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CHAPTER-1

INTRODUCTION OF AUTOMATIC GENERATION CONTROL (AGC)

1.1 Fundamental and Concept


Automatic Generation control is a significant control process that operates constantly to balance the generation and load in power system. The AGC system is responsible for frequency control and power interchange. Changes in real power affect mainly the system frequency, while reactive power is less sensitive to change in frequency & is mainly dependent upon changes in the voltage magnitude. Thus real power & reactive power are controlled separately. LFC controls real power and frequency & automatic voltage regulator (AVR) loop regulates the reactive power & voltage magnitude. Since real and reactive power demands on the power system are never steady, but continuously vary with the rising or falling trend therefore real and reactive power generations must change accordingly to match the load perturbations. A perturbation like adding a block of load in a single area power system operating at nominal value of frequency creates the power mismatch in generation and demand. This mismatch is initially compensated by an extraction of kinetic energy from the system, which causes a declining system frequency. As the frequency goes on decreasing, the power taken by old load also goes on decreasing. Load frequency control is essential for successful operation of power systems, especially interconnected power systems. W ithout it the frequency of power supply may not be able to be controlled within the required limit band. To accomplish this, it becomes necessary to automatically regulate the operations of main steam valves or hydro gates in accordance with a suitable control strategy, which in turn controls the real power output of electric generators.

1.2 AGC in Modern Power System


AGC provide an effective mechanism for adjusting the generation to minimize the frequency deviation and regulate the tie-line power flows. The AGC system realizes generation change by sending signals to the under control generating units. The AGC performance is highly dependent on how those generating units respond to the commands. The generating unit response characteristics are dependent on many factors, such as type of unit, fuel, control strategy, and operating point. The AGC process is performed in a control centre remote from generating plants, while the power production is controlled by turbine-governors at the generation site. The frequency is assumed to be same in all point of control area. A multipower system comprises areas that are interconnected with high voltage transmission lines or tie-lines. The AGC system in an interconnected power system should control the area frequency as well as the interchange power with the other control areas. The load and frequency control, of interconnected generators, introduces relatively simple problems to systems having one or two generating stations. The problems caused by load and frequency control become more difficult in large interconnected systems having many stations scattered over a wide area.

1.3 Power System Frequency Control


Frequency deviation is a direct result of the imbalance between the electrical load and the power supplied by the connected generators, so it provides a useful index to indicate the generation and load imbalance. A permanent off-normal frequency deviation directly affects power system operation, security, reliability, and efficiency by damaging equipment, degrading load performance, overloading transmission lines, and triggering the protection devices. Since the frequency generated in the electric network is proportional to the rotation speed of the generator, the problem of frequency control may be directly translated into a speed control problem of the turbine generator unit. This is initially overcome by adding a governing mechanism that senses the machine speed, and adjusts the input valve to change the mechanical power output to track the load change and to restore frequency to a nominal value. 2

Depending on the frequency deviation range, as shown in Figure 1, in addition to the natura natural governor response known as the primary control, supplementary control (AGC), or secondary control, and emergency control may all be required to maintain power system frequency. The f o is nominal frequency, and f 1 , f 2 , f 3 , and f 4 show frequency variation range corresponding to the different operating conditions based on the accepted frequency operating standards.

Fig.1.1 Different control operation of power system. Under normal operation, the small frequency deviations can be

attenuated by the primary control. For larger frequency deviation (off-normal operation), according to the available amount of power reserve, the AGC is responsible for restoring system frequency. However, for a serious load-generation imbalance associated with rapid frequency changes following a significant fault, the AGC system may be unable to restore frequency via the supplementary frequency control loop. In this situation, the emergency control and protection schemes, such as under-frequency load shedding (UFLS), must be used to decrease the risk of cascade faults, additional generation events, load/network, and separation events.

Fig.1.2 Responses of primary, supplementary, and emergency controls. Figure 1.2 shows an example of a typical power system response to a power plant trip event, with the responses of primary, supplementary, and emergency controls. Following event, the primary control loops of all generating units respond within a few seconds. As soon as the balance is reestablished, the system frequency stabilizes and remains at a fixed value, but differs from the nominal frequency because of the droop of the generators, which provide a proportional type of action. Consequently, the tie-line power shows in a multi area power system will differ from the scheduled values. The supplementary control will take over the remaining frequency and power deviation after a few seconds, and can reestablish the nominal frequency and specified power cross-border exchanges by allocation of regulating power. The frequency does not fall too quickly, so there is time for the AGC system to use the regulation power and thus recover the load-generation balance. However, where the frequency is quickly dropped to a critical value or the frequency exceeds the permissible limits, an emergency control plan such as UFLS may need to restore frequency and maintain system stability. Otherwise, due to critical under speed, other generators may trip out, creating a cascade failure, which can cause widespread blackouts. As mentioned above, following an imbalance between total generation and demand, the regulating units will then perform automatic frequency control actions, i.e., primary and supplementary control actions, and the balance between generation and demand will be reestablished. Using union for the Coordination of Transmission of Electricity (UCTE) terminology in addition to supplementary control the AGC system can 4

perform another level of control named tertiary control. The tertiary concept is close to meaning of the emergency control term in the present text. This control is used to restore the secondary control reserve, manage eventual congestions, and bring back the frequency and tie-line power to their specified values if the supplementary reserve is not sufficient. These targets may be achieved by connection and tripping of power, redistributing the output from AGC participating units, and demand side (load) control. The typical frequency control loops are represented in Figure 1.3, in a simplified scheme. In a large multi area power system, all three forms of frequency control (primary, supplementary, and emergency) are usually available. The demand side also participates in frequency control through the action of frequencysensitive relays that disconnect some loads at given frequency thresholds (UFLS).

Fig.1.3 Frequency control loop. The demand side may also contribute to frequency control using a self-regulating effect of frequency-sensitive loads, such as induction motors. However, this type of contribution is not always taken into account in the calculation of the overall frequency control response. The following subsections summarize the characteristics of the three frequency control levels.

1.3.1 Primary control


Depending on the type of generation, the real power delivered by a generator is controlled by the mechanical power output of a prime mover such as a steam turbine, gas turbine, hydro turbine, or diesel engine. In the case of a steam or hydro turbine, mechanical power is controlled by the opening or closing of valves regulating the input of steam or water flow into the turbine. Steam (or water) input to generators must be continuously regulated to match real power demand. W ithout this regulation, the machine speed will vary with consequent change in frequency. For satisfactory operation of a power system, the frequency should remain nearly constant.

Fig.1.4 Governor-Turbine with primary frequency control loop. A schematic block diagram of a synchronous generator equipped with a primary frequency control loop is shown in Figure 1.4 The speed governor sense the change in speed via primary control loop. In fact, primary control performs a local automatic control that delivers reserve power in opposition to any frequency change. The necessary mechanical forces to position the main valve against the high steam (or hydro) pressure is provided by the hydraulic amplifier and the speed changer provides a steady-state power output setting for the turbine. The speed governor on each generating unit provides the primary speed control function, and all generating units contribute to the overall change in generation, irrespective of the location of the load change, using their speed governing. However, as mentioned, the primary control action is not usually sufficient to restore the system frequency, especially in an inter connected power 6

system, and the supplementary control loop is required to adjust the load reference set point through the speed changer motor

1.3.2 Supplementary Control


In addition to primary frequency control, a large synchronous generator may be equipped with a supplementary frequency control loop. A schematic block diagram of a synchronous generator equipped with primary and supplementary frequency control loops is shown in Figure 1.5 The supplementary loop gives feedback via the frequency deviation and adds it to the primary control loop through a dynamic controller. The resulting signal ( P c ) is used to regulate the system frequency. In real-world power systems, the dynamic controller is usually a simple integral or proportional-integral (PI) controller.

Fig.1.5 Frequency control mechanism of primary and supplementary operation. Following a change in load, the feedback mechanism provides an appropriate signal for the turbine to make generation ( P m ) track the load and restore the system frequency. Supplementary frequency control, which is known as load frequency control (LFC), is a major function of AGC systems as they operate online to control system frequency and power generation. As mentioned, the AGC performance is highly dependent on how the participant generating units would respond to the control action signals. 7

During a sudden increase in area load, the area frequency experiences a transient drop. At the transient state, there are flows of power from other areas to supply the excess load in this area. Usually, certain generating units within each area are on regulation to meet this load change. At steady state, the generation is closely matched with the load, causing tie-line power and frequency deviations to drop to zero.

1.3.3 Emergency Control


Emergency control such as load shedding, shall be established in emergency conditions to minimize the risk of further uncontrolled separation, loss of generation, or system shutdown. Load shedding is an emergency control action to ensure system stability, by curtailing system load. The load shedding will only be used if the frequency (or voltage) falls below a specified frequency (voltage) threshold. Typically, the load shedding protects against excessive frequency (or voltage) decline by attempting to balance real (reactive) power supply and demand in the system.

1.4 NEED OF CONSTANT FREQUENCY


If normal frequency is 50 HZ & the turbines are run at speeds cross pounding to the frequency less than 47.5 HZ or more than 52.5 HZ, the blades of turbine are likely to get damaged, hence a strict limit on the frequency must be adhered to as stalling of generators will further aggravate the problem if the system is operated at lower limit of the frequency. The speed of ac motors are directly related to the frequency. Even though most of ac drives are not much affected by the frequency variation of even 50+1.5 Hz but there are certain applications where speed consistency much be of high order. The electric clocks are driven by synchronous motors & the accuracy of these clocks is not only a function of the frequency error but actually of the integral of this error. Under frequency operation of transformer is not desirable. For the constant system voltage if frequency is below than the normal value then the flux in the core increase. Since when design these transformers corresponding to the knee point on the B-H curve(B) a small increase in B drive. Since we design these transformers corresponding to the knee point on the B-H curve 8

(B) a small increase in B drives the transformer into the saturation region. As a result the magnetizing current even exceeds the normal full load current. W hich results not only in low efficiency but it may even damage the transformer winding due to overheating. The problem is further aggravated by the fact that to transmit one MW of power from generating station to the consumer end 4 MW equivalent capacity transformers are installed. Hence a strict limit on the frequency operation of power system is desirable . The system operation at subnormal frequency & voltage leads to the loss of revenue to the suppliers due to accompanying reduction in load demand. The most serious effect of subnormal frequency is on the operation of thermal power plants. W ith reduced frequency the blast by induced draft and forced draft fans decreased, as a result of which generation also decreased thus it become a cumulative action & may result in complete shut-down of the plant if corrective measures like load shedding is not done. The load shedding is done with the help of under frequency relay, which automatically disconnect load. The setting of under frequency relay is such that it disconnects blocks of loads that have least importance..

1.5 Frequency Response Model and AGC Characteristics


In an interconnected power system the control area concept needs to be used for the sake of synthesis and analysis of the AGC system. The control area is a coherent area consisting of a group of generators and loads, where all the generators respond to changes in load or speed changer settings, in unison. The frequency is assumed to be the same in all points of a control area. A multi area power system comprises areas that are interconnected by high-voltage transmission lines or tie-lines. The AGC system in an interconnected power system should control the area frequency as well as the interchange power with the other control areas. In AGC practice, to clear the fast changes and probable added noises, system frequency gradient and ACE signals must be filtered before being used. If the ACE signal exceeds a threshold at interval T w . It will be applied to the controller block. The controller can be activated to send higher/lower pulses to the participant generation units if its input ACE signal exceeds a standard limits. Delays, ramping rate, and range limits are different for various generation units. Concerning the limit on generation, governor dead-band, and time delays, the AGC 9

model becomes highly nonlinear; hence, it will be difficult to use the conventional linear techniques for performance optimization and control design.

1.6 Droop Characteristic


The ratio of speed (frequency) changes ( f) to change in the output-generated power ( P g ) is known as the droop or speed regulation, and can be expressed as (
) .

. . (1.1)

For example, a 5%droop mean that a 5% deviation in normal frequency (from 60 to 57 Hz) causes a 100% change in output power. The interconnected generating units with different droop characteristics can jointly track the load change to restore the nominal system frequency. This is illustrated in Figure 1.6, representing two units with different droop characteristics connected to a common load. Two generating units are operating at a unique nominal frequency with different output powers. The change in the network load causes the units to decrease their speed, and the governors increase the outputs until they reach a new common operating frequency as expressed in Equation 1.2, the amount of produced power by each generating unit to compensate the network load change depends on the units droop characteristic.

Fig.1.6 Load Tracking by generators with different droops. 10

(1.2)

1.7 Generation-Load Model


For the purposes of AGC synthesis and analysis in the presence of load disturbances, a simple, low order linearized model is commonly used. The overall generation-load dynamic relationship between the incremental mismatch power ( P m - P L ) and the frequency deviation f can be expressed as ( ) ( = )2
()

+ )(

(1.3)

Where is the mechanical power change, is the load change, H is the inertia constant, and D is the load damping coefficient and in the laplace transform written as ( ) ( = )2 )(+ )( (1.4)

1.8 Area Interface


In a multi area power system, the trend of frequency measured in each control area is an indicator of trend of the mismatch power in the interconnection and not in the control area alone. Therefore, the power interchange should be properly considered in the LFC model. It is easy to show that in an inter-connected power system with N control area, the tie line power change between area i and other area can be represented as , = , , + , . . +, , = , 2 [ + + + . + + + .

2 = [ ]

(1.5)

similarly

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, = ,

2 = [ ]

(1.6)

Where P t i e , i indicate the tie line power change of area i and T 1 2 is the synchronizing torque coefficient between area i and j. The P t i e , i has been added to the mechanical power change ( P m ) and area load change ( P L ) using an appropriate sign. In addition to the regulating area frequency, the LFC loop should control the net interchange power with neighboring areas at scheduled values. This is generally accomplished by feeding a linear combination of tie-line flow and frequency deviations, known as area control error (ACE), via supplementary feedback to the dynamic controller. The ACE can be calculated as ACE i = P t i e , i + i f i Where i is a bias factor, and its suitable value can be computed as = +

(1.7)

(1.8)

The effects of local load changes and interface with other areas are also considered as the following two input signals. = , =

= ( + + + . . + ) (1.9)

Each control area monitors its own tie-line power flow and frequency at the area control center, and the combined signal (ACE) is allocated to the dynamic controller. Finally, the resulting control action signal is applied to the turbinegovernor units, according their participation factors.

1.9 Spinning Reserve


It is a tertiary reserve that can be available within 15 min and is provided chiefly by storage stations, pumped-storage stations, gas turbines, and thermal power stations operating at less than full output. W hile based on the definition provided by NERC, it is an unloaded generation that is synchronized and ready to serve 12

additional demand. The spinning reserve can be simply defined as the difference between capacity and existing generation level. It refers to spare power capacity to provide the necessary regulation power for the sum of primary and secondary control issues. Regulation power is required power to bring the system frequency back to its nominal value. The frequency dependent reserves are automatically activated by the AGC system, when the frequency is at a lower level than the nominal value (50Hz or 60Hz depend upon the system). Always, the market operator needs to ensure that there is enough reserved capacity for potential future occurrences. The size of the AGC reserve that is required depends on the size of load variation, schedule changes, and generating units. In a deregulated environment, the reserve levels may be influenced by the market operation. If too much energy is traded, the market operator must contract more reserves to ensure that the predicted demand can be met. Additional reserves need to be activated to restore the used power spinning reserves in preparation for further incidents.

1.10 Participation Factor


The participation factor indicates the amount of participation of a generator unit in the AGC system. Following a load disturbance within the control area, the produced appropriate supplementary control signal is distributed among generator units in proportion to their participation, to make generation follow the load. In a given control area, the sum of participation factor is equal to 1. The apf equation for DISCO 1 is written as + + + . + = 1 , Therefore written as = 1,

0 1

0 1

(1.10)

In a competitive environment, AGC participation factors are actually timedependent variables and must be computed dynamically by an independent organization based on bid prices, availability, congestion problems, costs, and other related issued. 13

1.11 Generation Rate Constraint


Although considering all dynamics to achieve an accurate perception of the AGC subject may be difficult and not useful, considering the main inherent requirement and the basic constraints imposed by the physical system dynamics to model/evaluate the AGC performance is important. An important physical constraint is the rate of change of power generation due to the limitation of thermal and mechanical movements, which is known as Generation Rate Constraint (GRC) and its model is shown below.

Fig.1.7 Non-linear turbine model with GRC Rapidly varying components of system signals are almost un observable due to various filters involved in the process, and an appropriate AGC scheme must be able to maintain sufficient levels of reserved control range and control rate. Therefore, the rate of change in the power output of generating units used for AGC must in total be sufficient for the AGC purpose. It is defined as a percentage of the rated output of the control generator per unit of time. The generation rates for generation units, depending on their technology and types, are different. Typical ramp rates for different kinds of units (as a percent-age of capacity) for diesel engines, industrial GT, GT combined cycle, steam turbine plants, and nuclear plants are 40%/min, 20%/min, 5 to 10%/min, 1 to 5%/min, and 1 to 5%/min, respectively. In hard-coal-fired and lignite-fired power plants, this rate is 2 to 4%/min and 1 to 2%/min, respectively.

1.12 Speed Governor Dead-Band


If the input signal of a speed governor is changed, it may not immediately react until the input reaches a specified value. This phenomena is known as speed governor dead band. All governors have a dead-band in response, which is important for AGC systems. Governor dead-band is defined as the total magnitude 14

of a sustained speed change, within which there is no resulting change in valve position. The block diagram model is shown below.

Fig.1.8 Block Diagram model of speed governor dead-band dead The maximum value of dead-band for governors of large steam turbines is specified as 0.06% (0.036 Hz). For a wide dead-band the AGC performance may be significantly degraded. An effect of the governor dead-band on the AGC operation is to increase the apparent steady-state frequency regulation.

1.13 Time Delays


In new power system communication delays are becoming a more significant challenge in power system operation and control. Although, under a traditional AGC structure, the problems associated with the communication links may ignorable, considering the problems that may arise in the communication system in use of an open communication infr infrastructure to support the ancillary lary services in a restructured environment is important. It has been shown that time delays can degrade the AGC performance seriously. The AGC performance declines when the time delay increases. The time delays in the AGC systems mainly exist on the communication channels between the control center and operating stations specifically on the measured frequency and power tie-line flow from remote terminal unit (RTU) and the delay on the produced rise/lower /lower signal from the control center to individual generation unit. Furthermore, all other probable data

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communication, signal processing, and filtering among an AGC system introduce delays that should be considered.

1.14 Restructuring
A deregulated electricity market comprises of many players such as generator owners (GENCOs), load supply entities (DISCOs), and transmission owners (TRANSCOs). Each market has an independent grid operator, known as the ISO (independent system operator), responsible for the day-to-day and, sometimes, long-term operation of the power system. The discussion will evolve around power system issues for these players. There are a number of factors present in the power system operation within the restructured industry. They are Growing uncertainties in planning and operation of power systems. Growing pressures in market-oriented industries to be accountable for decisions. Increased need for the exchange of data among market players. Growing concerns to understand the impact of renewable energy. Sources and environmental economics. Requirement to quantify the value of different energy sources among the market players. Software technologies and numerical methods for the power industry. Although electric energy can be stored in batteries it would be uneconomical to store it in large quantities and hence electricity is a real time commodity being produced and consumed instantly. The electricity demand has significant daily, weekly and seasonal variations and also has a significant random component. The main commodity being bought and sold in an electricity market is energy. There are, however, other services such as reserves, reactive power and automatic generator control (AGC), which must be provided in order that the electricity system can function reliably. These ancillary services need to be provided and an electricity market needs to be structured to facilitate trading of these services. The generators and their customers are typically well distributed geographically and Kirchhoffs laws determine the routes taken by the power on the transmission system. The consequence of this is that congestion can occur on this transport system and altering the supply (generator outputs) and demand (customers 16

consumption) alleviates this congestion. These adjustments are a constraint to competition. Energy, ancillary services and transmission are interdependent and this coupled with the real time stochastic nature of the electricity demand makes designing of an efficient electricity market a great challenge. In many instances, it was possible to build new plants that could provide energy at lower price than that customers were paying for that coming from the existing old, giant power plants. It become possible for the industrial and commercial users of electricity to build and operate their own plants to produce power cheaper than that of utility and also sell the excess power to small customers.

1.15 Reasons for Deregulation


The reasons for initiating the idea of deregulation in power industry are many. They are

1.15.1 Need for regulation changed


More fundamental than any other reasons for change was the fact that the basic need for regulation of electric industry had died away before the end of 20 t h century. First, the original need for regulation, which was to provide risk free finance to build the infrastructure, did not exist anymore. Second, the omnipresent electric system created, was invested to renew their system and the level of risk in doing so was less as compared to that existed in the initial era.

1.15.2 Privatization
Usually the motive was the governments firm conviction that private industry could do a better job of running the power industry. The belief, of course came from better privatization experiences of the other industries.

1.15.3 Cost is expected to drop


Competition bring innovation, efficiency, and lower costs. The rate of cost decline is different in different areas. The reasons for this are manifold. The overall experience all over the world is that the electricity prices have declined.

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1.15.4 Customer focus will improve


Although monopoly franchise utilities have an obligation to serve all customers, that does not promote the pro-active attention to customer needs. A monopoly franchise utility listens to its customers when they explain their needs, and then responds. A competitive electric service company anticipates customers needs and responds in advance. The technological advances that will be applied under deregulation, address customer service. More important gain of competition in the electricity market is the customer value rather than lowering the cost.

1.15.5 Encourages innovation


The regulatory process and the lack of competition gave electric utilities no incentive on yesterdays performance or to take risks on new ideas that might increase customer value. If a new idea succeeded in cutting costs, the utility still made only its regulated rate of return on investment. Under deregulated environment, the electric utility will always try to innovate something for the betterment of service and in turn save its costs and maximize the profit. By mean of this, the utility will try to ensure that it will maintain its customer base in spite of competition. Some other forces supporting the main reason for motivating the deregulation can also be enlisted as follow: 1. Overstaffing in the regulated electric industry. 2. Global economic crisis. 3. Political and ideological changes. 4. Managerial inefficiency in the regulated company. 5. Lack of public resource for the further development. 6. More demanding environment issues. 7. Pressure of financial institutes.

1.16 Structure of Deregulated Industry


The structure of deregulated electricity system with links of information and money flow between various players. The configuration shown in figure (1.7) is not a 18

universal one. There exist variation across countries and systems. A system operator is appointed for the whole system and it is entrusted with the responsibility of keeping the system in balance, i.e. to ensure that the production and imports continuously match consumption and exports. Naturally, it was required to be an independent authority without involvement in the market competition nor could it own generation facilities for business. This system operator is known as Independent System Operator (ISO). Customer does its transactions through a retailer or transacts directly with a generation company, depending on the type of a model.

Fig.1.9 Show the structure of deregulated electricity system with links of information and money flow between various players. Different power sellers will deliver their product to their customers, over a common set of T&D wires, operated by the independent system operator (ISO). The generators, T&D utility and retailers communicate ISO. Mostly, customer communicates with the retailer, demanding energy. The retailer contacts the generating company and purchases the power from it and make it transferred to its customers place via regulated T&D lines. The ISO is one of responsible for keeping track of various transactions taking place between various entities. 19

1.17 Role of ISO in Power System


The ISO may be authorized to set rules for transactions between suppliers and consumers, scheduling and dispatch of generators, loads and network services, maintenance of system surity and reliability, congestion management, service quality assurance and promotion of economic efficiency. To this end, the ISO procures various ancillary services from ancillary providers. The ISO collects information of all the hour-by-hour transactions that are to take place the next day. These transactions can either be decided by an independent market operator based on bidding mechanism, as in the hourly spot market, or through bilateral contract between the GENCO and customer, based on independent negotiations. The ISO does not involve in any of these processes. Once the transactions are available to the ISO, ISO carries out power flow studies and other simulations such as alleviation of transmission congestion etc. based on its load forecast for the next day, availability of transmission capacity and other factors to determine the level of system surity. If required, it makes provision for additional transmission capacity, ancillary services, or orders curtailment of certain transactions. After finding the feasible trades, ISO monitors the system for power flows, frequency and voltage conditions and trades in real time. It interacts with the regional networks and control rooms of utilities for providing adequate frequency regulation services, reactive support and voltage control service. Power imbalances are corrected by making provision for parties, which shall be responsible for this and charge the same to the defaulting parties. ISO has to compensate the allocated losses from other service supplies. ISO coordinates the settlement of the accounts and payments for the ancillary service providers

1.18 Restructuring Model


Three major model are being discussed as alternatives to the current vertically integrated monopoly. The three model are: PoolCo Model Bilateral Contracts Model Hybrid Model

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Element of a certain electric power industry define the nature of competition and models or institutions that support the competition process. In adopting a model, the following issues are being debated regularly: Who will maintain the control of transmission grid? What type of transaction are allowed? What level of competition does a system warrants?

1.18.1 PoolCo Model


A PoolCo is defined as centralized marketplace that clears the market for buyers and sellers where electric power seller/buyers submit bids and prices into the pool for the amounts of energy that they are willing to sell/buy. The ISO or similar entities (e.g.PX) will forecast the demand for the following day and receive bids that will satisfy the demand at the lowest cost and prices for electricity on the basis of the most expensive generator in operation. The main characteristic of this model is the establishment of independently owned wholesale power pools served by interconnected transmission systems. This pool becomes a centralized clearing market for trading electricity which would implement competition by forcing distribution utilities to purchase their power from the PoolCo instead of trading with generating companies. These companies sell power at a market clearing price(MCP) defined by the PoolCo, instead of a price. The ISO in a PoolCo is independent of transmission and generation owners for operating the transmission grid. Competitive generator submit bids to the ISO on a day-ahead basis specifying the amount of energy available, price and delivery points, while distribution companies do the same for loads. The ISO, based on submitted bids, forecasts that short run regional energy demand and dispatches generation in the region to balance generation with load and maintain reliability. Although buyer and sellers in a PoolCo are prevented from making individual contracts for power, participants may hold optional financial instruments called contracts for differences (CFDs). These contracts are long-term price hedging bilateral contracts between generators and distribution utilities or retail customers. These contracts allow a physical dispatch of individual generating units by their owners and allow consumers to establish long term prices. When used, a power 21

seller is paid a fixed amount over time that is a combination of short-term market price and an adjustment for the difference. These contracts are suggested due to the fact that the spot price set by PoolCo fluctuates over a wide range and is difficult to forecast over long periods. Using CFDs, any differences between the spot price and the contract price would be offset by cash payment by generators to customers.

1.18.2 Bilateral Contracts Model (Direct Access)


The bilateral contracts model has two main characteristics that would distinguish it from the PoolCo model. These two characteristics are: the ISOs role is more limited, and buyers and sellers could negotiate directly in the marketplace. In this model, small customers aggregation is essential to ensure that they would benefit from competition. This model permits direct contracts between customers and generators without entering into pooling arrangements. By establishing non-discriminatory access and pricing rule for transmission and distribution systems, direct sales of power over a utilitys transmission and distribution system are guaranteed. In this model, a distribution company may function as aggregator for a large number of retail customers in supplying a long-term capacity. Also, the generation portion of a former integrated utility may function as a supplier. The ISO would make sure that sufficient resources are available to finalize the transaction and maintain the system reliability. To maintain the reliability in real time, the suppliers would supply incremental and decremental energy bids to prevent transmission flow congestion. Here, a cost based transmission pricing would provide a non-discriminatory access to transmission and distribution systems.

1.18.3 Hybrid Model


The hybrid model combines various features of the previous two models. The hybrid model differs from th PoolCo model as utilizing th PX is not obligatory and customers are allowed to sogn bilateral contracts and choose suppliers from the pool. The pool would serve all participants (buyers and sellers) who choose not to sign bilateral contracts.The hybrid model would enable market participants to 22

choose between the two options based on provided prices and services. The hybrid model is very costly to set up because of separate entities required for operating th PX and transmission system. W hen they transact business with the power exchange, buyers and sellers are really talking to the marketplace and not the individual buyers and sellers. As in stock exchange, the power exchange constantly updates and posts a market clearing price (MCP), which is the transaction are being done. Note that when buyers and sellers communicate to the power exchange, they dont know whom they are dealing with. These three market mechanisms are not mutually exclusive. Multiple

combinations of all three could be made to work. It is common for two of these three mechanisms to be present simultaneously.

1.19 Comparision between two market structures


Open Access
Bulkof energy transactios are All carried out as bilateral trades while there may also exist a day ahead spot market. The iso is responsible for market administration, generation scheduling or dispatch function.

Pool
energy transaction the pool, are which carried out

may be organized through a day ahead trading mechanism. The PoolCo for operator the of is

responsible and price.

market pool

settlements, unit commitment determination

Participation

in

the

market

by

Participation mandatory.

by

GENCOs

is

GENCOs is not mandatory. The ISO is responsible for system security and control, procuring necessary ancillary services.

The and

PoolCo control,

operator

is

responsible for system security procuring necessary ancillary services. Example: U.K. Market

1.20 Structure of Thesis

Example: Nordic Market.

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Structure of Thesis
The thesis is organized as follows. Chapter 1: Includes a brief description automatic generation control and its importance, megawatt interaction, mega VAR interaction and cross-coupling of P, f and Q, V conventional integral controller, need of intelligent control technique, AGC with optimization technique, restructuring, role of ISO in power system, AGC in restructured power system,problem formulation and scope of work. Chapter 2: Deals with comprehensive and critical survey and review of literature on AGC studies related to existing technique, power system models, control technique and deregulation. Chapter 3: This chapter Deals with the modeling of different types of

interconnected power systems with integral control and state space modeling of these power systems. Chapter 4: Describe the technique used to optimize the gain of integral controller using Bacterial Foraging optimization. W hich is depend upon the behavior of E-coli bacteria present in the human intestine. W ith the help of BFO algorithm the optimum value of K i is selected. Chapter 5: Deals with the modeling of different types of power system in deregulated environment with integral control and state space modeling of these power systems. Gives the results in the form of graphs of dynamic responses of crucial system states, obtained by action of BF controllers in comparison with integral controller and open loop. The discussion of the results is also included for each power system model under consideration. Chapter 6: Gives the conclusions of the dissertation work and scope for further work. Finally, for the completeness of the dissertation, references and an appendix showing the nominal values of power system parameters are given at the end.

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