Economic Dispatch

Economic Dispatch
Objective function
Total cost of supplying load from N units
Subject to load balance constraint

Subject to generator limitations
Subject to reserve requirements

Generator Characteristics
Maximum power
Minimum power
Cannot operate regions
Auxiliaries (2 10%)
Fuel Costs
H = heat input per hour into the unit (GJ/h)
(measured in Joules - GJ/h)
FC = Fuel cost (/GJ)
C = Per hour cost of fuel input (/h)
= FC H
P = Electrical power output (MW)
E = Electrical energy output (MWh)
Input-Output Model
Input:
heat energy
cost,
Output
net electrical output
Obtained from
design calculations
heat rate tests
Minimum load
steam generator
turbine
combustion stability
design constraints
Incremental Cost
= Incremental cost of next MWh (/MWh)
F
P

Slope of input-output
curve (derivative)
Cost of next MWh
Economic Dispatch
Meet the load at least cost
Data on generation
Model of input-output characteristics
Incremental costs of units
Different models may require different
solution techniques
Input - output curves
Incremental cost curve
Types of Curves
P
i
(MW)
/h
1. Linear
/MWh
Cost
i
= a
i
+ b
i
p
i
P
i
(MW)
b
i
1. Constant
Input - output curves
Incremental cost curve
Types of Curves
P
i
(MW)
/h
/MWh
P
i
(MW)
2. Piecewise Linear 2. Stepped
Input - output curves
Incremental cost curve
Types of Curves
P
i
(MW)
/h
/MWh
P
i
(MW)
3. Quadratic 3. Linear
Economic Dispatch
Aim: Dispatch the generation to meet
demand in a least cost fashion
Recall
Input = fuel (/h) = F
Output = electrical power (MW) = P
Minimise F while satisfying
P
generation
= P
demand
Economic Dispatch
Objective function:
Total cost of supplying the load, F
T
Sum of the fuel costs (F
i
(P
gen,i
)) for all N
machines being dispatched
,
1
F F( )
N
T i gen i
i
P
=
=

1 ,1 2 ,2 ,
F F( ) F ( ) ..... F ( )
T gen gen N gen N
P P P = + +
Economic Dispatch
Main constraint: load balance :
Total power generated by the N units must
equal the load demand, P
load
,
1
0
N
load gen i
i
P P
=
= =

,1 ,2 ,
( ......... ) 0
load gen gen gen N
P P P P + + =
Constraint:
Economic Dispatch
Minimise F
T
subject to load balance constraint
Neglect
transmission losses
reserve constraint
operating limits, and
transmission constraints
Lagrangian function L
Condition for extreme value of objective function results
when taking first derivative of Lagrangian wrt all
independent variables and setting them equal to zero
Economic Dispatch
Lagrangian function L
Add an (unknown) weighted constraint function
to the objective function
L = objective function + (lambda constraint)
To solve a Lagrangian:
Differentiate L with respect to independent variables
Set the derivatives equal to zero, and
Solve the resulting equations
L F
T
= +
, ,
1 1
L F( ) ( )
N N
i gen i load gen i
i i
P P P
= =
= +

Solving the Lagrangian
Differentiate with respect to N power outputs
(P
gen,i
) and equate to 0
,
, ,
F( )
L
0, 1, 2,....
i gen i
gen i gen i
d P
i N
P dP

= = =

, ,
1 1
L F( ) ( )
N N
i gen i load gen i
i i
P P P
= =
= +

Differentiate with respect to Lagrange multiplier
and equate to zero
,
1
L
0
N
load gen i
i
P P

= = =

Economic Dispatch Examples
Quadratic cost curves
Demand is fixed
Single instant in time
We do not consider:
Network constraints (common bus)
Reserve constraint
Example
Determine the minimum operating cost and unit
schedule to meet a system demand of 850 MW.
Unit 1: P
1,max
= 600 MW, P
1,min
= 150 MW
F
1
= 561 + 7.92P
gen,1
+ 0.001562(P
gen,1
)
2
/h
Unit 2: P
2,max
= 400 MW, P
2,min
= 100 MW
F
2
= 310 + 7.85P
gen,2
+ 0.00194(P
gen,2
)
2
/h
Unit 3: P
3,max
= 200 MW, P
3,min
= 50 MW
F
3
= 78 + 7.97P
gen,3
+ 0.00482(P
gen,3
)
2
/h
Economic Dispatch & Constraints
Constraints (other than load balance)
Maximum & minimum outputs
System reserve requirement
Transmission constraints
Voltage constraints
...
Optimal power flow (OPF)
Previously, just one constraint
including maximum and minimum constraints
Inequalities

use Kuhn Tucker Conditions

Economic Dispatch
with Maximum & Minimum Constraints
min, , max, i gen i i
P P P
,
1
0
N
load gen i
i
P P
=
=

Generic Kuhn Tucker Conditions

Minimise: f (P)
Subject to: w
k
(P) = 0 k = 1, 2, 3 N
w
g
j
(P) 0 j = 1, 2, 3 N
g
P = vector of real numbers, dimension = N
The Lagrange function is
1 1
L( ) f( ) w ( ) g ( )
g
w
N
N
k k j j
k j

= =
= + +

P, , P P P
Objective fn
Equality constraints Inequality Constraints
Optimal Conditions
(Kuhn Tucker Conditions)
j
1. L( , , ) 0, 1, 2, ....
2. w ( ) 0, 1, 2,.....
3. g ( ) 0, 1, 2,.....
4. g ( ) 0, 1, 2,.....
0
P
P
P
P
o o o
i
o
k w
o
j g
o o
j j g
o
i N
P
k N
j N
j N

= =

= =
=
= =

( , , ) optimal solution P
o o o

Complementary
slackness condition
Kuhn Tucker Conditions
The Kuhn Tucker conditions
Give necessary conditions for a minimum, but
not a precise procedure to find this minimum
Experiment!
by trial and error
The minimum solution will satisfy the KT
conditions
Example
Unit 1: P
1,max
= 600 MW, P
1,min
= 150 MW
F
1
= 459 + 6.48P
gen,1
+ 0.00128(P
gen,1
)
2
/h
Unit 2: P
2,max
= 400 MW, P
2,min
= 100 MW
F
2
= 310 + 7.85P
gen,2
+ 0.00194(P
gen,2
)
2
/h
Unit 3: P
3,max
= 200 MW, P
3,min
= 50 MW
F
3
= 78 + 7.97P
gen,3
+ 0.00482(P
gen,3
)
2
/h
Determine the minimum operating cost and unit
schedule to meet a system demand of 850 MW.
Example
Unit 1: P
1,max
= 600 MW, P
1,min
= 150 MW
F
1
= 459 + 6.48P
gen,1
+ 0.00128(P
gen,1
)
2
/h
Unit 2: P
2,max
= 400 MW, P
2,min
= 100 MW
F
2
= 310 + 7.85P
gen,2
+ 0.00194(P
gen,2
)
2
/h
Unit 3: P
3,max
= 200 MW, P
3,min
= 50 MW
F
3
= 78 + 8.5P
gen,3
+ 0.00482(P
gen,3
)
2
/h
Determine the minimum operating cost and unit
schedule to meet a system demand of 850 MW.