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Abstract—The Interruptible Loads (ILs) which participate in solutions within its disposal to address the power situation of
the contingency reserve market can mitigate the reserve shortage Mindanao. The recent installations of Coal-fired power plants
during emergency situations. In this paper, a model on the day- have helped shift the supply deficiency to generation adequacy
ahead scheduling for the ILs participants in the contingency
reserve spot market is introduced. The Distribution Utility [2]. As reported in the 2017 power situation report in
implements this model to determine the interruption schedule of Mindanao, the Mindanao grid has been stable for the first half
the ILs considering system operating reserves. It is shown that of the year compared to previous years [3]. However, the
the interruptible load program helps to reduce the system peak occurrence of shortages is still to be expected and therefore,
demand and raise the level of system reserve during the peak must not be taken lightly.
hours and in cases of tight power situations. This paper aims to
assess the implementation of the Interruptible Load Program
(ILP) in addressing the Peak demand. An Optimal day-ahead In previous years, when generation fails to meet the
interruption scheduling for the participating Interruptible Load increasing demand, the rise of peak demand is expected. Peak
customers is obtained. The interruption scheduling is a demand can occur in a short span of time within a day.
noncontiguous and non-convex optimization problem for which Contingency reserves are expected to be utilized in order to
simulation-based algorithm like Binary Particle Swarm mitigate this sudden spike in load demand. In Mindanao, the
Optimization is used. The simulation is based on a 9-bus IEEE
test system. MATLAB is used for the simulation. The ILP has
DOE has employed diesel peaking plants like Mapalad Diesel
been shown to be an effective contingency reserve by Distribution Power Plant, EEI Diesel Peaking Power Plant, and Iligan
Utility in dealing with the reduction of the system peak demand. Diesel Power Plant [4]. Likewise, DOE also initiated the
The simulated Interruptible Load Program was able to reduce program called Interruptible Load Program (ILP).
the system peak demand by 160.48 MWh. It has also reduced the
Total Generation Cost by PHP 1,448,284.03 and average The ILP is a demand-side management solution
Electricity Rates by 0.4%. The results obtained satisfy the goals
of ILP. Furthermore, the ILP modeling within the electricity
established by the Department of Energy (DOE) and the
market was achieved. Energy Regulatory Commission (ERC) to help mitigate the
energy supply deficiency in the power grid until new
Keywords—component; formatting; style; styling; insert (key capacities become available [5]. Any consumer connected to
words) the grid who also has a back-up generation unit is a potential
ILP participant [6]. ILP participants will be compensated,
I. INTRODUCTION should they participate during periods of energy supply
deficiency. ILPs are effective in mitigating situations of tight
Due to the increasing demand for electrical energy, energy supply.
Philippines has been facing shortages in its supply. Prior to
2017, notable cases of these shortages have occurred. The As of 2017, Wholesale Electricity Spot Market (WESM)
power situation outlook from the National Grid Corporation of has been integrated in Mindanao. The competition of
the Philippines (NGCP) showed a 49-MW reserve deficit in generation in the electricity market is to be expected. As
Mindanao based on computed data of 10:00 AM, April 14, Distribution Utility (DU) entered bilateral contracts, electricity
2016 [1]. The Mindanao grid is expected to have 1,420 MW of rates increased with the utilization of peaking plants.
available supply against a 1,469- MW system peak demand. Addressing peak demands with higher electricity rates to
The occurrence of El Niño affected the operation of Hydro customers is not economically efficient. Moreover, resorting
Power Plants in Mindanao which caused a supply deficiency to Load Management such as rotational blackouts may not be
in both the Agus and Pulangi Hydro Power Plants [2]. a good practice.
In light of the series of energy shortages of energy in
Mindanao, Department of Energy (DOE) has come up with
1
This paper aims to assess the implementation of the ILP in evaluates its individual fitness. A moving particle cannot be
addressing the Peak demand. An Optimal interruption understood as moving without speed, so in order for a particle
scheduling for the participating Interruptible Load (IL) to find the best position to achieve, it needs its velocity to do
customers is obtained. The interruption scheduling is a so. If the best position achieved by each particle can be termed
𝑝
noncontiguous and non-convex optimization problem for as particle best (𝑥𝑏 ) and the best position of the best
which simulation-based algorithms like Binary Particle Swarm 𝑔
performing particle can be termed as global best (𝑥𝑏 ), then
Optimization is used. The simulation is based on a 9-bus IEEE the position and velocity of each particle can be updated by
test system. MATLAB is used for the simulation. every iterative learning approach which can be achieved by
these equations:
II. MODELING AND IMPLEMENTATION OF ILP
𝑝 𝑔
𝑣𝑖𝑘+1 = 𝑤𝑣𝑖𝑘 + 𝑐1 𝑟𝑎𝑛𝑑(𝑥𝑏 − 𝑥𝑖𝑘 ) + 𝑐2 𝑟𝑎𝑛𝑑(𝑥𝑏 − 𝑥𝑖𝑘 )
The primary purpose of the study is to optimize a daily
schedule of possible ventures of DU to the ILP to reduce the
peak power level. Specifically, the study aims the following: 𝑥𝑖𝑘+1 = 𝑥𝑖𝑘 + 𝑣𝑖𝑘
a. Characterize the ILs to be included in the ILP. Where 𝑣𝑖𝑘 – Velocity of particle 𝑖 at iteration 𝑘, 𝑤 is the
b. Develop a load demand profile based on WESM data. Inertia coefficient, 𝑐1 , 𝑐2 are the acceleration coefficient for
c. Design an overall system model considering the ILP particle and global best respectively. While rand is any
model, test system constraints, compensation cost, random number generated between 0 and 1. The particles will
day-ahead scheduling, and perform a system continue to update their position until a maximum number of
simulation through Optimal Power Flow (OPF) using iterations are achieved or a stopping criterion is satisfied. The
MATPOWER. final solution for a problem is the global best or the global best
d. Develop a MATLAB program for the optimization once the iterative process converges.
problem towards Binary Particle Swarm
implementation given participating Interruptible PSO uses continuous values for every particle. For load
Load data, DU contracted capacity, and power scheduling problems, solutions for each schedule works as
system constraints. on/off or binaries, which, by means, can be understood as a
e. Evaluate the results from ILP implementation. discreet solution. Hence, a discreet solution space is needed
for load scheduling problems. A discrete binary version of
Several published studies present the ILP model, and in PSO is devised to solve for such problems with discreet
which, certain aspects were taken. Those related works solutions space [13].
provide relevant overview on the different literature and
modeling techniques that both useful and significant. The For Binary Particle Swarm Optimization (BPSO), same
works of Yu et al., [7] presented the modeling and assessment velocity function is used. However, the velocity is only limited
of interruptible-load programs in the electricity markets. to a certain range, +𝑉𝑚𝑎𝑥 and -𝑉𝑚𝑖𝑛. Finally, the velocity
Another work of Qi et. al [8] studies the incentive interruptible can then be mapped to [0, 1] using the sigmoid function
load contract with risk preference of power companies. defined as,
Electricity market risk management using forward contracts
with bilateral options, conducted by Chung et al. [9]. 𝟏
∅𝒊 (𝒕 + 𝟏) =
Fahrioglu et al.,[10] provide a model of interruptible load 𝟏+ 𝒆−𝒗𝒊(𝒏,𝒕+𝟏)
contract for minimum compensation cost. Wang et al., also
conducted a research that provides the optimal purchase model The position can then be updated by comparing sigmoid to
of an interruptible load contract [11]. any random number. 𝑥𝑖 = 1 If 𝑟𝑎𝑛𝑑 < ∅𝒊 (𝒕), 𝑥𝑖 = 0
otherwise.
III. PARTICLE SWARM OPTIMIZATION
IV. OPTIMAL POWER FLOW
Particle Swarm Optimization (PSO) is an optimization
method based on population that aims to solve continuous In this paper, the objective of the OPF problem is to
non-linear function [12]. The method was designed from the identify the minimum generation cost of generator units that
behaviors of a group of birds that seems to flock towards one meet equality and inequality constraints. The equality
common destination. The solutions to the problem can be constraints represent conventional power flow equations and
understood as a swarm of particles. For a given problem, the the inequality constraints represent the system operating and
particles are initially spread to a certain position throughout a control limits.
solution space in a random manner. As the optimization
progresses to find a solution for a problem, the particles move Mathematically, the OPF problem is formulated as a
around the solution space while being simultaneously nonlinear optimization problem with equality and inequality
influenced by the best position achieved by each particle and constraints, as shown below:
the best position of the best performing particle. A fitness
function determines the performance of a particle and 𝑂𝑏𝑗𝑒𝑐𝑡𝑖𝑣𝑒 𝐹𝑢𝑛𝑐𝑡𝑖𝑜𝑛 ∶ 𝑓(𝑥, 𝑢)
2
𝐸𝑞𝑢𝑎𝑙𝑖𝑡𝑦 𝐶𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑡𝑠 ∶ 𝑔(𝑥, 𝑢) = 0 Across the sea, ILP had been widely accepted as an
𝐼𝑛𝑒𝑞𝑢𝑎𝑙𝑖𝑡𝑦 𝐶𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑡𝑠 ∶ ℎ(𝑥, 𝑢) ≤ 0 ancillary service in services that have been referred to as such.
According to the North American Electric Reliability
A. Objective Function Corporation (NERC) in (2007), interruptible load
management (ILM) is recognized as one of the contingency
Input-Output load characteristics of generator units exhibit reserve services. Similarly, the Australian electricity market
a nonlinear, convex structure. The objective function of OPF recognizes "load shedding", both as a frequency control
is presented in equation. service and a network loading control ancillary service [15].
𝑁𝐺
𝐹= ∑ 2
(𝑎𝑖 𝑃𝐺𝑖 + 𝑏𝑖 𝑃𝐺𝑖 + 𝑐𝑖 ) According to the amended resolution, the de-loading
𝑖=1 compensation shall be computed by multiplying the "de-
loaded kWh" less registered kWh in the meter. If any, during
B. Limit Conditions periods when the DU requests a participating customer (PC) to
Load Flow Equations de-load, multiplied by the incremental de-loading cost per
kWh.
𝑁
𝑃𝐺𝑖 − 𝑃𝐿𝑖 − 𝑉𝑖 ∑ 𝑉𝑗 (𝐺𝑖𝑗 𝑐𝑜𝑠𝜃𝑖𝐽 + 𝐵𝑖𝑗 𝑠𝑖𝑛𝜃𝑖𝑗 ) = 0 𝐷𝑙𝐶 = 𝑀𝐶 + (𝑖𝐷𝑅 𝑥 𝐶𝐿)
𝑗=1
𝑁
𝑖𝐷𝑅 = (𝐺𝐶𝑜𝐹 ∗ 𝐹𝐶𝑅) − 𝑃𝐶𝐴𝑅
𝑄𝐺𝑖 − 𝑄𝐿𝑖 − 𝑉𝑖 ∑ 𝑉𝑗 (𝐺𝑖𝑗 𝑐𝑜𝑠𝜃𝑖𝐽 + 𝐵𝑖𝑗 𝑠𝑖𝑛𝜃𝑖𝑗 ) = 0
𝑗=1 Where:
𝑇𝑚𝑖𝑛
𝑇𝑖 𝑎𝑛𝑑 𝑇𝑇𝑖
𝑚𝑎𝑥
is the minimum and maximum level
control of the transformer 𝑖𝑡ℎ respectively.
3
Fig. 1 shows the compensation price rate for the over a minimum duration before another curtailment. For
participating customer. Most participating ILPs are within the simplicity, there is a requirement for maximum curtailment
1MW mark and above which gives them about Php 6.3/kWh period (MAX OFF TIME) and minimum duration between
of rate price. curtailments (MIN ON TIME).
8000
As Interruptible Load Program (ILP) is utilized during
6000
Peak hours or as a contingency reserve in emergency
situations, Distribution Utility (DU) executes a day ahead 4000
scheduling optimization among the participating customers. In 2000
a day ahead scheduling, hourly reserves are determined based
on the Yellow alert level designed by ERC. Interruptible 0
Loads' (IL) initial incentives were formulated by the 1 3 5 7 9 11 13 15 17 19 21 23
compensation cost designed by ERC. A new incentive Time (hr.)
function introduced in this research modifies the compensation
cost based on available reserves.
Fig. 3 WESM Load Forecast
A. Interruptible Load Program Characterization
C. System Model
The ILP is incorporated in a day-ahead electricity market.
This enables the ILP participants to plan for their individual
curtailment capacity as well as the individual compensations. 1. Interruptible Load Program Model
Initial compensations are obtained based on the compensation
cost designed by ERC.
4
Fig. 4 depicts the interruptible load participants entering generation factors. With the application of Optimal Power
the market and how it aids the network system to mitigate Flow (OPF) in this study, the optimal generation cost is
peak load through the interruption of its own load and to obtained. Generation Cost is then used in the latter part of this
deviate from blackouts. study, particularly in the Optimization. The case scenario for
the distribution system is manifested by the 9-bus IEEE test
2. Interruptible Load Program Activation system.
4. Compensation Model
5
The participants made their bidding interruptible load in Table I: Sample Interruption Schedule
kWh in the spot market, the final bidding price is sensitive to
the available reserved in the system, and the bidding function Time (hr.)
is defined as follows:
PC 1 2 3 4 5 6 7 h
𝑅
(1− ) 1 0 0 0 1 0 0 0 0
𝛽𝑖 = 𝛽0𝑖 𝑒 𝑅𝐸𝑆𝑄
2 0 0 0 0 1 0 1 0
Where 𝛽𝑖 is the compensation price of customer i. 𝛽0𝑖 is l 0 0 1 0 0 0 1 0
the initial price of interruption of customer i, R is the available
reserve in the entire system and R is equal to RESQ when R >
RESQ and 𝑅𝐸𝑆𝑄 is the minimum reserve required for the 6. System Simulation
entire system.
In the simulation, a day-a-head is executed and the load is
forecasted using the 9-bus test system and load flow curve
Start
together with the estimated generation charge using OPF on an
hourly basis. Each hour of OPF in the test system is executed
using MATLAB optimum power flow solver
MATPOWER6.0.
Gather Data
After the initial simulation of the forecast load, the
simulation proceeds to the ILP and simulate each hour with
Binary Particle Swarm Optimization to schedule the ILP’s
Compute initial price until termination criteria is achieved. Multiple runs were
simulated in the second phase during which each best results
were recorded for further analysis. In these runs, we iterated
50th time and multiple run optimizations of 250.
6
number between 0 to 1. The particles are then placed Generator Cost Function:
randomly in a solution space at the start of the simulation.
This is achieved by a random number generator with a 2
𝐶𝐺𝑡 = ∑ 𝐶𝑖 (𝑃𝑔𝑖 ) = ∑ 𝑎𝑖 𝑃𝑔𝑖 + 𝑏𝑖 𝑃𝑔𝑖 + 𝑐𝑖
uniform distribution probability.
𝑖 𝑖
Where:
Start
𝐶𝐺𝑡 : Generation Cost of time t
𝑖: Generator Unit
Initialize 𝐶𝑖 : Rate of Generation of Generator Unit i
𝑃𝑔𝑖 : Real Power Demand for Generator Unit i
𝑎𝑖 : Coefficients of an 1st order polynomial cost function
Generate first 𝑏𝑖 Coefficients of an 2nd order polynomial cost function
Swarm 𝑐𝑖 Coefficients of a last order polynomial cost function
7
5. Objective Function 7. Total Load
The Objective function is what the researchers intend to To calculate the load profile after the interruption schedule
minimize to obtain the optimized results. OPF is used, and for simplicity only real power will serve as
the area of concern.
𝑃𝐿 = 𝑙𝑜𝑎𝑑𝑡 + 𝑙𝑜𝑠𝑠𝑡
𝑃𝐺 − 𝑃𝐿 = 0
Gather Data
where:
𝑓1 (𝑥𝑖 ) = ∑(𝑙𝑜𝑎𝑑(𝑥𝑖 )𝑡 − 𝐵𝑎𝑠𝑒𝐿𝑜𝑎𝑑(𝑥𝑖 )𝑡 ) The total operating cost is the cost within a 24 hour
𝑡∈𝜀 interval of all the generating plant and interruptible load
participating customers’ compensation cost.
𝑓2 (𝑥𝑖 ) = ∑(𝑏𝑝𝑖(𝑡) + 𝑙𝑝𝑖(𝑡) + 𝑟𝑖(𝑡) )
𝑡∈𝜀
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 = ∑[𝐶𝐺𝑡 + 𝐼𝐿𝐶𝑡 ]
𝑓(𝑥𝑖 ) = 𝑓1 (𝑥𝑖 ) + 𝑓2 (𝑥𝑖 ) 𝑡
9. Average Rate
Return fitness 𝑓(𝑥𝑖 )
This is the sum of the total cost of generator procurement
and total ILP compensation per hour over the total load
connected in the system at the hour t as shown below.
End
𝐶𝐺𝑡 + 𝐼𝐿𝐶𝑡
𝑟𝑎𝑡𝑒(𝑡) =
Fig. 9 Fitness Function 𝑙𝑜𝑎𝑑𝑡
E. Assessment
1. Validity
6. Delta Function
The validity of the study is assessed through the
comparison between case scenarios. The case scenarios, -
The Delta function calculates the difference between the
namely the case where ILP is activated during peak hours and
base load profile and the ILP load profile on peak hours.
the case when purchase of peaking plants in the spot market is
employed during peak hours. The assessment includes the
𝑓1 (𝑥𝑖 ) = ∑(𝑙𝑜𝑎𝑑𝑡 − 𝐵𝑎𝑠𝑒𝐿𝑜𝑎𝑑𝑡 ) comparison between the reductions of the electricity rates and
𝑡∈𝜀 generation costs as well the peak reduction. Moreover, the
𝜀 = { 𝑃𝑒𝑎𝑘 𝐻𝑜𝑢𝑟𝑠 } validity is also assessed based on the yellow alert level of the
8
total reserves. Once the total generation approaches the yellow Table III: Interruptible Load Characteristics
state, the Interruptible Load curtailments become desirable.
2. Case Study
9
The simulation of ILP was executed through the 9-bus E. Optimization
IEEE test system. The goal is to incorporate this study in a real
life scenario where ILs’ are connected in the load buses. Table VI: Optimization Runs
During peak hours, ILP is activated instead of peaking plant
procurements. Therefore, ILs’ are disconnected from its load
bus. As a result, the demand during peak hours is reduced. Total Generation Cost (Mil
250 Runs
OPF is then applied to obtain the generation cost which is used Php)
for the cost function in the optimization. Fig. 10 displayed the Average 82.661
9-bus IEEE test system where IL is connected in its designated Standard Deviation 110.447
load bus. Best 82.411
Worst 82.968
C. ILP Activation Levels Simulation time (sec) 82,769
F. Evaluation
a. Total Generation
10
plant assuming the 580 MW yellow alert level as indication b. Average Rate of Electricity
for peaking plant procurement.
The simulation of ILP aims to reduce the average
It can be observed that the forecasted generation in case 1 electricity rates. In page 58 Fig. 13, the results for the average
and case 2 were 12,967.83 and 12807.35 MWh respectively electricity rates in a within 24-hour time slot are displayed. It
which is a difference of 160.48 MWh where case 2 is less than is notable that the implementation of ILP yields reduction in
case 1, hence indicating a reduced generation procurement. average rate of electricity from PHP 6.45 in case 1 to PHP
The average and maximum generation procurement is also 6.43 in case 2. The numerical data for the average rate of
reduced in case 2 which indicates a reduced peak demand in electricity for case 1 and case 2 can be found in Table VIII.
the system.
Table VIII: Power Generation Rate
The numerical data for the total generation in case 1 and
case 2 can be found in Table VII.
7.4
Case 1
7.2 Case 2
7
Rate (PHP/kWh)
6.8
6.6
6.4
6.2
6
5.8
5.6
5.4
1 3 5 7 9 11 13 15 17 19 21 23
Time (hr.)
11
c. Hourly Generation Cost
The numerical data for the generation cost for case 1 and The Interruptible Load Program (ILP) was shown to be
case 2 as well as the total compensation cost for ILP can be effective contingency reserve by Distribution Utility in dealing
found in Table IX. with the reduction of system peak demand. The results
obtained satisfy the goals of ILP. The ILP modeling within the
electricity market was achieved. It was shown that the ILP
helps to reduce the system peak demand and raise the level of
system reserve during peak hours and in cases of tight power
Table IX: Total Cost of the Program situations.
12
The researchers also recommend the have a continuation Electricity Market,” no. April, pp. 0–8, 2015.
of the study with data based on the Mindanao Gird System and [16] K.-Y. Huang, H.-C. Chin, and Y.-C. Huang, “A Model
Economy. Reference Adaptive Control Strategy for Interruptible
Load Management,” IEEE Trans. Power Syst., vol. 19,
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