changes that affect these parameters.
Types of Load-Following Plants:
1. Combined Cycle Gas Turbines (CCGT): These plants are often used for load following due to their flexibility and
relatively quick response time.
2. Hydroelectric Plants: In regions with suitable water resources, hydro plants provide effective load-following
capabilities.
3. Some Coal Plants: While traditionally used as base load, some coal plants with advanced control systems may perform
load-following, although less efficiently than gas or hydro.
Operation of Load Following:
Load-following plants may adjust output through:
• Automatic Generation Control (AGC): Enables the plant to adjust output in real-time based on grid frequency and
demand changes.
• Manual Scheduling: In less automated systems, operators adjust the plant’s output manually, typically following a set
schedule based on expected demand.
Overall, load following is essential for accommodating the daily load variations and ensuring grid stability, especially as
more variable renewable energy sources are integrated into the grid.
1. Spinning Reserve
Turbo-generators can operate in standby mode or at partial load to provide spinning
reserves.
o These units can quickly increase their output to stabilize the grid if there’s a sudden
loss of generation or a surge in demand.
o Spinning reserve ensures system reliability and can prevent blackouts.
In a power system, spinning reserve refers to the extra generating capacity that is online and can be accessed immediately to
respond to sudden increases in demand or unexpected generation outages. This reserve is typically maintained by generators
that are already connected to the grid and operating at a reduced output, allowing them to quickly ramp up power production
when needed.
Key Features of Spinning Reserve:
1. Immediate Availability: Spinning reserve must be able to respond almost instantly (usually within seconds to a few
minutes) to balance supply and demand.
2. Stability and Reliability: It helps maintain grid frequency and prevents voltage drops, ensuring system stability in case of
sudden disturbances.
3. Online Generators: Spinning reserve typically involves partially loaded or fast-responding generators, such as hydroelectric
or gas turbines, which can quickly increase their output.
Purposes of Spinning Reserve:
• Emergency Response: To cover unexpected loss of a generator or a significant load increase.
• Frequency Regulation: By providing fast response, spinning reserve helps maintain the grid frequency within acceptable
limits.
• System Resilience: It improves the grid’s resilience by ensuring continuous supply without the need for load shedding or
blackouts.
Types of Spinning Reserve:
1. Primary Reserve: Responds within seconds to help stabilize frequency immediately after a disturbance.
2. Secondary Reserve: Acts within minutes to further stabilize and restore the frequency.
Overall, spinning reserve is a critical aspect of power system operation, enabling a flexible and secure response to
unplanned changes in demand or generation.
Thermal plant cost modelling
Thermal power plant cost modeling involves estimating the capital, operational, and
maintenance costs associated with plant construction and operation.
Capital costs include investments in infrastructure, equipment, and installation, while
operating costs cover fuel, labor, and consumables.
Maintenance costs account for routine inspections, repairs, and component replacements.

Additionally, the fuel cost is a significant factor, with variations based on fuel type (coal, gas,
etc.) and market prices.
Fixed costs (e.g., depreciation, insurance) and variable costs (e.g., fuel consumption,
emissions control) are also considered. Accurate cost modeling helps in performance
optimization, profitability analysis, and price forecasting.
CHARACTERISTICS OF STEAM UNITS
Fig: Boiler–turbine–generator unit.
Fig: Input–output curve of a steam turbine generator.
Fig: Incremental heat (cost) rate characteristic.
Fig: Net heat rate characteristic of a steam turbine generator unit.
Fig: Approximate representations of the incremental heat rate curve.
COST CURVE
The cost curve in a thermal power plant represents the relationship between
electricity generation output and the cost of production.

It typically includes fixed costs, such as capital investment and maintenance,

which remain constant regardless of output, and variable costs, primarily
driven by fuel consumption, which increase with higher generation.

The curve generally starts high due to initial setup costs, then rises more
gradually as output increases, reflecting the increasing fuel and operational
expenses.
The marginal cost curve shows the additional cost of producing one more
unit of power, often steepening at higher outputs due to inefficiencies and
fuel constraints.
A cost curve for a thermal power plant typically shows the relationship between the total
cost (or average cost) and the level of output (or generated power). The key cost components
in a thermal power plant are fixed costs (like capital investment and maintenance) and
variable costs (like fuel, labor, and operations).
Here is a general representation of the cost curve for a thermal power plant:
1. Fixed Costs: These are costs that do not change with the level of output. For a thermal
power plant, this includes the costs of plant construction, long-term maintenance, and
management overhead.
2. Variable Costs: These costs change with the level of power generation, primarily including
fuel costs (coal, gas, or oil), and the costs related to labor, water, and consumables.
3. Total Cost (TC): This is the sum of fixed and variable costs.
4. Average Cost (AC): This is the total cost divided by the level of output, showing how cost
per unit of electricity changes with the output.
5. Marginal Cost (MC): This curve represents the cost of producing one additional unit of
electricity, typically closely tied to the variable costs, as the fixed costs have already been
incurred.
In thermal power plants, cost curves are used to analyze the relationship between the
level of output and the associated costs.
1. Linear Cost Curve: A linear cost curve assumes that the cost increases at a constant
rate with an increase in output. This implies constant marginal costs (MC). The total
cost (TC) is expressed as:
TC=FC+VC×Q
where TC is the total cost, FC is the fixed cost (independent of output), VC is the
variable cost per unit of output, and Q is the quantity of electricity produced. The
marginal cost (MC) is constant and equal to the variable cost:
MC=d(TC)/dQ=VC
The linear cost curve suggests no economies of scale, implying constant efficiency in
cost management as output increases.
1. Quadratic Cost Curve: In reality, costs often increase at a non-constant rate as production
scales, particularly in thermal plants where factors like fuel consumption and wear and
tear can become less efficient at higher output. A quadratic cost curve accounts for this by
including a squared term for output:
TC=FC+aQ+bQ2
where a and b are constants, and Q is the quantity of output. The marginal cost (MC) is given
by the derivative of the total cost:
MC=d(TC)/dQ=a+2bQ
This indicates increasing marginal costs as output rises, reflecting decreasing efficiency or
economies of scale.