EXPANSION OF TRANSMISSION SYSTEMS IN A DEREGULATED ENVIRONMENT Yong Zheng System Security and Performance Saskatchewan Power Corporation E-mail: Yzheng@saskpower.com Abstract Transmission congestion is an unavoidable consequence of power industry deregulation. Congestion can be relieved through either generation reschedule or transmission system expansion; both resulting in increased operating cost. An optimal generation reschedule approach which is based on AC method is introduced in this paper. The proposed method can be utilized to optimize generation resdispatch scheme in ease of transmission congestion. Expansion of transmission system needs to be considered ifthe cost of generation re-dispatch is greater than the investment ‘cost of expansion. An analysis 10 determine ‘ransmission expansion scheme is also presented in the paper. Keywords: Deregulation: congestion: transmission ‘stem. 1, INTRODUCTION One of the main objectives of deregulation of clectric power industry isto introduce competition in the generation sector. The introduction of competition in electric power market has made power flow controt fseues more complex and difficult than ever before. The scarcity of transmission capacity and a continued emand for power from less expensive sources sometimes lead to transmission system congestion Congestion relief through either generation reschedules, ‘or transmission system expansion becomes an economic issue that requites analyses of the system conditions at present as well asthe conditions that would occur due to ‘owth in future. The research work reported in this peper examines issues related to transmis expansion under deregulation including tra congestion and optimization of generation reschedule, When congestion occurs in a deregulated power system, generation has to be rescheduled to ‘ensure system security. Rescheduling generation and or CCECE 2004 - CCGEL 2004, Niagara Falls, May/mai 2004 0-7803-8253-6/04/$17.00 © 2004 IEEE N. Chowdhury Dept of Electrical Engineering University of Saskatchewan E-mail: mnc960@engr.usask.ca load will cause system operating cost to go up, since not only the generators ordered to increase generation should be paid, but also those generators (or customers) decreasing their outputs (or Toads) must be compensated. ‘An optimal generation reschedule can be utilized to relieve system congestion with the least possible readjustment cost. This readjustment cost, commonly known as congestion fee, must be allocated among customers by employing suitable method [1]. A transmission system should be expanded if the congestion fee is higher than the investment cost of building @ new transmission line to relieve the ‘congestion, 2. AC OPTIMAL GENERATION RE- SCHEDULE APPROACH A proposed method called AC optimal generation reschedule _approsch thet _ includes ‘ransmission loss is introduced in this section. The mathematical model for optimizing the generation reschedule can be described as follows: Mn$c, 82 aujetio: Fan, ar, =0 where Cy = redispatch price submitted by Generator i, AP, = active power variation of Generator i, P= change in transmission loss and n= number of generators Let M denote the line-bus incidence manix. ‘Also, lot Y'be the diagonal matrix with diagonal element Yu = B/UP|U} cos? - 8!) and let AF be the vector of inerements of active power flow trough te ines. Thet, we can write AP in the form ofa matrix as AF = YeMeas = YMer'ap=SeaP (1) - 1943 -where S= YeM*y" and ap /08, a7 /28, [9/28 98/25, an, /a, ap, 8, J ap, /25, 2p, /20, .. ap, /26, Matix $ is the sensviy max of power increments i tansnsion ies for power acne ch node he load demand is fied oly the active ouput of related generators are changed fo rleve the competion, Les “AP = APs ‘Therefore, Equation (1) may be writen AF = Y*M*s AP = Y*M*s'APo = S*4Pg 2) In a system, its ISO will designate a: power plant responsible for compenseting the transmission loss ‘Assume tha his powerplant is at Bus 1. Also assume that transmission” Line le becomes congesed when oiginal generation schedule is exceed. To relieve the fongeston, the output of the Generator at Bus 7 is inorested by AP, and atthe sme time, the output ofthe generator at Bus’ is deceased by AP,_ There willbe a Corresponding change of traamission loss, say AP. This loss increment has to be compensated by the generar at Bus 1. If Syy be the senstivity coetcien Of AF; 10 Generator i, then the power flow variation of Line # becomes AF; = Syy*AP.+ Syo*APy-Si*AP, (3) where AP, = fOr, [OP ~AP, Pa AP, [BP PROP, ‘The clement AFyij) of the power flow ‘variation matrix AF; represents the power flow variation due to an increase of AP, MW at generation Bus i and a decrease of AP, MW at generation Bus j. Replace the clement that wal eause the congestion in Line become ‘more severe with zeros I thre are several transmission lines overioaded at the same time, one ean form their corresponding power flow. ariation matrices respectively by Keeping those elements which will not increase the flow of the already congested lines and lewing others be replaced with zeros, Corresponding incremental cost ACi(y) can be expressed a ACMij) = CAP, + CAP, G"APy o From the incremental cost matrix AC, one ean obtain the most economical way 10 zeleve the congestion in Line k The new power vector of the system becomes: Pee P+ AP, o where, kis the mumber of iterations. Iterative calculations will continue until the congestion disappears, AA simple system (1) as shown in Figure 1 is considered to examine the approach mentioned above with a numerical example. Three transactions are considered for this 6-bus system, The magnitudes of the ‘transactions and the ine flow limits are also indicated in the figure. Transactions Tl and T2 are scheduled to supply the load at Node 6, and transaction T3 is, scheduled to supply the load at Node 4. In this system, assume that all lines have the same resistance of 0.02 pau and reactance of 0.1 pu The voltages at Nodes 1, 2, 3 and 5 are all 1,05 p.u. The power faciors of Loads 4 and 6 are 0.9. Voltage grade of the system is 138 KV. Base MVA is 100 MVA. Also, assume that there is @ {generator at Bus 3 to compensate the transmission loss. The price for loss compensation is $40/MWb, aiasawy aasMw) TH cassomwy oMw remy Figure 1. A simple system with thee transactions. ‘The system is operated and controlled by an ISO. In order to relieve possible congestion, the ‘generators are required to submit their re-dispatch prices to the ISO. The generators’ re-dispatch prices are shown in Figure 2. Note that, as indicated inthe Figure, the price curves have usually two segments, one for increasing, ‘and the ether for backing dowa the generation ftom the desired operating point Pras) regs) egy Figure 2. Generation re-dispatch bid prices. Newton-Raphson power flow analysis is used 10 obtain the intial power flow results. ‘The power flows through the transmission lines are shown in Table 1 ~ 1944 -‘Table 1. Original ative power flows Line Power Flow ip eerie |e aw) 1 T 2 29.45 2 r 3 T0405 3 r 5 28849 4 2 3 7429) 3 3 4 92.06 6 3 6 92.06 It can be noticed that Lines 2 and 4 are ‘overloaded by 14.05 MW and 14.29 MW respectively. ‘An optimal generation re-dispetch should be found by the ISO to relieve the congestions in Line 2 and Line 4 A recdispatch schedule is obtained by utlizing the ‘proposed AC method with # AP, of 1 MW. The optimal recdispatch schedule is achieved after 15 iterations. The final results of re-dispatch for this simple system are that. Generator 2 drops 15 MW, Generator 5 drops 1SMW. and Generator 4 increases’ 30 MW from their initial dispatch, These results are the same as those reported in Reference [3], The line flows after the re-dispatch are shown in Table 2 ‘Table 2. Active power flows after re-dispatch Line Power Flow Net | From | To Va L 7 z 29.62 2 i 3 39.60 3 r 3 “3.95 4 z 3 39.45 5 3 4 6130 6 3 6 92.07 ‘The increased cost due t0 the re-dispatch is $954.384/hr. Utilizing the calculation process mentioned above, the increased cost for a whole year could be easily obtained, 3, EXPANSION OF TRANSMISSION SYSTEMS UNDER DEREGULATION Longeterm contracts as well as. short-term market should be taken into consideration for system expansion plan in a deregulated system. ‘The short-term fod of « customer can be considered to be made up of three parts: constant part Qo ime variable part QC) and price responsive part Qf); where, r represents the market clearing price. It can be expressed as PW) Qo* Of) + Of 1= 123. Qn and Q(¢) ate the non-price responsive pars of & load, Under deregulation, foad function P(Y) is a private information. Although customers’ bids for electricity are blind to each other in the spot market, these bids are open to the ISO. As an electric system planner, the ISO could find out these three pars of P( Under certain conditions for each eustomer according to the historical bidding information submitted by cach customer by employing an appropriate load analysis, technique Once the typical daily loud curve ofeach use is determined, system planners need 0 find out the ‘economic benefit function of each generator, B(Pa), where, Poy is the active oulput of Generator i, A ‘generator’s economic benefit function B(Pay is defined 8 generator’s cost function F/Pe) plus profit function -M(Pcj. This relationship can be expressed as: Bla) = F(Pa) + MiP) o Cost function F(Pey is a well-known quadratic fancton which can be described as: Pg) = aPoi + BPoi + T @ Incremental cost function of Generator i, Pads Ca) =20P a+ B » The profit function MP) is influenced by the clerical market situation and power producer's sale strategy. The simplest profit funtion MPa) isa linear function with active output Pc, a independent variable Itcan be expressed as: MOP) = K* Pos ao ‘where, kis the profit eared by per MWh of energy sale If M(Pa) is a linear function, economic benefit function B(Pa) can be written as: BPa) = OP? + (BAK)P oy + ¥ ay ‘Therefore, the bidding price function of Generator i, H1(Pa), can be obtained by differentiating the economic benefit function B(Pay Hq) = BPoi@Pa=CPa) +k — (12) ‘An ISO considers economic benefit function ‘B(Pa) 2s the generation cost function of Generator j, and bidding price function H(Pq) as the incremental cost function of generator i. Therefore, the originsl economic, dispatch theory under regulated environment (2] can be used to determine the generation schedule for the generators taking part in a short-term spot market. If the total load at a certain hour in a day is Pa, and the active ‘output of Generator # which takes part inthe spot market is Po, then, the total generation cost from the point ofthe 180s: 5,-3.8, (Pa) « ~ 1945 -