ECONOMIC OPERATION OF

POWER SYSTEMS
KUNDAN DUTTA
DEPARTMENT OF ELECTRICAL ENGINEERING
IOE,PULCHOK CAMPUS
 Characteristics of power generation Unit
• Fig 1 consists of a single boiler that generates steam to drive
a single turbine-generator set.
• The unit characteristic is a graphical representation that
shows the relationship between the gross input to the plant
(in terms of dollars per hour or tons of coal per hour or
millions of cubic feet of gas per hour, or any other units)
versus *Net output ( in terms of MW or KW or other unit ).
- H = Btu per hour heat input to the unit ( M Btu/h)
- F = Fuel cost times H is the rupees per hour (R/h) input
to the unit of fuel.
• Minimum load limitations are generally caused by the fuel
consumption stability and inherent steam generator design
constraints.
• Turbine do not have any inherent overload capability, so that
generator don't exceed much beyond 5% of the
manufacturer’s stated valve-wide-open capability.

*The net output of the plant is the electrical power output available to the electrical utility system.
 Economic Load Dispatch
• Economic Dispatch forms the important analysis functions dealing with Operation in an EMS. Economic
Dispatch (ED) is defined as the process of allocating generation levels to the generating units in the mix, so
that the system load is supplied entirely and most economically.
• Economic Dispatch is the process of determination of the output power generated by the unit or units to
supply the specified load in a manner that will minimize the total cost of fuel. Each generating unit has a
unique production cost defined by its fuel cost coefficients (a, b, c of a+bp+cp2). Economic dispatch is also
defined as the coordination of the production costs of all the participating units in supplying the total load.
The purpose of economic dispatch is to determine the optimal power generation of the units participating in
supplying the load
• The objective is to calculate, for a single period of time, the output power of every generating unit so that all
the demands are satisfied at the minimum generation cost (including fuel cost, plus emission cost, plus
operation/maintenance cost, plus network loss cost) , while satisfying different technical constraints of the
network and the generators.
• System load demand
• Downward-and-upward regulating margin requirements of the system
Contd…
• Lower and upper economic limits of each generating unit
• Maximum ramping rate of each generating unit
• Unit's restricted operating zones (up to three restricted zones per unit)
• Emission allowance of the system (SO2, CO2, NOx)
• Network security constraints (maximum mW power flows of transmission lines)
• Supporting multiple I/O curves (incremental Heat Rate) and emission cost curves for different fuels.
Generator models
• The electric power system representation for Economic Dispatch consists of models for the generating units
and can also include models for the transmission system. The generation model represents the cost of
producing electricity as a function of power generated and the generation capability of each unit. We can
specify it as:
1 Unit Cost Function
𝐾
…………………………………………. (eqn 1)
𝐶= 𝐶𝑖 (𝑃𝐺𝑖
𝑖=1
Where, Ci = production cost
PGi = production power
2. Unit Capacity limits
𝑃𝐺𝑖,min ≤ 𝑃𝐺𝑖 ≤ 𝑃𝐺𝑖,max ……………………………………(eqn2)
3. System constraints (Demand – Supply balance)
𝐾

𝑃𝐺𝑖 = 𝑃𝐷
………………………………………..(eqn3)
𝑖=1
Optimization & formulating problem
• The above stated equations 1, 2 & 3 clearly reflects that it is multivariable optimization problem with equality
constraints with boundary conditions. There are multiple ways of solving this optimization problem.
. We will use Lagrangian Method to solve this optimization problem.
𝐾

𝐶= 𝐶𝑖 (𝑃𝐺𝑖 is the given objective function for optimization

𝑖=1
𝐾
Subjected to: 𝑃𝐺𝑖 = 𝑃𝐷
𝑖=1

Lagrangian function.
𝐾 𝐾

L(PGi) = 𝐶𝑖 (𝑃𝐺𝑖 +λ[ 𝑃𝐺𝑖 − 𝑃𝐷 ] …………………(eqn4)

𝑖=1 𝑖=1

Where, λ = Lagrangian multiplier known as incremental rate of the unit.

Contd…
• Condition for optimization
𝜕𝐿(𝑃𝐺𝑖
= 0 ……………………………………….(eq 5)
n
𝜕𝑃𝐺𝑖
𝜕𝐶𝑖
or − 𝜆(1 − 0 = 0
𝜕𝑃𝐺𝑖
𝜕𝐶𝑖
=𝜆 ………………………………………………..(eqn6) This is known as co-ordination equation.
𝜕𝑃𝐺𝑖

𝜕𝐶1 𝜕𝐶 𝜕𝐶 𝜕𝐶
= 𝜕𝑃 2 = 𝜕𝑃 3 =. . . . . . . . . . . = 𝜕𝑃 𝑘 = λ
𝜕𝑃𝐺1 𝐺2 𝐺3 𝐺𝑘
For optimum economy every generating unit should
be operated at the same incremental rate
Contd…
• The condition for economic loading among several generating units within a plant is represented by a
graphical interpretation as shown in the figure

Conclusion
The condition for economic loading among several
generating units can be found by preparing operating
schedules for different values of λ. The operating Schedule
that gives the time sum of the outputs of the generating units
equal to the total load on the system will be the operating
schedule distribution of load among the generating units for
the given load.
With the increase in load, the individual loading will increase.
One or several units will attain its rated capacity (approx.
PGi,max) earlier than other units. After this happens the
remaining units should be operated in incremental rate cost.
Lambda-Iteration Method
1. Assume suitable value of λ ( select λ greater than y-intercept)
2. Calculate various generations Pgi (i=1,2,3……k).
𝜕𝐶𝑖 i =1,2,……..k
=𝜆
𝜕𝑃𝐺𝑖

3. 𝑃𝐺𝑖 − 𝑃𝐷 ˂ ε Stop iteration

𝑖=1

4. If 𝑃𝐺𝑖 ˂ 𝑃𝐷 increase the value of λ else

𝑖=1
Goto step no 2
𝐾
5. Decrease the value of λ
𝑃𝐺𝑖 ˃ 𝑃𝐷
𝑖=1