Faculty of

Engineering ECONOMIC OPERATION

OF POWER SYSTEMS
Tanta Lecture: 3 Tutorial: 3
University Code: EPM3110
Practical: -- Total: 6

Prof.: Ahmed Mohamed Refaat Azmy

Department of Electrical Power and Machine Engineering
Director of the automated library ​project in Tanta University
[email protected] - [email protected]
01229715040

Dr.: Mohamed Ragab Elkadeem

Department of Electrical Power and Machine Engineering
[email protected]
Optimal cross section area of conductors

The fixed cost of the conductor with area “A”

Cf = K2 ⋅ D ⋅ A Cost ($)

Cf is the fixed cost and Fixed cost

D is the annual interest
and depreciation
Cross section area (m2)
The energy wasted in a transmission line:
I2 ⋅ R ⋅ T
W= kWh
1000
With the tariff of kWh is "ctarrif" (L.E. / kWh), the cost of
lost energy is
Cost ($)
I2⋅R⋅T
CLe = ctarrif
1000
I2 ⋅ ρ ⋅ L ⋅ T Cost of power loss
= ctarrif
1000 A
K1
= Cross section area (m2)
𝐀
 K1
The total cost Ctot = A
+ K 2 ⋅ A ⋅D

For minimum cross section area:

𝜕Ctot
=0
𝜕A
K1
− 2 + K2 ⋅ D = 0
A K1
K1 I 2 ⋅ ρ ⋅ L. T
𝐀= = ctarrif ⋅
K2 ⋅ D 1000
Cost ($) Total cost

Fixed cost

Aopt Cross section area (m2)

K1
K 2D
 Applications
Taking the values of the constants for a certain
cable as follows: K1=10-4 $.m2, K2=2*105 $/m2
and D=8%, write a MATLAB program to illustrate
the variation of both the fixed and running costs
with the cross section area of the cable. The
figure has to include the total-cost curve. The
area varies from 50 up to 100 mm2
2.8
2.6
2.4
2.2
2
1.8
1.6
1.4
1.2
1
0.8
5.5 6 6.5 7 7.5 8 8.5 9 9.5 10
-5
x 10
Load curves
 The daily load curve
The curve describing the variation of the supplied
power to a certain load with time through one day
is known as the daily load curve of this load
Similarly, weekly, monthly and yearly (annual) load curves can be plotted
 The daily load curve

PJM Learning Center - How Energy Use Varies with the Seasons
 The daily load curve
From this curve, useful information can be obtained

Power (kW)

Time (h)
6 12 18 24
 The daily load curve
From this curve, useful information can be obtained

Power (kW)
Maximum load demand

Average load demand

Minimum load demand

Time (h)
6 12 18 24
 The daily load curve
• The maximum load demand is obtained from
the daily load curve by recording the peak
value of the power
• The area under the daily load curve is the
consumed energy during this day
• The average consumed power is obtained by
dividing the consumed energy by the time
duration
 The daily duration curve
The load duration curve illustrates the
variation of a certain load value in a
downward form such that the greatest load is
plotted in the left and the smallest one in the
right
On the time axis, the time duration for which
each certain load continues during the day is
given
 The daily duration curve
From the daily load curve, we recognize
that a load of 10 kW lasts 3 hours and a
Load (kW) load of 8 kW lasts 2 hours and so on
12
10 Two Two
hours Three
hours
8
hours
6 Two
hours
4

2 Time duration (h)

0 6 12 18 24
 The daily duration curve
Load (kW)
12
10 Two Two
Load (kW) 8
hours Three hours
hours
10 6 Two
4 hours
Four
8 2 Time duration (h)
hours
0 6 12 18 24
6

Three Two
4 hours
hours

2
Time duration (h)
0 6 12 18 24
 The daily duration curve
the area under the load duration
Load (kW) curve represents the consumed
10 energy during the day
Maximum load demand
8
Average load demand
6

4
Minimum load demand
2
Time duration (h)
0 6 12 18 24
 The Load Energy curve
This curve is derived from the daily load curve
At each time interval, the area under the curve is
calculated from the zero time interval until the
present time interval
For example, the area under the curve is calculated
for each hour and is added to the previous total area
to get the energy at the present hour
The curve begins always from energy of zero and
increases with time
It is not possible for the energy to decrease with time
 The Load Energy curve
Energy (kWh)
200

160

120

80

40
Time (h)
0 6 12 18 24
 The Load Energy curve
Energy (kWh)
200

160

120

80

40
Time (h)
0 6 12 18 24
 Demand factor

The ratio between the maximum load demand

on the system and the connected load
maximum demand
Demand factor =
connected load

The demand factor varies from time to

time and its value is always less than or
equal to unity
 Load factor
The ratio between the average demand and
the maximum demand during a certain period
average demand
Load factor =
maximum demand
• The magnitude of the load factor is always
less than or equal unity
• For almost constant loads, the load factor is
close to unity
• With strongly varied loads, it is close to zero
 Standard load factors

Load type Load factor

Residential loads 10-15%
Commercial loads 25-30%
Industrial loads:
Less than 25 kW 30-50%
100-500 kW 60%
> 500 kW 80%
 Load factor for three load profiles
Power (kW) Power (kW)

Time (h) Time (h)

0 6 12 18 24 0 6 12 18 24
Load factor≈0.5 Load factor≈0.9

Power (kW)

Time (h)
0 6 12 18 24
Load factor≈0.3
 Diversity factor
The maximum demands of individual loads do not
take place at the same moment
The maximum installed power is usually less
than the sum of individual maximum demands

The ratio of sum of individual maximum

demands of all customers to the maximum
demand for a specific station is known as the
diversity factor

The diversity factor is greater than or equal unity

 Diversity factor
sum of individual maximum demands
Div. factor =
maximum demand of power station
Typical values of Diversity factor for different load types

Elements of system Res. loads Com. loads Large users

Between consumer 2.0 1.46 -
Between transformers 1.3 1.3 1.05
Between feeders 1.15 1.15 1.05
Between substations 1.1 1.1 1.14
consumer to transformer 2.0 1.46 -
consumer to feeder 2.6 1.9 1.15
consumer to substation 3.0 2.19 1.32
consumer to generator 3.29 2.41 1.45
 Capacity factor
The capacity factor takes into account the excess
of the installed power of station more than the
actual required demand

The capacity factor is defined as the ratio of the

average load supplied by a station to the rated
(installed) capacity of this station
The capacity factor is less than or equal to unity
average demand
Capacity factor =
rated capacity of power plant
 Capacity factor
average demand
Capacity factor =
rated capacity of power plant

Multiplying the average demand and the rated

capacity by time, the capacity factor can be
defined as the ratio between the actual energy
produced and that would be produced if the
plant were operated at its full capacity

annual energy (kWh)

capacity factor =
rated capacity × no. of operating hours
 Utilization factor
The installed capacity is higher than maximum
demand and the excess of power is known as
reserve power
The utilization factor is defined as the ratio
between the maximum demand and the
rated capacity of the power plant

maximum load demand

Utilization factor =
rated capacity of power plant
 Reserve factor
The ratio between the rated capacity of a
power plant and the maximum demand is
known as the reserve factor
Typical value of the reserve factor is
between 1.2 and 1.4
1
Reserve factor =
utilizatio n factor
rated capacity of the power plant
Res. factor =
maximum load demand
 Reserve power

The power system is continually subjected to

unexpected load changes

The generating units supply about 85-90% of

their capacity maintaining the remainder for
emergencies

Some units are kept in the hot status to be

connected to the network as fast as possible
 Reserve power
The need for reserve power arises due to some
abnormal conditions in power system

Sudden unexpected increase in the load demand

Underestimating the load demand due to some

errors in the load forecasting

Forced outage of generators or other equipments

due to stability problems

Local shortage in the generated power (e.g. due to

the outage of a transmission line)
Thanks
 Faculty of
Engineering ECONOMIC OPERATION
OF POWER SYSTEMS
Tanta Lecture: 3 Tutorial: 3
University Code: EPM3110
Practical: -- Total: 6

Prof.: Ahmed Mohamed Refaat Azmy

Department of Electrical Power and Machine Engineering
Director of the automated library ​project in Tanta University
[email protected] - [email protected]
01229715040

Dr.: Mohamed Ragab Elkadeem

Department of Electrical Power and Machine Engineering
[email protected]
 Reserve power

Reserve Power

Cold Hot (spinning)

reserve reserve
 Reserve Power

Cold Hot (spinning)

reserve reserve

Cold reserve
Some units are kept or reserved for service but they
are not available in the immediate loading
It is a portion of the total reserve power that is
available for gradual utilization
The cold reserve power is the sum of the rating
capacity of all generating units that are not in
actual operation but ready to be loaded
 Reserve Power

Cold Hot (spinning)

reserve reserve

Hot (spinning) reserve

The spinning reserve is defined as the extra
amount of active power that boilers can provide
immediately through governor action
The boilers have to be in the hot status with proper
conditions (pressure and temperature)
The total spinning reserve has to be greater than the
largest generating unit in the power system
 Reserve power

The choice of the operating and standby unit as well

as the distribution of reserve power on different power
plants depends on the following factors:

The start up cost: depends on the start up time “the

time interval between the order of starting to the
moment where the unit delivers power to the network”
Units with high start up cost have not to be frequently
switched on and off. Such units can provide hot
reserve power but not cold reserve power.
 Reserve power
The shut down cost: the cost due to the wasted
energy during the shut down of the unit. It depends
also on the type of the unit
Ramp rate of the unit: the increase of power that
can be obtained from a generator in a specific time
The power cannot be increased or decreased
suddenly but it needs a certain time per kW
This prevents the effective use of slow units (low
ramp rate) for spinning reserve
The total reserve power is not obtained from a single
unit because this would take a long time. The
spinning reserve is distributed over the available
units to get the required power in a short time.
 Base load and peak load
• In the case of using only one power plant, the
capacity of the power generation will be defined
according to the peak value
• The plant will operate at a part of load for prolonged
time, which decreases the efficiency
• Several smaller units are installed with some of them
covering base load and others covering peak load
• The units that cover the base load operate
continuously, while those taking the peak load
operate when required
• All units operate near their rated power with high
efficiency
 Base load and peak load
Power

Peak load
Intermediate load

Base load
Time (h)
0 6 12 18 24
• Base load has almost unvarying value
• Intermediate load varies within certain limits
• Peak load vary randomly
 Base load and peak load

The generating units that operate as base power

plants should have the following characteristics:
• Low operating cost since they operate
continuously
• High capability of operating continuously for long
time
• Low and fast maintenance requirements
• The load factor is very high and reaches unity for
many units
Thermal, nuclear and hydraulic power plants are
conventionally considered as base load plants
 Base load and peak load
The units that operate as peak power plants should
have the following characteristics:
• Very fast response to load variation (high ramp rate)
• Low start up time
• Low start up cost
• Low capital cost for economic operation since they
operate for relatively short time during the year
• Constant voltage and frequency against the load
fluctuations
• The load factor is very low in the range of 0.1-0.6
Steam, gas turbine and diesel power plants are
used as peak power plants.
Economic analysis of power plants
Classification of power-plant costs
 Classification of power-plant costs
Fixed cost
• The capital invested in the installation of the
entire plant
• Independent of the output energy and
maximum demand
• Represents a constant annual cost for the
power plant
• Includes: the cost of land, buildings,
equipment, transmission and distribution
lines with all infrastructures and the cost of
planning and designing the plant
 Classification of power-plant costs
Operating or running cost
• Depends on the number of operating hours
of the power plant and on the output energy
• Includes the annual fuel cost, lubricating oil,
cooling water, maintenance cost and repair
and employees' payments
• Approximately proportional to the output
energy
• The consumption of fuel rate varies
depending on the percentage loading and it
has a minimum value at full load
 Classification of power-plant costs

Semi-fixed cost

• Independent of the output energy

• Depends on the maximum demand
• Includes the annual interest, depreciation on
the investment capital cost, taxes and
insurance
• Almost proportional to the maximum
demand
 Classification of power-plant costs
The total annual cost of energy produced in
a power plant is the sum of the three costs:
Z=a.P+b.E+c
P is the average generated power (kW)
E is the annual energy (kWh)
a, b and c are constants
The designer attempts to minimize the total
annual cost of the plant by the proper choice
of the plant type and suitable distribution of
power on the different power plants
 Peak-load-
dependent
part

Energy-dependent
part

Fixed part
 Total cost

Running Fixed Semi-

cost cost fixed cost