Power System Planning

Lecture No. 1
Engr. Raheel Muzzammel
Department of Electrical Engineering
University of Lahore, Lahore, Pakistan

Engr. Raheel Muzzammel, University of Lahore

Power System Planning
• Text Book:
1. Electric Power System Planning, Issues Algorithms and Solutions by
Hossein Seifi and Mohammad Sadegh Sepasian, Publisher Springer.

• Reference Books
1. Power System Engineering, Planning, Design, and Operation of Power
Systems and Equipment by Juergen Schlabbach and Karl-Heinz Rofalski,
Publisher Wiley.
2. Power System Planning Technologies and Applications: Concepts,
Solutions, and Management by Fawwaz Elkarmi and Nazih Abu-Shikhah
Publisher IGI Global.

Engr. Raheel Muzzammel, University of Lahore

Course Learning Outcomes
• Students will be able to
1. Understand the basic principles of power system planning
2. Review the application of optimization techniques for optimum planning
3. Analyze the economic principles for premium power planning.
4. Apply the long and short term load forecasting for future planning of
power systems
5. Analyze the expansion plans of generation, substation, network and
reactive power in power systems.
6. Realize the importance of tendering and contracting in power systems.

Engr. Raheel Muzzammel, University of Lahore

About Power System
• The power system is divided into three main components:
✓ Generation,
✓ Transmission and interconnection, and
✓ Distribution.
• This division is based on assets or equipment, and not necessarily on ownership of such assets.
• The three components are somewhat different in the way of operation and management.
• While the generation component is concerned with the issue of power supply and delivery to the
network, the transmission component is directly involved in transferring power from generators
to distribution companies. In addition to this the transmission component is in charge of the
exchange of power from other power systems through system interconnections.
• Finally the distribution component is quite different in that it deals with delivery of power to final
consumers. These consumers can reach millions in number in large systems.
• Usually the division between transmission and distribution is based on voltage level, i.e. all high,
extra high, and ultra high voltage levels are considered transmission while medium and low
voltage levels distribution.

Engr. Raheel Muzzammel, University of Lahore

Need of Power Planning
• The electric power industry has evolved over many decades, from a
low power generator, serving a limited area, to highly interconnected
networks, serving a large number of countries, or even continents.
• Nowadays, an electric power system is one of the man-made largest
scale systems; ever made, comprising of huge number of
components; starting from low power electric appliances to very high
power giant turbo-generators.
• Running this very large system is a real difficult task.

Engr. Raheel Muzzammel, University of Lahore

Need of Power Planning
• The word operation is the normal electric power term used for
running the current situation.
• Referring to the future, the power system experts use the term
planning to denote the actions required for the future.
• The past experiences are always used for efficient operation and
planning of the system.

Engr. Raheel Muzzammel, University of Lahore

Power Planning – Definition and
Requirements
• Basic Definition
• In power engineering, the word planning refers to the arrangement of a method
or scheme beforehand for any work, enterprise, or proceeding for the physical
power system.
• Planning of power systems involves at the outset detailed knowledge of the
characteristics of the components of the system, the consumption of users, socio-
economic issues related to the electricity market and much more.
• Important Requirements of Planning
• This means that information needed is not only huge but is wide in scope and
covers several domains. Therefore, planners should have technical, economical,
financial, and business knowledge.
• The update of such information is an ongoing concern. Usually data bases are
created and software packages are also utilized.

Engr. Raheel Muzzammel, University of Lahore

Power Planning – Definition and
Requirements
• The processing of the data collected is another major task in the planning process of
power systems depending on the time frame of the plan.
• If the time frame is short then it is called operational planning. If it is medium or long it is
called expansion planning.
• Planners must know current technological evolutions in new equipment and devices.
The differences among certain types and brands of products must also be known in order
to differentiate among the various alternatives. This information is used in formulating
certain technical solutions or performance improvements to the power system.
• Studies and analyses follow in the planning process. These aim at finding best solutions
or performance indicators. Benchmarking is sometimes used to set targets of
performance indicators.
• Past trends, if acceptable, are also used as indicators. Through studies and analyses it can
be determined how far from the target the system is and how it can reach the target.
This represents the monitoring and verification functions of the plan.

Engr. Raheel Muzzammel, University of Lahore

Power Planning – Requirements
• In the context of power system planning, the selected solutions must be cost
effective.
• Therefore, the next step is to assess the feasibility of solutions. This is
accomplished through certain economic and financial indicators that gauge the
viability of the selected solutions. Moreover, implications of the cost of the
solutions on the ratepayers, taxpayers, and stakeholders must be assessed.
• Environmental, societal, and legal issues are all factored-in in the planning
process.
• The outcome of the planning process must be balanced in all respects.
▪ It cannot be complete if the plan calls for performance improvement on the account of
environmental pollution.
▪ At the same time, it is not acceptable to have plans that call for huge increases in electricity
tariff.
• Finally, legal issues of the planning must be worked out diligently.

Engr. Raheel Muzzammel, University of Lahore

Power Planning – Requirements
• Planning and National Economy
• Planning of power systems is not an isolated process in the sense that the
electricity sector is a sub-sector of the energy sector which is one of the
main sectors of the economy. The energy sector along with industry,
transport, services, commercial, agriculture, and others comprise the
economic or productive sectors in any economy.
• They interact and compete among each other for resources and output in
an input-output context.
• This means that the most effective and efficient sector gets its fair share of
resources (input) needed for production and accordingly produces output
to the benefit of the national economy, while the other sectors get their
shares proportionately.
Engr. Raheel Muzzammel, University of Lahore
• Planning and National Economy
• The electricity sub-sector is further divided into
supply and demand and this level is called the
micro-level.
• On the supply side we are concerned with the
planning of plants and equipment for the
generation, transmission and distribution.
• On the demand side we are concerned with
knowing the patterns, habits and characteristics of
the consuming sectors of electricity, as well as their
economic, financial, and social drives for
consumption.
• Pricing of electricity compared to other energy
forms brings the issue of price elasticity and
switching from one source to the other into the
planning of consumers’ behavior.
• This brings into action the competition amongst
energy sub-sectors, and maybe its effect on the
macro level.
Engr. Raheel Muzzammel, University of Lahore
 Power Planning: Electricity Market Structure
• The electricity market structure is best described as interactions
among several key players.
• Production and import of electricity comprises the first player,
while transmission and distribution comprises the second.
These two constitute the supply side. The market interactions
and trading is done within a third group. Finally, consumption
and export is the final player in the overall market structure.
• In certain special cases, power may flow from production
directly into the consumption group without passing through
transmission or distribution. Similarly, distributed local
generation may interact directly with the production and
import in a reverse manner again without passing through
transmission or distribution.
• All these make the power system one of the most complicated
systems designed, constructed and operated.
• It evolves continuously as it is driven by social, economic
political, and regulatory issues.

Engr. Raheel Muzzammel, University of Lahore

 Power Planning:
General Planning Process
• Power system planning is needed to develop and build
modern electric power systems.
• In general, planning time horizons lie in one of the
following ranges:
a. short term (up to 1 year),
b. medium term (up to 2-3 years), and
c. long term (between 20-30 years).
• The power system planning process starts by
forecasting the anticipated future loads.
• The concern is about load (demand) forecasting and
energy forecasting.
• Load (demand) forecasting defines the capacity
needed for the system and the expansions required in
the generation, transmission, and distribution systems.

Engr. Raheel Muzzammel, University of Lahore

Power Planning: General Planning Process
• Moreover, load forecasting is needed for budgeting purposes and energy
forecast is needed to determine future type of generating units and fuel
requirements. This is usually performed at different levels including the customer
(KWh), the city (MWh), and the country (GWh).
• Generation planning leads to determining the capacity of units to be installed
that will meet the anticipated load demand. It also defines the fuel to be used in
addition to the size of units to be installed over the time span. The planning
should be conducted to satisfy well-defined criteria that reflect the strategies
adopted within the power industry, and contributes in enhancing the security,
quality, and reliability of supply at minimum cost.
• Transmission and Distribution (T&D) system planning objective, whether a
short-term plan, targets developing a deep understanding of the existing system
and prepare a roadmap for nearterm and future investments required to provide
services that are adequate, reliable, and economical to new and existing
customers.

Engr. Raheel Muzzammel, University of Lahore

World Wide Power Planning Trends
• The trend that is adopted worldwide involves:
a. dividing utilities into generation, transmission, distribution, and supply businesses,
b. widespread introduction of independent power producers,
c. splitting existing generation, transmission, and distribution into two or more
competing companies to introduce competition,
d. operation in accordance with codes and licenses and more accountability to external
bodies,
e. providing choice for large customers,
f. encourage implementing mergers, acquisitions, and global investment patterns,
g. environmental law enforcement and increase of share of renewables,
h. establishment of power pools, where possible, and
i. increase in energy efficiency

Engr. Raheel Muzzammel, University of Lahore

World Wide Power Planning Trends
• Government and Regulators’ Responsibilities:
a. Guarantee commitment of current
stakeholders,
b. Ensure customer interests, affordability and
environmental requirements are applied,
c. Insist on transparency of business,
d. Prevent customer and shareholder interests to
get out of balance,
e. Urge the continuous search for better
opportunities and
f. more compatible prices.
Engr. Raheel Muzzammel, University of Lahore
World Wide Power Planning Trends
• Customer’s – An Important Entity
a. Eventually, this is reflected on customers and lead to a win-win
situation where:
b. the prices will eventually stabilize,
c. customer service response from power companies is improved,
d. security, quality, and reliability of supply are enhanced,
e. cleaner environment is enjoyed, and
f. Electricity is still consumed at the same levels and with similar
power quality as before.
Engr. Raheel Muzzammel, University of Lahore
Time – Horizon
Perspective of
Power System
Studies

Engr. Raheel Muzzammel, University of Lahore

Issues of Power System Planning
• Power system planning is a process in which the aim is to decide on
new as well as upgrading existing system elements, to adequately
satisfy the loads for a foreseen future.
• The elements may be
a. Generation facilities
b. Substations
c. Transmission lines and/or cables
d. Capacitors/Reactors, Etc.

Engr. Raheel Muzzammel, University of Lahore

Issues of Power System Planning
• The decision should be:

a. Where to allocate the element (for instance, the sending and

receiving end of a line),
b. When to install the element (for instance, 2022),
c. What to select, in terms of the element specifications (for instance,
number of bundles and conductor type).

• Obviously, the loads should be adequately satisfied.

Engr. Raheel Muzzammel, University of Lahore
 Issues of Power System Planning
• Static Versus Dynamic Planning
• Let us assume that our task is to decide on the subjects given in last slide for 2022–2027. If
the peak loading conditions are to be investigated, the studies involve six loading
conditions. One way is to, study each year separately irrespective of the other years. This
type of study is referred to as static planning which focuses on planning for a single stage.
• The other is to focus on all six stages, simultaneously, so that the solution is found for all
six stages at the same time. This type of study is named as dynamic planning.
• Obviously, although the static planning for a specific year provides some useful information
for that year, the process as given above leads to impractical results for the period as the
solutions for a year cannot be independent from the solution from the preceding years.
• One way to solve the problem is to include the results of each year in the studies for the
following year. This may be referred to as semi-static, semi-dynamic, quasi-static or quasi-
dynamic planning.
• It is apparent that the dynamic planning solution can be more optimal in comparison with
the semi-static planning solution.
Engr. Raheel Muzzammel, University of Lahore
Issues of Power System Planning
• Transmission Versus Distribution Planning

• Distribution level is often planned; or at least operated, radially.

• Looking at transmission and sub-transmission levels, these are
generally interconnected.
• Therefore, planning of distribution system is different from the
transmission links in spite of the fact that both transmission and
distribution networks comprise of lines/cables, substations and
generations.

Engr. Raheel Muzzammel, University of Lahore

Issues of Power System Planning
• Long-term Versus Short-term Planning
• Power system planning issues may cover a period of 1–10 years, or even
more.
• Suppose that, for the peak loading condition of the coming year, a power
system utility expert notices that from the two lines, feeding a substation,
one would be overloaded by 10% of its rating, while, the other would be
loaded by 60% of its rating.
• After careful studies, he or she finds out that if a control device (phase shift
transformer) is installed on one line, the load distribution may be balanced
on both lines. Once decided, the installation process of this device can be
performed in such a way that no problem arises for the coming year. This is
a typical short term transmission planning decision.
Engr. Raheel Muzzammel, University of Lahore
Issues of Power System Planning
• Suppose that the load forecasting for the coming years shows that
with all already available and planned generations, there would be a
shortfall of generation in 9 years from now, onward.
• After a careful study, the planner decides on adding a new 2 x 500
MW steam power plant at a specific bus in that year.
• Its construction should start well in advance so that it would be
available at the required time. His or her decision is a typical long-
term (9-year) transmission planning decision.

Engr. Raheel Muzzammel, University of Lahore

Fundamental
Relations of
Power
System
Planning

Engr. Raheel Muzzammel, University of Lahore

 Thank You

Engr. Raheel Muzzammel, University of Lahore