2004 IEEE Ineratonal Conference on Electric Utility Deregulation, Restructuring and Power Technologies (DRPT2004) April 2004 Hong Kong
The Generation Expansion Planning of the Utility
in a Deregulated Environment
Whei-Min Lin Tung-Sheng Zhan
Abstract — tn this paper, an Improved Genetic Algorithm
GA) is presented to determine the generation expansion
planning of the utility ina deregulated market. The utility
has to take both the IPPs" participation and environment
Impact inco account when a new generation is expanded. The
Co? emission also took inte account, while satisfying all
electrical constraints simultaneously. IGA was conducted by
‘an improved crossover and mutation mechanism with a
‘competition and auto-adjust scheme to avoid prematurity.
‘Tabu Lists with heuristic rues were al employed In the
searching process to enance the performance. Testing
resus shows that IGA can offer an ficient way in
determining the generation expansion planning. Res
offer utes for determining the optimal exp
planning
Index Terms--Iaproved Genetic Algorithm(IGA)~Generstion
Expansion Planning » Co2 emission» Tabe Lists.
+ Introduction
D== the power market creates more
Jcompettion and more trading mechanism for
market players. It moves from the cost-based
‘operation 10 bid-operation [1-2]. In a competitive
clectricity market, all uilites including IPPs want 10
requite the maximizing the profit while meeting the load
‘demand within a prespecified reliability criterion. In order
lo achieve the objective, ulltes will eareflly perform the
generation expansion planning 19 determine the
minimal-cost capacity addition pian. From the viewpoint
of economic efficiency, they will have more selections
either constructing new generating plants all by itself or
purchasing electricity ftom otber uiltes or IPPs, Thus,
generation expansion planning of the uiliies is an
‘important decision-making activity in, 2 competitive
market.
Basically, generating technologies consist of nuclear,
coal, gas, and oil generators {3]. They can be divided into
threetype generator dependent upon generation
characteristics: base-type, middle-type, and peak-type. In
the competitive market, they should arrange under the loxd
WAM, Lin, TS. Zhan aed WC, Hing ae ith the Deparment of
Blctngal Engncring, Nana! Son YalSen University, Kaos,
Thivan he, ROC. emai wmlindscassnaee)
MT. Thay with the Deparment of lecticl ginning
Cheng Sti Univesiy, Kasbsiung, Tuiwan, ROG. (er
emdpstensatate)
0-7803-8237-4)04817.008:2004IEEE on
Ming-Tong Tsay Wen-Cha Hung
‘under the load profile is nuclear, coal, oil, and LNG or gas
generation respectively. All IPPs want to sell electricity as
bbchavior with the price of electricity order. Its clear that
the order for generating technologies from bottom to top
high as possible during the different load profile types.
The criteria are 10 minimize the total cost under
‘operation constraints for different type generators. It is,
important that WHAT generating units should be
constructed or WHEN generating units should come on
Tine aver a planning horizon for themselves profit,
Fossilited electic power plants produce atmospheric
‘emissions dependent upon generation technologies.
Various fuels at various cost base, such as coal, gas, and
oil are used by ulilities IPPs. In recent year, rigid
‘environment regulation [4-6] forces the utilities planners
to consider emission as an important constraint. Although
4 high cost of environment protection is unavoidable, the
utility must make every effort to minimize the annual
‘generation cost, Therefore, the environment is 8 more and
‘more important factor that should be considered in
generation expansion planning,
Generation expansion planning is a non-linear integer
programming problem which can be solved by linear
Programming, non-linear programming, dynamic
programming, and mix-integer programming technolog
with certain simplifcations(7]. Since non-linearity and
discrete nature in generation expansion planning, the
problem becomes more difficult 10 solve. Recently, new
algorithms based on the anificis! intelligence (Al) have
been developed, such as simulated annealing (SA) (8)
Simple genetic algorithm (SGA) [9-11], and expert
systems [12]. The solution stategies proposed by most Al
algorithms need to consider a large solution space
Extensive numerical computation is often requited
‘especially when the load flow technique has to be used,
‘On the other fund, the conventional methods may be
faster; they may diverge or could lead to a local minimum
The generation expansion planning problem can be
formulated as a mixed-integer non-linear optimization
problem, It is difficult to design a quick and optimal
procedure by using only one algorithm. This paper
proposed an improved Genetic Algorithm (IGA), which
takes advantages of GA, and tabu search method [13-14].
Crossover and mulation were combined in IGA, and a
competition mechanism was implemented to automatically
determine the choice of either one. With the advantages of
both heuristic ideals and Al, IGA supercedes the ofiginal
ideals in thresfold: the complicated problem is solvable,
with a better performance than Al, and the more likelihood 2004 IEEE Intemational Conference on Electric Utility Deregulation, Resuucuring and Power Technologies (DRPT2004) April 2004 Hong Kong
to get global optimum than heuristic methods, This paper
focused on the minimization of the cost subjected to the
‘operation constraints and emissions. Numerical examples
‘were also provided to show its effectiveness
Ul Problem formulation
‘The cost of generation expansion can be formulated as a
linear Function that inchides the variable costs and fined
costs of all technologies. When IPPs provide the
electricity for uty the transaction price and volume will
‘be traded in the competitive market. If an IPP provides a
relatively low transaction price under the similar
characteristic of power generation, they will replace the
generation of uty. Thus, the objective isto minimize the
cost, which consist of generation expansion cost and
purchasing electricity from IPPs while satisfying the load
balance and operational constraints. The objective
function can be formulated as
san s=[ i000 ,rb+ £ ant.) (a)
‘The constraints considered are described as follows,
|LPower balance constants
“The constraints state that the power demand from all the
plats must be equal tothe sum ofthe power demand and
the reserve power
Euro .+ fire, = Pe Pa wy
2.Capacty limit consents
‘The capacity of new plant is resained by upper and
lower tris,
(2,
(m=,
Ny
»M)
®
”
ura upc, supa
wor <1PG, <1P6z
3.Bmission CO2 constrains
The emission of each plant should not exceed the
pre-specified value and the total emission ofall plants is
also aver the pre-specified value.
Eurccen,$yrocor, stot _cot ©
uPace2,« imeo2, ©
IPGCo2,, $ LimCo2, a
‘The form of the emission model depends on the
‘emission ype. It is acknowledged that emission is
proportional to the power output of thermal unit. In this
paper, the CO2 emission model is assumed to be @
combination of polynomial and exponential term of the
following form [15]
POCO, =, + IPG, +7, IPG. +9, expsy IPG) (8)
IPCC, = 4, + fy IPG +74 IPG. +128 IPC.) (9)
4. Bargain Condition
{In this paper, we assume that only the purchase price is
bigher than the average generation cost, That is,
703
ana ta tPatho (0)
where
N= The numberof power plant for the uty
IM: The number of the IPPs
rmax, min Upp limit and lower limit ofthe variables
iy ty? The fined cost of power plant forthe wilty/IPP
(NTIKW)
‘bm The variable cost of power plant forthe wilty/IPP
(NTIKWH),
UPG, ? The n-th generation plant of the utility
IPG,,: The introduced generation quantity of m-th IPP
BP. The purchase price for mth ype IPP (NTIKW)
p= Pa ! Peak load and reserve power a aperiod(KW)
UPGCo2 : CO? emission of uility power plant (Ton th)
1PGCo2 : CO2 emission of IPP's plant (Tom /h)
Toal_Co2 : The total imit of CO? emission
LimCo2, : The CO2 emission limit of each IPP
IL > Solution algorithm
GA is a search algorithm based on the mechanism of
nature selection and genetics. To enhance the performance
of GA, an improved GA (IGA) was developed as follows.
3.1 Encoding
The coding scheme can be illustrated in Fig.1, where
each gene indicates a combination of generation power
output. The gene is encoded as a chromosome string
which produced by equation (II). Ifthe GA search is
terminated, the chromosome wil then be decoded.
velop
m CGS
Fig. 1+ Cromesone rig ofthe pene
ral [(r0,-0 ay
where
rat = (06 = = Pom Yo
»
12H : convert decimal to binary
G+ the i-th generation power oulput
POP: the upper limit of i-th generation power output
PG: : the lower limit of -h generation power output
‘it © the number of bit fora gene
3.2 » Fitness function evaluation
The fitness score of each gene is obiained by calculating
the objective function and taking 2)~(10) ito account. IF
fone or more variables violate their limits, the
coresponding chromosome wil be put into the tabu ist to
void generating the same infeasible solution again. 3.3 > Offspring
The offspring are the new chromosomes obtained from
crossover and mutation. Crossover is a structured
recombination operation by exchanging genes of to
parents, Mutation is the occasional random alteration of
genes. An improved crossover and mutation (ICM)
scheme is used in this paper.
3.311 + Simple crossover and mutation scheme (SCM)
‘The crossover process randomly (uniform distribution)
selects two parents to exchange genes with a crossover
ate P. The location of the gene within the chromosome is
called focus, The crossover point is also randomly chosen
from the loci. If one or both offspring is infeasible,
another mate will be chosen again for crossover.
‘The mutation process randomly (uniform distribution)
selects one parent with 2 mutation rate Py. We could
randomly select a locus to multe, If the offspring is
infeasible, another parent will be chosen until a feasible
solution canbe obtained.
3.3.2 » Improved crossover and mutation scheme (ICM)
Crossover generally executes before mutation
throughout the SGA searching process. In SGA, a higher
crossover mite allows the exploration of solution space
around the parent solution. The mutation rate controls the
rate new genes are introduced, and explores new solution
territory. If is too low, the solution might settle ata local
optimum. On the contrary, a high rate could generate 100
‘many possibilities. The offspring lose their resemblance to
the parents; the algorithin won't learn from the past and
could become unstable, Iisa dilemma to choose suitable
crossover and mutation rate for SGA. An improved
crossover and mutation scheme (ICM) is thus proposed
below to avoid such a difficulty,
(Randomly select two parents, and generate oflsprings
by introducing C(g) with
(if rand < C (g) ; use mutation;
(byl and > C (g) use crossover.
where
‘and : the uniform random mimber in (0,1),
(Cthe contol parameter with initial value set co
05, Osc,
2: the current generation number.
‘The offeprings will be generated until all parents are
processed. Fig, 2 shows the initial relationship of
frossover and mutation in ICM. Mutation operation will,
play @ more important role than that in SGA, since
ulation is more capable of exploring new regions. Ifthe
search is very close to the local or global optimum,
rnuiation may need to become dominant, especially in the
absence of the critical good genes in 2 generation. Since
crossover and mutation are both random operators, there is
no telling which one is better of the two. A competition
‘mechanism is thus implemented in the searching process
secording tothe fitness score, IF the best current solution
comes from crossover, there is a more likelihood for
crossover (0 generate’ better offsprings for the next
population, On the contrary, there is a more likelibood for
‘mutation to generate better offsprings. Ifthe best solution
704
2004 IEEE International Conference on Electric Utlty Deregulation, Restrturng and Power Technologies (DRPT2004) April 2004 Hons Kong,
remains the same, the operation of crossover or mutation
reeds fo hold back. The sum of probability of crossover
and mutation is equal to one,
If Fa(-D>Fay(e) comes from crossover, the
control parameter C(g) will derease. We have
ie +) =c@ -& ay
here Ki the regulating factor, and au isthe maximum
generation number. Fig. 3 shows the variation of
probability of crossover.
Fig. 2 + Probability nap of rssver an moni
lg. 3+ Varition of probly of erosover
(il) HF Fag(@-D> Fag(2) comes from mutation, Cletl)
will increase. For” Fay (E—1)> Fon (2), We have
te) +
ce +1
«ay
The variation of probability of mutation is illustrated in
Fig. 4.
lg 4» Variation of peo of usaton
Gv) AF Fig #115 Fn (8), the Control parameter needs
to hold back,
If C@)> Ce)
curry Cie) a
elseif Cig) S Cle-1)
Coe Cony Ke «sy
ingeneral, K,
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