1

Chapter 1

INTRODUCTION

Electric utilities around the world are confronted with

restructuring, deregulation and privatization. Transmission networks

tend to be more heavily loaded in the environment of open

transmission access [1, 2], and transmission service becomes one of

the most critical elements. Power system transfer capability indicates

the maximum inter area power transfers that can be increased

without compromising power system security [3]. For both planning

and operation of the bulk power market, accurately identifying this

capability provides vital information. It is important for planners to

know the system bottlenecks and for system operators not to

implement transfers more than the calculated transfer capability.

Estimates of transfer capabilities must be updated regularly as to

avoid the combined effect of power transfers from causing an undue

risk of system overloads, equipment damage or blackouts. However,

being overly conservative over the estimates of transfer capability will

unnecessarily limit the power transfers and would prove to be costly

and an inefficient use of the network. Due to deregulation, power

transfers are increasing both in quantity and in variety. However, this

is necessary as the market for electric power becomes more

competitive.
 2

1.1. DEREGULATED POWER SYSTEM

The usage of electricity has been growing tremendously in the

upward trend with the modernization of the society. In order to

achieve better service and reliable operation, the power industry in

many countries had undergone significant changes and was reforming

into a free market, which is also known as “Deregulation”. With the

introduction of deregulation [1] consumers have the option to choose

the suppliers of electricity and factors such as prices and reliability

become more important.

For the past several years, each power electric utility is operated as

a single entity, termed as vertically integrated structure, entrusted

with task of generation, transmission and distribution of electric

power. From few years the restructuring of the utility into separate

generation, transmission and distribution companies are introduced.

Several independent power producers with qualifying facilities produce

electricity and the energy is traded on a real time basis to meet the

consumer requirements.

1.1.1. SPOT MARKET

A centralized economic dispatch is employed to determine the

market clearing price, the power generation and demand levels of all

units and consumers. The competition in the electricity market must

encourage the investments for the new technology and more

productive electrical source. The participants in deregulated power

market are Independent Power Producer (IPP), Distribution Company.

 3

Bids are submitted for supplying loads because all participants in the

power system effect each other. These bids are been received by ISO.

ISO analyzes the power system situation, develop strategies and define

transactions among participants by looking for the minimum price

that satisfies the power demand [7].

According to many system operations each power production

participant defines its own resource scheduling and sends a bid to the

ISO for supplying other loads. These participants submit hourly offers

that contain quantity and price, and they receive dispatch

instructions from the ISO for each 5-min period. ISO determines

transaction between participants according to their bids and power

demand [8-11]. Transaction payments are defined as the product of

the spot price and power transactions for each participant.

In a real competitive power market, no participant can absolutely

control the power system operation. It means that the participants

cannot significantly affect the existing spot prices by adjusting their

bids but mostly match the spot price with their marginal costs.

Therefore the minimum power system operation cost and the

maximum participant benefit are reached at the same time in a real

competitive power market.

Electricity market can be either traded through retail or wholesale

trading or even through contracts. This thesis emphasizes only on the

wholesale trading of the spot market. All wholesale electricity must be

traded through the spot market; generators are paid for the electricity
 4

they sell to the pool while retailers and wholesale end- users pay for

the electricity they use from the pool. It is a process whereby prices for

electricity are set and then settled.

In this spot market, generating companies can choose whether to

commit their generators and make it available for dispatch. Once they

have decided to commit, they must submit a bid to electricity market

for the opportunity to run their generators. A bid is the “sell offer”

submitted for a particular amount of electricity selling at a particular

price. Generating companies can change their bids or submit re-bids

according to a set of bidding rules. After receiving all the bids,

electricity market will then selects the required generators and when

to run these generators at different times of the day, based on the

most cost-efficient supply solution to meet specific demand. This

ensures electricity is supplied at the lowest possible price. As

mentioned above, the spot market allows instantaneous matching of

supply against demand. A maximum spot price is also set under the

code, which is the maximum price, that generating companies can

bid.

1.2. OPTIMAL POWER FLOW (OPF) ANALYSIS

The Optimal Power Flow (OPF) problem is a classical nonlinear

nonconvex optimization problem that minimizes the power generation

costs and transmission loss in a power network subject to physical

constraints governed by Kirchhoff’s and Ohm’s law [96–98].

 5

Optimal power flow (OPF) is an important tool for power system

operators both in planning and operating stages. The main task is to

adjust some control variables (e.g. active power generation from power

plants, generator terminal voltage, reactive power compensation and

on-load tap changers of transformers) in a power system, so that the

best operating point can be achieved. With regard to ‘best’, it means

this operating point can minimize or maximize certain objective

function (e.g. power generation cost or active power loss in the target

system to be minimized or social welfare from the target system to be

maximized etc.) while satisfying certain constraints (e.g. bus voltage

magnitude limits and generator generation limits).

Newton’s method is well-known in the area of power systems. It

has been the standard solution algorithm for the power flow problem

for decades [16]. A good reference for the theory of Newton’s method is

a book by Luenberger [17], which describes Newton’s method as well

as its quadratic convergence properties. This thesis will only cover the

process of applying Newton’s method to a minimization problem such

as the OPF. Newton’s method is a very powerful solution algorithm

because of its rapid convergence near the solution.

In OPF, when the load is light, the cheapest generators are always

the ones chosen to run first. As the load increases, more and more

expensive generators will then be brought in. Thus, the operating cost

plays a very important role in the solution of OPF [18], [19].

 6

1.2.1. Optimal Power Flow Problem

OPF is formulated mathematically as a general constrained

optimization problem.

Minimize a function F (u,x) (1.1)

Subject to

h (u,x) = 0 (1.2)

and g (u,x) ≥0 (1.3)

Where, ‘u’ is the set of controllable quantities in the system and ‘x’

is the set of dependent variables. F (u,x) is an objective function which

is scalar. Equality constraints (1.2) are derived from conventional

power balance equation. Inequality constraints (1.3) are the limits on

control variables ‘u’ and the operating limit on the other variables of

the system.

The OPF problem can be defined by specifying the following five

attributes

1. Objective function

2. The controls

3. The dependent variables

4. The equality constraints and

5. The inequality constraints

The next topic discusses the concepts of the power transfer

capability and the purpose of computation of transfer capability in the

power system.
 7

1.3. POWER TRANSFER CAPABILITY CONCEPTS

The market is fierce in power generation and supply. Population

increases and so does the demand for electrical power. It is this

increasing demand that pushes us to find new ways of not only

producing more efficient power, but also to look into ways of supplying

it efficiently. This is where transfer capability [3] steps in. Transfer

capability is an indication of how much power a power system

network can supply without compromising on system security.

Operators use transfer capability as judgment on the performance of a

system. The concept of transfer capability is useful for several

reasons. A system, which can accommodate large inter-area transfers,

is generally more robust and flexible than a system with limited ability

to accommodate inter-area transfers. Thus, transfer capability can be

used as a rough indicator of relative system security.

1.3.1. TRANSFER CAPABILITY:

Transfer capability [20, 21] is the measure of the ability of

interconnected electric systems to reliably move or transfer power

from one area to another over all transmission lines (or paths)

between those areas under specified system conditions. The units of

transfer capability are in terms of electric power, generally expressed

in megawatts (MW). Transfer capability is also directional in nature.

That is, the transfer capability from Area A to Area B is not generally

equal to the transfer capability from Area B to Area A. Transfer

capability can be explained with Total Transfer Capability (TTC) and

 8

the Available Transfer Capability (ATC) are the two most generally

used parameters. These are explained in detail below:

1. Total Transfer Capability (TTC) is defined as the amount of

electric power that can be transferred over the interconnected

transmission network in a reliable manner while meeting all of a

specific set of defined pre- and post-contingency system conditions.

(OR)

Total Transfer Capability (TTC) is the largest value of electric power

that can be transferred over the interconnected transmission network

in a reliable manner without violation of specified constraints [20].

TTC is the key component for calculating Available Transfer Capability

(ATC).

2. Available transfer capability (ATC) is the measure of the transfer

capability remaining in the physical transmission network for future

commercial activity over and above already committed uses [20, 22-

24].

Mathematically, ATC is defined as the total transfer capability

(TTC) less the transmission reliability margin (TRM), less the sum of

existing transmission commitments and the capacity benefit margin

(CBM) as shown in Figure 1.2. In other words, ATC can be expressed

as:

ATC = TTC – TRM – CBM (if there is no existing transmission

commitment)
 9

Transmission Reliability
Margin (TRM)

Capacity Benefit Margin (CBM)

Available Transfer
Capability (ATC)

Total Transfer
Capability (TTC) Existing Transfer
Commitments (ETC)

Figure 1.1 Basic definition of ATC

3. Transmission Reliability Margin (TRM) is defined as that amount

of transmission transfer capability necessary to ensure that the

interconnected transmission network is secure under a reasonable

range of uncertainties in system conditions.

4. Capacity Benefit Margin (CBM) is defined as that amount of

transmission transfer capability reserved by load serving entities to

ensure access to generation from interconnected systems to meet

generation reliability requirements.

Individual systems, power pools, sub-regions, and regions should

identify their TRM and CBM procedures used to establish such

transmission transfer capability margins as necessary. The specific

methodologies for determining and identifying necessary margins may

vary among regions, sub-regions, power pools, individual systems,

and load serving entities.

 10

1.3.2. PURPOSE OF TRANSFER CAPABILITY COMPUTATIONS

The concept of transfer capability is useful for several reasons:

• A system with large inter-area transfers is generally more robust

and flexible than a system with limited inter-area transfers. Thus,

transfer capability can be used as a rough indicator of relative

system security.

• Transfer capability is also useful for comparing the relative merits

of planned transmission improvements.

• Transfer capability can be used as a substitute for more specific

circuit modeling to capture the gross effects of multi-area

commerce and provides an indication of the amount of inexpensive

power likely to be available to generation deficient or high-cost

regions.

• Transfer capability computations useful to perform power

transactions and transmission reservations.

1.3.3. TRANSFER CAPABILITY AND POWER SYSTEM SECURITY:

Transfer capability computations play a role in both the planning

and operation of the power system with regard to system security [3,

25]. One of the benefits of an interconnected power system is the

potential for increased reliability. Loss of generation in one area can

be replaced by another area in interconnected system. This makes it

more reliable than that of an individual system. Transfer capability

computations play its part by helping to evaluate the ability of the

 11

interconnected system to remain secure for generation and

transmission outages.

Every day, different situations and circumstances occur that

require the operators to determine prevention or mitigation actions or

verify that the existing operating guides will perform effectively. Based

on the energy schedules or typical patterns, the transfer capability for

a feasible transfer can be determined. In this situation, transfer

capability can be taken as the security margin for the system. The

distance between the present state and a state of violating a security

criterion, is the amount of transfer that initiates a security violation.

1.3.4. TRANSFER CAPABILITY AND MARKET FORECASTING:

Among market participants and regulators there is great interest in

anticipating the behavior of the electricity markets. However, the

detailed operation of the market and network in just one instance

requires an enormous quantity of data and this data is not all readily

accessible. Given that market participants often want to simulate the

market over many thousands of instances introducing variation in

everything from network conditions to fuel prices, simplification of the

electrical network is frequently a first step.

The determination of transfer capability for every application

typically requires that the transfer capability for a fixed, specific set of

assumptions be computed, and then recomputed for some prescribed

changes in those assumptions. The purpose of changing the

assumptions is to determine the transfer capability most appropriate

 12

for the application at hand. In general, the longer the time frame for

the analysis, the greater variety of conditions and assumptions must

be considered. Such conditions include changing load patterns,

generator commitments and network configurations. However, it is to

be noted that, although a shorter time frame only requires limited

assumptions, it requires greater urgency and accuracy.

All the definitions are relating for the determination of transfer

capability is reviewed in this chapter of “Transfer Capability

Calculation”. At this point, it is also necessary to know about the

contingency analysis and its importance in the power system security

which is described in the following section.

1.4. CONTINGENCY ANALYSIS

One of the most important factors in the operation of a power

system is the desire to maintain system security. System security

involves practices designed to keep the system operating when

components fail. For example, a generating unit may have to be taken

off-line because of auxiliary equipment failure. By maintaining proper

amounts of spinning reverse, the remaining units on the system can

make up the deficit without too low frequency drop or need to shed

any load. Similarly, a transmission line may be damaged by a storm

and taken out by automatic relaying. If, in committing and

dispatching generation, proper regard for transmission flows is

maintained, the remaining transmission lines can take the increased

loading and still remain within limit. Because the specific times at
 13

which initiating events that cause components to fail are

unpredictable, so the system must be operated at all times in such a

way that the system will not be left in a dangerous condition would

any credible initiating event occur. Since power system equipment is

designed to be operated within certain limits, most pieces of

equipment are protected by automatic devices that can cause

equipment to be switched out of the system if these limits are violated.

If any event occurs on a system that leaves it opening with limits

violated, the event may be followed by a series of cascading failures

continues, the entire system or large parts of it may completely

collapse. This is usually referred to as a system blackout [26].

An example of the type of event sequence that can cause a

blackout might start with a single line being opened due to an

insulation failure; the remaining transmission circuits in the system

will take up the flow that was flowing on the now-opened line. If one of

the remaining lines is now heavily loaded, it may open due to relay

action, thereby causing even more load on the remaining lines. This

type of process is often termed a cascading outage. Most of the power

systems are operated such that any single initial failure event will not

leave other components heavily overloaded, specifically to avoid

cascading failures.

There exist many methods for contingency evaluation of bulk power

systems [26, 31-36]. Among the most accurate methods are AC load

flow and Power Supply Capacity (PSC) calculations [31, 32 and 36].
 14

The concept of the PSC method is to determine the maximum amount

of the power that each bus can deliver subject to generation,

transmission and equipment rating. These two approaches involve a

huge number of AC load flow calculations to determine line flow and

bus voltage for each contingency. Another deficiency is that

contingency analysis always uses fast converging load flow algorithms

such as Fast Decoupled Newton-Raphson (FDNR) algorithm that has

poor convergence characteristics when dealing with heavily loaded

power systems. There are many other techniques that simplify

contingency analysis. DC load flow is one of the most popular

methods that are used to reduce the computational efforts required by

the standard AC power flow to an acceptable level [32, 36]. However, it

can only provide a good estimate of the MW flow under each

contingency. Therefore, voltage violation and line overload due to

excessive VAR flow can’t be detected using this method. Another

technique uses sensitivity analysis and distribution factor [26] to

simplify the contingency analysis for system security.

1.5. TRANSMISSION LOADING RELIEF (TLR)

The North American Electric Reliability Council (NERC) has

developed an operating manual that reduces a multitude of issues

associated with electric power system operations [20, 37]. This

manual includes Transmission Loading Relief (TLR) procedure for

dealing with issues that focus primarily on the relationship between

interchange transactions and security violations. Since interchange

 15

transactions are typically created through the use of ATC information,

there should be a very close relationship between the need for TLR

and the accuracy and use of ATC information.

Quantifying the capabilities of a transmission system for

interchange has been of interest for over 25 years [46-48]. These

earlier methods focused primarily on Simultaneous Interchange

Capability (SIC) rather than wheeling capabilities. The application of

SIC was more of an emergency capability in case local generation was

lost and massive import was required. The terminology of ATC was

created to quantify open access to transmission facilities. As such, it

is used to reserve transmission services needed for economic

transactions between suppliers and consumers. The theoretical

foundations and computational burdens of ATC are essentially

identical to those of SIC.

Transmission Loading Relief (TLR) is a sequence of actions taken

during operations planning or during real time operation to avoid or

remedy security violations associated with the transmission system.

The process starts when a security coordinator identifies a

transmission facility within its security area that is about to, or has

exceeded the operating security limit.

At this point the security coordinator may invoke TLR. This NERC

TLR procedure involves following “levels” [37]:

Level 1: Notify reliability coordinators of potential operating

security limit violations.

 16

Level 2: Hold transfers at present level to prevent operating

security limit violations.

Level 3: (a)Reallocation of transmission service by curtailing

interchange transactions using non-firm point to point

transmission service to allow interchange transactions

using higher priority transmission service.

Level 3: (b)Curtail interchange transactions using non- firm

transmission service arrangements to mitigate an

operating security limit violation.

Level 4: Reconfigure transmission.

Level 5: (a)Reallocation of transmission service by curtailing

interchange transactions using firm point-to-point

transmission service on a pro rata basis to allow

additional interchange transactions using firm point-to-

point transmission service.

Level 5: (b)Curtail interchange transactions using firm point-to-

point transmission service to mitigate an operating

security limits violation.

Level 6: Emergency procedures.

Level 0: TLR concluded.

The development of TLR procedures in response to market changes

provided the transmission and reliability companies with ways of

seeking relief under the uncertainties of the market.

 17

1.6. LITERATURE SURVEY

Deregulation of the power industry was first initiated in United

Kingdom, followed suit in Norway and Australia. The U.S. electricity

industry has reportedly taken the plunge towards deregulation [20].

The Federal Energy Regulatory Commission (FERC), recognizing the

centrality of open transmission to real competition, has mandated that

transmission must be open to all consumers. FERC, in conjunction

with North American Electric Reliability Council (NERC), endorsed the

exchange of transmission service information through Open Access

Same-Time Information System (OASIS) [37]. The electricity grid in

India is a conglomeration of the power systems owned by various

utilities in the state and the central sector [39]. There are five regional

grids namely North, West, East, Northeast and South. First four are

operating in a synchronous mode since 26 August 2006. The Regional

Load Dispatch Centre (RLDC) is the apex body to ensure integrated

operation of the power system in the concerned region while the State

Load Dispatch Centre (SLDC) is the apex body to ensure integrated

operation of the power system in the concerned state [39].

1.6.1. LITERATURE SURVEY ON DEREGUALTION AND MARKET

POWER TRANSACTIONS

The high average prices and high volatility of prices in many

restructured markets for electricity have raised concerns about the

abuse of market power by generators. At the same time, information

 18

about the true cost of generation, that was readily available under

regulation, is no longer disclosed by generators.

C. E. Murillo-Sanchez et al. [40] proposed a procedure for a given

dispatch pattern, to measure the potential for market power for all

generators in a network with constraints on capacity with optimal

nodal prices.

With the dawn of competitive environment, the electric power

system restructuring is becoming a great concern for both electric

utilities and customers. T. K. Abdel-Galil et al. [41], addressed the

definition of deregulated environment, the different mitigation

techniques implemented to improve the system power quality. The

deregulation of power industry will not alter any practical concerns

about the generation and spread of power quality problems along the

power system.

B. S. Gisin et al. [42] discussed some of the complexities involved

in calculating ATC values and sensitivity analysis for the various

factors involved with overall framework based on a linear type of

analysis.

Richard D. Christie et al. [43, 44] have discussed congestion-

management issues in some detail, describing the practice and some

of the analytical background for each of the major techniques now in

use worldwide, analyzing strengths and weaknesses in the

approaches, and exploring future directions and needs connected with

this vital problem.

 19

Dietmar Kuhlmann et al. [45] focused primarily on the operational

aspects of “wholesale transactions” of energy between control areas.

Transmission operators have to deal with a massively increased

number of transmission requests, new requirements of the competitive

electricity market, new types of power-related products (e.g. ancillary

services), evolving regulatory requirements and technical restrictions

of the power system.

The North American Electric Reliability Council (NERC) has

developed an operating manual that reduces a multitude of issues

associated with electric power system operations [11]. This manual

includes TLR procedure for dealing with interchange transactions and

security violations by use of ATC information.

George L. Landgren et al. [46] described about transmission

interchange capability - analysis by computer. A program has been

developed for determining the transmission system interchange

capability and those outages and elements which could limit the

transfer of energy between interconnected power systems will reduce

analysis and time required for computation.

Simultaneous power interchange capability analysis is presented

by G. L. Landgren etal. [47]. A procedure has been developed to

determine the maximum simultaneous power interchange capability

into a company (area) from its neighboring companies using the

optimizing technique of Linear Programming(LP) with generation and

 20

transmission limits and it also identifies the outages and facilities that

limits the transfer.

L.L. Garver et al. [48] discussed about the calculation of maximum

power system loading as a function of the generation and

transmission capacity with use of dc power flow equations.

Stability limited load supply and interchange capability presented

by P. W. Sauer et al. [49]. Traditional load supply and interchange

capabilities represent maximums based on steady state generation,

line flow and voltage constraints. The concept of a Potential Energy

Boundary Surface (PEBS) is utilized to obtain transient energy

stability margins and their sensitivity to load levels.

P. W. Sauer et al. [50] described about ‘on the formulation of power

distribution factors for linear load flow methods’. The main objective is

about to form mathematical model for fast linear load flows used in

contingency analysis, interchange studies and many optimization

schemes often utilize power distribution factors.

Abdullah Urkmez et al. [51] presented a new formula for

determining spot price and a new algorithm for economic dispatch in

deregulated power systems. The proposed algorithm considers price /

power bids, generating / demand balance and generating units’

constraints.

Parviz Doulai et al. [52] discussed a study of short term forecasting

has played a key role in the economic optimization of the electric

energy industry and is essential for power systems planning and

 21

operation. In electric energy markets, accurate short term forecasting

of power demand and spot price is essential for economic operation of

power systems.

Reinhard Madlener et al. [53] discussed about exchange-based spot

market trading of electricity in western Europe, both from a

theoretical and an empirical perspective. In this paper, issues like

dealing with grid constraints, modelling of bidding systems, bidding

strategies, types of auctions, pricing and matching rules, types of spot

markets, trading systems, and the main benefits and success factors

of power exchanges are discussed.

Afzal S. Siddiqui et al. [54] described about, in competitive

electricity markets, the vertically integrated utilities that were

responsible for ensuring system reliability in their own service

territories, or groups of territories, cease to exist. In this paper,

behavior of market participants (generators, retailers, and an ISO) in a

competitive electricity market with reliability requirements, spot

markets for both electricity and ancillary services are modelled.

1.6.2. LITERATURE SURVEY ON OPTIMAL POWER FLOW

ANALYSIS

A first comprehensive survey regarding optimal power dispatch was

given by H.H.Happ [14] and subsequently an IEEE working group [55]

presented bibliography survey of major economic-security functions in

1981. Thereafter in 1985, Carpentier [56] presented a survey and

classified the OPF algorithms based on their solution methodology. In

 22

1990, Chowdhury [57] did a survey on economic dispatch methods. In

1999, J.A.Momoh et al. [58] presented a review of some selected OPF

techniques.

T.S.Chung et al. [59] presented recursive linear programming

based approach for minimizing line losses and finding the optimal

capacitor allocation in a distribution system without using matrix

inversion and showed that saves computational time and memory

space.

E.Lobato et al. [60] proposed LP based OPF for minimization of

transmission losses and generator reactive. The discrete nature of

shunt reactors and capacitors is modeled by integer variables. It

linearizes both the objective function and the constraints in each

iterations and it is better than one which linearizes only objective

function.

F. Lima et al. [61] used mixed integer linear programming to

conduct design study on the combinatorial optimal placement of

Thyristor Controlled Phase Shifter Transformers (TCPSTs) in the large-

scale power systems by use of DC load flow model. Computation time

is significantly lower than those of other published comparable cases.

S.Chen et al. [62] proposed a new algorithm based on Newton-

Raphson (NR) method with sensitivity factors incorporated to solve

emission dispatch in real-time. The Jacobian matrix and the B-

coefficients have been developed in terms of the generalized generation

 23

shift distribution factor. So the penalty factor and the incremental

losses are easily obtained.

K.L.Lo et al. [63] proposed two Newton-like load flow methods, the

fixed Newton method and the modification of the right-hand-side

vector method for line outage simulation that is a part of contingency

analysis, compared with full AC power flow and fast decoupled load

flow methods to check convergence characteristics.

X. Tong et al. [64] presented the semi-smooth Newton-type

algorithms for solving OPF problems with general inequality

constraints and bounded constraints separately. By introducing a

diagonal matrix and the nonlinear complementarily function, number

of variables are less and saves computing cost.

J.A.Momoh [65] presented an extension of basic Kuhn-Tucker

conditions and employing a generalized quadratic-based model for

OPF. The conditions for feasibility, convergence and optimality are

included in the construction of the OPF algorithm. The generalized

algorithm using sensitivity of objective functions with optimal

adjustments in the constraints yields a global optimal solution and

reduces memory and execution time.

D.Pudjianto et al. [66] used LP and NLP based reactive OPF for

allocating (auctioning) reactive power among competing generators in

a deregulated environment. It was concluded that the cost associated

for the system reactive requirement calculated by LP method was

 24

reasonably accurate and NLP offers a faster computation speed and

accuracy for the solution.

1.6.3. LITERATURE SURVEY ON CONTINGENCY ANALYSIS

Contingency evaluation is one of the most important tasks

encountered by planning and operation engineers of bulk power

systems. In planning, contingency analysis is used to examine the

performance of a power in operation; contingency analysis assists

engineers to operate the power system at a secure operating point.

G. C. Ejebe et al. [67] have developed a fast technique for the

automatic ranking and selection of contingency cases for a power

system contingency analysis study. The automatic contingency

selection algorithm represents a refinement of contingency analysis

methodology which will increase the effectiveness of existing

techniques. The fact that the algorithm can provide an ordered list of

contingencies extends the capability of a planning study to find those

combinations of equipment outages which will cause future trouble on

a system.

Peter W. Sauer et al. [68] presented alternative methods to compute

the equilibrium condition immediately following a disturbance to an

electric power system. The first uses the brute force method of simply

integrating the dynamic model until it reaches steady state. The

second uses the straight forward analytical choice of setting all time

derivatives of the dynamic model to zero and solving the remaining

algebraic equations for the equilibrium values of the dynamic states.

 25

The third uses a method that takes advantage of existing commercial

load flow software to perform the major portion of the solution

process. A fourth is the issue of variable frequency.

G. C. Ejebe et al. [69] have described a fast security analysis

technique for voltage security assessment in an energy management

system. The new method identifies the location of buses with potential

voltage problems and thereby defines a voltage-sensitive sub network

for contingency screening. This allows the evaluation of a large

number of contingencies. The efficiency of this method is derived from

the use of a voltage sub network to drastically reduce the number of

bus voltages to be solved to final solution of contingencies.

M. Moghavvemi et al. [70] have described an effective method for

real-time monitoring of system status and thus voltage collapse

prediction. The proposed method investigates each line of the system

through calculating an indicator that varies from 0 (no load condition)

to 1 (maximum permissible loading condition). The basic concept of

maximum power transfer through a line is utilized.

1.6.4. LITERATURE SURVEY ON TRANSFER CAPABILITY AND

AVAILABLE TRANSFER CAPABILITY

In recent years, there has been a rapidly growing interest for power

engineers to formulate and solve the complex transfer capability

problem. With the recent trend towards deregulating power systems

around the world, transfer capability computation emerges as the key

 26

issue to a smoothly running power market with multiple transactions.

TTC is the basic measure for evaluating ATC.

Mohamed Shaaban et al. [71-72] presented the calculation of TTC

through an optimal power flow approach. The objective function is the

total generation and load increase on specific source and sinks nodes.

The thermal limits of transmission lines, voltage bounds of buses, and

upper and lower limits of generator power are considered as well as

load flow equations. The advanced sequential quadratic programming

method is extended for TTC calculation.

Liang Zhao and Ali Abur [73] presented a method, which address

the complexity of solving the DC TTC problem for large multi-area

power systems. The proposed setup is particularly suitable for multi-

area systems, where each area solves its own TTC based on DC Power

Transfer Distribution Factor (DC PTDF) matrix and a single

coordinator compares the results from each area without exchanging

information between areas except only the topology information is

used by the coordinator to generate the DC PTDF matrix.

Ronghai Wang et al. [74] proposed a novel fast computational

method to determine the simultaneous power available transfer

capability in deregulated power market calculations. In this method,

line thermal limits, bus voltage limits and generator reactive power

limits are considered. When combined with the first line contingency

considerations, this method will give the fastest ATC computing and

with less time.

 27

A key concept in the restructuring of the electric power industry is

the ability to accurately and rapidly quantify the capabilities of the

transmission system. Peter W. Sauer [75] presented several concepts

for dealing with the technical challenges of computation of ATC.

S. H. Goh et al. [76-78] presented an optimal power flow based

(OPF-based) approach for transfer capability assessment incorporating

a security index which determines the system security level utilizing

various techniques. Line stability indices are also implemented to

quantify how ‘close’ the system is to the point of static voltage collapse

and to identify the critical lines connecting weak buses in a stressed

system.

Yan Ou et al. [79] have discussed the ATC calculation and have

stated that it is a complicated task, which involves determination of

TTC and two margins, TRM and CBM. Three currently used methods

of TTC determination are presented and besides these methods,

Transfer-based Security Constrained Optimum Power Flow (TSCOPF)

method is proposed as a replacement of conventional Security

Constrained Optimum Power Flow (SCOPF) method, for use in the

deregulation environment.

Much of the experience in computing transfer capabilities concerns

line flow limits and uses DC load flow power system models. However,

in some cases the total transfer capability is limited by voltage

magnitude or voltage collapse and S. Greene et al. [80] mainly

addressed these voltage limits. They have suggested how the

 28

sensitivity of the transfer capability can be computed and used to

estimate the effect on the transfer capability of variations in

parameters such as those describing other transfers, operating

conditions or data.

G. C. Ejebe et al. [81-82] described the features and

implementation of a program for ATC calculations. The resulting

program calculates transfer capabilities which respect transmission

thermal limits, voltage limits, reactive power limits, voltage collapse,

the effects of the transfer through prescribed interfaces and are secure

with respect to a set of critical contingencies with CPF routine based

on a Newton power flow algorithm.

G. Hamoud [83] has described a simple, efficient and practical

method for determining the ATC between any two locations in the

system and the ATCs for selected transmission paths between them.

Application of the method to the IEEE Reliable Test System (RTS)

demonstrates that the ATC of the transmission system is affected by

the generation dispatch, system load level, direction of power flow,

transmission outages, transmission interface limits and the number of

ATCs considered.

Transfer capability measures the maximum power transfer

permissible under certain assumptions. Once a transfer capability has

been computed for one set of assumptions, it is useful to quickly

estimate the effect on the transfer capability of modifying those

assumptions. Scott Greene, M. H. Gravener et al. [84, 85] presented a

 29

computationally efficient formula for the first order sensitivity of the

transfer capability with respect to the variation of any parameters

using DC load flow models. These first order sensitivities can

contribute to the quick update of transfer capabilities when operating

conditions or other transfers change.

Venkataramana Ajjarapu et al. [86] presented a method of finding a

continuation of power flow solutions starting at some base load and

leading to the steady state voltage stability limit (critical point) of the

system. A salient feature of the so-called continuation power flow is

that it remains well-conditioned at and around the critical point. As a

next step in developing this method, nonlinear load models are being

incorporated into the process so that a more accurate assessment of

voltage stability performance can be made.

The computation of TTC is a significant task in the new power

system deregulated environment. Mohamed Shaaban et al. [87]

proposed enhancement of the least cost planning model to include

simultaneous decision making on investment and financing such

investments. It is envisaged that the investment plan in presence of

binding financial constraints may be significantly different compared

to the plan generated by the discounted cash flow model.

TTC is an important index in power markets with large volume of

inters area power exchanges and/or wheeling transactions. Mohamed

Shaaban et al. [88] presented a mathematical programming approach

to calculate the TTC considering reactive power and voltage effects.

 30

The objective function is to maximize the power transmission between

specific generator(s) and load(s) subject to the constraints of load flow

equations and system operation limits.

There is very little theory developed for the calculation of the TRM

in the ATC computation of electric power systems. Peter W. Sauer et

al. [89] proposed and evaluated several different approaches to the

calculation of TRM to account for uncertainty in the operating

conditions. This uncertainty may be in model parameters (line

impedances), load forecast error (P and Q) or other base case data.

1.7. SUMMARY

In this chapter, basic concepts of the deregulation of power system,

market power, optimal power flow analysis, ATC concepts,

contingency analysis, and TLR are discussed. Literature survey on

above mentioned topics is presented.