Power System Planning

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POW£R S~ST£M PLANNING
...N INDIA
POWER GRID REGIONS
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SUBJECT - POWER SYSTEM PLANNING
Subject Code: 10~E761 IA Marla: 25 Exam Hours: 03
No. of Lecture Hrs.1 Week: 04 Total No. of Lecture Hrs. 52 Exam Marks: 100
PART-A
UNIT~ 1
INTRODUCTION OF POWER PLANNING, National and regional planning, structure of
power system, planning tools, electricity regulation, Load forecasting, forecasting techniques,
modeling. 8 Hours
UNIT-2 &3
GENERATION PLANNING, Integrated power generation, co-generation I captive power,
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power pooling and power trading, transmission & distribution planning, power system
economics, power sector finance, financial planning, private participation, rural. electrification
investment, concept of rational tariffs.. 10 lIotirs
UNIT-4
COMPUTER AIDED PLANNING: Wheeling, environmental effects, green house effect,
technological impacts, insulation co-ordination, and reactive compensation. 8 Hours
PART-B:
UNIT-5 & 6
POWER SUPPLY RELIABILITY, reliability planning, system operation planning, load
management, load prediction, reactive power balance, online power flow studies, test estimation,
computerized management. Power system simulator. 10 Hours
UNIT-7 & 8
Optimal Power system expansion planning, formulation of least cost optimization problem ..,
incorporating the capital, operating and maintenance cost of candidate plants of different types
(thermal hydro nuclear non conventional etc), Optimization techniques for solution by
programming. 16 Hours
TEXT BOOK REFERRED FOR NOTES:
1. ElectriCal Power System Planning, A.S.Pabla, Macmillan India Ltd, 1998
2. Electrical Power Distribution System, AS.Pabla, Macmillan India Ltd, 1983
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.
Krishna Xerox 9008281471

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ANIT.KUMAR KJv!.
UNIT -1: INTRODUCTION OF POWER PLANNING Assistant Professor,E&EE,
BIET,DavangeD! .
V.T.U.Syllabus
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National and regional planning, structure of power system, planning tools, electricity regulation,
Load forecasting, forecasting techniques, modeling.
SYNOPSIS
The basic process of planning & its application to the power system has been illustrated. The
history of the planning & its increasing importance in present & future scenarios of power system
has been analyzed. The power growth & national & regional planning & development of national
grids ?ave been brought out. Least cost planning is discussed, the regulatory process of power
.. development which includes various rules, acts & policies are illustrated. The various techniques
for forecasting & its modeling are explained.
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UNlT-l~ INTRODUCTION OF POWER PLANNING

1. INTRODUCTION
1.1 POWER PLANNING
Electricity plays -; key-role in the modem society because of its versatility ;W;respect to input
~nergy form. The annual per capita consumption in India is about 335 kWh (1996). A rise in this
consumption to three times the value is likely to substantially raise the standard of living of the
people in the country with respect to education, health, transport, communication, media,
productivity etc. Electricity can be produced with coal, nuclear fuels, oil, gas, hydro power, diesel,
geothermal energy, biomass, wind -energy, solar energy or fuel cells. Electrical supply also offers
the opportunity of total environmental enhancement compared to other energy use patterns.
For increasing the supply of electricity, new power projects will have to be installed.
Expansion, modernization, and maintenance of the electricity utility industry will require increased
capital costs, financial and environmental restraints, increasing fuel costs and regulatory delays.
AU these factors lead to the necessity for a more comprehensive understanding and analysis of
electric power systems. Recent developments in system analysis and synthesis as well as in related.
Digital, analog, and hybrid computer techniques provide important tools which will aid the
planning engineer in meeting these challenges.
Some of the questions to be-explored are:
1. Where and how much generating capacity should be added?
2. What should be the optimum size of the generating units?
3, what types or combinations of generation types should be used - nuclear, gas turbine,
conventional steam, pumped hydro, solar, wind etc.
4. What will be the environmental impact of various generation alternatives?
5. What should be the size of the interconnections with neighboring systems?
6. What voltage levels are most economical and what transmission lines should be constructed?
7. What will be the impact of major facility additions upon the financial structure Of the utility?
8. How will utility requirements affect targets of performance for new technologies?
9. How will the energy conservation and load management measures help to reduce generation
capacity requirements?
10. How much reliability of power supply to consumer is required?
1.2 PLANNING PROCESS
./' Planning is the process of taking a careful decision. The main input in Planning is the quality of
systematic thought that goes into a decision .
./' The process of establishing the power industry is capital intensive and time
Planning saves project time and ensures that resources are used most economically.
ANlLKUMAR K.M., AssistantProfessor in E&EE, B.l.E.T, Davangere.

5
POWERSYST$)f PLANNING
../ Planning is the process of selecting vision, values. m!SSk'Al and objectives and decIding what -"
should be done to attain them.
../ Planning should take into account: uncertainty about the future, many alternative action
choices and many goals and constraints. Planning can be seen asconsisttng-of three cyclical
componenents
1 Learning about the environment, the relevant issues and possible future scenarios in order
to identify:
i
(i) Strategically goals
(ii) The decision criteria and constraints
(iiij.Technological needs and opportunities
2 Thinking about available strategic options, the associated costs and risks and their
implications. This involves:
(i) Investment of resources
. (ii) Possible unforeseen factors
(ifi) Reliability of outcome.
3 Action that involves choosing preferred plans or strategies on the basis of supporting
analysis.
Once an action has been selected and the process of implementation begins, the cycle is
renewed. The following characteristics.make this planning process particularly challenging for
power systems.
1. The power system is highly capital intensive.
2. Rationales and experiences developed in advanced countries are difficult to apply for expanding
a large system with diverse options in developing countries.
3. The learning and thinking activitiesoften tend to diverge broadly before finallyconverging.
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NEW PLANS
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POWER SYSTb. ...l11J!LAJVJV1N<i
1.3 POWER SYSTEMS

./ Ever since electrification began in the world around 1880, electrical utilities have gradually
consolidated into larger units to generate, transmit and distribute electricity. In India,
electrification started with the commissioning of small ~ydro-el~ctric station (I3v....!~,-I-.(1I--1l-
Darjeeling in 1897. Followed by commissioning of a hydropower station at Sivasarnudrarn in
Karnataka during 1902 •

./ The regulatory systems have consequently changed over time~ The planning of power systems
•
must fit with the overall energy policy with due respect to public opinion and reliability of
power supply. This makes power system planning difficult. The problem of ensuring adequate
future electricity supply varies from country to country depending on the peoples' expectations,
technological development; and availabilities of resources .
./ Under the Electricity Supply Act, it is the duty of the Central Electricity Authority to adopt a
systematic approach to formulate policy and optimize resources.
./ Planning should consider the needs of the system - existing, new or refurbished generation,
new transmission or upgrades, demand-side management and so on - and the resources that
maybe available to meet them. Where additional generation is required, like site, size, the fuel
type including back-up fuel requirements (if any), technical and environmental characteristics
and mode of dispatch (base load, intermediate, peaking), should be identified .
./ Environmental and resource constraints are forcing us to approach the future with better
planned and researched projects. The major goals for the future are to develop least cost
projects, identify new primary resources, find better means of distribution, transmission and
generation, emphasize on better and less wasteful use of electricity, and develop demand side
management.' Pumped hydro power and superconducting magnetic coils represent a possible
solution for storage of electricity Planning should identify the project with decision & clarity.
Power aspects in developed and developing countries •
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ANILKUMAR K.M ••AssistantProfessor inE&EE. BJ.E.T. Davangere.

7
POWER SYSTEM PLANNING
1.4 STRATEGIC PLANNING

1.4.1 Strategies & its classification
v' Strategy is a unified, comprehensive and. integrated plan.
v' His designed to ensure that the corporate goals are achieved.·Comprehensive intelligence about
the nature and extent of the likely trends of power development and demand is essential for a
successful strategy.
i v' Strategic planning.is the process of determining the long-term goals and courses of action and
the allocation of resources necessary to accomplish these goals.

v' The broader planning horizon of strategic planning has significant implications for resource
planning, for example, planning to influence demand in order to reduce the need to build new
generating capacity.
There are many means available to reduce demand, such as by
(i) Changing the tariff structure, e.g., time-of-day tariff.
(ii) Demand billing.

(iii) Implementation ofload control by shifting peak load to ?~ peak period.
(iv) Encouraging eo-generation/captive generation.
(v) Promotion of conservation of energy.
Functions of planning
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The first step in developing a strategy is the identification of the problems and opportunities
that exist. A successful utility win have a fertile idea generating environment. To attain the vision,
perform strengths, weaknesses opportunities and threats (SWOT) analysis and benchmarking
exercises within the power utility. The second step is to set goals (objectives). Goal setting is not
independent from identification of opportunities- The next step is to have a procedure for providing
possible solutions. Tactical and operational planning involves this step. The fourth step in strategic
planning is to choose the best solution, given possible solutions and the objectives. On what
the solutions be chosen is a difficult job, depending upon various constraints. The
planning are shown in the next page.
t4I... Al'lTT VTl1\JI AV TC M A ",,;M<>,..t l>rnfl><:<.:nT ;n F&F'R HJ.E.T. Davaneere.

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POLICIES, STRATEGIES . PROCEOURl:S' . BUDGETS.;

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Flow chart showing the Components of Planning

The last step is to have some type of review procedure to check how the best solution has
actually performed. The nature of this review function will depend on the performance and style of
management. To implement a strategy, develop the specific action plan.
Long-Term Strategy
Some technological, managerial and geopolitical issues require long-term policy and
administrative decisions and include, among others:
(i) Directions for capacity augmentation to meet the projected demand need for accelerating hydro
development.
(ii) Environmental issues in power development.
(iii) Inter (state/regional issues in water resources development.
(iv) Functional and commercial issues in integrated operation.
(v) Land and water availability for thermal power development.
(vi) Fuel (coal, oil etc.) quality and transport in thermal power development.
,..
(vii) Energy costs and prices and resource mobilization.
(viii) Organizational deficiencies in power development, i.e., re-engineering of power industry to
bring efficiency in the management process.
(ix) Private participation in power generation, transmission and distribution.
Medium-Term Strategy
The broad aims are:
(i) Renovation, modernization, upgrading and extension in the life of existing ageing power plants.
(ii) Reduction of transmission and distribution losses.
(iii) Construction of shorter gestation power plants like gas turbine based combined cycle,
generation schemes etc.
(iv) Energy conservation and load management.
ANll..KUMAR K.M., Assistant Professor inE&EE, B.I.E.T, Davangere.

9
(v) Adoption of non-conventional energy sources particularly for rural decentralized energy
systems.
Short-Term Development Strategy
Short-term strategies aim "at: .- -
(i) Improving the performance of existing power plant capacity and maximizing its utilization.
(ii) Seeking even power sharing over circuits of similar ratings.
(iii) Establishing new circuit connection as required, if possible without recourse to displacing.
lower voltage circuits, and at the highest possible capacity.
.. (iv) Routing new circuits so that they may readily be used for connection of future power stations,
or for supply points to regional grids.
(iI) Reducing the number of levels of system voltage used.
(vi) Maintaining uniformly high, but acceptable fault levels.
(vii) Installing capacitors at various voltage levels (HT and LT.)
(viii) Computerizing work management system for tracking recurring problems, materials
movement and maintenance history and to forecast maintenance schedule.
The planning engineer's contribution to a project is to prepare a detailed project report giving a
time frame for site clearance, and for starting, completing, and finishing construction of a project.
The report sets the limits of resources and sequence of activities and phases etc.
1.4;2 Detailed project report (DPR)
Planning of power project facilities undergoes the following stages:
(i) Preliminary investigations for establishment' of need proposed to be achieved through the
implementation of a project.
(ii) Project identification and formulation which involves examination of various options to meet
desired needs and selection of one for preparation of feasibility report.
(iii) Detailed Feasibility Report (DFR.) regarding technical, demand, organization, and
environmental aspects, and financial and economic viabilities.
(iv) Appraisal of Detailed Feasibility Report keeping in mind the following aspects:
(a) Technical analysis to determine whether the specifications of technical parameters chosen are
realistic and optimal.
(b) Demand analysis to determine the demand availability gap_of power for a particular
region/state/site and arrangement for evacuation of power thus generated.
(c) Organizational aspects to determine whether the organization has the managerial capability to
implement and operate the project.
(d) To check ifthe environmental guidelines are fully covered in theproject cost
(e) Financial analysis to determine whether financial costs are properly estimated,
ensured and the project is financially viable.
ANaKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere,

10
(f) Economic analysis to determine the cost generation/transmission and whether the project is
e~~no;nically worthwhile .
.(v) _Preparation of Detailed Project Report: It comprises technical details running into severa!
. volumes for large projects. After the appraisal ofDFR, detailed engineering cqnducted, A Detailed
Project Report indicating the firmed-up cost estimates and project implementation schedule is
prepared. Between the DFR and DPR stage, there may be some further studies required to improve
information about site conditions and other project parameters. •
(vi) Implementation involves implementation planning as per detailed project report, obtaining
various clearances, getting investment approval or financial close, detailed designs and drawings,
specifications, tendering/contracting, execution of various activities leading to commissioning of
the project and monitoring throughout.
1.4.3 Project implementation
Good project management is necessary to avoid time and cost over runs. Rigorous project
planning and management practices should be applied for the project to be completed in time and
within budget. PERT must define an overall project management framework under which all
implementation activities will have to be performed. It should contain:
(i) A detailed schedule of all project activities and their estimated durations.
(ii) A statement on the methods to be used to complete all the project activities.
(iii) A quality statement which identifies a11quality control and quality assurance steps to be
applied.
(iv) A statement on the organizational requirement and impact within the utility organization, so
that it can be managed effectively.
Well researched, clear and good quality Detailed Project Reports (DPRs) for power
development are important. Research and Development should be an in-built part of the project for
the entire duration of the project. The one important reason for the present conditions of power
supply in India is the delays in the addition of power generating, and transmission and distribution
capacity mainly due to DPR deficiencies.
1.4.4 Role of consultants
Consultants have important role in Power industry. The consultant can take up the tum-key
projects and' Consultancy services such as feasibility reports, detailed project reports, detailed
engineering, total project management, commissioning, financial systems, manpower management,
R&D etc. The primary business of a consultant is;
(i) To provide solution to their client's problems. The consultant should be able to define the
problems and constraints and analyze them to. arrive at a solution.
(ii) To help the client to accept and implement the solution.
(iii) Consolidate consultants' knowledge base.
ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T,Davangere.

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POWERSYSTEM PLANNING
1.5 POWER DEVELOPMENT

The development of power is closely linked with the growth of gross national product. The
economic strength of a region in the next century will be greatly dependent on the availability of
power, In the planning of power system development, priority is given to regional-systems and
generation lead balances are maintained. Also, keeping in view that different transmission lines are
not too 'reduadant' but are sufficiently robust regional links, there must be strategic planning to
i foresee, evahaate and co-ordinate future requirements and concentrate resources to dovetail with
medium andshort-term objectives.
The overa n'time leads to th e vanous plannmg activities are given below,
Time ahead Plannlna Activity
5-20 years Long-term planning Vision, values, mission, load forecasting regional system
'. and National grid expansions scheme
2-5 years Medium-term Medium-term utility generation schemes such as coal,
planning thermal, gas turbines, hydro etc. Renovation and
modernization of existing generating plants
1-2 years Short-term planning System improvement of transmission and distribution
systems, Small generation schemes, small hydro, gas
turbines diesel power projects, non-conventional sources
of generation
15days-l year Operational planning Maintenance scheduling of units and fuel requirements
1-1 days Operational planning Generation scheduling and network switching
2-12 hours Operational planning Economic dispatching instruction and power purchases I
selling
0-2 hours Operational planning Network switching Economic Dispatch Control
The starting point in the planning process is to develop clear vision, good values and
mission. The other processes follow, such as to develop load forecasts in terms of annual peaks and
energy needs for the entire utility area as well as for each region consisting of many utilities.
The system expansion is determined by load-flow studies under steady state and abnormal
conditions. The load-flow studies are made for calculation of currents, voltages, and real and
reactive power flows taking into account the voltage regulating capability of generators and
transformers, capacitors, generation schedules, power interchange etc. By changing the location,
size and number of transmission lines, the planner can achieve. To design an economical system
that meets the operating, design, environmental and cost criteria. After determining the best system
configuration from the load-flow studies, the planning engineer studies system behavior under
fault conditions by carrying out Short-circuit studies as a short-term plan to determine design
parameters of protection systems. Finally the planner performs the stability studies to ensure that
the power system will remain stable following severe fault.

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1.6 PO'VER GROWTH

./ The electricity generation capacity in India is the fifth largest in the world. India is also the
sixth largest consumer of electricity, and accounts for 3.4 -per cent of the global energy
consumptiQn. Over the pasUhirty years, the country's energy demand has grown at an average
of 3.6 per cent per annum. Growth in the installed capacity of power generation has been
spectacular, having risen from 1,712MW in 1950 to 84,087MW ending 1995-96. During the
financial year 2011-12, the highest ever capacity addition of 20,501 MW (thermal, nuclear and
•
hydro) was achieved (CEA). A capacity addition of 17,956 MW during the year 2012-13-
comprising 15,154 Mw of thermal, 802 MW of hydro and 2000 MW of nuclear power-has
been envisaged .
./ India's Installed Generation Capacity stands at 210,95Ln MWas on December 31,2012. And
the electricity sector in India had an installed capacity of 225.133· OW as of May
2013. Captive power plants generate an additional 34.444 GW. Non Renewable Power Plants
constitute 87.55% of the installed capacity, and Renewable- Power Plants constitute the
remaining 12.45% of total installed Capacity. India generated 8~~su (855 000 MU i.e.
855 TWh) electricity during 2011-12 fiscal.

./ In terms of fuel, coal-fired plants account for 57% of India's installed electricity capacity,
compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal,
renewal hydropower accounts for 19%, renewable energy for 12% and natural gas for about
9%.
-/ The Power Ministry has also proposed an outlay of Rs 37 crores for the Central Electricity
Authority (CEA) for various initiatives of strengthening its institutional framework. Sixty-three
per cent will be spent on new and ongoing projects while twenty-nine per cent is on renovation
and modernization, and the rest is on renewable energy projects. The overall investment
required for the power sector in the 12th Plan is about 12 to 14 lakh crores of rupees. The
investment pattern should focus on generation, transmission and distribution segments in order
to achieve balanced growth in the power sector .

./ The Central Electricity Authority (CEA), in its fifteenth Electric power Survey has estimated
that the gross energy generation required by the year 2020 is to the order of 1325TWhlannum
and the corresponding generation capacity requirement is 3,85,770MW .
./ The transmission network comprises of about 98,367 circuit kilometers of transmission lines at
8001765kV, 400kV, 220kV and 132kV EHVAC and +500kV HYDC lev~ls and 160 sub-
stations. A new transmission line of 1200 KV has become operational in India
whereas the highest transmission voltage level in China is only 1100 KV. The
capacity is about 1,57, 158 MVA as on January 31,2013. This gigantic transmission ~"'.,,,~.~""
ANILKUMAR K.M., AssistantProfessorin E&EE, B.l.E.T,Davangere.

13
spread over the length and breadth of the country is consistently maintained at an availability
of over ninetynine per cent (pGCIL) .
./' The transmission and distribution less is another ill afflicting the power sector in the country.
--The main reasons for high transmission and distribution losses are weak and inadequate sub-
transmission and distribution system, improper load management, inadequate reactive load
compensation at load points, low quality of construction, inadequate maintenance of
equipments, and unmetered supply of agricultural pump-sets and pilferage/theft of energy .
./' India's network losses exceeded 32% in 2010 including non-technical losses, compared to
• world average of less than 15%. Both technical and non-technical factors contribute to these
losses, but quantifying t~~ir proportions is difficult: But the Government pegs the national
T &D losses at around 24% for the year 2011 & has set a target of reducing it to 17.1% by 2017
& to 14.1% by 2022. Some experts estimate that technical losses are about 15% to 20%.
2. NATIONAL AND REGIONAL PLANNING

2.1 ADVANTAGES & DISADVANTAGES OF NATIONAL AND REGIONAL
PLANNING
There is a lot of diversity in the country in topography, daily peak due to day time differences,
annual peak load timings (winter or summer) & resources in the various regions. Hence five
electricity regions have been established. The economic argument in support of regional
coordination is - Advantages,
../ Such coordination allows joint planning & operation of facilities,
../ It makes the exchange of economical energy easier,
../ It prevents the constructions of unnecessary facilities by isolated systems & increases
reliabilities .
../ More specifically, as a result of transmission interconnections, coordination offers distinct
economic & the non coincidental occurrence of the peak of the participation systems .
../ It might be possible to reduce the total generating capacity requirements that would otherwise
apply if each utility system were to fully meet its needs .
../ By combining the existing capacity of generation in the region & to make economic use of the
generating resources such as hydro & fossil fuels etc ...
Disadvantage,
../ One of the problems in regional planning relates to coordination among the various utilities in
the region with respect to tariff and backing down Of generating units in merit order.
_ links for transfer of power between various regions is desirable in order to utilize
power in some regions and for stable grid operation.
ANILKUMAR K.M., AssistantProfessor inE&EE, B.I.E.T,Davangere.

14
2.2 INTEGRATED RESOURCES PLANNING

This is an aspect of least cost planning. The utilities have to evaluate all the Supply side and
-
demand side options like energy conservationprogrammes,
.
time of use pricing and system improvement
direct load control: interruptible or
..SUPPLYSIDE OPTIONS
1. The technology related to conventional fossil fuels is predominant at present. Many utilities
..
have turned to combustion turbines fueled with natural gas with new capacity which are highly
efficient, have low emission, and are well adapted for intermittent use. Moreover, as the focus
is now.on cleaner, more efficiently cost-effective, Goal-fired generation technologies, washed
coal, gasification based generation options like Integrated Gasification-Combined Cycle
(lGCC), etc., are found more effective over applying Flue Gas Desulfurization units and
Fluidized Bed Combustion because the former have a potential to minimize solid waste in
addition to cutting airborne emissions.
2. Increasing role of renewable: While technological advancement continues in the use of fossil
fuels, several new options have started to emerge which broaden the scope of non-conventional
sources of energy in the future. Wind power generation costs have fallen dramatically, by a
factor of 10, and photovoltaics by a factor of 4, over the last two decades.
3. Increase in the availability of generating station.
4. Efficient operation of the regional and national grid.
S. Strengthening the existing transmission and distribution system such as by adding new links
and capacitor banks at suitable points and thus reducing system losses and improving voltage
profiles.
DEMAND SIDE OPTIONS
1. Taking energy conservation 111£asureTs:here is a potential for energy saving to the extent of
30 per cent in agriculture pump-sets, 25 per cent in industrial motors, and 10-15 per cent in
commercial and domestic lighting.
2. Minimum consumer power factor of not less than 0.95 lagging.
3. Consumer load management such as rural, agriculture and urban load staggering, individual
large consumer load control, and thereby improvement in generating stations load factor.
4. Time-of-day metering with three tariffs for peak time (higher rate), night time (lower rate) and
other times ofthe day (medium rate).
2.3 LEAST COST UTILITY PLANNING
../ There are two fundamental problems inherent in traditional planning. The first is that
forecasting and investment planning are treated as sequential steps in planning,
interdependent aspects of the planning process. The second problem is that planning
ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T, Davangere.

15
POWER S¥':''1'bM J'LAiV1V./.JVb
inadequately directed at the main constraintsfacing the sector, namely, the serious shortage of
resources.
./' Demand forecastsare little more than extrapolations of past trends of consumption;no attempt
is made-te-uederstendneither the extent ofunmet demand, nor the-eeeentto which price would
influence demand .growth. Greater attention should be paid to end-use efficiency, plant
rehabilitation, loss reduction programme etc as these have a potential for much more economic
use of investmentresources.
-/' Least cost planningis least cost utility planning strategy to provide reliable electrical services
at the lowest overallcost with a mix of supplyside and demandside resources.
•
-/' The Leup uses various options like end-useenergy efficiency,load management, transmission
and distribution options, alternative tariff options, decentralized non-conventional sources
power generation and conventional centralized generation sources. The magnitude. of the
various componentsdepends upon the detailedoutcome of the exercise.
./ This planning process can yield enormousbenefits to consumersand societybecause it affords
acquisition of resourcesthat meet consumerenergy service needs in ways that are low in cost,
environmentally benign, and acceptable to the public. Such benefits occur because of the
diversity of resourcesconsidered, public involvement in the planning process and cooperation
among interestedparties.
./' Least costs utility planning as a planning and a regulatory process can greatly reduce the
uncertainties and risks faced by utilities. System expansion detailed project reports (DPRs)
must be based on least cost planning and need to be made mandatory by amending the
Electricity (Supply)Act, 1948.The logic for least-cost planningis shown in below Figure.
lEAST COST
-to AlTAI8UTES:
IlEMTCOST.
EN'liltON. BE... GM.
soc;lALlY
A.CU:PTAaLE.
ETC.}
./ For an investmentto be least cost, the lifetimecosts are considered.These include capital cost,
interest on capital,fuel costs, and operationaland maintenance cost.
./ To fully realize the benefits, a complete analysis of the options is necessary and simulation
study according to a programming can be necessary and simulation study according to a
programming can be helpful for a complete analysis of attributes. The process of least cost
planning is shownin next page.
ANll.KUMAR K.M., AssistantProfessorin E&EE,B.I.E.T,Davangere.

16
POWER SYSTEM PLANlVING
..
The process of least cost planning

Evaluation
1. All options, whether supply or demand, should be assessed in a comparable and consistent
manner.
2. Once the initial evaluation has been completed, other factors (economic, environmental, and
societal) should be considered individually. Such revaluation prevents the rejection of options with
high costs in one set of factors, such as economics, but strong benefits in others, such as
environmental impacts.
3. The evaluation and integration of options can also be accomplished through the use of various
commercially available computer programs.
4. A linear programming model (India ELITE) based on an earlier version of a power planning
model developed in Canada has been prepared. It has been used in identifying least cost electric
power system development options for India for the 1991-2021time frame.
S. EGEAS packages have been used by CEA for preparing the National Power Plans.
. 6. Other software's. or packages available for simulation or least cost planning are PROMOD,
ELFIN, MIDAS, EGEAS, UPLAN, MARKAL-ELGEM etc which are used in different countries.
3. STRUCTURE OF POWER SYSTEM

,/ An electrical" power system can be considered to consist of generation, transmission, sub
transmission systems and distribution parts. In general, the generation and
,
systems are considered as bulk power supply and the sub transmission and distribution
are considered to be the final means to transfer the electric power to the ultimate £,AT,,'Ulrn"

17
The standard system voltages used in India for transmission and distribution are as per IS: 12360-
1988are given in the below table.
Standard system KV Volt.ag~ (IS: 12360) --

Nominal Voltage in KV Maximum SystemVoltage Remarks
.
0.240 0.264 Distribution
0.415 0.457
3.3 3.6
• 6.6 7.2
11.0 12.0
.
22.0 '. 24.0
33.0 36.0 Distribution & Sub
66.0 72.5 transmission
132.0 145.0 Sub transmission &
..
220.0 245.0 Transmission
400.0 420.0 Transmission & Tie
765.0 800.0 . line
v' The basic system consists of energy resources such as hydro, coal, gas etc., a prime mover, a
generator and a load. Some sort of control system is required for supervising it.
v' The prime mover may be a steam driven turbine, a hydraulic turbine or an internal combustion
engine. Each one of these prime movers has the ability to convert energy in the form of heat,
falling water or fuel into rotation of the shaft which in turn drives the generator.
v' The generator may be are alternator or a d.c. machine. The Electrical load on the generator may
be lights, motors, heat or other devices, alone or in combination etc.
, The con.ol system functions to keep the speed of the machine constant, the voltage within
prescribed limits to meet varying conditions of the load by adjusting fuel/water, and generator
excitatien within the generator capability .
../' The active power (MW) is regulated by frequency (speed) control. The reactive power (MVAr)
and voltage is regulated by excitation control.
../' TIle components of an electric power system include generators designed to convert
mechanical energy into electricity, transformers, which change the voltage or current of electric
po~~r suppl~, tr~~ission lines used to itr~sfer power from on~ location to another, ~j,
auxiliary equipment intended to vary the system controls. ,,,:,~<.'}i
18
v" System performance is determined at an instant of time and is characterized by its functional
parameters such as levels of power, voltage, frequency, wave shape, phase balance> and
amperes. Physical properties of interconnected systems are characterized by resistance of
. .
components, inertia moments and...JiIne constants determining the change of electrical and
mechanical quantities, The electric power system is closely connected to other systems by tie
lines or links.
llEUtolti
$tJi"t..
tAAHS·
. UII~.::'"
l(Y[l
t
f/rm
I~R<~
a:N.
SJl&I':'
Power System Components
The power transmission and distribution network may be of the following types
1. The radial system is as in Figure shown in next page. Here the lines form a 'tree' spreading out
from the generator. Opening any line results in interruption of power to one or more of the loads.
2. The loop system is as in Figure shown in next page. With this arrangement all loads will
continue to be served even if one line section' is put out of service. In normal operation the loop
may be open at some point at A as shown in the figure. In case a line section is to be taken out, the
loop is first closed at A and the line section is put on shut down. In this way no service interruption
occurs.
Radial System Loop System
Network of Lines
19
3. In Network of lines the same loads being served by a network. This arrangement has a higher
reliability as each load has two or more circuits of supply.
-/' The sub transmission and distribution circuits are"commonly designed as radial or loop circuits.
- The-high voltage transmission lines are generally laid as interconnected or networks .
./' In this case interconnection of major power stations creates networks made of many line
sections. As the demand for load grows, generating capacity and transmission and distribution
must grow as well. Transmission and distribution are distinguished by their voltage levels. In
general, transmission systems have bulk power handling capability, and relatively long lines
connecting generating stations to.load centres of the utilities.
-/' The model of transfer of powe!. (P) by transmission line (having line reactance XI) between
two distance buses, (1 and 2) fed by generating machines with terminal bus voltage VI and V2 .
respectively with phase angle e difference is generally represented as,
p = I V. II V; I sin B
XL
../ Distribution systems including sub transmissions, branch out from" and Under lie the
transmission systems. They handle lower levels and have relatively short lines. The power
level that transmission and distribution systems are being called upon to handle, are increasing
with time. The economies of scale need large generating stations and higher voltage levels for
transmission and distribution. Electricity cannot be stored and has to be supplied instantly.
-/' The component installed capacity, say in MVA p.u., expands progressively as one moves from
generation to transmission, sub transmission, distribution and the consumer end. Typical value
for the Indian power system is,
Generation capacity (1 p.u.) =Transmission capacity (1.5 p.u.) + Sub transmission
capacity (2p.u.) + Distribution capacity (3 p.u.) + Connected load (6p.u.)
-/' The reduced p.u. values on the right hand will indicate better electricity efficiency of the
system but in the interest of reliability and future expansion p.u. values may be higher for some
sectors. With rapid advancements in the field of electronics and its applications in innumerable
domestic, commercial and industrial sectors, the demand for quality power supply has
increased. 'Computers and other high-tech electronic process technologies require clean,
precise, transient free and uninterrupted power supply.
-/' Rule 54 of the Indian Electricity Rules, 1956, states that a supplier shall not permit deviation in
=::;I:~~eb::o:e:~c~:::~ :ighersideorbymore,~~~
voltage at the point of supply in consumer premises
~::::; c:o:~o:;
percent on the lower SIde, or :"(io:'yt!{'.:;
ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T, Davangere.

20
3. In the case of extra high voltage, by more than 10 percent on the higher side Or by more than
12.5 percent on the lower side.
4. Rule 55 states that the frequency of the alternating current should not vary from the declared
frequency by m0x:.ethan 3 percent.
4. POWERRESOURCES
./ The electricity sector in India had an installed capacity of 225.133 GW as of May
2013. Captive power plants generate an additional 34.444 OW. Non Renewable Power Plants
constitute 87.55% of the installed capacity, and Renewable Power Plants constitute the
remaining 12.45% of total installed Capacity .
../' The share of electrical energy in total energy consumption in India is 13.0% which is at 10th
place in world ranking .

../ India is endowed with economically exploitable and viable hydro potential assessed to be about
84,000 MW at 60010 load factor. In addition, 6,780 MW in terms of installed capacity from
Small, Mini, and Micro Hydel schemes have been assessed .
./' India's coal reserves will outlast other fuels for there are known coal reserves for another 200
years. India is the third major coal producing country in the world. Coal and '·1 ignite accounted
-
for about 57% of India's installed capacity. However,. since wind energy ~epends on wind
speed, and hydropower energy on water levels, thermal power plants account for over 65% of
India's generated electricity. India's electricity sector consumes about 80% of the coal produced
in the country .
./' India's share of nuclear power plant generation capacity is just 1.2% of worldwide nuclear
power production capacity, making it the 15th largest nuclear power producer. Nuclear power
provided 3% of the country's total electricity generation in 2012 .
. ./' In India, the known reserves of oil will last for about 30 years & the Natural Gas can last up to
AD 2050 at the present rate of consumption. Natural gas is basically methane which contains
one carbon atom for every four hydrogen atoms. Therefore, after combustion it gives out less
C02 for every energy unit derived. Besides, gas has little or no sulfur compounds or suspended
particulate matter, & the percentage of nitrogen is much less than in coal or oil. As a natural
policy, the use of oil & gas has been allowed for power generation.
,,._ -:
21
YUW.l!.l( ,Sr':HbM l'LAJVIV1Jv(:i
5. PLANNING TOOLS
y' Planning engineer's primary requirement is to give power supply to consumers in a reliable
manner at a minimum cost with due flexibility for future expansion.
y' The criteria and constraints in planning an energy system are reliabi~ environment,
economics and electricity pricing, financial constraints, and society impacts and value of
electricity.
y' Reliability, economic; financial and environmental factors can be quantified. However, societal
effects are evaluated qualitatively. Some of these criteria conflict, ~aking the planning
decisions more complex. For example, meeting higher reliability levels may be constrained by
•
financial limitations to build new facilities. Achieving lower environmental impact is likely to
increase the cost of electricity to consumers (economic factor).
y' The system must be optimal over a time period from first day of operation through the planned
lifetime. Today, the planner numerous analysis and synthesis tools at his disposal.
y' Various computer programs are available and are used for fast screening of alternate plans with
respect to technical, economic and environmental performance of power system.
The available tools for power system planning can be split into three basic techniques: simulation,
optimization and scenario Techniques,
r. Simulation Tools-
./ These simulate the behavior of the system under certain conditions andlor calculate relevant
indices. Examples of (simulation tools) are load flow models, short-circuit-models, transient
stability models etc., in transmission; production costing, adequacy calculations, estimation of
environmental impact etc .
./ In power generation, corporate models can simulate the impact of various decisions on the
financial performance of the power utility company.
y' The use of simulation tools for strategic planning need voluminous data and requires the
results from various models to be integrated such typical simulation programs is shown.
2. OptimizationTools-
y' These minimize or maximize an objective function by choosing adequate values for decision
variables. Examples of these are optimum power, least cost expansion planning, generation
expansion planning.
3. The Scenario Techniques-
y' This is a method for viewing the future in a quantitative fashion.
y' All possible outcomes are investigated. The sO,rtof decision or assurnp~ions which might ~,l
made by a utility developing such a scenario .~ight be: should we Computeri~e and a~~~~l~l
the management of power system after a certain date. .".'; -c '.;;;';"
ANll-KUMAR K.M., Assistant Professorin E&EE, B.I.E.T, Davangere.

22
./ The process of Planning Electric Energy Systems consist of generating a set of planning
Scenario,
./ Scenario can.be optimistic/ambitious or optimum or Pessimistic .
./ In India, the various types of scenarios for electric power are drawn by the Pla~ing
Commission, CEA, State Electricity Boards, research organizations, individual research
workers Etc .
./ Electrical utilities should prepare integrated resource plans. These Long term plans seek to
develop the best mix of demand and supply options to meet consumer needs for electric energy
services -,
Simulation programs for system planning
•~;~:<
.: 1_ " .';;_i B " .
- . ' ..
..: '"!t!, '-~~~J~
/~\":~
Optimum generation Best combination ofdifferenttypes and sizes of generating units

mix cohsideIirig capit(il and production costs and minimizingrevenue
requirements
~KUMAR K.M., AssistantProfessor in E&EE, B.lE.T, Davangere.

23
6. THE ELECTRICITY REGULATIONS

-I Regulations shape and influence the functions and processes.
The regulations generally concern,
1. Price setting: consumer tariff, wheeling charges, long-term-bulk-power Purchase agreeiiieiits.
2. Quality of'service standard and monitoring.
3. Compliance with public service obligations.
4. Dealing with consumer complaints.
5. Ensuringfair and open competition or the harnessing of competitive forces, as appropriate.
6. Monitoring investment in and repair of infrastructure.
7. Third party use of networks.
-/' The current regulations enacted by the Government of India are primarily administered by
CEA in its role as technical and economic advisor to the Minister of Power, with input from
state, regional and central government entities.
-/' For example, there is need for rules regarding transmission access to private generators and for
checking the potential for anticompetitive use of monopoly power .
../' Tariff regulations at the bulk power level are primarily "covered under section 43A of the
Electricity (Supply) Act of 1948.
ELECTRICITY ACTS
INDIAN TELEGRAPHICACT, 1885
This act covers the privileges and powers of the government to place the telegraphic lines and
posts. Penalties and certain other supplementary provisions regarding electric power lines.
INDIAN ELECTRICITY ACT, 1910
This is an act to amend the law relating to the supply and use of electrical energy. It regulates:
1. Licences: Grant of licences; revocation or amendment of licences; purchase of undertakings;
..
annual account of licensees.
2. Works: Provision as to opening and breaking up of streets, railways and tramways; notice of
. new works; laying of supply lines; notice to telegraph authority; overhead lines; compensation for
damage.
3. Supply: Point of supply; powers of lincences to enter premises, restrictions on licensees;
obligation on licensees to supply energy; powers of the state governments to give direction to a
licensee, power to control the distribution and consumption of energy; discontinuance of supply to
consumers; meters.
4. Transmission and Use of Energy by Non-licensees: sanctions required by non-licensees in-
certain cases; control of transmission and use of energy.
ANILKUMAR K.M.• Assistant Professor in E&EE, B.I.E.T, Davangere.

24
5. General Protective Clause: Protection of railways, aerodromes, canals, docks and piers;
protection of telegraphicand electric signal lines; notice of accidentsand enquiries; prohibition of
connection ~ith earthand power to governmentto interfere in certaincases of default.I
6. Administration andRules: AdvisoryQ_oards;
'lPpointment of electricalinspectors.
7. criminal Offences and Procedure: Theft of energy; penalty for maliciously wasting energy or
injuring works; penalty for unauthorized supply of energy by non-licensees;penalty for illegal or
defective supply or for non-compliance with order, penalty for interference with meters or
licensee's works andfor improper use of energy; offences by companies;institution of prosecution.
8. supplementaryProvisions: Exercise in'certain cases of power of telegraph authority;'arbitration;
recovery of sums; delegation of certain functions of the state government to the inspection staff;
protection for acts done in good faith; amendment of Land Acquisition Act, 1884;repeals and
savings.
THE ELECTRICITY (SUPPLY ACT) ACT, 1948
This act rationalizes the production and supply of electricity and generally provides for taking
measures conduciveto its development. It provides for:
1. The Central Electricity Authority: Constitution ; powers to requ~re accounts, statistics and
returns; direction of central government.to the Authority; power of central government to make
rules; powers of Authorityto make regulations.
2. State electricity boards, generating companies; state electricity consultative councils and local
advisory committees;constitution and compositionof state electricityboards; interstate agreement
to extend board'sjurisdiction to another state; formation, objects,jurisdiction etc., of generating or
transmission companies.
3. Power and duties of state electricity boards and generating or transmission company,
coordination with regionalelectricity boards and regional load dispatchcentres.
4. The board's financeaccounts and audit.
S..Miscellaneous items such as effects of other laws; water power concessions to be granted only
to the board or a generatingcompany; coordinationbetween the boards and multipurpose schemes;
powers of entry; annualreports, statistics and returns arbitration; penalties; cognizance of offences;
direction by the state government; provision relating to income-tax; members officers and other
employees of the board to be public servant; protection of persons acting under this act; saving of
application of Act.
THE INDIANELECTRICITYRULES, 1956
It contains 143 rules alongwith detailed annexure and covers:
1. Authorization to perform duties
2. Inspection of electric installations: Creation of inspection agency; entry
inspection fees; appealagainst an order, submission of records by supplier or owner.
ANn~KUMAR K.M.. AssistantProfessorin E&EE,RI.E.T, Davangere.

25
POWER SYSTEM Pl..ANN1N(J
3. Licensing: Application, contents and form of draft license; advertisement of application and
contents thereof; approval of draft licence and a notification for grant of licence; commencement
of licence; amendments of licence; preparation ant! submission of accounts and model conditions
.. of supply. -
4. General safety precautions: Regarding construction, installation, Protection, operation and
maintenance of electric supply lines and apparatus; service lin~s and apparatus on consumer's
.. premises; identification of earthed conductors; accessibility of bare conductors; provisions

applicable to protective equipment; instructions for restoration of persons suffering from electric
shocks; intimation of accidents; precautions to be adopted by consumers, owners, electrical
contractors, electrical workmen and suppliers; periodical inspection and testing of consumer's
installations.
S. General conditions relating to supply end use of energy: Testing of consumer's installation;
precaution against leakage; declared voltage and frequency of supply; placing and sealing of
energy and demand meters; point of supply; precautions against failure of supply...
6. Electric supply lines, system and apparatus for low, medium, high and extra high voltages:
Testing of insulation resistance; connection with earth; voltage tests systems; general conditions as
to transformation and control of energy; approval by inspector;. use of energy;" pole-type
substations; discharge of capacitors; supply to neo-signs; supply to HVelectrode boiler; supply of
X-ray and high frequency installations.

7. Over headlines: Materials and strength; joints; clearances and supports, erection of or alteration
of buildings; structures; conditions to apply where telecommunication lines and power-lines can be
carried on the same supports; lines crossing; service lines; protection against lightening; unused
overhead lines.
8. Electric traction: Additional rules for electric traction; voltage of supply; difference of potential
on return; current density in rails.: size and strengths of trolley wires; records.
9. Additional precaution for mines and oil fields.
10. Miscellaneous Provisions.
Rules relaxation by the government; relaxation by the inspector; supply and use of energy by non
licensees and others; penalty for breaking seal and other penalties for breach of rules; repeal
FOREST (CONSERVATION) ACT, 1980

The Act stipulates the forest clearance requirement for the forest area where hydro plants
(reservoir etc.), and transmission lines are planned. The guidelines for taking power lines through
the forest area are,

1. Where routing of power lines through the forest areas cannot be avoided, these shoul -c
aligned in such a way that it involves the least amount of tree cutting. "
2. As far as possible, the route alignment through forest areas should not have any 1i~~lt:~'i:;;>I'\;Mi.",~
ANTI .KHMAR K.M.. AssistantProfessor in E&EE. B.I.E.T,Davangere.

26
POWER SYSTEM PLAiVNING
3. The maximum width of right-of-way for the power lines on forest land shall be as follows:
Line Voltage (KV) Width of Right Of Way
11 7
_lS_ --
_._
- 33
66 18
IHT 22
132 27 ..
220 35
400 52
800 85
. 4. Below each conductor, width clearance of 3m would be permitted for taking the swinging of
stringing equipment.
5. In the remaining width, right-of-way up to a maximum of 8.5 metres (for 800kV lines), trees
WIll be felled or looped to the extent required, for preventing electrical hazards by maintaining the
Following, The sag and swing of the conductors are to be kept in view while working out the
minimum clearance mentioned below.

Line Voltage (KV) Minimum clearance between conductors & trees (m)
-
11 2.6
33 2.8
66 3.4
110 3.7
132 4.0
220 4.6
400 5.5
6. In the case of lines to be constructed in hilly areas, where adequate Clearance is already
available, trees will not be cut.

7. Where the forest growth consists of coconut groves or similar tall trees, widths of right-of-way
greater than those indicated above may be permitted in consultation with the CEA.
TOWN AND COUNTRY PLANNING ACTS
These acts are of interest before erecting a plant, a substation or overhead line. It is necessary to
seek approval of planning authorities whenever these acts are applicable
ENVIRONMENT LAWS
Environment laws such as Water (Prevention and Control of Pollution) Act, 1974; Air
and Control of Pollution) Act, 1981; Environment (Protection) Act, 1986are important for
pollution clearance from the competent authorities in case of generating plants
ANlT.KUMAR K.M.•Assistant Professor in E&EE, B.I.E.T, Davangere.

27
POWER SYSTEM PLA1VNING
7. LOAD FORECASTING
7.1 LOADS
...
. -:---Ule
preference for electrical energy.. - -
v' Throughout the world, electrification is an ongoing process. The reason for this phenomenon is
v' The increasing demand in the Asian region is due to severa] factors such as popu]ation growth,
growth of per capita income, migration to urban areas and increase in energy using product.
v' Demand forecasts are used to determine the capacity of generation, transmission and
distribution
v' System and energy forecast to determine the type of generation facilities required.
v' There are five broad categories of loads-domestic, commercial, industrial, agricultural and
residential. Commercial and agricultural loads are characterized by seasonal variations.
Industrial loads are considered base loads that contain little weather dependent variation. Their
generation characteristics are given below,
1 Domestic - This type of load consists mainly of lights, fans, domestic appliances such as
heaters, refrigerators, air conditioners, mixers, ovens, heating ranges and small motors for
pumping, and various other small household appliances. The various factors are: demand factor
100 percent, diversity factor 1.2-1.3 and load factor 10-15 percent.
2 Commercial - This type of load consists mainly lighting for shops and advertisement
boarding's, fans, air conditioning;" heating and ofher electrical appliances used in commercial
establishments, such as shops, restaurants, market places, etc. The demand factor is usually 90-
100 percent, diversity factor is 1.1-1.2 and load factor is 25-30 per cent.
3 Industrial - These loads may be of the following typical power range,
Small Scale Industries 0-20kW
Medium Scale Industries 20-I00kW
Large Scale Industries 100kW & above
The last type of loads needs power over a longer period and which remains fairly uniform
throughout the day. For large-scale industrial loads the demand factor may be taken as 70-80
percent and the load factor 60-65 per cent. For heavy industries the demand factor may be
taken as 85-90 per cent with a load factor of70-80 per cent.
4 Agriculture - This type of load is required for supplying water for irrigation by means of
suitable pumps driven by electric motors. The load factor is generally taken as 15-25 percent,
the diversity factor is 1-1.5 and the demand factor is 90-100 per cent.
5 Other loads - Apart. from the loads mentioned above, there are othe~ loads such as bul(~t
i supplies, street light, traction and governmenL loads which have their own i PiC /' " .
characteristics.
ANll..KUMAR K.M., Assistant Professor in E&EE,B.I.E.T, Davangere.

28
7.2 ELECTRICITY FORECASTING

~ Forecasting of electric load basically consists of,
o Long-teIm..forecasting which is connected with load growth and supply I demand side resource
management adjustments.
o Mid- / short-term forecasting which is connected with seasonal or weather variations in a year,
weekly or daily load forecast etc.

..;' The planning for the addition of new generation, transmission and distribution facilities is
"based on long-term "load forecasts and must begin 2-25 years in advance of the actual in
service.
..;' In India, electricity load forecasts at the national, the Annual Power Survey Cornmittee under
Central Electricity Authority prepares regional and state levels. .

..;' Load demand of states and regions must be forecasted. The pattern of Their typical monthly
load curves must be determined and the mix of base load and peaking power stations for
efficient integrated operation must be fixed. Locations and power station capacities must also
be identified to give optimum results.

~ Tie-up of all necessary inputs; and marching transmission and distribution systems must also
be a part of the full plan .

..;'. Forecasting techniques must be used as tools to aid the planner, along with good judgment and
experience.
7.3 FORECASTING HORIZON
Load forecasting is required in all three facets of power system operation, viz., long-range
system planning, operational planning and operational control, generally in the following time
frames,
(i) Long-term forecasting (periods ranging 245.years).
(ii) Medium-term forecasting (periods from one month to two years) for operational planning.
(iii) Short term forecasting (periods from one day to a few weeks) for operational planning.
(iv) Very short term forecasting (a few minutes to 24 hours) for operational control.
7.4 TYPES OF FORECAST~ & THEIR IMPORTANCE

Long Range Forecasts
Long-range forecasts involve Identification of both energy and demand forecasts for a utility
over a period exceeding two years. Whereas the energy requirements decide the type of generating
units (i.e., peaking or intermediate or base-load units), expansion and the demand of peak power
requirements decide the utility'S investment in generation andthe resultant transmission capacity"
additions.
Long-term forecasts are used for,
(i) Exploration of natural fuel and water resources.
ANn.KUMAR K.M., AssistantProfessor inE&EE, B.I.E.T, Davangere.

29
(ii) Development of trained human power.

(iii) Reinforcement planning of generation transmission and distribution equipment.
(iv) Establishing future fuel requirement.
Forecasts based on either past trends-oI 011 Vety broad based factors do not provide suffici
confidence level for long-range planning. Forecasting in today's environment has increased in
complexity due to rapid and random changes in the factors that influence load consumption.
Tne following factors are relevant for their impact on utility's growth,
•
(i) The country's economic policy, developmental plans, technological development in production
of products and services.
(ii) Growth pattern in domestic, commercial, industrial and agricultural loads.
(iii) Population growth and electrification plan (urban and rural).
(iv) Political, developmental and environmental decisions.
Statistical methods with adaptive techniques are employed to forecast long-range load
requirements, as the method chosen shall have to use past data, growth patterns and human
judgment.
Mid:..Term Forecasts
These forecasts are aimed to determine yearly or monthly peak, minimum load and energy
requirements for one to few years for the purpose of:
(i) Decidingrat--structure for billing of different consumer categories.
(ii) Power exchange contract with neighboring utilities and interchange schedules.
(Hi) annual planning and budgeting for fuel requirements and other operational requirements.
(iv) Maintenance scheduling of generation and transmission equipment.
(v) Scheduling of captive plants. °
(vi) Scheduling of multi-purpose hydro plans for irrigation, flood control, cooling water
requirements etc., apart from generation.
Short-Term Forecasts
Short-term load forecasting is required for operational planning for,
(i) Unit commitment and economic dispatch calculations.
(ii) Maintenance scheduling updates.
(iii) On-line load flows.
(iv) Spinning reserve calculations.
(v) Short-term interchange schedules with neighboring system.
(vi) System security analysis.
(vii) Scheduling of pumped storage units.
(viii) Load management scheduling.
(ix) Optimization of fuel stocking.
ANILKUMAR K.M .. AssistantProfessor in E&EE. B.I.E.T. Davanzere.

30
r._"',L:..l\,.,.I....,~.£.:...I,...A ..&.I...AI.&.I.'~."""_
Utilities use past normalized data, weather data, and information on known random phenomena
like popular TVprograromes, school vacations, factory strikes etc., for short-term forecasting of,
(i) Peak load conditions for system in a day. ... .

(ii) System Joad at various intervals of time (half hour /hour) in a day.
(iii) Hourly or half-hourly energy requirements.
. (iv) Individual bus load prediction.
(v) A few minutes to several hours ahead for~cast and is useful in utility's systems operations to
•
deal with economic load dispatching & security assessment.
7.5 FORECASTS TECHNIQUES WITH EXAMPLES
./ Theneed to understand the proper use of forecasting techniques has increased as the computing
capability has moved out 0 the hands of the experts in to those of the users in an organization .
./ Forecasting continues to gain in importance due to the increasing scarcity of electrical energy
along with the availability of lower cost and more powerful computing equipment and
softwares .
./ Here techniques used are called Deterministic and Statistical.
../ Deterministic techniques are further classified as extrapolating, econometric; "end use and
strategic. For example

1. For extrapolation, Sheer's formula is used which is based on the hypothesis that for everyone
hundredfold increase. In per capita generation, half will reduce the rate of growth of power
generation. The following relation was developed after studying load growth in a number of
countries.
IOC
G = U0.l5
Where G is annual percentage growth in power generation, U is per capita generation, and C is
constant which is 0.02 multiplied by population growth rate plus 1.33. The formula is used
iteratively to forecast power consumption growth for each year with the preceding value used
to forecast the next year's growth.

2. In the end use method, the consumption of each category is projected, based on expected
changes in production (industrial), traction, irrigation, water works and sewerage pumping etc.
This technique is adopted where sufficient data regarding the programme for future is
available.
3. Trend method, is suitable in case of other sectors such as domestic, commercial and public
lighting. For example, an exponented trend using energy consumption data in India the
calculated regression equation is shown below:
Y =- 3411.39+ 8555.05 x eO.0988X
X =time in years with 1950-51 as base year, Y= GWh requirement for the ""'<l'~.".~
'.
ANILKUMAR K.M., Assistant Professor in E&EE, B.lE.T, Davangere.

31
rows» SYSTej~PLANNING
Trends identified nowadays are,

(i) Industrial to information society (ii) national to world economy
(iii) Short-term to long-term thinking (iv) centralization to decentralization
(v) Either/or to multiple options
4. Time series analysis, is a good tec~que involving the necessity of Using sound judgments
along with an analysis of past history. The history of past loads might be forecasted by a utility
• Using a time series analysis program, which uses monthly data and yields an analysis of trend,
cyclical variation, seasonal variation, and irregular movement. A recomposition of these four
.: factors into future months would involve considerable judgement as to the future course of the
cyclical and' irregular elements and, if these elements were well formulated, would produce
. usable forecast of electrical energy demand.
5. Moving average, Here each point of a moving average of a time series is the arithmetic or
weighted average of a number of consecutive points of the series, where the number of data
points is chosen so that the effects of season or irregularity or both are eliminated. A minimum
of two years of past energy consumption is desirable, if seasonal effects are present. Otherwise,
there will be less data. (Of course, more the history, the better.) The moving average must be
specified. ..
6. Trend projections, This technique fits a trend line to a mathematical equation and then
projects it into the future by means of 'this equation. There are several variations, the slope-
characteristic method, polynomials, iogarithms, and so on. Trend analysis is the study of the
behavior of a process in the past and its mathematics modeling so #1 at future behavior can be
extrapolated from it. Two general approaches' followed for trend analysis are,
(i) The fitting of continuous mathematical functions through actual data to achieve the least overall
error, known as regression analysis; and
(ii) The fitting of a sequence on discontinuous lines or curves to the data.
The second approach in the short term forecasting. A time varying event such as power system
load can be broken down into the following four major components,
(i) Basic trend
(ii) Seasonal variation
(iii) Cyclic variation which includes influences of periods longer than the above and causes the
load pattern to be repeated for two or three years (or even longer cycles)
(iv) Random ;'ariations which occur on account of the day-to-day changes are in the case of power
systems, are usually dependent on the time of the week, e.g., weekend, weak day, weather, etc. Th~"
, /~j
last three variations have a long-term mean ~f zero ~s in figures shown in next page. ';:,:.j.,'
~~:~F:
ANTI,1{1TMARK.M .• Assistant professor inE&EE. B.lE.T, Davangere.

32
POWER SYSTEM PLANNll'.'G
- -
(.a)
Decomposition of typical load growth curve (a) Total process (b) Decomposition
EXAMPLES FOR ABOVE TECHNIQUES
Linear trend. This is a pasttrend where the increase in consumption from Year to year is more or
less constant. Tabulate the past consumption data and plot it on an arithmetical graph which will
give a straight li?e. The projection of this line can give a forecast of future demands. But in real
life, such a growth trend is unlikely in the power supply industry. Such a growth trend in the power
industry can be mathematically expressed as Ct = a+bt where, Let
Ct =electricity consumption in any year t , a = consumption for base year t =0, b = constant
annual increase in energy consumption, t =cardinal number of year t with reference to the base
year, i.e., equal to T - 1 + n, where T is the number of years for which the forecast is required.
a=40Wh, b =0.180Wh, n=5, t=T-1+n, t = 11- 1+5 = 15,
Then,
CIS = 4 + (0.18 x l S)
=4+2.7
=6.7GWh
Analysis of Time Series. Typical power system load curves can be represented by the equation,
Y=T*C*S*I
Where,
T = long-term trend, C = cyclical trend (often over several years), S = seasonal trend (1 year
cycle), I = irregular movements (noise).
The 'noise' component is due, in part, to temperature effects. A reasonable correlation ,",0,,,,7<'0'"
demand and temperature has been found in most power systems.

represented by a sum of these factors, i.e. Y=T+C+S+I.
ANILKUMAR K.M., Assistant Professor in E&EE, B.l.E.T, Davangere.

33
CORRELATION OF DEMAND WITH TEMPERATURE

./' There is a fair amount of correlation the power system demand with temperature. The random
. variations left in demand after deseasonalizing and removal of the Trend effect are largely due
to temperature ·variations. There are two portions of the power system load which are .
temperature dependent: domestic and commercial loads which increase with cold on account of
the use of heating devices, and with heat which necessitates the use of fans, coolers, air
conditioner etc. resulting in load increase .
./ The correlation between the seasonal demand and temperature variations is in fact high. e
removal of temperature affects from load readings, however, still leaves cyclic and random
effects. This is because similar weather conditions at different times of the year do not cause
similar human response. Other factors, such as wind and rain seem important, but are hard to
account for, as the repetition of a certain set of exact weather conditions (e.g., cold night, rain) .
is unlikely. Typical temperature demand relationship is shown below
7.6 FORECASTING MODELLING

7.6.1 Factors Affecting the Forecasting
There are many factors which influence the prediction of load, and their influence vary from
area to area and from country to country. The impact of any factor on load of a utility needs to be
properly examined before building a forecasting model. The factors found to affect a variety of
utilities' load are time dependent, weather dependent, random, and other.
Time dependent factors
./' Power systems exhibit a time dependent pattern of electric load demand. At times, these factors
are regular, irregular or random in nature .
./' Regular pattern is exhibited during the time of day, day of week and week of the year, anqi!
\ ,. , ",f'"
yearly growth. . y.,
?6... :. ANTT.1{1TMARK_M_ A~~i~t::mtProfessor in E&EE. B.I.E.T. Davanzere.

34
-/' Irregular pattern is exhibited on holidays, weekends, special days etc., and load requirements
tend to differ on these days than on other days. Sometimes, load requirements do not follow
any pattern because of weather or other factors.
-/' Electric load requirements tend to depend <_on work rest style of our set-l1lLaS there can be
different possibilities of electric power consumption if people are at home during the day than
-if they are away at work. This implies that load patterns are different on weekdays and
weekends, with the •
-/' Possibilities of2-4 groups, namely, weekdays, weekends, and pre and Post-respectively.
-/' An analysis of past data can reveal two or more pattern ofload consumption for a week. On the
same lines, load consumption also differs on holidays, special holidays preceding and
<
following the weekends), and special days of national or social importance which may require
excessive lighting loads etc.
-/' The impact of these holidays and special days on load demand would depend on the extent of
public participation, impact on industrial activity, and state-level celebrations requiring
excessive lighting load. There are seasonal variations In hourly or daily load, due to change in
daylight hours, change in heating to cooling load or vice-versa, typicality of load pattern of
some months etc. From the past data (typically 2-5 years), periods in a year can be divided into
time-scales (hourly, daily etc.) which exhibit an established load curve and others with a
comparatively variable load curve.
Weather Dependent Factors
.,/ \Veather is one of the principal causes of load variations as it affects domestic load, public
lighting, commercial loads etc. Therefore, it is essential to choose relevant weather variables
and model their influence on power consumption. Principal weather variables found to affect
the power consumption include temperature, cloud cover, visibility, and precipitation .
.,/ The first two factors affect the domestic/office (e.g., heating, cootin g) loads, whereas the others
affect lighting loads as they affect daylight illumination .
.,/ Average temperature is considered to be the most significant dependent factor that influences
load variations. However, temperature and load are not linearly related, and variations in
temperature in one temperature range may not have any effect on the load, whereas in other
temperature ranges and/or other seasons a 1°C change can change load demand by over one per
cent. This non-linear relation is further complicated by the influence of humidity and by the
effects of extended periods of extreme heat or cold spell.
ANaKUMAR K.M., AssistantProfessorinE&EE, B.I.E.T, Davangere.

35
POWER SYSTEM PLAIVNING
Random Factors
" There are random phenomena which affect load consumption and can cause large errors in
load forecast.
" It is difficult to-accurately model their-actual iI~pact on load demand. These include school
holidays, factory strikes, and influence of popular TV programmes.
" Influence of these Phenomena can be studied .ifpast data on these occurrences are available.
Other Factors
Other factors that influence the load demand include,
(i) Effects ofDSEs (Distributedgenerating devices).
(ii) Effects of rate tariff (time-of-day pricing, change in industrial tariffs).
(iii) Change over to winter time or summer time.
Impact of these factors in past data should be identified. The model should be selected based
on these factors and other considerations, and should be fitted to the data. Before use, the model
should be checked to discover possible lack of fit or any inadequacy, and necessary correction
should be applied as required.
7.6.3 Forecasting Models
Regression Model.
./ This functionally relates load to other economic, competitive or weather variables and
estimates an equation using the least squares technique. Relationships are primarily analyzed
statistically, alt~ough any relationship should be selected for testing on a rational ground .
./ Regression analysis involves the necessity of using judgment along with statistical analysis
whenever forecasting takes place.
./ Regression of time series data is a common occurrence in utilities where tracking important
measures of performance on a weekly, monthly, or quarterly basis is conducted. As
autocorrelation is a common problem in such studies, an understanding of this condition and
its cure becomes vital if the results of such analyses are to be valid in the decision-making
process.
Econometric Model.
An econometric model is a system of interdependent regression equations that describes energy
sales. The parameters of the regression equations are usually estimate simultaneously. As a rule,
these models are relatively expensive to develop. However, due to the system of equations inherent
in such models, they will better express the casualties involved than an ordinary regression
equation and hence, will predict turning-points more accurately.
Strategic Forecasting.
ANILKUMAR K.M., Assistant Professor in E&EE,B.I.E.T,Davangere.

36
POJYEll SYSTEM PLANNING
-I' Strategic forecasting is becoming increasingly important and involves the explicit examination
of the factors and issues affecting future growth, It recognizes the impact that policy decisions
can have on future loads.
-
This requires details of consumer operations, their current and potentili I' demand for
electricity, their competitiveness in me market place and their options with respect to
production processes,
-I' Switching alternatives, e~ergy conservation technologies, etc.
-I' In the industrial sector, this implies combining elements of the econometric approach with the
technology detail found in end use/process models. Strategic models must be capable of doing
more thari merely forecasting future requirements.. They must be able to provide planners with
additional information to help shape the future demand.
Mathematical Modelling-Simulation
-I' In modelling, the total load is considered to be the sum total of various components due to
various factors.
-/' These factors need to be measured and interrelated with load requirements. Thus, this
technique requires. individual modelling of each load' type, and identifying their
interrelationship to arrive at future load requirements.
-/' This is mathematical modelling. Mathematics is a language that allows us to represent physical
problems in a form that a computer can understand.
-/' The strength of a method lies in the accuracy of the results it gives. Errors in predicted loads
are found mainly in peak periods, transitional phase (from peak to off peak and vice-versa),
and on weekends and special days.
-/' In extrapolation, future load is treated as an extension of the past and the load curve based on
past data is suitably adjusted to reflect growth trend. Thus, this technique involves the detection
of trends in the past data for various parameters, fitting a trend curve-which could be a straight
o
line, a parabola, exponential or a polynomial of other orders or a mix of the above-and finding
coefficients of these curves as given below,
Straight line Y=a+bx
Parabola Y=a + bx+ cx2
S. curve Y=a + bx +cx2+dx3
Exponential Y=becx
Modified exponential Y =a + beel:
Logistics Y =1 / (a + beC.:l)
Where Y is a variable to be fitted, x is time in assigned frame (in day, week, year etc.), and.a,':
", c, d are coefficients be calculated. Extrapolation could be deterministic or probabilistic..
t
,~,;:~,~¢~
~~~
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e ~!!!!'!!!!~ANIL~~KUMAR=~~K=:.M~.,!!!Ass~i!!!st!!!an!!!t!!!Pr!!!!'!!!!o!!!fe!!!sso~r!!!in!!!E!!!&~E!!!E!!!, !!!B!!!.I!!!.E!!!.!!!T!!!.
Da!!!!'!!!!v!!!an~_ge!!!r!!!e!!!.
~~
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37
POWER SYSTEM PLArY'NING
accuracy of results quantified using statistics (i.e., standard deviation, variance etc.) in the letter
case.
The'Tnathematical models for domestic, commercial and other sectors have been determined by
the CEA as given below.
Domestic sector
-/ Energy in the domestic sector is mainly used for cooking, lighting, heating and other household
appliances like TV, refrigerators etc.
-/ Increase in the family income and the resultant increased expenditure on household effects,
consisting of electrical appliances among other things has pushed up the demand for electrical
energy in the domestic sector.
-/ There is a close relationship between the private final consumption expenditure (PFCE) and the
demand for energy in the domestic sector. PFCE data is available from Basic Statistics
y" Of Indian Economy from the Ministry of Planning, Government of India.
-/ The following model has been adopted for projecting the anticipated demand in the domestic
sector as it gave the most consistent results,
log Y ";'a+ blogX
Where Y = Energy consumption, a and b =Constant to be determined by Regression Analysis.
X=Private Final Consumption Expenditure.
Commercial and Other sectors
y" The increased commercial activity has resulted in increasing use of energy. The use of
electricity for illumination, weather comforts, refrigerators, air-conditioning and water heating
is being increasingly resorted to.
y" There is a strong relationship between the number of urban households and energy
consumption in the commercial sector.
y" The other sectors, which mainly consist of public lighting, public water works and
miscellaneous segments of energy consumption, are also expected to maintain the present
temp; of energy consumption in the foreseeable future due to expected industrial development,
increasing urbanization, migration of population from rural to urban areas, electrification of
villages and expansion of water facilities in the rural area. The public lighting system in the
urban areas is also likely to develop further due to increased demand for energy. The increase
in the number of urban households has, therefore, a close relationship with the increase in
energy demand relating to other sectors. As such, a. similar model has been adopted for
projecting the energy demand is these sectors separately.
log Y =a +b log X
y =rrJ\::r:~); consumption, a and b=Constants to be determined by Regression Analysis
fcr Sb-.[,X, X=Number of urban households
A.NUJKUMAR K.M., AssistantProfessorinE&EE, B.lE.T, Davangere.

38
Typical requirements of a good load forecast programme are in terms of, Where,
(i) Accuracy of results (in real-time operation for a long period of time)
. (ii) Its adaptive nature (e.g., model parameters can be changed on-line to track seasonal load
variations or zariation.of impact of different components of load etc.) _
(iii) Being computationally efficient (in terms of data requirements, processing time and memory
requirements)
(iv) Its being easy to implement and use.
Econometrics
Certain economic factors which influence the system load growth are,
(i) Business and economic cycle (cyclic variations)
(ii) Growth of gross national product (GNP) (long-term variations)
(iii) Growth in population "(long-termtrend).
Most of these factors only affect the long-term trend which will not be picked up in a normal
model based on, say, a past history of 10 years (i.e Nyquist condition): Of course, changes in
government" p6.li.cy·.in, say, population, railway traction and integrated socio-economic
development of rural areas, will result in a change in the long-term trend.
For example, an examination of various electrical energy forecasts in India reveals that the energy
demand with regard to population and GNP leads to a satisfactory linear regression model. The
regression model is of the form
In Y =20.74773+2.8815Inxl+ 1.3695lnx2
Where,
Y =electrical energy demand in GWh, xl =population in millions, x2=GNP lOx millions.of rupees
Xl and x2 are graphical projections based on data available from planning Commission or the
concerned ministry, such as Finance or social welfare.
Single factor modelling
Single Factor Model indication may be defective because of the following reasons,
I. It is too general.
2. A sector like industry occupies a far larger share in the consumption of electricity (45%) as
compared to its contribution to GNP which is only 30 per cent. On the other hand, agriculture may
have a larger share in the GNP (50%) but a lower share in electricity consumption (28%)(1996)
3. It is known that the rate of growth of various sectors of the economy is not the same. It is,
therefore, preferable to have separate single factor models for electricity consumption fo.r
domestic, commercial, industrial, agricultural and other uses.
Domestic
The forecast of domestic consumption by use of population forecast aIid other variable
number of domestic consumers and per capita consumption can be a good model of t{""
_:/r:~'.
ANILKUMAR K.M., AssistantProfessor inE&EE, B.I.E.T, Davangere.

39
the UK, GDP and average temperature gave a reliable model for energy forecasts. The model fitted
is of the form:
~t =K+ O.71671ogGDP
...
=-O.708'Z1ogCt - 1- 0.4957 log Tt
Where, K =constant (can be calculated by the regression method), Tt=average temperature over a
period t in of, GDP =Gross domestic product.

Industrial
For industrial projection, the following two trends are important,
1. The growth in industry as represented by the index of production and growth in the sale of
electricity. by the utility per unit growth ill industry. Two' separate graphs can be drawn. For any
point of time, if the two quantities are multiplied, then the total electricity consumption for the
industrial sector can be arrived at. For example, for a forecast, say for 1998, index of production as
projected from graph = 180 (say) Electricity sold per unit of industrial index (from the graph) = 37
GWh, say (projected) Hence, total electricity sales = 180 x37GWh =6660GWh
2. The growth in number of workers employed .i~ industry and electrical energy consumed per
worker. It should be possible to obtain data regarding industrial workers from either the Central
Statistical Organization or the Ministry of Labour. A trend graph can be established to show a
forecast of industrial workers employed in industry at any point of time. A second trend graph has
to be plotted for the electrical energy consumed per worker. From these two trend graphs, a
forecast can be made for the requirement of electrical energy for the industrial sector. For example.
for a forecast, say, for 1998,

(i) Number of industrial workers projected = 0.86 million, say
(ii) Industrial electrical energy sales per worker projected =7750kWh, say
(iii) Forecast of electrical energy sales for industrial sector
= 7750 x 0.86 GWh
=6665 GWh
Agriculture
../' The electricity demand for agriculture can be processed in the same manner as industrial
consumption, the independent variable being the agricultural output or added value .
../' Alternatively, the trend of installation of irrigation pumps can be established keeping in view
the targets fixed by the Planning Commission and perspective plan envisaged by the Ministry
of Agriculture and Irrigation. A second trend graph can be established for the consumption of
electricity per pump. From these two graphs a trend graph can be established for electricity,-':{?j:
consumption by the agricultural sec~r.

Other Sectors
ANILKUMAR K.M., AssistantProfessor in E&EE, B.I.E.T, Davangere.

40
..;' Forecast for street lighting, water works, sewerage, railways, auxiliary consumption,
transmission and distribution losses, etc., can be made by establishing trend graphs based on
time series study. Alternately, these projections may be made on the basis of plan targets,
wherever deemed feasible .
..;' In each of these sectors of energy consumption, the relevant economic Variable may be
identified and an econometric model built. For example, national income in India is a function
of energy consumption. Based on the actual past energy consumption and national income,
both the log-log and linear forms as given below gave a very good fit relation,
Y =68.90 + 0.592 E
Where, Y is national income in billion of rupees, E =Total energy consumption in million tons
of coal replacement.
The Central Electricity Authority carried out a long-term power planning exercise using
sophisticated computer models like EGEAS and ISPLAN for evolving a need based power plan
covering the time horizon of 15 years.
ANILKUMAR K.M., Assistant Professor inE&EE, B.I.E.T,Davangere.

41
QUESTIONS BANK
1) Explain the Power systemplanning.
2) Explain the Strategic planning, long term planning and short term planning.
3) Explain integrated resourceplanning with respeet-te-pewergenerationplanning.
4) Explain the structure of power system with types of transmission and distribution networks.
5) Mention and explain the different types of power resources.
6) List and explain power systemplanning tools. .
7) List and explain the differenttypes of loads.
8) Explain electricity forecastingand its types.
9) Mention and explain factors affecting the load of utility in forecastingmodeling.
10)List the challenges facedby power system planning engineers.
11)Explain the power system planning process. Enumerate the cyclical components of
planning.
12)Discuss different stages of preparation of Detailed Project Report (DPR) for planning of
power projects.
13)With the help of a neat diagram,explain least cost utility planning.
14)Explain different time-framesof load forecasting.
15)Explain, in detail, the trend projection method used in load forecasting. Use necessary
diagrams.
Note - Questions are collected from previous year Q.P, & Model Q.P .
..
42
ANll.KUMAR K.lVI.
UNIT-2&3: GENERATION PLANNING Assistant Professor,E&EE,
BIEI,Davangere .
. V.T:U:Syllabus .
Integrated power generation, co-generationI captive power, power pooling and power trading,
transmission & distribution planning, power system economics, power sector finance, financial
planning, private participation, rural electrificationinvestment, concept of rational tariffs.
SYNOPSIS
Integrated generation planning involves centralized generation along with the distributed
generation for least cost of supply. The various options for planning of generation schemes &
their optimal analysis is given. The national electricity policies are discussed. Importance of
cogeneration is illustrated & importance of power pooling & power trading ,isexplained.
The planning of transmission and distribution of power to the consumers is as important as
generation. About 50 per cent of the total budget needs to be spent in this sector. The voltage
level selection for transmission and distribution, and their development criteria have been
presented. The high voltage dc for power transfer between the.regions and stable working of
power system is important. To save generation capacity and to reduce losses, flexible ac
transmission including advance series compensationhas been found to be a more suitable option.
The development options of substations in the urban and rural area and the development of
reactive power requires proper planning for system efficiency. National power grid is necessary
for efficient and reliable operation of the power system. Rural electrification is important for
social benefits to about 70 per cent of the rural population in India. Cost-benefit analysis should
be applied to rural electrification. For rural load growth decentralized generation with growth of
agro-industries is need to be encouraged. Rationaltariff's are discussed.
The investment analysis of the power project is important for decision making. About 20 per
cent of the national budget is spent on the power sector. The power industry being capital
intensive, involves capital risks and for that good bankable project reports are desirable. Private
sector participation is important for mobilization of capital and various incentives for that are
necessary, Modes of private participation and methods of bidding has been explained. The pattern
and structure of the investment needs to be risked are covered. The various methods of mobilizing
the financial resources from the state funds, from public or from the international bodies and
banks have been-discussed.
43
UNIT-2 & 3: GENERATION PLANNING

1. IN'I,EGRATED POWER GENERATION
1.1 INTRODUCTION
Today plannersmust deal with problemshaving three characteristics,
(i) Multiple conflicting objectives, e.g., minimizing 'costs, monitoring environmental impact and
maximizing reliability.
(ii) A broad range of options (including demand side options! non-conventional and traditional
generation, and transmission alternatives).
(iii) Pervasiveuncertainty.
Sorlie factors which can have a major influence on a utility are not under its control o~.cannot be
.predicted with certainty.These are calleduncertainties.
Risk is the hazard to which a utility is exposed because of uncertainty. Attributes like cost of
electricity, capital requirements, and environmental effects constitute risk. Risk as a characteristic
of decisions has two dimensions:
(9 The·likelihoodof making a regrettabledecision,
(ii) The amountby which the decisionis regrettable.
./ Historically there have been two general approaches to dealing with uncertainty in power
utility planning-(i}probabilistic analysis,and {ii) contingencyanalysis. .
./ The first is used frequently in establishing generation reserve requirements and the second in
transmission planning and operations. Both share a common initial step: they deal with
particular uncertainties and plans. Uncertainties in the probabilistic method are modelled using
probability distributions for unit availability-capacity functions, expected loads, etc. In
generation planning applications, we use such well-known attributes as the loss of load
expectation, expected unsupplied energy, the probability distribution of emergency power
requirementsand the expected cost of power production.
./ In transmissionplanning and the investigation of certain system Operating questions such as
transfer capability, probabilistic methods are - not widely used. Instead, most transmission
planners use contingency analysis methods to study the system under preselected normal and
emergencyconditions.
1.2 PLAN FORMULATION & DISTRIBUTED POWER GENERATION
./ Power utilities should-give increasing attention to the distributed utility concept. A distributed
utility integrates the central station power with distributed generation and demand side
management applications that are strategically located within the utility network to lower
overall cost of serving consumers.
ANll.KUMAR K.M., Assistant Professor inE&EE, B.I.E.T, Davanzere,

44
PO"WERSYSTEM PLANNING
-/' This model integrates a variety of energy options into a "power generation portfolio" consisting
of conventional options as well as advanced renewable, PV technology, clean coal, waste-to-
energy and nuclear technologies. The distributed utility concept has several strategic operating
advantages ~-the-Central station model.
-/' The smaller modular nature of this design allows planning flexibility and short construction
lead time. Furthermore, transmission losses are reduced by locating the power generation
source near the consumer. This also allows gr~ater operating flexibility through the utilization
efficiency of existing transmission and distribution assets.
-/' Distributed power generation can avoid the need for substantial improvements in transmission
systems by better utilization of existing transmission and distribution assets.
-/' Decentralized power generation (Captive, CCGT, Small hydro, wind, photovo!taic etc.) located
close to the loads can follow the local load, minimizing the heavy loading of the transmission
grid and saving the cost of substantial system losses for the utility or the power consumer.
-/' The addition of central power generation source can create stability problems or load flow and
voltage problems. Line compensation can be expensive and can introduce additional losses on
the system. Distributed' power generation can actually improve the existing transmission
network capability by adding real and reactive power to the local load and the-network .
.
../ This interest in non-traditional power sources stems from the emerging reality that traditional
approaches to rural electrification are both costly and difficult. Line extensions are frequently
unreliable are characterized by low loading ratios and high losses .
../ The planning formulation includes three elements as shown in below figure Variety of options,
irreducible uncertainties, and objectives (attributes).
ATInWTeS
I"OWa\ til ~ITY
PWHHO
PAOOESS
Options
../ 'The list of options available includes non-utility supply sources, conservation and demand side
management (DSM), A variety of institutional means can be used to develop the options with
scenarios. The scenarios of various options are developed by various agencies in India after
careful studies. Such agencies are-the Planning Commission, CEA, SEBs, R&D in power
Research workers I individual thinkers etc. Planning options includes
-/' Type of Generation station plants selection, Packaged plants, DSM, Pumped hydro
Existing plants renovation, reduction ofT &D losses etc ..
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere,

45
Uncertainties
..
./ It seems impossible to eliminate uncertainty altogether. A goal is a plan which is robust or
..
flexible in the presence of uncertainty,perhaps because hedges against adverse outcomeshave
been carefully designed.
../ Some of Uncertainties may be load growth, Fuel prices and water availability in hydro
stations, Consumerresponse to demandside options, Potentialsupply of non-utilitygeneration,
Construction costs of planning options, Longevity and performance of Life extended or
converted plants,Market for off pealesales,Technological developments, Regulatorychanges.
Objectives
v" Objectives are expressed in terms of attributes or measures of goodness. In the past, utility
economic evaluationswere based on minimizing the present worth of the revenues required.
Reliability and certain other attributeswere taken as constraints. When a problem has multiple
attributes, there is usually no single solutionwhich simultaneouslyoptimizes all of them. What
a
is sought is compromisewhichrepresentsa reasonable tradeoff among the attributes.
../' Some of the Attributes (measures of goodness) are Economic, Quality, Reliability, Financial,
Environmental,and Societal.
1.3 GOALS-NATIONAL ACTION PLAN
According the studies by CEA and World Bank the desirableoptions in India for the next 25
years are,
1. Accelerate hydro capacity development:hydro share shouldbe at least around40 per cent of the
whole generation for optimum operationof the system. The site locations need to be identifiedon a
long-term basis in advance and Detailed Project Report shouldbe prepared as need based. Hydro
power is urgent for developingpeaking capability.
2. Accelerated nuclear power development India is the only developing country in the world
• having a mature nuclear technology and a long-term power generation programme based on
PHWRs using natural uranium in the first phase and FBRs or LW thorium reactor in the second
phase around 2010ADusingthorium and plutoniumresources.
3. Reduction in T&D losses from about 23 per cent to 15 per cent will save the generationcapacity
of about 6000MWatthe rate of about 0.35 per cent reduction in T&D losses per year. About one-
f~urth of these losses are attributed to theft of energy. The otherreasons are bad design of system:
use of long LT lines,low voltage, low load densit:rand long linesin rural areas;introductionof flat
rate for agricultural consumers etc. The losses can be reduced by executing the system
.improvement sch~es and ~y ~e~ermanagem~nt.. . . ,cl
_4. The energy savmgpotential m mdustry,agriculture,and m the Commercial z domesticsect~Ft:~~;
,··.··'1
been identified as 25, 30 and 10 per cent respectively. With a modest overall 10 perce "/.,,-,;:;.,,
.. ';,1
mission, about thousandsMW installedcapacitycan be savedby energy conservatio~~ji~lt~j:j~(f.Z:
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T. Davanzere.

46
5. Studies show that demand management in regional systems will reduce system installed capacity
requirement by about ten to twenty thousand MW by improving the regional system load factors
from 3 to 11 per cent by shifting load from peak hours to off peak hours. The country should
.switch to two time zones with one hour difference, i.e..One.for the eastern states and ooe-for-the-
western state, to reduce the clock related peak demand in the country.
6. Renovation ~d modernization of existing thermal units and hydro units will add capacity to the
tune ofMW capacities. The scheme will improve the plant load factors and will result in extended
life of the plants.
7. Formation and operation of the National Power Grid, according to Simulation studies will have
the advantage of an overall saving of about 10,000 MW generation capacity in reserve margin or
peaking capacity. Feasible improvement in grid discipline will contribute about 5 per cent of the
saving in installed capacity. All the five regions at present are deficit in meeting peak load
requirements, even though a substantial amount of energy resources remain unutilized at certain
time of the day/season. Generating units in one region often have to be backed down while
simultaneously there is perceptible power shortage in a neighboring region. Installation of inter
regional links (HVDC/HVAC) will improve hydro-thermal mix of combined regions and enable
transmission of surplus energy.
8. There is a lot of scope for .co-generation in large industries such as sugar, textile, alcohol, paper,
petro-chemical and metallurgical works. Cogeneration potential in the country is to the order of
10,000 MW in the sugar industry. It should be mandatory for cement, steel, fertilizer and chemical
plants having load above 15MWto install captive power. The Indian Electricity (Supply) Act 1948
must be amended to make the installation of captive power by such plants mandatory. There is
need for comprehensive legislation towards compulsory co-generation and feeding into the grid for
the sake of conserving natural energy resources. "
9. In the rural areas only, there is scope for wind farm generation of up to 20,OOOMW. Solar
photovoltaic has great potential for rural street lighting, home lighting, operating pumps etc. The
Ministry of Non-conventional Energy Sources has drawn an ambitious programme touching at
least 1,00,000 villages through photovoltaic's. At 1996 about (}.25million modules are installed in
the country and this number is likely to exceed 50 millions by the year 2020.
2. COGENERATION / CAPTIVE POWER
./' There is large scope for cogeneration of nearly 50000MW in India in industries such as sugar,
textile, alcohol, paper, petro-chemicals and metallurgical. It should be made mandatory for
cement, steel, aluminium, fertilizers, chemical plants and other heavy industry to install captive
power, Consumers could utilize the waste heat produced in heavy power-intensive .
having load more than 5. MW, such as steel, aluminium plants or group of II' lU'LtLU'
ANILKUMAR K.M., AssistantProfessor inE&EE,B.I.E.T, Davangere.

47
POWER SYSTEM PLANNIlvG

~ ~
furnaces: They must install cogeneration plants/captive power generation plants for the sake of
economical power generation.
"../' A cogeneration facility produces electrical energy and other forms of useful thermal energy
, '
(such asneafaiidSteam) used for industrial, commercial, heatingorcooling purposes through

the sequential use of energy from a single source. ill the combustion of fuel, energy is released
which is used for heating or to perform some useful form of work. Not all of the energy that is
produced can he used; some of it is wasted. A cogeneration facility recaptures some of the
waste energy that otherwise would escape and puts it to useful purpose .
./' The modem technology is more efficient having steam pressure of minimum 45 kg/ cm2 and
high temperature up to 500°c. Cogeneration can be used in almost any industry with some type, ,
of thermal need.
-./' Large energy consuming industries such as steel, paper, distilleries, sugar mills, textiles,
cement (dry process), chemicals and petroleum refining, led the way in building cogeneration
facilities. With the availability of small packaged cogeneration units such as for hospitals,
shopping complexes and small manufacturing firms are becoming involved in cogeneration.
-./' To determine the feasibility of cogeneration, economic and energy factors must be considered.
Rates for purchase and sale of electrical energy are important as are fuel prices. The cost of the
equipment in relation to the energy saved is a major e~onomic factor. Cogeneration systems are
more expensive and cost more to operate and maintain than systems that produce only thermal
energy. Degree of waste recovery, duty cycle, capital cost, fuel and electricity' prices, taxes,
reliability and size are all important factors to consider in deciding on cogeneration .
../ There are two basic processes a cogeneration facility may utilize. The first process, and the
most common, is the "topping cycle process". The second one is called the "bottoming cycle
process".
(i) In the topping cycle process, electricity is produced first and the waste energy being recovered
is in the form of thermal energy. There are several different configurations for a topping cycle
facility hut -two of the most common are: -
(a) A boiler produces steam that is used to power a steam turbine generator set to make electricity.
The steam required for the process is extracted from the exhaust of the turbine or from an
intermediate stage.
(b) A gas turbine or diesel engine bums fuel to spin shaft connected to a generator produce
electricity. Heat is given from the burning of fuel. This is recaptured in a waste heat recovery
boiler which Produces steam from the hot exhaust gas, or the hot exhaust is used directly in ~..
, t
thermal process,
(iiJIn the bottoming cycle, the thermal energy is ~
. -
~sed in a process and the ~~s1if.
.. ·it. I1
.•.•
~ recovered from that process IS used to produce electricity. For example, a fumac~J~jl~SiM~fi~Z~~',.f a
~~~~~~~~~!,,!!!!!!!!,,!!!!!!!~~~!,,!!!!!!!~~~~!"!!!!!!!!!'!!!'!!!!!!'!!!'!!!!!!'!!!'!!!!!"!!!!!!!!!'!!!'!!!!~=~~=~~i~!
"~ ..."
"'I .f:
ANILKUMAR K.M., Assistant ProfessorinE&EE. B.I.E.T.Davanzere. 4,%~~'zyi~~~~~~I~fl
48
smelting or forming process. A waste heat recovery boiler recaptures the unused energy and uses it
to produce steam to drive steam turbine generator which in turn produces electricity .
./ The choice of configuration facilities is dictated by the needs of the plant for electrical and
thermal..energies and the nature of the fuels available. Typically, in the bottoming cycle
configuration, the thermal energy (process) steam or (process) heat is required at a very high
temperature and the attempt is to recover part of the exhaust heat from the process to generate
electricity. In contrast, the topping cycle configuration is suitable where the thermal energy
required (process steam) is ata comparatively lower temperature .
../ As 'of now, there is need for comprehensive legislation in India with regard to cogeneration
systems in order to conserve national energy resources & -to encourage the cogeneration,
generation should be free of tax &. government should offer best prices for the energy
production .
../ In this regard it is worthwhile to study the legislations measures adopted in the countries,
especially in the USA called Public Utilities Regulatory Policies Act (PURP A) to serve as
guidelines for any possible legislation .
./' However, in order to derive the .economic benefits associated with the sale of cogenerated
power, the cogeneration system configurations being evaluated must satisfy basic criteria
identified in the legislation. To distinguish new cogeneration facilities that will provide
meaningful energy conservation from those that will be "token" facilities producing trivial
amounts of useful heat and power, the PURPA regulation sets three separate qualifying
criterion-efficiency, standard and ownership .
./ The operating standard requires that a new topping cycle facility must produce at least 5 per
cent of the total energy output as useful thermal energy. The efficiency standard, which is
applicable only if oil or natural gas is used, requires that the annual electric power plus half the
useful thermal energy must be at least 42.Sper cent of the total natural gas and oil energy input
(on the LHV basis) except that if the thermal energy output is less than 15per cent of the total
energy output, the requirement becomes 45 per cent. For new bottoming cycle facilities, the
annual useful power output must be at least 45 per cent of the energy input of oil and. ~ used
for supplementary firing {heating of water or steam before entering the electricity generating
cycle from the thermal energy cycle}.
Deciding purchase price for cogeneration
Decision on purchase price involves consideration of three costs'of generation, ie..
(i) Unit cost of generation from a new power plant based on relevant conventional source (i.e.
thermal power plants based on coal in most cases)
(ii) Unit costof generation from the relevant conventional alternative in cases of
DG sets/in most cases)
ANn .K1TMARK.M .. Assistant Professor in E&EE. B.I.E.T.Davanzere,

49
POJYERSYSTEM PLANNING
(iii) Unit cost of generation from biomass based power generation system.
Brief and simplified formulations for each are:
1. Unit cost of generation from thermal power plants
In a simplified case, this can be seen to consist of three major components-fuel costS~ capital
charges and O&M charges. Fuel charges can be represented in terms of specific coal consumption
.
(with a multiplier to account for oil input etc.), and the other two can be represented in terms of a
percentage charge on capital investment divided by the average annual generation. A typical
correlation could be:
Unit cost of generation =1.2 x (Delivered cost of 0.70 kg of coal) + 0.2x (Capital investmentlkW)
8760x (plant Load Factor)
This is based on a specific fuel consumption-of 0.70 kg of coaVkWh, other fuel costs etc., and
being 20 per cent of coal cost and capital charges (interest, depreciation) as well as O~M charges
put together being approximately 20 percent of the capital investment.
2: Unit cost of generation from DG sets
.Unit cost of Generation == 1.2x (delivered cost of 330cc ofHSD) + 0.3 x (Capital investment /kW)
3. Unit cost of generation through biomass gasification
Unit cost of generation = Delivered cost of 1 kg of prepared through bjomass biomass + Delivered
cost of 100 cc of gasification HSD.+ [0.2x (Delivered Cost of 330cc of HSD)]+ (O.3x (Capital
investment/kwj]
3. POWER POOLING ANDTRADING

./ The electric power cannot be stored and power demand must equal power generation at any
time. Therefore, power pooling is an important consideration for power supply in the 21 st
century.
../ This is the wholesale market in bulk supply, the pool, in which spot price is determined for
every half-an-hour in the national power load curve period through competitive bidding by
individual generators .
./ The pool itself exists as a mechanism to allow trading or sharing between power utilities and
power generators. Long-term contracts in sales and purchases of electricity are made between
participating utilities and generating companies according to a set of rules evolved .
./ This is supplemented by spot trading in a short-term market with prices reflecting supply and
demand on short-term basis .
./ In order to improve the prospects for the electricity trade, it will be necessary to formulate
commercial guidelines for wheeling of power and a rational tariff structure to encourage
selling and buying of energy for mutual benefit. .Suitable measures have also to be
discourage high frequency operation of the grid.
ANILKUMAR K.M., Assistant Professor inE&EE, B.I.E.T,Davangere.

so
~ The settlement system in UK grid calculates the prices and payments due under the pool-
wheeling arrangements, while the grid operator seeks to schedule and dispatch generating
units, subject to certain technical constraints, to meet demand, including a margin for reserve.
·This is done principally on the basis of a merit order which is constructed from the generators'
offers of prices and the availability of their generating units .
._,- Generating capacity scheduled for energy in the revised unconstrained schedule receives the
Pool Purchase Price (PPP) which is a single price determined for each half hour and
·comprising two elements-Systems Marginal Price (SMP) and the Capacity Element. SMP is
the price derived from the offer prices of the marginal generating .sets scheduled in the
·unconstrained schedule for the relevant period, the capacity element is calculated according to
Loss of Load Probability (LOLP) .
../ The pool is a spot market which operates in real time. The tariff making for retail market takes
signal and messages obtained in pool output price system. These messages are passed to the
consumers for efficiency and load management.
._,- To encourage the generation from renewable energy sources, the consumers are obliged to
purchase electricity from such generators under Non-Fossil Fuel Obligations. Under this
arrangement, the Public Electricity Suppliers will purchase electricity from the generators
which do not use fossil fuel for electricity production. The additional cost to be incurred will be
recovered from the consumers through the Fossil Fuel Levy.
4. TRANSMISSION AND DISTRIBUTION PLANNING
4.1 NETWORK
../ Transmission of electric power is one of the most important elements of electric power system
planning. The transmission system transfers bulk power from the generating plant to the areas
of consumption from which distribution systems supply to the consumers .
._,- Sub transmission is an intermediate network between transmission and distribution that is able
to transfer & segregate the electrical power efficiently and economically in those cases where
distribution networks are not connected directly to the transmission networks
._,- The transmission system also interconnects the electric utilities to permit power exchange
when it is of economic advantage and to assist the power utilities when their generating plants
are out of service for some reason .
../ The planning of ac transmission involves power flow requirements, systems stability, selection
of voltage levels, voltage and reactive power flow, conductor selection, losses, insulation
levels, selection of type of structure and rights of way. The criteria for network Planning'
generally depends on such factors as availability of generation for the load demand voltl:1~)
_ ' ",~\!:;i::;~
levels, size and configuration of systems, distance, right-of-ways, resource constrain:s ~t~;;'~r(t0tt)
.,;.\.:.;?!'~i':';r';&;
~~~~~~~~~~~~~~~~~
....... ~ "\Nfl .KTTM"\RK.M._ Assistant Professor in E&EE. B.I.E.T. Davangere.
51
y' Practices vary from Country to country. Due to increasing demand and increasing requirement
of high reliability, the neighboring utility networks are interconnected.
-/' In healthy systems, the networks are loaded normally up to 50-60 per cent of their designed
- capm!ity. At present in India transmission network is mostly loaded above 90 per cent,
Operating always at alert conditions during peak period. A small any point is capable of
causing a major collapse in the grid network.
Distribution
In general, distribution of power is a part of ~e system between the transmission and consumer
services. In general, a typical distribution system consists of the following network.
y' Sub-transmission circuits in Voltage ratings usually between 33 kV and 220 kV which delivers
energy to distribution substations.
y' The distribution substation which converts the energy to lower primary system voltage for
local distribution and usually improves facilities for voltage regulation of the primary voltage.
-/' Primary circuits of feeders usually operating in the range of llkV to 33 kV supplying the load
in well defined geographical areas.
-/' The distribution transformer in rating from 10 to 2500 kVA which may be installed on poles or
on pads or in.underground vaults near the consumer sites and transform the primary voltage to
the utilization voltage at usually 11Oto440 volt.
./ Secondary circuits at utilization voltage which carry energy from the distribution transformer
along the street etc.
.-/' Service lines which deliver the energy from secondary circuits to the consumer premises by
service lines.
It is desirable to rationalize and standardize the voltage levels employed in supply systems and
to limit the number of voltage levels. Several studies showed that an optimal supply situation
would have only three voltage levels beyond the low-voltage system. These studies indicated, that
no extra intermediate voltage levels are necessary. However when loads are unevenly distributed
(spot-wise), a two-voltage level system can be very suitable. The six basic distribution systems
used by utilities are discussed below sections.
1. RADIAL
-/' A radial system is connected to only one source of supply.
-/' It is exposed to many interruption possibilities, the most important of which are those due to
overhead line or underground cable failure or transformer failure.
-/' Each event may be accompanied by a long interruption. It has lower reliability. Both,
"'i
components (feeder and transformer) have finite failure rates and such .,'*:l
expected and statistically predictable.

.52
POWER SYSTEM PLAlVlVING
../ Feeder breaker reclosing or temporary faults are likely to affect sensitive loads. This system is
suitable for small loads.
2. PRIMARY LOOP
../ A great improvement over a radial system-is-obtained by arranging a primary loop, which
provides power from two feeders.
../ Power flow to consumers is by way of single path at anyone time from either side of the loop
depending upon the open/close status of sectionalisers and reclosers .
../ The loop is normally operated with the tie sectionaliser switch open. Any section of the feeder
can be isolated without interruption and primary faults _arereduced in duration to the time
required to locate a fault and do the necessary switching to restore service. Each line of the
loop must have sufficient capacity to carry all the load .
../ The additional line exposure tends to increase the frequency of faults, but not necessarily the
number of faults per consumer. Sensitive loads are affected by reclosing under temporary fault
conditions.
~"-.,
Figs showing the Radial & Primary loop type of distribution systems.
fEt!)!EH-l
IIRs:,w,I(ER
rWoN:;.F<;.tN(A I
_{'~~i
"
?iI()
IO"'(~l 1,01.0.7
Figs showing the Primary Selective & secondary selective type of distribution systems.
3. PRIMARYSELECTIVE
../ It uses the same basic components as in the primary loop. Each transformer can have supply
loss. of feeder, transfer to second feeder is automatic and the interruption duration-j
I .."",
limited to two or three seconds. f,:Y£~}
ANILKUMAR K.M., AssistantProfessor inE&EE, B.I.E.T, Davangere.

53
./' System reliability is high here. It also offers a little advantage to sensitive loads like computer
problems caused by temporary faults. This scheme is normally used for large essential or
continuous process industrial consumers.
·4. SECONDARYSEI;ECTIVE '.- ----
/ This system uses two transformers, each from separate primary feeders and with low voltage
switching .
./' The load is generally divided between two LT buses with both transformers continuously
•
energized. The tie switch on secondary tie bus is normally open and is interlocked with
secondary feeder switches .
./' This system is commonly used for industrial plants and institutions like hospitals .
./' Primary operational switching is eliminated. Duplicate transformer virtually eliminate the
possibility of a long interruption due to failure. Each transformer and feeder must have
sufficient capacity to supply the entire load.
./' Transfer is automatic upon loss of voltage on either feeder with static switching equipment.
Sensitive equipment can be effectively served. Reliability is better than in the primary selective
system because of additional redundancy of transformers.
5. SPOT NETWORK
./' Maximum services reliability and operating flexibility for most loads are obtained by use of the
network using two or more transformer units in parallel.
./' The low voltage bus (spot network bus) is continuously energized by all units operating in
parallel.
./' Automatic disconnection of any unit is obtained by sensitive reverse power relays in the
protection. If there is a fault in one feeder, it is isolated by the network protection on that
feeder.
./' Maintenance switching of primary feeders can be done without con~Fer interruption. Spot
networks are used generally in metropolitan high-load density areas, for large continuous
process industries and essential services loads such as water works etc.
6. GRID NETWORK
./' Grid networks provide maximum reliability and operating flexibility .
./' These networks are the most economical and effective methods to serve the high density loads
in metropolitan cities. The network grid is simultaneously supplied from several feeders .
./' In grid network, no consumer outage is caused by switching off primary feeder for scheduled
maintenance. Voltage regulation is improved since power flow to the consumers is
several transformers operating in parallel,
ANll.KUMAR K.M., AssistantProfessor inE&EE, B.I.E.T, Davangere.

54
POJJlERSYSTEM PLANNING
./ The grid can handle abrupt load changes and disturbances associated with large motor starting
without severe voltage dips or surges. A strong grid network is sufficiently stiff and a fault on
one,unit does not disrupt voltage outside of sensitive load tolerance limits.
Figs showing the spot & grid network type of distribution systems.
4.2 HIGH VOLTAGE TRANSMI$SION
The sources of hydro and thermal power are often situated far·away from the load centres. This
.. .
necessitates transfer of power from one area to another o.ver long distance, on the other hand
increasing requirement of bulk power transfer over long distances has resulted in the adoption of
higher voltages of ac transmission all over the world.
The policy of generating power at pit heads having high ash content and transmitting bulk
power to load centres, even across long distances, has found favour for economic and ecological
reasons. The voltage level at which power is to be transmitted depends primarily on the quantity of
power to be transmitted and the distance over which it is to be transmitted. An approximate
an
re Ia tiIon fcor power h an mg capacity '" IS given as P = O.5y2_
XD
Where P is the total power in megawatts, Y is the line to line voltage in kV, D is the distance in
kilometer and X is reactance in ohm/km (X=21tjL) where f is the frequency of ac supply, L is
inductance which is an inertial property of an ac circuit. The transmission loss PL is given by PL =
53.6r Wh " .
-X-· ere r IS resistance III ohms / km. Typical values are given in below table.
Transmission line losses

VoltagekV Reactance X ohmslkm Resistance r ohmslkm Percentage loss
400 0.327 0.031

800 0.272 0.0136
1000 0.231 0.0036
1200 0.231 O~0027
ANILKUMAR K.M., AssistantProfessorinE&EE, B.I.E.T, Davangere.

55
Observations,
../' The capital cot per MW-km decreases with higher voltage .
../' One 800 kV line can normally carry as much power as four 400 kV circuits for equal distance
of transmission.
"Y' One 1200 kV circuit can carry the power of three 800 kV circuits .a.'1dtwelve 400 kV circuits
for the same transmission distance.
.. y' In comparison to the percentage power loss at 400 kV, if the same power is transmitted at 800
kV, the line losses are reduced to one-tenth .
../' There is an overall power shortage in the country. There are pockets of surplus but the same
cannot be transferred to distance. deficit because of the absence of transmission links.
Experience has shown that transmission links will have to be asynchronous HVDC/back-to-
back links as the frequency of the connecting system widely differs and ac mode of connection .
is practically impossible.
4.2.1 HVDe Transmission
../' High voltage DC (HVDC)' Transmission system consists of three basic parts: I) .converter
station to convert AC to DC 2) transmission line 3) second converter station to convert back to
AC. HVDC transmission systems can be configured in many ways on the basis of cost,
flexibility, and operational requirements .
../' The simplest one is the back-to-back interconnection, and it has two converters on the same
site and there is no transmission line. This type of connection is used as an inter tie between
two different AC transmission systems .
../' The mono-polar link connects two converter stations by a single conductor line of usually
negative polarity and earth or sea is used as a returned path. The most common HVDC link is
bipolar, where two converter stations are connected by bipolar (±) conductors and each
conductor has its own ground return. The third link is homopolar link which is having two or
more conductors having the same polarity & always operated with ground or metallic return
the multi-terminal HVDC transmission systems have more than two converter stations, which
could be connected is series or parallel.
DC liM
r-....,
~~~
Block diagram of monopole system

with earth as return.
56
...
u-"~,
J LC:::.:J-.J~
liMa
SmooIhiDg"";'--
~Il I8l1C1CJ i~
I III 1111-----1 •
Schematic diagram of HVDC back to back converter station.

CONFIGURATION OF HVDC TRANSMISSION SYSTEM
ACbllS Transmision
cable
Block diagram showing the HYDe system configuration.

The most relevant components that comprise a HVDC system are the following
-/ The Thyristor or IOBT (Insulated Gate Bipolar Transistor) valves make the Conversion from
AC to DC and thus are the main component of any HVDC converter. Each single valve
consists of a certain amount of series connected thyristors (or IGBTs) with their auxiliary
circuit, conventional thyristor valves are replaced by IOBT & OTO valves and these are
actually called as VSC (voltage source converters) ofHVDC.
-/ The Converter Transformers transform the voltage level of the AC busbar to the required entry
voltage level of the converter.
v: The Smoothing reactor, which main functions are
(i) Prevention of the intermittent current
(ii) Limitation of the DC fault currents
(iii)Prevention of resonance in the DC circuits
,/ The Harmonic Filters, on the AC side of a HVDe converter station, which have two main
duties
(i) To absorb harmonic currents generated by the HVDC converter
(ii) To supply reactive power, Also DC filter circuits have to be used. Besides Active
Harmonic filters can be a supplement to passive filters due- to their better performances;
Surge arrester's which main task is to protect the equipment of over-voltages )Y~li~
ANILKUMAR K.M., Assistant ProfessorinE&EE, B.I.E.T, Davangere.

57
POWER SYSTEil-JPLANNING
../ DC Transmission circuit, which include DC Transmission line, cable, high speed DC switches
and earth electrode. Converter stations require reactive power supply that is depending upon
the active power loading fortunately part of this is fulfilled by active filters. In addition static
VAR compensators & shunt capacitors are provided .
../ Control and Protection. - Control of firing angle is accomplished by the optic fiber. based
hardware circuitry; power transmitted over the de link is always controlled. Converter stations
are controlled in such a way that a rectifier end controls the current while the inverter end
contr~ls the voltage allowing the link to maintain th~ constant power.
In HVDC there is a need to convert power from ac to de and reconvert it to ac to the end.
HVDC transmission brings with. it a considerable
. cost. Transmission cost in HVDC, on the other
hand, is lower than that in UHVAC There is, therefore, a minimum distance or break-even distance
beyond which HVDC may be economical. A diagram representing the cost with distance for both
DC and AC transmission is given below
Investment
Cost
In Rupees
IMt-...nC"lt
200 400 iSOO goo ieee 1200 1400 (km)
Graph of cost along with losses as a function of distance for HVAC &HVDC.
Situation promoting for HVDC in India are
../ The surplus and short regions during peak and off-peak periods of various regions are
identified. Based on these exercises, inter-regional ties are planned to interconnect the regions
at suitable points/or transport of surplus energy.
../' There is wide variation in the surplus/deficit generation conditions in the five regions in India
resulting in mismatch between the frequencies and operating voltages of these regions, making
it almost impossible to run these regions in synchronism .
../ There is a need to have controlled power flow between these regions .
./ An asynchronous HVDC link would further enhance the stability of these regions due to its
ability to control the tie line power flows fast ,/t~i

../ With an ac.tie, the disturbances in one region may be transmitted to other regions, ther"
increasing the chances of a wider effect.
& ..... T....-w' ... ,....-Ta ........ .",. .. _ • •• • - ".

58
../' Asynchronous links, being electronically controlled, ca."}reduce the spinning reserves required
to a great extent. The total MW spinning reserve requirement therefore, can be maintained at a
nationallevel rather than at the individual regional level in case of national grid .
../' With the HYDC' inter-regional links, the overall stabiiity ef-beth the regions shall increase. Due
to this, the power carrying capability of some o/the ac lines shall increase and the dlances of
state/region level grid collapse 'shall also be reduced. In case of an unavoidable grid collapse,
the links shall reduce the region's restart time by transmission of large amount of power at the •
earliest from the adjoining region. The total saving on this account itself are considered to be
adequate to justify these links.
../ The HVDC links can operate with different frequencies on either sIde, thereby allowing a
region to serve a greater number of consumers by operating at a relatively lower frequency. In
case of ac links, however, considerably power may flow over the link only to equalize the
frequency of the two regions.
../' In case of a synchronous tie between the regions, the flow on the tie line behaves in an
uncontrolled manner and is mainly dependent upon the two region's load-generation balance.
Because of strong dependence of loads on the system's voltage and frequency, the tie line flow
shall also be influenced by the variations in the voltage/frequency of these regions. In order to
-
properly control the flow on the tie line and limit them below the capacity of the Jine under
such circumstances, it becomes necessary to keep some generating capacity in reserve in both
the regions so as to take care of the relatively fast variations in the load/generation baJance
and/or voltage, frequency variations. This would also mean loss in revenue and underutilization
of the generating capacity and thus will defeat the very purpose of connecting the two regions .
./ The asynchronous links can control the power flow in any direction irrespective of the
voltage/frequency conditions on either side. This feature may be helpful in solving some power
issues.
../ Within its capability, the HYDe links can be used to control the frequency of a region to a
given target value. It is concluded that HVDC inter-regional link facilitate optimal utilization
of the existing resources, provides reliable and secure supply to some important load centre,
and supply a share of power from generating stations in one region to another.
There are, however, some major technical advantages of an HVDe system which may be
summarized as follows
./ Power flow can be controlled independent of system operating conditions .
../' Systems operating
, at different frequencies may be interlinked.
../ It helps to improve stability.
ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T, Davangere. A~ft~1\X€#?~~~~ifJf~l~£~

59
POWER SYSTEM PLANNlNG
The most common reasons for HVDe system are

-/' lower line costs- A de line with two conductors is more economical to build than an ac with
three conductors .
./ lower losses- With HYIJC"'thereiSno reactive power transmitted. This is one onhe'reasons
why the line losses are lower with de than with ac. The losses in the converter terminals are
approximately 1-1.5 percent of the transmitted power, which is low compared with the line
losses.
-/' Asynchronous connection- Sometimes it may be impossible to connect two ac networks due
to stability reasons or because they operate at different ac frequencies. In such cases the
solution is HVDe since it is an asynchronous connection. 0
-/' Controllability- Today's advanced semiconductor technology, utilized both in power thyristcrs
and microprocessors for the control system, has yielded a substantial improvement in reliability
and controllability of HVDe system. In an ac system it is not possible to control the power
flow while in an HVDe system, the power flow can be controlled with regard to both amount
and direction very quickly. This characteristic has often been used to stabilize different all
networks.
HVDC offers several advantages
-/' DC cables are cheaper compared to ac.
-/' One single cable can take up to 500-1 OOOMW.

-/' A de cable does not contribute to the short-circuit power.
-/' Costly and difficult overhead line paths in a city centre can be avoided by cabling.
-/' It ensures better conductor utilization.
-/' It provides for three times the capacity, using the same conductors.
-/' It has an even higher capacity with new towers in an existing right-of-way.
-/' It makes it possible to control reactive power in a city centre.
-/' It ensures increased ac system stability.
-/' It provides for increased power capacity in parallel ac lines.
-/' Itprovides for controlled power flow.
-/' It provides for double circuit performance of a converted single circuit ac line.
-/' There is higher power without increased short-circuit power.
-/' There is better control of the line load factor.
Disadvantages of HYDC transmission system are
-/' Costly terminal equipments - converters are expensive, converters require
power & generate harmonics so they require filters, and converters have
capability.
-/' Inability to use the transformers to change the voltage levels.
ANll.,KUMAR K.M., Assistant Professor in E&EE, B.lE.T, Davangere.

60
POfYER SYSTEM PLAIVNING
../ The difficulty of breaking the D.C currents which results in high cost ofD.C breakers .
../ Generation of harmonics- which require A.C & D.C filters, adding to the cost of converter
stations. -
../ Difficult for maintenance, need skilled technicians for operating.
Application of HVDC transmission system
../ Control & stabilization of power flows in A.C ties in an integrated power system .
../ For. the cables crossing bodies of water wider than 20ml (32km).
../ For interconnecting the AC systems having different frequencies or where asynchronous
operation is desired .
../ For transmitting the large amount of power o~er the long distances by overhead lines.
-/' In congested urban areas or elsewhere where it is difficult to acquire right of way for overhead
lines & where the lengths involved make the A.C cable impracticable.
-/' Increasing the capacity of existing AC. transmission by conversion to D.C transmission. New
transmission rights-of-way may be impossible to obtain. Existing overhead AC transmission
lines if upgraded to or overbuilt with D.C. transmission can substantially increase the power
transfer capability on the existing right-of-way.
4.2.2 FLEXIBLE AC TRANSMISSION SYSTEM (FACTS)
-/' For economic reasons electric power systems are interconnected within utilities and- inter-
utilities.
-/' The purpose of transmission network is to pool power plants and load centres in order to
minimize the number of power generation sources needed, taking advantage of diversity of
loads, availability, of sources and in order to supply the load at required reliability .
../ As power transfers grow, the power system becomes increasingly more complex to operate and
the system can become more insecure with large power flows with inadequate control and
inability to utilize the full potential of transmission interconnections. The concept of Flexible
AC
-/' Transmission System has great potential, using thyristor based controllers to offer the utilities
the ability to control power flows on their trans..nission lines, allow secure loading of
transmission lines to their full thermal capacity.
-/' The relevant technologies based on thyristor based controls are-SSR" damping, static V Ar.
compensator (SVC), series capacitor, phase angle regulator, static condenser, dynamic load
brake, dynamic voltage limiter, series reactor, fault current limiter, circuit breaker, load tap
changer, and ferro resonance damper .
../ Static VAr compensators, fast controllable phase shifters, and series compensation, all
significant role in FACTS. Although the equipment which comes under this
existed for many years, what is new about FACTS is that these power comeonentss
ANILKUMAR K.M., AssistantProfessor in E&EE. RI.E.T, Davangere.

61
't
special features are systematically evaluated with the goal of increasing the power transfer
limits of ac networks.
./ An important property of the FACTS components is their ability to control the power flow,
. both active and reactive power flows or the power in feed to a certain node. The Controi ,..~. r
be used either to regulate the power flows in the steady state, or to damp power swings
dynamically.
. Advanced series compensation(ASq
•
./ Advanced Series Compensation is a way of further improving the efficiency of the
transmission line or network by reducing power losses and so saving energy.By making better
use of existing line capacity, the need for additional transmission lines couldbe obviated and in
extremecases, the need for extra generating capacitycurtailed.
../' The first three-phase ASe system has been operational since Autumn 1992 at the Kayenta
substation.in northeast Arizona, USA. By providing direct control of transmission line
impedance, this scheme offers many' advantages over conventional fixed series-capacitors
installations .
./ Advanced Series Compensation combines high-power electronics devices along with these
essentially comprises a reactor (an inductive reactance) in parallel with a series capacitor. The
net series compensation 'seen' by the power transmission line is the combined impedance of
the reactor. In varying the impedance of the reactor, the total impedance of the compensation
circuit changes. The ASe system regulates the current flowing through the reactor and so the
current along the transmission line. It can control the apparent line impedance over a wide
range by varying the firing angle of the thyristor. This allows ASe to operated not just as a
series capacitor but also as a series reactor which in turn allows changes in transmission line
impedanceto be readily made.
./ The main features offered by such a system are-direct and continuous flexible control of the
transmission line compensation levels, increased stability, reduction of short-circuit current
achieved by changing from a controlled capacitive reactance to a controlled inductive
reactance, better overload flexibility by adapting the thyristor firing angle to the accumulated
capacitor and arrester energy, improved protection of series capacitor banks, reduction of de
offset voltage, sub-synchronousresonance mitigation, and power swing damping.
4.2.3. Underground transmission
./ Underground cables or underwater (submarine) cables are used for electrical energy transport
where overhead constructionis impracticable, unsafe, costly or environmentaHyunacceptable... :
. .~
,,/ The main applications are in urban areas, where th,ereare long water crossings, across isl'md"~/
or where overheadrights-of-way are unav~ila~leor not possible or ~ery costly, or w.~y~;,~ it '
laws dictate underground cabling such as 10 arrport approaches, stations and subst~i.o~~7~!i~~:;
rt ~
ANIT ,ll1lM AR K.M .. A~<:;dl:mt "Professor in F&F.E. BJ.RT. Davanzere. E~T;ri

62
areas of unusual scenic. value or with extreme vulnerability to damage by natural forces or
vandalism .
./' There are many systems of cables depending upon the voltage, power requirements, length,
___ cost and reliability considerations, Underground transmission cables up to 8-00 kV are in
operation .
./' Some common cable systems are-high pressure oil filled (typical voltage level 132-500 kV),
low pressure oil filled (110-132 kV), extruded dielectric cable (132 kV to 400 ~V), compressed
..
gas system (up to 800 kV). Up to the 66 kV level, solid cables are used such as paper
impregnated insulated cables, plastic insulated (PE, PVC etc.) cables, and rubber insulated
cables.
4.2.4 Development of transmission voltage levels
./' In order to develop strong regional systems, it is important to strengthen the existing 400 kV
network with 800kV ac and HVDe links and use such modem techniques as series
compensation, static VAr systems, and phase shifting transformers with a possible future
application of flexible ac transmission systems .
./' In order to supply the growing demand for power, there has been a continuing trend towards
adoption of higher voltages for transmission of power economically & also to reduce the losses
throughout the world.
4.2.5 Selection of voltage levels
../' The economy of electrical power supply is determined essentially by the selection of the
voltages in the distribution and transmission systems .
../' Fundamental considerations that determine the voltages to be used in the medium high, and
high voltage ranges and also for their stepping are-load density; transmission distance and
transmission power on the voltage to be selected .
../' The steady growth of loads also makes it necessary that consideration be given to the load
development which may not only vary with respect to the time but also geographically.
Matching of the voltages to the standardized values is also important. Voltage application
range is given in table
Voltage application range
Voltage Designation Range of application
<lKv Low Voltage (LV) Distribution systems for feeding low voltage consumers such
as houses, small workshops, commercial shops, hotels etc.
1-36kV Medium Voltage Distribution systems for feeding low voltage systems &
(MY) large consumers such as shopping complexes, schools, ,
hospitals, industrial plants, administration buildings etc~J;K.3
36-150kV High Voltage (HV) Distribution & sub transmission systems for feedin
medium voltage system, for cities, large industria,J:.:'_~
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere, h~~~~l~~~.~Y.J

63
railways, main substations.

>150kV Extra High Voltage Transmission systems for large blocks of power & for
(EHV) interconnected system operation .
.
- -
./ In the selection. of extra high voltages, other special problems arise in the dimensioning of the
insulation and design of the overhead lines.
¥' At present high voltages, the influence of the insulation on the costs may be of great
importance, particularly where there is danger of contamination or other special c1imatic

conditions such as mountain climate. Recommendations are made for the dimensioning of the
insulation, these being based on the applicable standards .
./ Also important is the economical design of high voltage overhead lines, since in long distance
. transmission lines, the proportion of the line costs to the total costs is very high.
4.3 PLANNING CRITERIA
4.3.1 Strategy for transmission expansion
./ While SEBs are responsible for providing the transmission systems for their respective state
grids, POWER GRID has been entrusted with the responsibility for laying transmission system'
network. for facilitating transfer of power generated by the central sector to various
constituents as also for laying necessary transmission network for augmentation/strengthening
of regional power grids and formation of national power grid to facilitate transfer of power not
only within a region but also across various regions in the country.
¥' With the latest amendment (1997-ordinance) to the Indian Electricity Act 1910and the
Electricity Supply Act 1948, private transmission companies can be entrusted for developing
any transmission system .
./ Keeping in view long- and medium-term perspective planning, the transmission system needs
to be evolved taking an integrated approach for evacuating power from different generating
sources, irrespective of their ownership, and delivering it to the beneficiaries over an optimally
designed power transmission system with reliability, security and economy .
./ In other words, the state/regional power systems have to be planned in such a manner that the
power received from all the power plants can be transmitted without constraints to different
beneficiaries as per their allocated shares, maintaining a reasonably good voltage profile,
stability conditions and redundancy criteria.
¥' The power system so planned should also integrate well within the region. Hence, the
requirement of individual states as well as the possibilities ofjnter-state and inter regional
exchanges must be kept in mind during the planning exercises .
./ Regional grids are developed for substantial inter-regional transfers and limited cross
exchanges can.be attached to achieve optimized utilization of available generation and
high standard of supply to beneficiaries with reliability and at reasonable cost.
64
4.3.2 Thermal loading

~ Thennalloadings are generally decided by design practice on the basis of ambient temperature
and maximum permissibleconductor temperature.
y' In India, the ambient temperatures obtained in the varieus-perts-ef-thecountry are different and
vary considerably during the various seasons of the year. It is, therefore, difficult to specify
conductor loadings based on uniform ambienttemperature conditions.
v" The maximum permissible line loading with respect to standard sizes of ACSR employed in
220 kV and 400 kV lines for ambient temperature of 40°C, 45°C, 48°C and 50°C, are
different.
../' For the purpose of system planning studies, the line loadings should not exceed the values
corresponding to appropriate ambient temperature conditions and maximum permissible
conductor temperature, or those dictated by the stability criterion,whichever are lower.
4.3.3 Dispatchability
Loading & Outage Capability
-/' The transmission system should be planned on the basis of regional self-sufficiency. Wherever.
inter-regional power transfer are allowed, the system should also be suitable for specific
quantum of assistance from neighbouring regions, The maximum power angular separation
between any two important buses should not normally exceed 40° for load flow under steady
state conditions.
-/' The transmission system should be capable of transmitting, the states shares from the central
sector common projects.
-/' The transmission system should be planned to withstand outage of two circuits of 220 kV
system, or one circuit of 400 kV or higher voltage system, or one pole of HYDC bipole, or an
EHV transformer without the necessity ofload shedding or reschedulingof generation.
../' The transmission system should be planned to ensure full transferring of the maximum
possible output fromgenerating stations even under forced outage of a transmission outlet.
../' There should be sufficient redundancy to ensure that there is no transmission constraint on
rescheduling generationunder the conditions of outage in any of the generating plants.
-/' Reactive compensation should be provided as far as possible in lower voltage systems with a
view to meet the reactive power requirement ofloads close to load points.
4.3.4 Security
-/' The system should be able to survive without losing synchronism, the-single contingency of
single line-to-ground fault, or line-to-line fault close to a bus on a trunk transmission link
cleared by three pole opening of the circuit breakers on either end within 100 IDS from .th~.
initiation of fault, or a fault in HVDC converterstation equipment resulting in a perman¢.h\'l~J~~,
. .f}f!;if;l '_ ~:.
of one of the poles ofan HYDe bipole. ~:.
')e,'; "':'/.; 1'1.
L;·.~),;l;';~,;:rf
~
65

~ ~
./ The above criterion is proposed since single-line-to-ground (SLG) or line-to-line (LLG) faults
are more common and frequent as compared to the other types. Three-phase clearance has been
adopted since it is more commonly practiced as compared to single-pole clearance. In the case
,. of 800 kV system, the SLG-fault-for-transient stability with a fault clearance time CJfj-"tycles
(100 ms for 50 cycle systems) is to be adopted. The same criterion for security should be
adopted with respect to the 800kV system .
./ In the event of a double contingency of single-line-to-ground fault or line-to-line fault with the
primary protection failing to operate and fault being cleared by second zone protection, the
system should return to stable operation after resorting to load shedding. In the event of an
. extreme contingency of outage of two circuits emanating from same generating station, it
should be possible to revert to stable operation with protection being coordinated to island the
zones.
4.3.5 Right-Of-Way
In view of increasing difficulty in obtaining right-of-way for transmission lines, and on account
of problems associated with the clearance for routing transmission lines in forest area, transmission
lines should be constructed as double circuit or multi-circuit lines wherever feasible.
4.3.6 Economic Evaluation
Economic evaluation should take into account the cost of the total system including terminal
equipment. The cost of energy should be based on marginal cost.
4.3.7 Planning of distribution networks
../ The basic parameters considered are-load density, expected load growth, voltage level and
circuit
../ configuration, number of feeding points etc.
../ In order to select the most advantageous investments from different alternatives, costlbenefit
studies must be carried out taking into account system voltage, system losses, estimated non
distributed energy due to system faults, annual maintenance costs, safety etc., for one or two
years. Suitable account should be taken of future long-term period unknown factor by some
form of sensitivity analysis.
-/" The existing distribution system network arrangement is a natural starting point for planning
for future developments. Good system planning requires sound knowledge of the existing
system to provide a firm base on which to assess the projects for future network development
from the technical and economic point of view .
../ At HV (subtransmission) level, the technical studies can be complex. HV systems an~.
,,;£...
introduced to deal with longer distances and increased power requirements. The use of a sin~J·~:·
higher voltage system of 33-220 kV to supply local LV networks directly WOul~'1\1;

unacceptably high costs and amenity problems. Thus, another voltage level ~~t~iim~"")
ANILKUMAR K.M .• Assistant Professor in E&EE. B.lE.T. Davanzere. jt~~i£fI~~~.~4w~~1
66
level), is used to interlink, i.e., 22 kV or 11 kV. Material & construction costs of 11-22 kV over
head lines are only slightly higher than those for a 400 V line of the same length, but are
approximately-one-tenth the costs of a 110 kV line. It is this large cost differential which
economically justifies the inclusion of an MV network between the EHV, HV and LV systems,
even when the costs of HVIMV substations have been taken into account. Medium voltage
system also provides a convenient voltage for connecting substantial industrial loads, large
buildings or office blocks. The decision for selecting the voltage level must be based on long-
term studies.
4.3.8 Substation development
./. For planning the density and size of substations in the power system, the following technical
and economic aspects are considered-load density (e.g., MW per km2), load growth, utilization
of transformer capacity, maximum fault levels, flexibility and siting .
./. Normally, the city areas have higher load densities and the size of substations will be higher
than in rural areas. This is mainly because of-the fact that the cost of distributing the power in
general is lower when the load density is high .:
./. The size and number or density of substations is determined by technical-economic analysis.
The average distance between substation, It is given by
TOlalAreas )"2
( NumberofSubstations
y' Due to the scarcity of available sites and other local environmental aspects, it may be
impossible to respect the optimal technical-economic solutions alone. Nevertheless, these
solutions should be looked for so that the cost consequences are known and the optimum
conditions may be approached as near as possible .
./. From the economic point of view the optimal successive transformer sizes, between the same
voltage levels, have a ratio of about 1.5 to 2.5. This means, in practical situations, that new
. sizes should be envisaged when the loads in substations have been increased by that factor.
y' Load density is a very important determinant of the size of substations. Very big substations
can be attractive when the density is high as an increase in demand in the long term is very
probable otherwise smaller sizes are preferable .
./. Now SF6technologies make it possible to put HV substations inside buildings or underground.
Such substations closer to the load centres are physically smaller and often simpler designed.
Modem protection schemes ;ilow a more complex operation to maximize security of supply.
This also favors simpler substations.
67
l:'UW.J:!.1( .>.l.>J../!,M r.L/1JYJl.l1YIJ
substation bus bar schemes

The arrangement of bus bar and circuit breakers plays an important part in determining the
efficiency of power transmission and distribution system.
.
The type of arrangement
.
to be adopted is
.determined by the degree of flexibility of operation, immunity from totar shutdown. importance l-
and nature of loads, security, capital cost and minimization of fault level by way of
sectionalization, maintenance, area of extension, land area etc. The most prevalent bus bar
arrangements are given below
1. Single Bus System
-./. 'It is the cheapest arrangement and is used for small substations where power outage for short
periods for maintenance and repairs is permissible.
«/' The disadvantage of the system is that in case of contingency' the whole system has to be dosed
down.
«/' Improvement to this is possible by sectionalizing the bus by installing isolating switches or a
circuit breaker so 'that different sections can be operated independently.

2. Duplicate Bus System
«/' This arrangement is commonly used in large systems with many feeders.
«/' There is a coupling switch or circuit breaker between the two bus bars.
«/' Isolators and circuit breakers are connected so as to have the power flow without interruption.
This is a comparatively more expensive arrangement.

«/' Feeder breaker maintenance is di fficui t without interruption of supply of feeder.
3. Transfer Bus Arrangement

«/' With this arrangement line circuit breakers can be taken out for maintenance and repairs without
interruption of supply.
«/' This is a very costly scheme but is more flexible.
4. Breaker and A Half System

«/' The arrangement is suitable for systems where power outage is not permissible for any reason
whatsoever.
«/' The supply has to be kept uninterrupted even in case of bus fault and the bus can be taken out
for
«/' maintenance. The cost and the area required are 90 percent and 50 percent as compared to main
bus and transfer breaker schemes.

4.3.9 Reactive power planning
,The planning criteria for reactive power compensation may be adopted as follows,
> ,~
«/' Reactive power should not be transported over long distances. ,.i.<:' .;
, <.:\:,i., •.1·.·•
«/' In normal intact network situations reactive power should be produced and consume~:tlitt:"
",;y(;T'ti:i~~Et·y
,
68
,/ The network should be operated at upper voltage limits in high load conditions to achieve
higher stability margins and to reduce active and reactive power transmission losses.
,/ The amount of reactive power reserves should be sufficient to ensure acceptable transmission
~acities inthe network during sys~emdisturbance sonditions.
There are two important aspects which distinguish reactive power planning from the
planning of activepower,
,/ Transmission of reactive power over long distances win have both active and ~eactivepower
losses and voltage drop. Compensation to maintain reactive power balance in an area must
consequently be provided in the vicinity. Reactive power is in this respect a more local
problem than activepower.
,/ Investment cost related to reactive power reach only a few per cent of Corresponding values
for active power transmission equipment. Furthermore, reactive power installations have a
much shorter constructiontime and very less influence on the environment.
Reactive power sources
,/ Reactive power is generated or absorbed by all major components of a power system-
generators; transformers, HVDC converters, lines, loads; and reactive po~er compensating
devices.
,/ Reactive power compensation devices such as capacitors, reactors, synchronous condensers
etc., are installed to improve reactive power balance, voltage control, and system stability
including dampingof power oscillations.
,/ The future UHV and EHV transmission development will not see much progress of shunt
reactors and shunt capacitors and synchronous condensers. Static VAr compensators,based on
power electronicswill have large development in this area for transmission level.
Series Compensation
For long lines, series compensation is used to increase the permissible loadingwhich is limited
mainly by the transient stability. The following factors should be considered in the selection of
series compensationrequirements
,/ steady state and transient system stability
,/ protection of series capacitors
./ sub synchronousresonance.
Shunt Compensation
Selection of shunt compensation requirement for EHV & UHV lines requires consideration of
the following factors.
,/ steady state over voltages during light load conditions
./ dynamic over voltages.
,/ switching over voltages
ANTT _ll1lM & D 1( M A<:<:i<:t~nt

Professor in F.&ER B.I.E.T. Davanzere. ,.{_j~it*~
69
../ resonance voltagesfrom parallel lines.

Capacitor Planning
../ The low voltage nodes can be raised within operating limlts by increasing the generation bus
voltage.beyond the-eseal upper steady state limits. The system voltage is allowed to operate
above the normal limit for low load since the extra reactive power intake can jeopardize the
.generator stability and shunting. To meet the contingency, some of the system nodes may be
operating at voltage experiencedduring the low load period. The bus voltageraise produces an
effect similar to the transformertap variation.
. .
../ Optimum capacitors can be decided considering both the transformers tap setting and the
variable voltage ceiling limit.
Criteria for planning static VAr system
../ A static VAr compensator (SVC) is an automaticallycontrolledsupply ofVArs. The supply of
VArs is regulated by the thyristor switching off reactors or capacitors in shunt with the
transmission or distribution system. The result is that the voltage of the bus at the location of
the SVC will be controlled. The response time of an SVC is in the range of a few cycles and
can be switched as often as the control allows. .
../ Rapidly varying loads cause voltagefluctuationsin the transmission or distributionsystem. Arc .
furnaces, welders, steel rolling mills., induction furnaces, cement mills, large pumps and
compressors, mining shovels, wood choppers, and electric traction loads are examples of
rapidly varying loads. Many times the industry with these loads does not complain, but the
other electricity-using consumers in the area do complain. SVCs are fast enough to stabilize
voltage for the types of applications listed above and reduce or eliminate the consumer
complaintsof voltage fluctuations.
../ Weak transmission and distribution systems with varying loads are one application which
could be served by an SVCs.
../ If the load is constant, switched capacitors can usually supply the VArs for the load and the
line losses, therebyreducing currentin the line, improvingthe power factorand thus regulating
the voltage. If the load varies and the switched banks cannot be dispatched rapidly enough to
meet the load, then an SVC mayberequired.
4.3.10 Grid Formulation
The creation of the Power Grid Corporation of India (PGCI) would provide the necessary
impetus for establishing efficient power system networks with the ultimate objective of evolving a
national power grid by the year AD 2000.1n a regime of shortages, the grid management
philosophy has to be different from the advance~ countries where huge reserves are avail
-
enabling considerableflexibility in economicload dispatch.
ANILKUMARK.M., AssistantProfessorin E&EE,B.I.E.T,Davangere.

70
Grid operation
The major problems encounteredby the five regional load dispatchcentres in the five region in
the integrated operation of the power grids relate to inadequate capacity, inadequacies in the
transmission and distribution system, grid indiscipline leading to indiscriminate and heavy over
-
drawls by the constituents, wide frequency fluctuations, reluctance to back down generation,
abnormal voltage levels, commercial disputes; inadequacy of load dispatch and communication
facilities.
The steps to solve these problems are discussed below,
_, Accelerating the constructionof power generating stations & convertingnowadays Inadequate
generating capacity in to adequate capacity.
_, perspective plans for transmission and distributionsystem includingHVDC have to be planned
for inter-regional power exchanges.
./' Managing the load for avoiding Frequency and voltage fluctuations.
./' Optimizing the-generatingstations for Economicpower generation.
./' Proper hydro-thermal mix is required for evolvingthe most efficient
./' and economical systemfor generation of power.
4.3.11 Compact Lines
Up gradation of existing lines and substations -
Several alternative approaches are available to increase the capability of existing lines. The
most obvious method of increasing the capability of an existing line is to increase the operating
voltage. This method can sometimes be accomplishedby modifying existing structures on a line,
but a large increase in voltage might require replacement of structures,which is usually still more
economical and practical than trying to obtain right-of-way for a new transmissionline.
Some commonly used practices are,
./' use of aluminum alloy conductors which have low weight to strength ratio for minimization of
sag or tension as comparisonto ACSR.
./' use of V-string assembly or polymer insulators to prevent conductor swing and thereby
maintain required electricalclearness.
./' Introduction of additionalpanel in tower structure suitably to increaseground clearance.
./' Replacement of X-arm by special shape arms. Reduction in the number of circuits (from
double circuit to single circuit) for upgrading system voltage followedby reconductoring.
./' Reinforcing structure legs through attachment of additional steel sections with the existing leg
posts.
. k
./' Another method of making more efficient use of right-of-way involves" compaction" of;
tr~smiSSion lines. By restricting the movement of the conductors at the structure, ri~t>~;..:~~i
WIdthcan be reduced. :{ I 111
~\::i
ANH,KUMAD K_M._Assist:mt Pmfp..ssor in F~FF. RTF 't n~v:mop,.p

71
POWER SY..\'TEM PLANN1N(i

~ ~
y' Series compensation is another way to increase power-transfer capability of ac transmission
lines. Economic benefits of adding series compensation to long transmission lines are realized
. by allowing reliable operation of the system closer to be line's thermal limit. An advanced
series compensation (ASC) scneme can be used to evaluate benefits of combining converrtinnal
fixed series capacitors with thyristor-controlled reactors and provide direct dynamic control of
a transmission line's impedance
y' With the increasing requests for wheeling and transmission access transmission engineers will
be challenged more and more to provide maximum capability on existing lines and to design
new lines making the most efficient (optimum) use of right-of-way with the lowest electric and
magnetic fields possible. It is feasible to upgrade any existing llkV line to 33 kV line or 33 kV
lines to 66 or 132kV lines as compact line.
y' It will be advantageous to change the delta formation of the conductors to a horizontal (or near
horizontal) formation. This can be achieved by fitting a 33 kV "V" type cross arm to the
existing llkV pole.
y' Load leveling in time and area domains is effective for improving the utilization factor of
power utilities network.
y' Uprating/upgrading of transmission system is possible due to innovative approach, to improve
transmission capacity such as compaction, FACTS, use of AAAC, use of polymer insulators
and insulated X-arms, reduction of air clearances and angle of swings, and deploying Zno
lightning arresters.
y' The dimensions of a transmission line can be compacted by restraining the movement of the
conductor at the point of attachment to the insulators by certain arrangements like V string,
Horizontal posts," Strut suspension combination, Horizontal V etc. and by installing ZnO
arresters.
y' Multi-circuit lines One solution to the increasing pressure for mere compact right -of-way is
to restring existing low-voltage lines onto new towers with new high voltage circuits.
5 & 6 POWER SYSTEM ECONOMICS & POWER SECTOR FINANCE

y' About 20 per cent of the national plan budget is spent on the electric power sector.
y' Even ignoring possible inflation and cost overruns, the power sector project investment- needs
equal 2.5 per cent of the GDP.
y' Much of this additional capacity will come from coal-fired plants, especially in China and
India. But there will also be substantial additional capacity in the amount of hydroelectricity
and gas-fired capacity. .. 'j 1

According to estimates, the annual costs to industry in India due to electricity shorta~~"t',~ .
currently one to three percent of the GD P.

·k
!I;~J;~I
, ..••..
11··· ,i t· /'.l:--"
t." I:
. '.' rf ~
72
./ It will be impossible for the public sector to make the necessary investment to bridge the gap
between the demand and supply of electricity. The increasing role of the private sector in
electric power sector-bas three aspects-mobilization of private capital for power development,
development of new sources of power generation and improved economic efficiency. Three
main points make project finance attractive - (i) Risk Sharing, (Ii) Improvement of Balance
Sheet, (iii) Taxation Advantages.
7. FINANCIAL PLANNING
./ Investment requirement of the power sector has increased exponentially over the years and,
therefore, a need was left' to mobilize resources to meet this huge requirement by way of
foreign assistance, private capital, public borrowings and internal resource generation, to
reduce the financial burden on the public .
../' The state electricity boards and the central sector corporation are expected to generate at least
20 per cent of their total investment as internal resources .
../' The capital structure of the state electricity board, is built up with loans from the state
governments, financial institutions like banks, LIC, PFC" REC etc. and -market borrowing.
They are ~lso expected to generate internal resources from their statutory earnings after
meeting the liabilities of operating expenditure, interest on loans, capital-and depreciation .
../' The negative internal resources indicate losses incurred by SEBs due to lack of rational tariff
and other reasons .
../' Power being the basic infrastructure required for sustainable economic development, cannot be
ignored even in such a situation and ways and means will have to be found to mobilize
finances for funding the new schemes .
./ The capital finance debt andlor equity is required for fixed capital (long term) for land,
building, machinery, materials, construction etc, and working capital (short term) for raw
material such as fuel for two months etc. Working capital has highest interest rates.
,.Competitive financial markets are emerging. The innovative approach by various financial
institutions has made funding a complicated process.
The broad options available for power sector finance are as follows,
(i) Issue of bonds by the central corporations, electricity boards,
(ii) Internal resources generation by utilities,
(iii) Subscriptions of shares/debentures from public,
(iv) Loans from power finance corporation (PFC),
(v) Promoters money,
(vi) State plan resources for state e1ectricity boards,
(vii) New budgetary support from the government of India,
(viii) Joint sector participation between .central and state governments,
ANILKUMAR K.M., Assistant Professor in E&EE,B.lE.T, Davangere.

73
(ix) Joint ventures between public and private sectors,.

(x) Bilateral assistance on selective basis in terms of grant, equity and loans,
(xi) Multilateral assistance from world bank! AOD etc., in terms of grant, equity and loans,
(xii) Loans or equity from financial institutions such as LIe, UTI, commercial banks, NABARD,
IDBI etc.
(xiii) Loans from specialized financial corporations such as IFC, IeIeI, pension funds etc.
.. (xiv) Lease financing to power utilities .

Pattern of investment
../ The· Rajadyksha Committee on Power appointed by the Government of India had
recommended (1980)that the investment ratios in the power sector between generation,
transmission, distribution and rural electrification should be 4:2: 1,.1.
../ More than 50 percent system losses are estimated to occur in the lower voltage system below
132 kV which are the sub transmission and distribution system. These need to be strengthened
through increasing investment.
Plan outlay
../ Much higher outlays have been allocated to generation component than T &0 system or
renovation and modernization (R&M)programmes .
../ Inadequate investments in T&0 system is one of the reasons for poor quality of supply of
electricity (voltage fluctuations and break downs). Investment on optimum utilization of
existing generation plants through R&M programmes has aiso not always been adequate,
though large investment in R&M - programmes would probably have resulted in higher
average PLF of the power plants .
. ./ This plan outlay generally describes the pattern of investment made in the five year plans in the
different sector of power & energy.
Techno-economic viability
'/ One of the basic objectives of the power project report is to determine techno-economic
viability for the project identified and also to obtain the investment for construction of
generation plants and interconnecting links which ensures an economic and reliable supply.
,/ The evaluation of investment in various subsectors of the power industry such as generation
system, transmission linkages, distribution systems, etc., through long-range planning is
necessary for a rational and planned growth of the power system as a whole .
..
,l In ~rge developing countries, such as India and China,' there is, however, another feature of
the planning problem that is absent in the developed countries. This arises from the fact that, [I,k
concomitant with the need for new capacity to meet the rapidly growing demand, there is a~
. .;.'IT r
equally important requirement for the expansion and extension of the transmi;,si9,ll:'~~t i
distribution to provide power either to new areas. • ,,;.~'J ~~:i" b:
ANILKUMAR K.M., Assistant ProfessorinE&EE, B.I.E.T,Davangere. A;{~:rKi~4\
74
../. From the standpoint of analysis of investment alternatives for the system 3S a whole, this
implies that the analytical tools used should be capable of assessing the options for both
capacity and transmission linkage expansion and distribution in an integrated fashion to
.achieve an optimal solution for the future evolution of_the~m .
../. The project must be clear from the point of regulatory clearancesbefore seeking finance from
investment agencies. The main choice problems confronting the system planners in case of
thermal power are the question of optimal unit size and generation reliability, the locati.onof
..
the plants in relation to the load centre, the coal mines, the transportation network for coal and
extension to highervoltage level ofthe transmission grid.
../. Since power systems planning is generally carried out over relatively long time horizons, an
important operational consideration given, the large uncertainties inherent in long-term input
assumptions is that the suitable analytical methods should be capable of examining a large
number of future scenarios within a reasonable time and levelof effort.
../. The Central Electricity Authority has acquired the Integrated System Planning Package
(ISPLAN)developedby Mis I.D.E.A.ofUSA. It is an indicativeplanning tool for analyzing the
major features of an optimal expansion plan for generation capacity, transmission. and coal
transport. Based on an LP formulation, the model can be utilized effectively and quickly with
respect to a large number of alternative input assumptions to produce an optimal expansion
plan at the regionallevel.
../. Another proprietary package, the Electric Generation ExpansionAnalysis System (EGEAS) is
a computer software package which contains five capacity expansion analysis options ranging
from preliminary analysis tools based on screening curves and linear programming to
sophisticated non linear analysis tools utilizing Generalized Bender's Decomposition
Technique and Dynamic ProgrammingAlgorithm.
8. PRlV ATE PARTICIPATION
../. Private power projects are importantas a part of the country'sinvestment resources raising and
least cost expansionplan for the supplyof electricity.
../. Under the Indian Electricity (Supply) Act, the private sector generating companies,
transmission or distribution companiesare encouraged to participate in power sector.
../. Another advantage of private' sector participation is that it opens up new work and
management skills for timely execution of the project and 'delivery of quality in work and
service. Some of incentives for private sector versus public sector are given in the below table.
75
As notified by the Government of India

Private & public sector investment
Details
Debt-Equity RatiO-
Public sector
1:1
- Private sector
4:1
Minimum rate of retum(ROR) on 12% 16%
equity component
Capitalization of Interest 1% above reserve At actual cost
construction bank rate
Period of initial validity oflicence - Increased from 20 to 30 years &
.... : further expandable by 20 years on
each occasion
Mode of operation as Generation, Independent Independently or Association with
T&D companies central or SEBs
Foreign participation - Single point clearance of
application
../ Capitalization of interest during construction is at the actual cost for private sector from the
existing schedule interest rate applicable to state electricity boards, and state and central
corporations.
C*R*N
The interest(%) during construction is = where, C= Cost of project in Rs., R = Rate
2*12*100
of interest, N = Construction and commissioning period in months .
../ With different debt-equity ratios and rate of return as indicated above, private sector cost of
energy would go up.
,'I ·,Gvernment has further liberalized the rates of depreciation provision in the
Electricity (Supply) Act, 1948 with respect to assets of power generating companies/boards
and licensee companies .
./' The private power generating companies would have to be assured of guarantee by state
governments or by the central government or by any legal institution or expanded form of an
escrow account and letter of credit or timely payments of the dues on account of power sale to
the various electricity boards or timely payment of loan to the lender respectively. Provision of
direct supply by private companies to HT consumers or exclusive distribution area may be
another option.
ANILKUMAR K.M .. Assistant Professor in E&EE, B.I.E.T, Davangere.

76

't •
Ownership
./ Power utilities have a natural monopoly .
./ The efforts are to remove this monopoly by creating supply market as in UK [8], USA,
Argentina, Australia and some other ~untries .
./ The consumers will be free to choose their suppliers. Rapid decision-making, risk-taking and
innovation are needed and these qualities are usually lacking in state-owned undertakings.
Privatization will restructure the electricity supply industry in most countries in Asia in the
near future. It will break up vertically integrated monopolies in search of lower costs and
higher productivities .
./. The public sector and private sector power utilities have different financial structures Various
private sector options like ~rnkey (engineering, procurement, construction) contract, BOOT,
BOO, BOL, ROL etc., BOO (Build-awn-operate), BOOT (Build-own-operate-transfer) are the
most common schemes for new projects, ROL (Rehabilitate-awn-Iease) are common for old
plants and BOM (Build-awn-maintenance) for new transmission lines.
MI,.IUlJU ANNUAL
rlEVI!UIJ12 Il£OUr>lEl.tENT
_iLl
r--l
Figs showing the finance structure of private & public utilities,

Some salient business features of the incentives given by the government to private
investment are,
1. Private sector units can set up coal/lignite/oil/gas-based thermal, hydel, wind and solar energy
projects of any size.
2. Private enterprises can set up units, either as licensees distributing power in a licensed area from
own generation or purchased power, or as generating companies, generating power for supply to
the grid.
3. Licensee companies holding licence to supply and distribute energy in a specified area under a
licence issued by the state government will function under a liberalized economic and legal
environment.
4. New licences can be issued by the state governments to private units willing to. enter the
electricity sector. c : ...•
. . ,.J '#:.;
5. pn~~te enterpnses may be allowed to set up and they can sell or distribute surplus pow~rf~,~titr f
B,_ electncIty boards (SEEs). . t ...•.
£ £: ;,•...~.•rf f7~
...., ANILKUMAR K.M., Assistant Professor in E&EE. B.I.E.T.Davanzere. ,,~""~. '"'''' .!!~~;';i'r:;y?;i:~;i'
77
6. Promoters' contribution should be at least 11 per cent of the total outlay. Not more than 40 per
cent of the total outlay can come from Indian public financial institutions. To ensure that private
entrepreneurs bring in additional resources for the sector, they must find 60 per cent of the
resources from 'sources other than public financiii[ institutions.
7. Both license ,;'; and g~nerating companies can enjoy the following Benefits,
(i) Up to hundred per cent foreign c;~::~i ¥.:~~;cip.:.tioii(:al1(,;" pcJ1iiiUcJ fo- !lr(\j~r.ts set up by
.foreign private investors,
(ii) With the approval of the government, import of equipment for power project will be permitted.
in cases where foreign suppliers or agericies extend concessional credit.
(iii) Return for producers.
Debt Equity Hatio
The Government of India has stipulated a debt-equity ratio of 4:1. A higher ratio is considered
more risky for t1:' iders. Debt-equity ratio is calculated by dividing long-term debt by the equity.
Debt and equity: -lefined as follows
Debt
. long-tee -. aeposits (repayable after twelve months) including interest bearing unsecured
loans from ;',' '.,,_ rent agencies, promoters etc. & deferred payments.
Equity
ordinary i ;,' ,p share capital, premium on issue of shares, amount of central/state subsidy,
non-refundab!r .: ,)osits in the case of cooperatives.
Modes of U . }.lcipation
Given the I.', ?i~entprovision of electricity laws, the private sector could participate in four
ways.
',' -' ~ the state electricity board would be responsible for transmission and
.T while private entrants could own generating companies and sen energy to
ST.'" ,," .ontractual agreement such as PP A.
y'" Fr ely where private entrants would be granted monopoly rights to supply a
sp :': ,, ~rthrough self-generation or by purchasing the required power.
y'" B" is wheeling of power where the private sector generating company could sell
directly h :>flV consumer and could have access to the T&D network by paying for it. The
NTP~= ;:; ,.:,.,,,h"ng power to the railways at present by this arrangement.
lines could be set up on the basis of norms laid by the central government in
.nission tariff, line availability, service agreement, depreciation and return
, o. '" s : , .014:" M Assistant Professor inE&EE, B.I.E.T,Davangere.

78
. POWER SYSTEM PLANNING
Bidding for private power entrants

../ The state zovemment will be required. to plan and select projects
-
for offering them to bidders.
../ The planning process woetd include identification of system requirements estimated on the
basis of demand projection, power evacuation arrangement, availability of fuel and water, ash
disposal/utilization and environmental aspects in the form ofDPR or DFR .
...f. _J>dy~!e.~eneration bidding can be on competitive bidding to set up Power projects through the
least cost/price or through Memorandum of Understanding route.
Memorandum Of Understanding (Moo) Route
../ This is an initial one-to-one agreement with the state electricity board and the prospective
generating company to express intention for under-taking power generation project (MW or
prepared under negotiations with certain boundary conditions and time period). .
../ MoU system is considered suitable at the initial stages of private power sector policy
implementation or when no competitive bidders are coming such as for a project in an area
having less developed infrastructure where railway, fuel linkage and power dispatchability are
difficult. There. is difficulty in arriving at a reasonable price level ill an MoU case.
Competitive Bjdding Route
Competitive bidding is done for prepared and cleared projects and can be in five phases
(i) Issue of RFQ (Request for qualifications) to encourage competent bidders to participate by
giving threshold criteria, mainly organization, financial capability, management capability and
technical capability for qualifying an applicant for the subsequent RFP process
(ii) Issue of RFP (Request for proposals)detailing engineering adequacies, acceptance of SEBs
operating requirements, pricing, plant availability, plant load factor, draft power purchase
agreement and implementation agreement (IA),evaluation criteria, capacity, timing, sizes of units
etc., as in DPR for new capacity or DFR in case of refurbishment
(iii) Submission of Bids and evaluation the determining factor for awarding the project could be
based on the total project outlay or ultimate single tariff
(iv) Signature ofPPA and IA
(v) Financial close.
Power Purchase Agreement (PPA)
../ It is a type of commitment by the state electricity board to allocate risk and for sale and
purchase of energy and power. It is based on the philosophy of keeping a balance between the
risk and the price of electricity purchased for an agreed period say of 15 to 30 years. It
incorporates plant load factor versus long-term costs and tariff structure, fuel reserves, period.
/";!
·1
of contract, maintenance procedures, billing and payments, pollution, .
guarantee,banking, insurance, dispatchability, metering, licences,
agreement termination, arbitration and jurisdiction provision.
ANILKUMAR K.M., Assistant Professor inE&EE, BJ.E.T, Davangere.

79
../ This agreement is between the prospective generator and the state government. The quality of
PPA is important for satisfying financere, t.ogether back up for other agreements.
Fuel Supply agreement
It is an agreement for the linkage of fuel supply (coal or oil or gas) with concerned department
giving details of the costs-annual and monthly, linkages, quality. combustion, transportation,
timely delivery of fuel, default and penalty .
• Implementation Agreement (1Al
It is !ill agreement between the independent power producing (IPP) company or NUG or private
owned . utility generation company and the state .government providing assurance on
implementation of PPA, construction, water supply agreement, government approvals, sovereign
guarantee by government of India, levy of taxes, foreign exchange, immigration, bank account,
exchange risk insurance, political, resettlement, force majure conditions etc.
Operation and Maintenance agreement
Financial Close
Financial close is the date on which banks and financial institutions start lending for the work
. .
on the project. The breakup time up to financial closing in general is shown in below Figure.
21
Fig showing Typical time lead of the private utility up to fmancial close
It takes four to eighteen months for executing the various project agreements including
financial agreements for debt andlor equity with lenders to arrive at financial close. The signing of
agreements can be simultaneous. or in sequence as shown in Next page.
A NTLKUMAR K.M., Assistant Professorin E&EE, B.I.E.T, Davangere.

80
Typical stages of arrangements of a power project.

Energy purchase agreement with cog en era tors
.. ./ Energy purchase agreements bit cogeneration companies & SEBs will require agreement for
power purchase & sale tariffs including wheeling & banking of power, billing & pa:yment,
parallel operation, interconnection facility owned by state electricity boards, continuity of
service, personnel & system safety, metering, permits & licenses, events of defaults &
termination indemnification & disputes.
Y" All or portion of value of electricity energy delivered at peak may be designated for peak:
banking or delivered off peak may be designated as off peak banking. This energy may be used
by the cogenerators for credit against future energy purchase by the cogenerator from the
SEBS.
Y" All or portion of value of electricity energy delivered on peak: may be designated for peak
wheeling or delivered off peak may be designated as off peak wheeling. This energy may be
used for future credit against energy purchased by third party from the SEBS.
Y" Each month, the cogeneration firm should prepare an invoice indicating what quantity of
energy delivered to the SEBs during the previous calendar month is designated as banked,
wheeled, sold for on peak & off-peak.
9. RURAL ELECTRIFICATION PLANNING & INVESTMENT

Y" It would not, however, be quite correct to judge rural electrification purely on the criterion of
the financial returns-on the investments made.
Y" A number of indirect socio-economic advantages like harnessing of groundwater resources for
• :{;C,'
increased food production, promotion of rural industries and rural employment, preventio ))!~
migration from rural to
Y" urban centres, saving in diesel and the like, should not be ignored.
ANILKUMAR K.M., AssistantProfessor in E&EE, B.I.E.T,Davangere.

81

F ~
y" The real advantages of rural electrification are not limited to the immediate or long-term
financialreturns but go far beyondand can be truly evaluatedby the benefit-cost analysis.
y" The National
.
Council of Applied Economic . Research (NCAER)carrieB out studies in the
impact of rural electrification"in1hePunjab and Kerala villages and after evaluation of the
indirect benefits, it was found that the benefit-cost ratio of all the schemes was well above
unity proving that there was abundant economic justification for the rural electrification
schemes.
9.1 RURAL ELECTRIFICATION
y" Rural Electrificationprogrammeis mainly funded by Rural Electrification Corporation of India
since 1969 for all-round development of village life, agriculture and village industries. The
presentconcerns are,
v' Rural electrification concerns the supply of electricity to low density areas of villages. It is
traditionallyachieved in two ways by the installationof generators independentof the grid, i.e.,
diesel or micro-hydel or wind generation etc., directly at the consumption site (village, farm,
small industry, dispersed dwellings),or by the extension of the interconnected electrical grid.
This latter technique accounts for 80 per cent of rural electrioity distribution in the world and
about 98 per cent in India.
../' For electricity distribution, rural areas are distinguished from urbanized areas by some
fundamentalaspects like sites to be electrified are often several kilometers from the existing
(H.T.) medium voltage (MV) network, there is lower population density and electricity
consumptionis much lower than the average urban consumption.
v' The above characteristics of rural electrification result in an increase in capital costs of rural
projects in comparison with urban projects because the great distance of sites to be electrified
entails the installation of MV lines from the grid over sometimes significant distances. (2 to 3
Ian on an average in India).
../ The low population density in comparison with urban sites requires to installation of longer
low voltage(LV)lines per consumer. As a rule of thumb, stability problems limit extensions of
grid to a distance in km of not more than double the line voltage in kV.
v' The rural electrification programme has a useful contribution to the agricultural production,
especiallyby the energization of pump sets for irrigation. However, due to non-availability of
reliable power supply in rural area, the agro-based industries did not grow and this lead to
migrationof rural population to urban area.
../' The rural power system has long lines, low voltage, low power factor, overloaded transformers _
causing damage to the costly equipment and higher transmission and distribution losses. ,J11~{t
- . ,tl;~~·.
consumersdo not install capacitorsin their premises to increase power factorand also h ~.e·nO;!0
inclinationof participate in the energy conservation. ,,/~'~-.;;)i{:~;,t~fJ·;~~!
_ '..'
~ r4
.~:1\m~~~~~s~:~~~~%t~€f~~i!.t~
82
POJVERSYSTEM PL4_NNING
9.2 COMPONENTS OF RURAl, ELECTRIFICATION PLANNL""'lG

1. Village electrification
At present millions of villages have been electrified out of a total of 0.579million villages
..
which constitute about 86 per cent in the country. A -yiJIageis deemed to be __ ._._
. _
electrified even if a single connection is given in the revenue boundary of the village.
,2. Pump set energization
.•.. ..;.- ..."....'-~
This is a major scheme' of rural electrification planning. Rural Electrification Corporation of

India, NABARD and commercial banks & many rural electrification cooperatives have provided
funds in equal ratio for pump sets energii;ti~n.-- .
3. Load development
The use of electricity for domestic andother non-farm activities is still limited and the creation
ofHT/LT network in the rural areas for industrial development is yet to take place.
4. System improvement planning
The existing system has expanded at a fast rate and not strengthened, therefore, making the
. overall system inadequate. Continuous system improvement needs to be planned as part of the
work culture.
"S. Insulated aerial cable system
./ Insulated overhead distribution system has the ability to reduce the environmental impact on
overhead system both for new work in difficult areas and retrofitting or-existing bare system.
High Voltage ABC (Aerial Bunched Cable) system is used in many countries.
>/' Covered conductor system provides an improved open wire system which can be less
expensive than HV ABC. Two versions of power conductors, namely, covered conductor (CC)
and covered conductor thick (CCT) are now used.
Decentralized generation
>/' The electrification of these villages by conventional means from grid supply is becoming
.Increasingly expensive and unreliable. It is desirable to, electrify the villages through
decentralized generation schemes like mini-micro hydel, solar, wind, geothermal etc. Also the
growth of load in already electrified villages can be accelerated by such small generation
.schemes.
>/' The small power generation schemes are being given subsidies up to 50 per cent by the
Ministry of Non-conventional Energy Sources to reduce the ultimate cost of supply.. Small
hydro and wind generators up to 100 kW should be developed by the local Panchayat at the
identified sites for which necessary expertise should be given by the Ministry of Non-
conventional Energy Source !Indian Renewable Energy Development Agencies Ltd (IRED
f.."
..,';
AND..KUMARK.M., AssistantProfessorinE&EE. B.I.E.T,Davangere.

83
1. Wind generator
These are competitive source of electricity in windy areas and are susceptible to substantial
development in India. An assessment of wind energy resources in India indicates a potential of
50,OOOMW. Now commercially India is generating arournt--2(T,OOOMW of power through wind
energy. The commercial wind turbines in India are in the range of 1-2 MW for grid connected
applications.
2. Small hydro power stations
Small hydro power stations have begun to spread in several developing countries in hilly areas
and plain terrains. Two problems need to be solved here, the problem of capital cost, which must
be kept as low as possible by the use of standardized hardware and local engineering, and the
problem of the good load factor, which must be high enough to make the project viable.
3~ Wood fired gasifier micro power stations
These seem capable of supplying a kWh at a price comparable to that of a conventional
generating set under certain conditions: isolation of the locality to be supplied and availability of
raw materials, w.iththe advantage of using a local energy source.
4. Photovoltaic systems
Thousands of PV systems are today in operation worldwide, and have proved highly
competitive in a range of residential, agricultural, commercial, village level, health, education and
smail-scale industry applications. A large number of photovoltaic water pumps are now in service
in the country.
5. Biomass electricity generation sets
The technology for such biomass based power plants is a proven one. These run exactly on the
same principles as a coal-fired plant. These plants are modular in nature and are in the 5-25 MW
range. T::cy rim on any combustible material.
10. RATIONAL TARIFFS

There are three main objectives of a sound pricing structure/consumer tariff.
(i) Financial-Ensuring that the revenue yield from the application of tariff to the consumer is
sufficient.
(ii) Economic-Ensuring that tariffs charged to consumers enable them to make rational and
optimal choices in the use of energy, discourage waste and promote efficient allocation of
resources.
(iii) Social-Ensuring that the price structure takes into account fair distribution of costs among
various classes of consumers, subsidization of target class etc. ;'
,/ There are two basic tariff-making philosophies recognized- (i) Cost based and (il) ~ill
based. The factors used in developing cost-based tariffs are identified as capaciryi:reif"~ ;',
energy-related and consumer-related. These factors vary for different classes, 0 J :~,Wt.
ANILKUMAR K.M., AssistantProfessor in E&EE, B.I.E.T, Davangere.
84
(residential,
- ..
.__ -.'. _..",..
agricultural, commercial, industrial etc.), and require an analysis of much data in
_--:-:.-;_
order to properly allocate costs.

./ Cost based tariffs are generally pseferred -because they are less likely to be criticized by
---consumers. However, political or social considerations sometimes over-ride the inherent
fairness of cost-based tariffs especially developing economies. When this is done, L'1c tariffs
are said to market based.
10.1 COST-BASED TARIFFS
./ The tariff should have sufficient rates to raise adequate revenue to meet the financial
requirements of the utility .
./ The tariff should be based on supply cost for each .category of consumer. However, urban
consumers will subsidize the rural consumers to some extent.
-./ Peak consumers should pay both capacity and energy costs whereas off peak consumers such
as agriculture should pay only the energy costs.
-./ Lower the service voltage, the greater the costs consumers impose on the system. Therefore,
higher tariff for low voltage consumers is desirable.
Tariffs must be based o!l marginal costs of serving demand which varies,
(i) for different consumer categories,
(ii) for different seasonal industries such as rice shellar; ice industry etc.
(iii) for different hours of the day, i.e., higher rate for' peak hours, medium rate for day time and
lower rate for off peak hours.
(iv) for different voltage levels, i.e., HT or LT supply consumers.
(v) for different geographical areas.
10.2 MARKET-BASED TARIFFS
-./ Following are some examples of market-based tariffs, They may be more prevalent when
sufficient justification can be provided. However, to recover costs, cross-subsidization between
various classes of consumers and! or some subsidization by the government is inevitable.
-./ Certain industrial rate classes may be subsidized to attract new industry to an area.
-./ Residential rates may be subsidized by other classes or Social/Political purposes.
-./ Agricultural tube wells services may be subsidized to encourage increased food production
-./ Inverted block rates have been used extensively to encourage energy conservation depending
upon the analysis of price elasticity.
E = %changeinenergyc01'iSumptioninkWhrs
p %changeinpriceperk Whrs
10.3 CENTRAL SECTOR GENERATION PROJECTS TARIFFS

"As per provision of IE (Supply) Act, 1948,the tariff for sale of electricity by genttr~iihfi
company to the state electricity board shall be computed and fixed for a period O~i:~~ !3,:I~;~~t
ANILKUMAR KM., AssistantProfessor in E&EE,B.I.E.T, Davangere.
85
normative basis as per electricity (supply) Act provision. Bulk power supply agreements (BPSA)
are usually signed. An ac transmission tariff plus HVDC transmission tariff (if any) are charged in
each case and charged on fixed rate/unit basis in each case of agreement. However, the tariff shall
be computed and fixed a new for a period of five years each and whenever additional generating
capacity is commissioned in the same station.
Thermal Power Station
,. -The two-part tariff for sale of electricity from thermal power generating stations (including gas
based stations) .shall comprise the recovery of annual fixed charges consisting of interest on loan
capital, depreciation, operation and maintenance expenses (excluding fuel), taxes on income
- reckoned as expenses, return on equity and interest on working capital at a normative level of
generation and energy (variable) charges covering fuel cost recoverable for each unit (kilowatt
hours) of energy supplied.
Hydro Power Station
./ The two-part tariff for sale of electricity from hydro power generating stations shall comprise
the recovery of annual capacity charges consisting of operation & maintenance expenses, tax
on income reckoned as expenses, return on equity, cessor levy on water charges as actual, &
interest on working capital at a nonnative level of generation shall be based on 'the norms as
may be applicable .
./ There is a mechanism of incentive specified for improved performance above normative level
with respect to project availability & energy generation.
Transmission tariff
./ For common interstate projects, the capital cost of construction for the transmission lines and
other assets such as generating stations is generally shared in proportion to the power allocation
to the state .
./ The power may be in terms of energy drawn for each month or year or for. block of years or
over the life of the line or other assets .
••
./ The cost recovery may be in the form of 'transmission tariff in the shape of fixed charges based
on cost contribution plus annual energy charges of kWh supplied. The transmission tariff is the
total tariff for transmission of power and is payable by the beneficiary states. It is equal to the
annual fixed charges which consists of O&M expenses plus depreciation plus interest on loan
and working capital plus return on equity plus any other tax annually payable .
./ Usually O&M charges, depreciation charges and rate of return are levied as per norms notified
by the government or regulatory body. The annual fixed charges are based on fixed assets of
"j
the transmission system.
ANILKUMAR K.M., Assistant Professor inE&EE. B.I.E.T. Davanzere.

86
Tariff for Renewable resources generation

./ Most of the renewable resources are required to be connected to the grid for selling power to
the nearby utility.
./ The cost of supplying...isnormally decided by the avoided cost to-utility....Thcavoided cost to
utility is taken as cost of generationwhich is predominantly installed by the utility.
./ If there is no utility generation then the cost may be decided on the basis of opportunity cost.
Opportunity cost is the cost that the consumers will be spending per unit of energy, may be in
the form of wood, diesel, keroseneetc.
./ It may be notedhowever, that the cost of power of the new private producerswould necessarily
be more than the pooled power provided by the state electricity boards (SEBs),the bulk of
which is from old, depreciated plants. Such average low-cost supply should mean that SEBs.
can supply power more competitivelythan the private distributors, who are more likely to have
a larger proportionof their supplyfrom new plants.
ANILKUMAR K.M .. Assistant Professorin E&EE.B.I.E.T.Davanzere.

87
1)
QUESTIONS BANK
What are the basic processes of cogeneration? What are its benefits? Explain.
..
2) Explain the strategies for transmissionsysteffl'expansion in India.
3) Discuss generation characteristics cfbroad categories of loads, MQP
4) Enumerate elaborately on the desirable generation options for next 25 years for India as per
CEA and World Bank.
• 5) Write descriptive notes on (i) Boiler renovation, and (ii) Power policy and trading.
6) Write a descriptive note on selection of voltage levels in India for Transmission and
Distributi on.
7) Explain different types of reactive power compensation techniques used in transmission and
distribution systems.
8) With the help of necessary graphs, Explain variation of (i) Reliability .vs Investment cost, and
(ii) Annual cost vs System reliability. . .
9) Enumerate different trends and issues that planners a.'1doperators have to cope with during
reliability plarming.
1O}Describe the two methods of reliability assessment.
11) Write a descriptive note on CEA's reliability planning criteria.
12) Describe different types of disturbances and the devices used to suppress the disturbance.
13) Describe in detail the economic characteristics of generation units.
14) Write a note on reactive load forecast.
15) Explain Power Pooling and trading in India and its role in Power System Planning.
16) What is renovation and Modernization of power plants? Explain Boiler renovation in thermal
power plants? .
17) Describe HVDC transmission on planning.
18) Describe substation development planning.
19) Explain grid operation in power system planning.
20) Explain the components of rural electrification planning.
21) Explain basic distribution system used by utilities along with single line diagram.
22) Enumerate elaborately on the desirable generation options for next 25 years for India as per
CEA and World Bank.
23) Explain the variation of investment cost with respect to distance in ACIDC systems.
24) Give the merits and demerits ofHVAC and HYDC systems.
25) Explain private participation in generation planning? How it will improve the situation in
India?
26) Discuss the tariff making philosophy.
27) Explain with V-T curves the importance insulation coordination in the power system.
28) Explain the concept of Dispatchability in power system planning.
29) Discuss the effect of power generation on environment? How it can be reduced?
30) What are the objectives of sound pricing structure? Explain.
31) Describe reliability planning with reliability versus cost graph.
Note - Questions are collected from previous year Q.P, & Model Q.P.
88
ANILKmvIAR K.M.
UNIT-5 & 6: POWER SUPPLY RELIABILITIES Assistant Professor ,E&EE,
BlET ,Davangere.
.--...,.~-
. ""'"""
V.T.U.Syllabus
Reliability planning, system operation planning, load management, load prediction, reactive
power balance, online power flow studies, test estimation, computerized management. Power
system simulator.
SYNOPSIS
The reliability of the. power system has been discussed with reference to cost, unnerved
..
energy & unnerved demand for various stages of power system. The lead times for operational
planning and on line controls of AGC, economic load dispatch, state estimation are given for complete
op~rational planning. The operational planning involving hardware and software for various functions of
load dispatch, economicdispatch, load dispatch centre, energy management,SCADA, state estimation are
disc.ussed.'Generation-load balance prediction studies are necessary one year in advance. The peaking
capacity and energy requirement along with medium and short time forecasting based on computer
programs are' necessary. The grid code for grid operation at the national and regional levels and the
optimum utilization of thermal, hydro, nuclear and other resources is desirable for every utility, dispatch
centre and national grid centre. Maintaining frequency by means frequency-basedtariff, keeping automatic
load shedding schemes and strengthening of system by capacitors installation is required. The grid
frequency control, wheeling and trading of power and grid connection of small generating schemes for
future importance are discussed.
89
UNIT-5 & 6: POWERSUPPLYRELIABILITX

1. RELIABILITY PLANNING
1.1 SYSTEM RELIABILITY
.,/ Modem society expects that the supply of electricity should be continuously available on
demand .
../ Sometimes reliabilities fails due to Random system failures which are generally beyond the
control of power system engineers .

.,/' The probability of consumers being disconnected, however, can be reduced by increased
investment on power systems by providing high quality equipment or redundancy and better
maintenance .
.,/' The reliability of supply to consumers is judged from the frequency of interruptions, the
duration of each interruption and the value a consumer places on the supply of electricity at the
time that service is not

. ,/' Provided. The value to consumers is determined by the benefits which they can derive from
using it.
Uncertainty
.,/' The problem of uncertainty consists in devising a system sufficiently robust to withstand the
impacts .
.,/' At the present time the amplitude and the number of the possible impacts is such that the cost
of a robust system becomes prohibitive, if one wants to face most of the uncertainty factors .
.,/' Flexibility within the system development. From the planner's point of view a flexible system
is a system which will be able to be adapted quickly to any external change. This is achieved
either because the planner made provisions to change over to diverse fuels or diverse power
"I" because he decided to install equipment which makes better use of the existing
system.
• • In recent years the need for flexibility has become particularly apparent because both planners and
operators had to cope with more and more significant trends,

1. Industry structure trends _ deregulation, privatization and vertical disaggregation, wheeling for
non utility generation, transmission access for consumers for power purchases from other utilities,
2. Financial trends - capital availability and cost uncertainty, rate base incentives and constraints,
stockholder risks and uncertain rates of return, construction expenditure recov~ risks.
3. Ted:;: :~':trends _ load management and conservation, generation technology and licensing
issu '":'s,t;':1nsmissiontechnology and ROW issues.

4. ,',/ir\):::f:cnt and health issues - emissions limits, power frequency and electromagnetif:!i$l4
, ,,,:;-::'.,,,~',,
.. - :-,;
,.:" i Z.:C .is, i ~dioactive waste storage/disposal, endangered species.
,\~;:~,KUMARK.M., AssistantProfessorin E&EE. B.lE.T. Davanzere.

90
>/' F'lexibility appears with the improvement in the ability of the power system to adapt itself
quickly to new circumstances.
>/' Security affects the operation and the strueture of the system. The system security is defined
here.as.as ability to avoid or limit-major outages which entails the collapse of entire parts of
the system.
1.2 SYSTEM ADEQUACY AND SECURITY
>/' A simple yet reasonable subdivision of power system reliability, both deterministic and
probabilistic, is the two basic aspects of system security and system adequacy.
>/' Adequacyis generally defined as the capability of the system to meet the system demand
within major component ratings and in the presence of scheduled and unscheduled outages of
generation, transmission and distribution facilities.
>/' Security is generally defined as the capability of the system to withstand disturbances arising
from faults and unscheduled removal of equipment without further loss of facilities or
cascading. Adequacy therefore, relates to the existence of sufficient facilities within the
system, i.e., it relates to static system conditions whereas security relates to dynamic system
conditions.
>/' The task of power system planning is to configure an electric power system with a compromise
between the requirements perceived by consumers for adequacy and security to achieve
continuity and quality of supply, and to keep in mind the economics of the power system in
terms of operating and capital costs, so that the benefit of higher levels of adequacy and
security are realized by the consumer.
1.3 RELIABILITY PLANNING
./ The basic function of an electric power system is to meet electricity requirements, with
adequate quality and reliability and in an economical manner.
>/' There is an emerging recognition that the traditional practice of providing all users with a
uniform and a good level of service reliability merits a re-examination. Given the changes in
the electric utility industry's cost structure in recent years, there is a growing feeling that
investments related !o the provision of electric service reliability should be more explicitly
evaluated with reference to their cost and benefit implications .
./ Cost-benefit analysis provides the basis for answering the fundamental economic question in
reliability planning-how much reliability is adequate? A key related question is how and where
should a utility spend its 'reliability rupees'.
>/' Because of the changes in technology, consumer needs and lifestyles, economic factors, etc.,
reliability preferences can also shift over time. This may require periodical revision at .tlf~:
reliability standards. As the reliability standards changes from time to time. { ti~~{;~
ANILKUMAR K.M., AssistantProfessor inE&EE, B.I.E.T,Davangere.
91
Figs showing the Reliability versus Cost •

../ In contrast, the total cost minimization approach seeks to establish the trade-off that is
conceptually depicted in Figure below. The total cost of supplying electricity is the sum of
system.G~st and consumer outage 'costs. The lowest point on the total cost curve defines the.
optimal balancing of system costs and consumer costs and determines the optimal reliability
level, reserve margin, LOLP,EUE .
../ From an implementation standpoint, the following analysis is required under this method. For
each of several preselected reserve margins, ail optimum resource mix is first determined.
Next, for each such resource mix, production costing, revenue requirements and reliability
calculations are performed to estimate total costs as (revenue requirements) + (EVE) (outage
cost in Rs/kWh)
../ The lowest point on this curve defines the optimum reserve requirement which can also be
. calibrated to an optimal EUE (Expected Unserved Energy) standard or some normalization of
EUE such as loss-of-energy probability {LOEP).Especially in situations where the present
generation fuel mix is non-optimal, the total cost minimization approach will indicate a higher
reliability level because some generating plant will be added to reduce fuel costs.
CEA reliability planning criteria
The Central Electricity Authority (CEA) uses the following reliability criteria on deterministic and
probabilistic basis.
For Lines
Loading under normal operating conditions with nearly 20% margin for lines. For example 400
kV SIC line: 360-800 MW, 220 kV SIC line: 160-200 MW, 132 kV SIC line: 50-70 MW.
For Generation
The transmission system configurations for which the transmission planning studies are carried out
depending on the generation scenarios worked out by the CEA. The peaking capacities and energy
generation capabilities, availabilities of power plant on which the power & energy balance studies
are based, would be determined on the basis of the foHowing norms, . .. t
Thermal and Nuclear Plants - The norms for availability of peaking capability is ~\yet
by Rated capacity - (Maintenance @5% + Parti~1 outage rate @15% + Forced out~g~'~J{e
@170/0 + Auxiliary consumption @10% + Spinning reserve @5%)
,<·fit, , >..
..~
. ~"
ANlLKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

92
This norm is not realistic and total reserved margin should not be more than 20 per cent.
Hydro plants - Norms for deciding overall peaking capacities of hydro units would be as
under, Rated capacity - (Maintenance @3% + Forced outage rate @9.5% + Auxiliary
consumption @O.5%)--··· -- - --
The peaking capacities and energy generation capabilities of hydro stations shall be determined
taking the hydrological conditions, requirements of water for irrigation purposes, etc., into
consideration.
Generation expansion - LOLP = 1%,2%, 5%.
Reliability evaluation
The power system reliability studies are conducted for two purposes,
1. Long-term reliability evaluations may be performed to assist in long range system planning.
2. Short-term reliability predictions may be undertaken to assist in day-to-day operating decisions·
including system security.
Improvement in system reliability can be effected by using either better components or a system'
design incorporating more redundancy. The main steps in reliability studies are,
1. Define the system-list the components and collect the necessary component failure data from
field surveys available.
2. Define the criteria for system failure.
3. List the assumptions to be used.
4. Developing the system model.
5. Perform failure effects analysis and compute the system reliability indices.
6. Analyze and evaluate the results.
2. SYSTEM OPERATION PLANNING
2.1 OPERATIONS
../ Operational planning covers the whole period ranging from the implementation stage of system
development plans to the point when system operation engineers at area, state, regional and
national load dispatch deal with the dispatch of power .
../ It is the matching of generation output with aggregated consumer demand, subject to
requirements of economy and security. It covers the maintenance of generation, transmission
and distribution facilities .
../ Certain Operational problems. have to be considered at the long-term planning. For example, the
Indian power system regional grids are-small in capacity and size, and thus, there is a limitation
on installation oflarge sized generation units i-? the grid. , ,". t
../ Operation planners plan to minimize operating costs within constraints while ensuring an'.
- ,.f,. iJ·
acceptable level of system reliability. Various decisions are required at approP11e.~~iines'
,.2t,%{J ,. ~."
ANILKUMARK.M., AssistantProfessor in E&EE, B.I.E.T, Davangere.

93
related to operating policies, operating procedures, maintenance planning, fueling, hydraulic

utilization, transaction planning etc. The overall operation is shown in the below figure
-
St40~T·T£m.. MAINTENI\NCE
MAIN1Il:NAHCfi PlANNING
sECONOS - 60 I HOURS 24 MONTHS 12

MINUTES !!O OAVS YEARS 10
ne:AL TIME OPERATION EXTENDED

.mOCONlAOL AE.At. mAE OPERATIONALPlANNI;'IG
S'ISTEM
PlAN~P1G
Fig showing the lead time for operational planning.

2.2 REAl, TIME OPERATION
2.2.1 State Estimation
../' The state of technology of actually existing real time computers allow network data collection
-for the period at one to two minutes. after each state estimation, all data identified as bad for
'erroneous and non-telemetered values are replaced by calculated values becoming available to
the operator of the programs .
../' The network estimation assumed to be the most important functions for the real time secure
operation, include all the principles and computer programs devoted to the permanent
'assessment of security factors for actual or simulated network configurations.
" In the real time program, the comparison of variables in telemetered values to fixed limits is
the first step of maximum system loading evaluation .
·. ../' Let n be the number of buses of the network, thus overload checking belongs to "n security"
assessment. With an ac load flow calculation, the complete n security can be checked, while
changing the values of some data (measurements or indications) which allows the operator to
anticipate the evaluation of eventual future situations .
../' Many power systems today have been designed in such-a way that the random failure of the
transmission's item or generating unit with the heaviest load does not affect reliability of other
equipment, at the same time preserving the quality of supply .
../' The contingency analysis is based on this criterion starting from it toad flow calculation. The
, ~k
program simulates outages and determines the load transferred on the remaining items~f:~i
(')~,rf,~'*'.·;·.~
.-.j.".:.
ANILKUMAR K.M., Assistant Professor in E&EE. B.I.E.T. Davanzere.

94
POWER SYSTEM FLANNING
network. A display of violated constraints informs the operator of the risks occurring in the
new operating conditions.
2.2.2 Automatic Generation Control
.-/' Automatic Generation Control function (AGC) is on-line computer control and is generally--
executed everyone to ten seconds. AGe tracks system load and generation level of each
committed unit. In the interconnected power systems, this function also meets an additional
objective namely the maintaining of the net interchange contracts in force at each instant.
-/' The tie lines are generaliy connected into the transmission network at locations where their
specific power flow must be established by adjusting or shifting the power output of generators
in order to achieve a desired flow value.
-/' To maintain a net interchange of power with its area neighbours, an AGC uses real power flow
measurements of all tie lines emanating from the area and subtracts the scheduled interchange
to calculate an error value.
-/' The net power interchange (together with a gain B (MW/O.1Hz) called the frequency bias) as a
multiplier on the frequency deviation is called the area control error (ACE)and is given by
. k
ACE = L (Pk-Ps)+ lOB (fa-fo)MW
k=1
'" AGC sensing only ACE does not control the flow on the individual tie lines but is concerned
with area net generation. Often, the tie lines transfer power through the area from one neighbor
to the next, caned wheeling power.
2.2.3 Economic Load Dispatch
It is on-line computer control generally performed everyone two minutes to supply the existing
system load demand from each committed units in the most economical manner in terms of
minimal fuel cost and minimal losses. Even pollution control can be a feature of economic dispatch
operation.
2.2.4 Stability
./ Power systems are becoming increasingly complex because of interconnections and faster
dynamic response of plant, particularly if equipped with solid state controllers. Also, heavier
loading on the existing circuits. to cope with increasing energy transfers without constructing
new lines has made the system operate closer to its transient stability limits.
./ New techniques for the on-line evaluation of stability criterion and for detecting in real time
operation through many recent techniques & methods are available.
Fast transient stability methods are categorized under three main groups
(i) Direct and hybrid methods based on energy functions,
(ii) New computing hardware including parallel processors,
ANTI..KUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

95
(iii)Artificial intelligence approaches (pattern recognition and expert system).

2.3 MAINTENANCE
Maintenance needs to be given due priority while protecting capital investment and making sure
that the system IS operative in a cost-effective manner. -. - ... ---
It has been observed that more than 50 per cent of all the accidents and equipment failures
investigated arc caused by either faulty maintenance or operator error.
Successful maintenance depends upon:
l.The prerequisite for any maintenance programmeis that well trained and adequate Tools and
Plants equipped maintenance staff is posted. Good quality of spares and materials are used.
2. Manufacturer's instructions should always be given due consideration while carrying out the
maintenance of a particular equipment.
3. A correct record of fault investigations, test results, inspections, tripping should be maintained.
4. Required safety precautions must be observed while carrying out the maintenance jobs.
5. Hot line maintenance for important transmission lines and essential supply distribution lines
should be carried out. Other latest practices in maintenance of substations and lines such as infr?l~
red thermography in temperature scanning of equipment or lines must be adopted.
6. A good communication between the maintenance staff and operation staff is essential to cut
down the shutdown period. The communications can be VHF, paging etc., with desirable features.
7. The ultimate aim should be Total Productive Maintenance (TPM) to achieve zero breakdowns,
zero defects and zero accidents.
There are THREE types of maintenance
1. Preventive maintenance
The aim of preventive maintenance is to find the defects by periodical inspections and replace the
unreliable parts or units so as to prevent accidents or damage and keep the equipment efficiency up
to the mark.
~ . The measures taken in preventive maintenance are,

1. Each power station or network region should have an emergency and insurance stock of spare
electrical equipment (generator exciter, LP turbine blades, HP/IP rotors, generator rotor, electric
motors, circuit-breaker arc chutes, brushes, brush and commutator gear, etc.) which should be
checked at regular intervals.
2. All required repairs should be performed at the power stations, lines and substations at
convenient periods of time. Lean months are most suitable for thermal power stations. &Tow water
period for hydro plants when load is very less & can be easily diverted.
3. Repairs should be planned so that main equipment and its auxiliaries
simultaneously in order to avoid the maximum duration of power interruption.
ANll..KUMAR K.M., AssistantProfessorin E&EE. B.I.E.T.Davanzere.

96
4. In order to improve the reliability of the machines and in tum improve the availabiiity of the
same, the preventive maintenance schedule should be drawn in advance, for at least a year, on a
weekly basis. ...
5. No unplanned w~ther than emergency repairs should be undertaken.
2. Capital maintenance and modernization
./ The schedule for replacing various ageing equipment in power system such as turbines, boilers, .
generating units, transformers, breakers, convertors etc., must be prepared in advance on a
rolling basis for the next five years and should be updated on the basis of actual achievements .
./ An engineering declaration should be made before overhaul (Replacement), giving details of
the present condition of the units and expected performance levels after overhauling .
./ A performance evaluation test should invariably be conducted on the equipment after overhaul
to confirm the achievements of overhaul.
./ The aim of modernization and improvement of various parts is to increase the service-span of
electrical equipment and improve its performance and efficiency.
3. Condition Based Maintenance
.,/' Condition based maintenance is condition. monitoring for timely prediction and diagnosis of
failure in advance .
.,/' Condition based maintenance can achieve cost benefits through reduction of 'in-service'
failures, reduction of regular preventive maintenance routines and deferral of major overhauls.
Points to be considered should include,
(i) additional transducers and signal conditioning required,
(ii) system architecture--a distributed processing architecture, featuring intelligent front end
hardware, is preferred as it minimizes the extent of cabling required,
(iii) installation and cabling costs,
(iv) computer hardware costs,
-.
(v) system interfacing requirements,
(vi) system software costs,
(vii) on-line/off-line mix.
The final stage of the analysis involves a cost-benefit assessment to establish the financial viability
of applying condition monitoring to the nominated auxiliary plants.
Condition based techniques for power plants
Equipment Technique
Rotating Machines Vibration monitoring, Performance Monitoring, Acoustic Emission
Steam/Gas turbines Vibration monitoring, Performance analysis, Oil analysis,
Acoustic Emission
ANILKUMAR K.M., AssistantProfessor in E&EE,B.1.E.T,Davangere.

97
Altemators Insulation condition checking, Vibration monitoring, Performance

analysis
Boilers & furnaces Temperature monitoring, corrosion monitoring, smoke & flue gas
composition monitoring, leak monitoring
3. LOAD MANAGEMENT
'I' The utilization of load management techniques is becoming more important in the operational
," planning process of indian power system as there is small spinning reserve available .
./' The peak demands are difficultto meet and generally at night after 1O.00PM hours, power
stations start experiencing very low demand to the order of 30 per cent or less. This compels
the coal-fired thermal stations to resort to costly oil support to the boilers due to back down in
most cases .
./' Load management has two aims, one is to bring up economic advantages, especially in the
operation of power plants and in the necessary investment in the new plants and transmission
capacity. To reach this, the utility has to try to get a flat load curve. The second aim is to avoid
the spreading of an emergency in case there is over-loadingor unbalancing in. the system .
./' The differentiation oftariffs (time-of-day-tariffs) has an influence on filling of load valleys and
reducing the peak load.
.. .
Fig showing the different Load management measures.
3.1 GENERATION SCHEDULE
Figure shown in next page illustrates how a typical utility may meet its daily load demand. The
base load is carried by generators that run at !,90percent capacity on a 24-hour basis. Intermediate,
or controllable generators run most of the time but are not necessarily fully loaded. Peaking units
are kept on-line only for a few hours every day. Reserve capacity is needed to meet unforesee
emergencies.
~l!
.i~;M€~~~,?~jl~¥f~~~~i~~i@?
98
FUWl!,K :iXi>.l.l!.M./'L/il'yJV.lHU
1
..-~.
I
Gel)eration to meet typical load demand,
Base-Load Units.
Nuclear units and thermal power stations typically fall in this category. Due to the need for
keeping the nuclear reactor and steamsystem in thermal balance, it is desirable to maintain the
megawatt output of such units at as constant a level as possible,
Intermediate Units' .
When the megawatt output must be regulated, hydro-powered units are the most convenient
choice. The power output of a hydro generator is controlled simply by changing the water flow
through the turbine. Not all electric utilities have hydropower available and must then use
controllable thermal units=coal Drgas.
Peaking Units
Gas turbine driven generators can pick up load very fast and are therefore often used for
peaking purposes, Hydro-powered generators are also an excellent choice when available. Pumped
hydro storage is a special type of peaking equipment used for supplying the peak loads.
Reserve Units
../ The required generator margin can consist of generators maintained at partial output spinning
reserve Dr generators standing by at vario.us levels of readiness .
../ The energy cost, expressed in rupees per megawatt hour, will vary greatly between the above
- .
types of units. Peaking units are the most expensive because, on the average, they are greatly
underused. If a utility can shave its peak demand by load management, it may be possible to'
postpone for years the need for acquiring such units .
../ Maintaining a proper generation mix is a most important requirement for a power utility of any
size .
../ The problem is not only due to. the hourly shift in power demand All generating units must be .'.
../ regularly maintained and, in case of nuclear units, also. refueled. The op~rating success J)t::1
'···1
utility depends to a great extent upon the ability to. optimally match the generation to. I/{ ;':\~J
not only over the 24-hour daily time span but over seasons and years. . ,)~j~,.~Si~
ANll..KUMARK.M., AssistantProfessor in E&EE, BJ.E.T, Davangere.
99
../ Pooling can benefit the individual utilities in terms of spinning reserve margin need, peak
capacity and better use of load and generation diversity.
Conti_ngency plans •
Typical plans are,

~. The coal mines tend to flood during monsoon. Therefore, before the onset of monsoon, the rail-
head non-pit-head and pit-head thermal power stations should have coal stock of 30 days and
15 days respectively.
l~
../ Island generation should be allowed for supplying important local loads .
../ Frequency should be maintained constant by balancing the load & supply.
4. LOAD }>REDICTION
../ The total demand may be divided into components with varying time constants-the seasonal
and economic factors have large time constants of several months while the variations due to
consumer habits and rapid weather fluctuations have small time constants of a few hours .
../ In consequence, the load at any time y (t) can be written in the form of the equation below
which is the basis for the prediction techniques discussed here,
y (t)=A (t) + B (t) + C (t)
A (t) is the long term or base load, B (t) daily variations, C (t) hourly variations.
~ The prediction methods may be broadly classified into two categories, those which require
meteorological information and those which require past load data only .
../ The method of weather weighting uses a set of weather dependent weights that act as
percentage changes on a base load to form an estimate of the future load .
../ The load is therefore considered as two components, a fixed or base load and a variable
deviation due to the effect of the weather .
.._, The meteorological factors included are temperature, cloud cover, rains and wind velocity.
Hence, by estimating the weights associated with varying degrees of each of these weather
.. variables, a base for a given time of the day and week may be derived by subtracting ~
postulated total weather dependent load from the recorded total load .
../ These weights together with the deduced based load can be checked using other data relating to
the same period. If poor correlation is found between the predicted load and the actual load
then the weights must be revised. After a trial and error period, the...appropriate weather weights
for a given time of day and year can be deduced, which may then be used for load estimation in
conjunction with weather forecasts.
Two important methods of load prediction are as follows
Regression analysis -
~-t
/" ;"
A.~~,i\~'
../ It is a more mathematical approach to the load prediction problem, the effects"SJ~~ai3~~~
weather components are obtained by a regression analysis on previous load and w,ellthef~at~. y,S
$ _-~':"'.
_'<: •.... ;_" L_-._.;··JIJ<;.:_·._.; ....-..
ANlT,KITMAR K_M __A.<:<:i<:t:mtPmfp.<:<:nr in F&F.F. AT F T nllVllnOp.rp.

100
POWER SYSTEM PL4NNING
-/' The meteorological parameters considered are an effective temperature T, a cooling effect 0/
the wind W, an illumination index L, and a rate o/precipitation P. With the assumption that the
weather sensitive component of the load C(t)can be expressed as the sum of functions of the
respective meteorological factors,
y=y B+YW+YD+A) T+A1W+A3L+A.P
.where the long-term base load is given by Y B, and Yw and Y D represent correlation for a particular
week and day of the week respectively.
-/' The base load Y B is only changed when the average load has increased due to long-term factors
such as economic growth.
-/' The coefficients Y B, Yw, Y D can be estimated from the load data of the previous year. The
Coefficients al, a2, a3, a4 indicate the change in demand per unit change of corresponding
meteorological variable and may also be determined from previous load and weather data by
regression analysis. Now, from past records ofload and weather conditions Y, T, W, L andP
are kn~wn ~d YB is assumed constant.
-/' . Thus; the regression analysis consists of estimation of the best values for the coefficients al,
a2;a3,a4and the values ofY D: The values ofYw are considered to be represented by orthogonal
Polynomials which are constant during each week, given 52 polynomials in total. Using ..a
maximum of sixth order polynomials was found to give a good fit to a year's data.
Spectral Expansion
-/' Only past load data is required in the form ofN discrete load values for each day .
../ If M previous days data is used then any load samples may be denoted as X rnr» Where M
indicates the day & N the time of the day.
../ The load variation during any day may be regarded as a time series which has a similar form
every day due to the similarity of the load pattern.
5. REACTIVE POWER BALANCE
s.i REACTIVE POWER SHEDULING
Reactive power scheduling is operational planning of reactive power balance for the coming
- .
year with analysis on seasonal, weekly, daily and hourly basis and minimization of power losses in
a power system, by control of the VAr devices.
The optimization studies are made with the following constraints,
(ij.Acceptable voltage profiles
(ii) Limiis of VAr devices
(iii) Keeping reactive power reserve suitably shared in different areas
(iv) Planned maintenance outages of generation and transmission equipment
(v) Normal operating regimes and emergency and post-emergency states
contingencies.
ANlLKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

101
(vi) Reactive power requirements of the load

Reserve allocations to different areas/regions in a network should be done, considering the
aspects of,
(i) Response time ofV Ar devices -_. -- ._-
(ii) Effect of loss of VAr devices on voltage stability of area as well as on consumer load
requirement
(iii) Flexibility in re-allocation of reserve under planned or forced outages
(iv) Locational distribution of reserve throughout the areas/regions
•
(v) impact of reserve on power transfer capability of transinission lines on tie-lines etc,
../ While deciding reactive reserve,. the response time of reactive device is an important
consideration .
../ The function of reactive power scheduling normally catered to higher levels of priority
controlled utilities, is also referred. to as secondary and tertiary control or regulation in the
power utility.
5;2 MAINTAINING THE SYSTEM VOLTAGE
./ The management of MW requirements is far more easy than the management of MV Ar
requirement in the sense that the MW capacity to be commissioned has to take care of the MW
load requirement, the losses and auxiliaries .
./ The solution is not as straightforward in the case of fulfilling MVAr requirements because' a
simple balance of MVAr load requirement and overall MVAr losses in the system with MV Ar
generation would, by itself not ensure maintaining of declared voltages all through the system .
./ Maintaining declared voltages within permissible tolerance at each busbar in the system calls
for b: 'g the MVAr inputs and outputs at each of the buses keeping the voltage as an
don..
oltages due to MW flow still requires to be made good by suitable means by
.. l:ran;j"j ',in;,
on transformers. This, therefore, puts limits on tolerable voltage regulation on
lines, sub transmission lines and distribution feeders. The system voltage can be
led by properly adjusting the reactive power sources at the suitable places.
5 'j GRID
'/ U any other industry, the electric supply industry is one in which there has to be an
;,;·t:,::Ci·,':;balance between supply and demand.
v (,c{motbe stored and therefore the grid must stay balanced at all times .
..;' The ml"')i~l! distribution of resources calls of effective interconnections between various
t,,, :,now inter-regional exchanges of power so as to optimize the economics-of
-~-~'d ._~. ~'
······.f···'l
102

~ ~
../' Power planning is generally done on a regional basisand efforts are made to make them self-
sufficient.
../' In India, five such regions have been recognized: Western, Eastern, Southern, Northern and
Northeastern. There -is a-hlg difference between one region and another which results III
differentpeak load.
../' The operation of each regional grid is controlled by the regional electricityboard. Regional
electricity boards promote development of regional grids and establish regional I state load
dispatch centres for the following benefits with the support computer programs of EMS and
SCADA,
(i) optimumutilization of hydro-thermaland nuclear stations.
. .
(ii) reduction in installed capacity requirement due to diversity in peak demand of various
constituentsystems.
(iii) reductionin spinning reserve requirement.
. (iv) installationof large size units with less cost / MW and less operating cost/kWh.
(v) better frequencycontrol and stabilitydue to high inertia.
(vi) coordinating optimized maintenance schedules for.generating units, transmission lines and
other equipment.
(vii) reactivepower planning in the region.
5.4 GRID CODE
../' A grid code is a set of standard rules within the power industry to which the utilities, power
producersand grid maintaining companies would need to comply.
../' The grid code includes technical provisions covering planning, connections, metering,
schedulingand dispatch, and grid working restrictions.
../' The operating companies keep the grid code to have restorationplans based on their restoration
objectives, operating philosophies and practices and for familiarity with the characteristics of
peculiarities.
- .
../' The provisionsregarding load shedding (u.f. or dfJdtrelaying), island facilitiesat various nodes.
in the grid, transaction of power (MW and MVAr) within the grid are covered in the code &
the grid codes will remain differentin different countries.
../' In the code the details of interconnection between systems of different countries must also be
specified. Typical details for-our countries is, India having interconnection with Bhutan &
Nepal, type of the voltage is 220kV3 circuit lines & power exchangethroughradial modes.
5.5 TRADING OF POWER
f
../' Wheeling is defined as the use of a utility's transmission facilities to transmit power for tlj~:l
other buyers and sellers. wheeling is necessary for any non-utility generation(NUG) ahd:~l~~~~)
be an importantproblem over the coming years. f; J;l'~!J
« ". ,," 'rf J~7j
ANILKUMAR K.M .. Assist::mtProfessor in F.RrFF H TF T n",v:moprp .,{(~iJi;";~~ft,iiE¥~~>i;¥>:!,~Jit{" f:i~
103
./' Short-run marginal cost (SRMC), long-run incremental .cost (LRIC)and embedded cost
methods are generally used for calculating the wheeling cost rate.
~ .
./' Currently bulk power is wheeled from the central sector projects to the heneficiary states on the
-./' basis oflong-term contracts, .
./' With the coming up of private power generation companies and small power generation,
wheeling of power in the state or regional grid is becoming increasingly important to operate
the power system at adequate security levels and in an economically optimal way .
./' Wheeling is the use of the electric power system of one utility to transmit power to another
utility or utilities, the power delivered to the recipient being of like quantity (MW, MVAr) and
. .
characteristics (duration and time of the day, month, year) as that delivered by the wheeling
utility .
./' Energy trading in generation is based on economic, environmental, political and geographical
factors.
Frequency based tariff for power trading
./' At a given time; the frequency is the same all over the system, and can be"measured precisely
•• • &
with ease anywhere .

./' Grid frequency and its trend are continuous indicators of generation-load balance .
../' A high frequency invariably means generation-surplus situation in which some costly operating
stations may have to back down. A low frequency condition invariably means a generation
deficit in which more costly generation plants such as diesel generator, gas turbine or storage
hydro etc., support may be required .
./' Due to the above, the frequency-linked tariff structure would be incremental cost based, which
is ideal for power exchange pricing in the grid, depending upon the grid frequency increment.
Regional electricity boards are levying this tariff for average frequency of more than 52.2 Hz
on six hours block basis at present.
.. ./' There is large variations in system frequency in the range of 47.5 to 51.5 Hz in Indian power
grids due to grid indiscipline. Rationalized tariff structure based on system frequency and time
of the day metering for bulk power transactions and unscheduled interchanges besides free
governor operation of generating unit is desirable. Billing of reactive power drawl is necessary
and urgent.
6. ONLINE POWER FLOW STUDIES
An interconnected power system represents an electric network with a multitude of branches and
nodes, where the transmission lines typically constitute the branches. The nodes are referred to as.
'buse.§.
I .
,
, A.,...
104
../ Even a power utility serving a mixed urban and rural population operates a network that may
contain typically hundreds of buses and thousands of branches, not counting the distribution
network .
./' At some of the buses, power is being injeetetl-into--thenetwork, whereas at most other buses it
is being tapped by the system loads. In between, the power will flow in the network meshes .
./' A given set of loads can be served from a given set of generators in an infinite number of
'pewer flow'. Or 'load-flow' configurations. Power-flow analysis concerns itself not only with
the actual physical mechanism that controls the power flow in the network meshes but also
..
with how to select a 'best' or 'optimum' flow configuration from among the various possibilities
for system operations.
Some of the important aspects of power-flow analysis are,
1. The total amount of real power in the network arising from the generator stations, the location
and size of which are fixed. The generation must equal the demand at each moment, and since this
power must be divided between the generators in a unique ratio in order to achieve optimum
economic operation, the individual generator outputs must be closely maintained at predetermined
set points. It is important to remember that the demand undergoes slow but wide changes
throughout the 24 hours of the day and therefore, slowly, either continuously or in discrete steps,
these set points must be changed as the hours wear on; This means that a load-flow configuration
that fits the demand of a certain hour of the day may look quite different the next hour.
2. Transmission links can carry only certain amounts of power and must not be operated too close
to their stability or thermal limits.
3. It is necessary to keep the voltage levels of certain buses within close tolerances. This can be
achieved by proper scheduling of reactive powers.
4. If the power system is part of larger grid, it must fulfill certain contractual power-scheduling
commitments via its "tie-lines" to neighboring systems.
5.. The disturbances following a massive network fault can cause system outages, the effects of
which can be minimized by proper prefault power-flow strategies. - .
6. Power-flow analyses are very important in the planning stages of new networks or additions to
existing ones.
The overall power-flow problem can be divided into the following sub problems, for the
on-the-line analysis,
(i) Formulation of a suitable mathematical network model - +he model must describe adequately
the relationships between voltages and powers in the interconnected system.
(ii) Specification of the power and voltage constraints that must apply to the various buses
network.

105
POWF..RSYSTEM PLANNING
(iii) Numerical computation of the power-flow equations subject to the above constraints. These
computations give us, with sufficient accuracy, the values of all bus voltages.
(iv) When all bus voltages have thus been determined, then, finally, the actual power flows in all
transmission lines can be computed.
Operational power flow programs
./ Power-flow programs are available and used by electric utilities as a planning tool on-line
monitoring mechanism, or a simulation of the real system. The size of the programs in terms of
_-
number of buses and lines is set at compilation time and varies with the application .
•
-./' The power-flow programs of utilities are usually more dedicated in purpose and have fewer
•
diagnostics to assist with difficulties. Virtually all operational power-flow programs have
features that facilitate data handling in terms of reading base-case information, storing results,
and manipulating power system control variables. The capability to delete lines, change a bus
type during iterations, check limits, use a different slack bus, and so on.
Some typical features of a program are,
..1. Buses are often identified by a combination name-voltage, for example, KARNAT AKA 110,
where the 110 refers to the line-to-line voltage. Bus number referring to this name are internal,
changeable program labels.
2. Generation, load, shunt capacitors, and shunt resistors are represented separately, so ratings and
limits are available individually. The internal program may combine quantities such as MW
generation and MW load at a bus, but their external identity is maintained.
3. Bus types are tabulated in below table The slack bus identity is retained because its phase angle
is a reference (slightly different from a swing bus).
4. Shunt admittances are usually represented as fixed. admittance, inductive or capacitive, switched
capacitor in steps with on and off voltage points, switched reactor in steps with on and off voltage
points.
,. 5. Branches (lines or elements)

(i) The series element of a branch between two buses may be specified in terms of impedance (R
+jX) or admittance (G+jB) in per unit on MV A base or bases as specified by the user.
(ii) There are no restrictions on the magnitude or sign of branch impedances. Zero, low-value, or
negative impedances are acceptable, but at least one non-zero value per branch. _
(iii) Pi elements having unequal legs are acceptable, with both capacitive or inductive shunt
elements.
(iv) Parallel lines are permitted with identity retained. Mutual coupling is an input quantity.
(v} Branches are identified by terminal bus names. Branch numbers are not reqgired.
. t ~r;r
(vi) Provision is made for line current ratings and transformer MV A ratings for overload checking. '
.~f >'_:.,#:,,~t-..-..
(vii) Provision is made for calculating line currents at terminals on selected lines.
ANILKUMAR K.M .• Assistant Professor in E&EE. RIET Davanoere.

106
TYPES OF BUSES FOR POWER FLO'V

Specified Definition
pWrameters (p.u.)
. P,Q(orunregulated) Scheduled real and reactive power injections into the network. Power
flow calculations determine the voltage magnitude and phase angle. High
.
and low voltage limits are possible. In the event that a voltage limits is
reached, the MVAr rating is converted to a fixed reactive element. -_
-::----
P, V (or regulated) Scheduled real power injections into the network at fixed voltage
"
magnitude. The voltage is maintained at a constant level by means of an
adjustable internal or remote reactive source, such as a synchronous
condenser, generator field excitation, static VAr generator, saturable
reactor, or other control device. Both (+} and (-) MV Ar limits are
entered. In the event that a MVAr limit is reached, the voltage schedule is
no longer held, and the reactive source is fixed MVAr.
Remote Scheduled MW and variable MV Ar. The MVAr injection is varied to
maintain constant voltage at a remote bus. MVAr limits are enterable,
beyond which the bus becomes a P.Q. type, with Q at the limit. The
remote bus changes to a fixed reactive element and specified P.
Swing (area) Variable MW and schedule voltage. The MW injection is varied to
maintain the real power part of desired area control error. In the event
that a MVAr limit is reached, the voltage schedule is no longer held.
Slack Scheduled voltage magnitude and fixed phase-angle reference for the
power flow calculation but has variable MW, MYAr output.
6. Transformers and phase shifters
(i) Fixed tap transformer ratios may be entered in terms of rated kV on each terminal.
(ii) OLTC (on-load tap control) transformer voltage range and step size are specified by the
- .,
program user.
(iii) OLTC control on MVAr injection at a remote or adjacent bus specified by user.
(iv)-Phase shifters have through power or angle set by means of the user's schedule. Phase shifters
have 1:1 voltage ratio. Phase-shifter impedance adjustment with step change is automatic phase-
shifter angle range and step size are inputs by the user.
~.~.
7. STATE ESTIMATION
-I' Methods have been developed using measurements from the network to calculate the state at
the network such as voltage magnitude, phase angle etc., at every bus. . ...i. ,<:'
. 4Jl.k
~ These methods are called state estimators because they are essentially weighed leastsqt.l~res..
. <I {·q: -,:f
techniques to find the best state vector to fit scattered of data. ,';'. .
ANILKUMAR K.M., AssistantProfessor in E&EE, B.I.E.T,Davangere.

107
POWERSYSTEM rLANNING
../ The scattered data is due to imperfect measurements of rapidly changingvoltage or currents on
the network in addition to errors in the assumedvalues, and variations in the transmission line
linear models, line charging, and so on.
../ Imperfect measurements, the first source of errors, is due to signal noise, metering accuracy
and analog-to-digitalconversion.
../ The network topology and parameters are assumed as knownuntil they are 'fitted' to the data in
parameter estimation.
../ The power system is assumed to be operating in a steady-state condition with fixed voltages,
•
currents, and power flow. TIle remote terminal units (RTUs) which sample network analog
variables and convert the signals to digital form are periodically examined for the latest values
of the signals.
../ For example showing the block diagram of state estimator, the RTUs are sequentially
exaI~ined which causes a 'times skew' in the data from unit I compared to unit N dependingon
when the unit was scanne~ and the time when the actual analogsignal was sampled. The set of
N measurements is called a snapshot of the power system, even though the data may have a
time skew at as much as 2 s.
./' The data collected by the RTUs are often redundant. There may be voltage sensing by step-
down transformers on each phase of the transmission line, whereas only one is needed for a
balanced operation.
./' In addition, each transmission line voltage to the substation may be monitored on the line side
of a circuit breaker, introducing redundancywhen an lines are in service. There may be single-
phase watt and VAr meters in addition to current measurements on all phases. The state
estimator should incorporateall measurementsto obtain the greatestpossible accuracy.
./' Because the poor system data are redundant, the state estimator may be used with statistical
methods to detectbad or grossly incorrect data.
••
Fig showing the block diagram of state estimation of power system.

108
./' Another purpose of a state estimator is to detect changes in network configuration. If one phase
of a transmission line becomes abruptly open circuited, the average power flow on the intact
phases will be far less than the values given by the last state estimate. Thcnperator is alerted to
this condition at the first data sean-As-ef this data, corrective action by the control computer is
not automatic but may be implemented in the future through 'remedial action' programme .
./' Another purpose of a state estimator is to complete a set of measurements in order to replace
faulty or missing data. It is possible to estimate power flows and voltages at a bus whose
measurements are lost due to a communication line failure or RTU failure. Significant
•
problems in this regard are to determine the minimum number of measurements in order to
calculate the state, often called observability, and how to improve state estimates by' additional
measurements.
8. COMPUTERIZED MANAGEMENT
Computerized management of the power systems is required to ensure a secure and economic
operation of the system as well as to facilitate the minute by minute tasks carried out by the
operational staff.
1. Secure operation - It includes the following main aspects,
(i) State estimate,
(ii) Security.analysis,
(iii) Optimal'power and water flow / fuel consumption.
2. Economic operation - It signifies the following functions,
(i) Automatic Generation Control (AGC),
(ii) Economic dispatch,
(iii) Unit commitment and load forecasting.
The main aim is to computerise all the above functions so that the human operator only
interacts for any feedback action if required.
Considering the nature and size of the problem, a suitable model is required to envelope the
functional modules such as,
(i) Main computer system at master station,
(ii) Remote terminal unit (RTU) system for controlling the power stations and grid-substations
(iii) Storage of data
(iv) Mode of output.
./' The main computer would handle the computational activities, accept input, store the desired
information, process it and send back the requisite instructions to the respective RTUs. It will
perform the task of a decision and maintenance support system.
ANll..KUMARK.M., Ass.istantProfessor in E&EE,B.I.E.T,Davangere.

109
POWER SYSTEM PLAN]'.'lNG
./' The RTUs will transmit data and receive the processed information. Storage unit will store
information, for retrieval as and when required in future. The mode of output could be printer,
console or dynamic map board.
...
Computerconfiguration .
./' Consistent with the principles of high reliability and fail-safe features, electric utilities have
almost universally applied a redundant set of dual digital computers for remote supervision
.. data acquisition and control, energy management and system security .

./' Both. computers have their own core memory and. drive an extensive number of input-output
devices, such as printers, telemetering, magnetictape drives, disks, and so on. Usually, one
computer, the on-line unit, monitors and controls the power system .
./' The backup computer may execute off line batch programs such as load forecasting or hydro
thermal allocation. The on-line computer periodically updates a disk memory shared between
the two computers .
./' Upon a fail over or switch in status command, the stored information of the common disk is
inserted in the memory of the oncoming computer. Thus, the information used by the
oncoming computer has maximum age of the update cycle (typically 30 seconds). All the
peripheral equipment is interfaced with the computer through input-output microprocessors
that have been programmed to communicate as well as preprocess the analog information,
check for limits, convert to another system of units, and so on.
./' The microprocessors can transfer data in and out of computer memory without interrupting the
central processing unit. Often, the microprocessors are also redundant, in that equipment
interfaces may be switched to spare units upon detecting a malfunction .
./' As a result of these precautions, for all critical hardware functions there is often a guaranteed
99.8 percent or more availability. Software also allow for multilevel hardware failures and
initialization of application programs if failures occur. Another feature of the computer system
.. is that critical operating functions are maintained during either preventive or corrective
maintenance. Besides hardware, new digital code to control the system may be compiled and
tested in the backup computer, then switched to online status.
./' The computers are usually employed in a fixed cycle operating mode with priority interrupts
wherein the_computer periodically performs a list of operations. The most critical functions
have the fastest scan cycle. Typically, the following categori~ are scanned every two seconds,
~ All status points, such as switchgear position (open or closed), substation loads and
voltages, transformer tap positions, and capacitor banks,
~ Tie-line flows and interchange schedules,
~ Generator loads, voltage, operating limits, and boiler capacity,
ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere,

110
» Telemetry verification to detect failures and errors in the bilateral communication links
between the digital computer and the remote equipment.
../ The turbine generators are often commanded to new power levels every four seconds, sharing
the load adjustment based on each unit's response capahlliiy-iB-MW Imin .
../ The absolute power output of each unit is typically adjusted every two minutes by the
computer executing an economic dispatch program to determine the base power settings. Many
other system operations, such as the recording of load, forecasting of load, determination of
I
which generators to start up or stop, are considered non-critical, so the computer executes these "
programs on an hourly basis .

../ Most low-priority programs (those run less frequently) maybe executed on demand by the
.'
operator for study purposes or to initialize the power system .
../ An operator may also alter the digital computer code in the execution if a parameter changes in
the system. For example, the MW/min capability of a generating unit may change if one of its
throttle valves is temporarily removed for maintenance, so the unit's share of regulating power
must accordingly be decreased by the code. The computer software compilers and data handles
are designed to be versatile and readily accept operator inputs.
seADA ~<:,.Lr~
CC.t.IP,Jli" OfH~1l
c.(jti?.;ttt"!~
~r9.U;';'1r.~-t..;Al.
R£MQTc nATA.. COUlSIll()N

~A.TtJ$ Of BRIi'Al<ERS,~WI!CHeS.
KW f:tOWS. K'IAR RO'm. VO~1$.
,ll,M'ERES.lfW-ISFOP:MS.A
TAPS. PHlIBf-SHlfT£R
..
POSlTlONETC.
Fig showing the block diagram of configurations of computer management in power system.
9. POWER SYSTEM SIMULATOR
../ The operation of the power system is a complex task requiring the operator to make split-
second decisions regarding integrity of the system .

../ It is important for those who operate power systems. to be aware of the potential weak points
the system and to provide counter-measures for overcoming the weak points. For this
necessary to develop the computer programs to simulate power system behaviour.
AND..KUMARK.M., AssistantProfessorin E&EE, B.I.E.T, Davangere.

111
r------~~~----------------~~~
../' Due to increasing intcrcoruiecticus ~h:,:;
power systems are becoming complex. Tl.erc ~.~growing
need for higher operational skills. Trained operators are required urgently to improve system
.-
efficiency, reduce down-time and maintenance costs .

../' The .t>.<>wer
system- ne~~rk simul~tor allows the operator to .study b~th ~y state and
.dynamic behaviour through interactive graphics, menu driven formats and command line
inputs .
../' The simulator has a flexible man-machine interface and can easily be configured to any power
f'
system. The Central Power Research Institute has facilities for development of software for
simulators for power systems network .
•
../' A training simulator is a device which creates the effects of an actual power system including
power plant by using a mathematical model. The mathematical model updates the database in
the computer (pC based) which is used to drive all indicators, recorders, annunciators etc. on
the control panel.
../' Training simulator comprises a processor, control panel and an instructor's console. It solves
the mathematical model representing power interactively to continuously predict the behaviour,
after taking into account the operator's action from the panel.
../' A math model comprises of differential equations, algebraic equations and Boolean equations .
../' The panel displays- the system parameters dynamically to give feedback to the operator about
the system's operating conditions. The operator also uses a panel to start up, shunt down and
control the simulated plant and to change the operating condition .
../' The operator can check whether bus voltages are in order, line flows are well within thermal
limits,
../' and the generator reactive power limits are not exceeded. The instructor's console is used to
create real life disturbances, which the operator is supposed to handle and take remedial action.
A schematic arrangement is shown below .
.. ../' The mimics prove complete perspective giving the details of various equipments (generator,
breakers, lines, transformers, shunt reactors, capacitors, loads etc.) and their interconnections.
Interaction with the instructor is minimum. All lining up procedures along with the necessary
interlocks and design specifications are available to the trainee through help files .
../' For each operation, explanation of right and wrong operations is provided, help files with
essential operational parameters (such as trip setting) are provided .
../' In the operation mode, all the interlocks are logic associated with various equipments
incorporated in it. In this mode, the 'help' facility is inhibited and a trainee performan~e1 tJ
evaluation package is invoked." - ..~;/'~:.'.:;t.'
_, .
;(,~~:t~·I
.,/ The operator training simulator is built on a PC with associated peripherals & sofm;'~~{~:u~
making the overall cost very minimal and affordable by the utilities. r' I( :~;J:l
•• ~ .~ ....... ..,. T7 ".. A ~~:~.~~+

"P..,.,fp<!c;,nr in F&F.E. B.I.E.T. Davangere. t:
.112
POWER SYSTEM PLAlVNTNG
../' Simulators are extensively customerized to a given plant or power system of the power utility
for specific operating conditions, down to actual response time. Since the software is user
friendly, 'Theoperator can learn many things independently without the help of a supervisor .
../' National Power Training Institute (NPTI), Faridabad, uses such facilities for training engineers.,
operators and technicians for operation and maintenance in all aspects of power sector-thermal,
hydro, power network etc.
../' NPTI has 210MWand 500MWthermal plant simulators at Badarpur in the country. Simulators
4..
are used for similar training in nuclear plants by Nuclear Power Corporation, by CPR! for
•
power system integrated operation. The thermal power station training is compulsory AS PER
.,!,HE Indian Electricity Act 'for deployment at the thermal power station of capacity- 100MW &
above.
,.---------_ ........ - ..
lIA1H·t.IQOEl
It-,--.....;...-.! ($QI'1WAAE)
~-.... ---- -----

I
..
I
.. ----- ........ -.,.~ .... - ...
Fig showing the schematic of simulator.

10. SYSTEM FREQUENCY
../' It is technically impossible to store electrical energy in the form of alternate current.
../ This means that there must be continuous balance between the input of mechanical energy in
an ac system. If consumption is greater than production, the grid frequency drops. Ifproduction
is greater than consumption, the grid frequency rises. In this respect, the power system can be
compared to a set of scales, with production in one scale and consumption in the other .
../ The speed at which the pointer swings back and forth represents the grid frequency. The
transmission grid can be compared to a balance beam .
..
../ The number of weights in the scale for consumption is determined by a continuously
decentralized decision-making process. When an individual consumer turns on a light in the
morning, a small weight is placed in the scale. When another consumer turns off a light, a
small weight is removed from the scale. Each power utility in the regional power system grid
has a production scale and a consumption scale.
." ~
../' The power utilities in the grid have joint responsibility for putting the weights on the scale and.
taking them off so as to obtain a continuous balance between generation and consumption. If'
.
the balance beams were not interconnected, each subsystem would have to continuously Ill<:iV~!
~~.~.....
.t
.. . ,;!.
the Weight son and off the scale in order to maintain the pointer at the midpoint. '(, ~ ~ r: .
ANll-KUMAR K.M., AssistantProfessor inE&EE, B.I.E.T, Davangere.

113
./ The investment in tie-lines for joint operation is one of the more profitable investments in the
power industry. One prerequisite is the difference in structure of the generation systems in the
different utiiities, which varies from thermal power system to the mix of hydro and thermal and
the hydro system. -
./ Grid frequency is normally maintained within a narrow band around 50 Hz. Frequency
deviations can be regarded as a measure of the quality of the electrical energy delivered. In
normal operation, frequency is maintained within at O.lHz, with standard deviations of about
, 0.3Hz. This degree of accuracy appears to be quite sufficient for most consumers.
¥' In connection with faults in the transmission grid that result in disconnection of parts of the
grid with generation surpluses, grid frequency can drop below 49.9 Hz. In this case, there is a
risk thatthe nuclear and thermal power plants must be disconnected in order to avoid damaging
vibrations in the steam turbines. Hydro power plants are more robust and normally tolerate a
drop in grid frequency to 45 Hz without sustaining damage.
Frequency variations
.../ A frequency range between 49.8 and 50.2 Hz is considered safe for generation, transmission,
distribution and consumer end equipment, all of which are increasingly using frequency-
sensitive electronics.
./_. Frequency is influenced by the balance in real power. At present, there IS no regulation
.' regarding this in the regional power grids.
./ The generation meant for spinning reserve and regulation reserve is used to meet more load.
Also, more load is met at the cost of frequency.
Frequency effects
Constant r. j ,"':31 frequency is the primary mark of a normal operating system and the system
.' , d A be allowed to deviate outside the strict tolerance values for the following
.. 1. Most a: 'n
2. Genera: .
*.r.: CO"'. at speeds that are related to frequency .
. especially steam driven ones, are designed to operate at a very precise speed.
3. The 11,;b: ,:~ s arc ; enerally set for tripping at 51.6 Hz and 47.5 Hz. Turbo rotor, with its many
huge t';':::r:c ['::ldes, constitutes a mechanical system of many natural frequencies. These
frequencies are quite undamped and are each subject to resonance at various rotor speeds.
Hydro h~;hij)c~are not subject to this danger.
4. A !ar~':' L:>m;hcr of electrically operated clocks are driven by synchronous motors and the
acc\1:';.'Z:Y t;;\: dock is a function not only of the frequency error but also of the integral of
s.. l;J:
5. is ;'ormally related to the real power balance in the overall network. Undb"'the
HOln,ol ""e:·fi(Jjey the power generated is of all loads plus real transmission losses.
_\',{ft ){! i!\I:\R K.M., AssistantProfessorinE&EE, B.I.E.T,Davangere,

114
P(JWl!."JC srsrus« J:'LIlIVJVllYl7
6. in docs not exist then the difference would enter into or exit from kinetic
.. '.Sf: of momentary surplus of generator power over the load, the total speed
(f .crease, TIle rate of increase in speed

.
would depend upon the- .amount of .
'. .
r the running equipmem:-A& load being supplied by the network speeds up,
r-:
,... l)i!?,lH~T load

) ;Ti:~d torques and thus require to puil more power
311i'pinsof megawatts tends to increase of frequency of a system. A
• ,.: wido variable so the change will be left unifoimly throughout the
r
, :~,t
;~
••
. J'rI" Assistant Professor in E&EE, B.I.E.T,Davangere.

115
QUESTIONS BANK
1) Explain system adequacy and security of power system reliability. 0 _~-
2) Explain reliability evaluation and calcuiationso.

0 0 -- _o_
3) Explain basic methods to evaluate generation reliability.
o 4) Explain quality of supply for power system planning.
5) Explain the types of power disturbances and specify the equipments that are used to reduce
the problems encountertm. •
6) Explain theterms (i) Flexible systems (ii) System adequacy, and (iii) System security. <f
7) Describe the two methods of reliability assessment.
8) Write a descriptive note on CEA's reliability planning criteria, 0
,
9) Describe different types of disturbances and the devices used to suppress the disturbance.
II
,
1-0) Explain the various methods of load management.
11) What do you mean by state ..estimation? Explain with the block diagram the function of
state estimation.
12) Explain with the block diagram the functions of power system simulator.
13) Explain the reliability planning in power system.
" Questions are collected from previous year Q.P, & Model Q.P.
,.
._
OJ:
"
ANILKUMAR KM.•Assistant ProfessorinE&EE, B.I.E.T, Davanzere.

Power System Planning lOEE761
Subject Code: 10EE761

25 IA Marks: 25
No. of Lecture Hrs. / Week: 04 Exam Hours: 03
Total No. of Lecture Hrs. 52 Exam Marks: 100
r, UNIT -1
PART -A
f
I Introduction of power planning, National and regional planning, structure 0 ~ower
I . tools, electricity regulation, Load furecasting, forecasting techniques,
system, p annmg . 8 Hours
modeling.
UNIT -2 & 3
Generation planning, Integrated power generation, co-generation / captive power, po:ver
pooling and power trading, transmission & distnbution planning, power system econonucs,
power sector finance,financial planning, private participation, rural electrification investment,
concept of rational tariffs. 10 Hours
UNIT -4
Computer aided planning: Wheeling, environmental effects,
technological impacts, insulation co-ordination, reactive compensation. green house effect,
8 Hours
PART -B
UNIT -5 & 6
Power supply reliability, reliability planning, system
management, load prediction, reactive power balance, online operation planning, load
estimation, computerized management. Power system simulator. power flow studies, state
Hours
lO
UNIT -7 & 8
Optimal Power system expansion planning, formulation of least cost optimization

problem incorporating the capital, operating and maintenance cost of candidate plants of
different types (thermal hydro nuclear non conventional etc), Optimization techniques for
solution by programming. 16 Hours
l TEXT BOOK:
1. Electrical Power System Planning, A.S.Pabla, MaCmillan India Ltd, 1998

J
Dept. ofEEE, SJBIT

Page I
Power System Planning 10EE761
• The codes and standards that guide the integration of solar PV are focused on simplifying
installations and prescnbe grid interconnection requirements that cause minimal interaction with the
grid. When solar PV becomes a significant overall source of generation in the power system, some of
the present interconnection requirements likely will be counterproductive.
National and Regional Planning:

1. All issues relating to planning and development of Transmission System in the country are
dealt in the Power System Wing of CEA.
2. This includes evolving long term and short term transmission plans. The network expansion
plans are optimized base on network simulation studies and techno economic analysis.
3. This also involves formulation of specific schemes, evolving a phased implementation plan
in consultation with the Central and State transmission utilities and assistance in the process
of investment approval for the Central sector schemes, issues pertaining to development of
National. Power Grid in the country and issues relating to trans-country power transfer.
.1 Transmission planning studies are being conducted to identify evacuation system from
generation projects and to strengthen the transmission system in various regions.
5. The studies for long-term perspective plans' are also being carried out on All India basis for
establishing inter regional connectivity aimed towards formation of the National Power
System. .
fi. The National Power System is being evolved to facilitate free flow of power across regional
boundaries, to meet the short fall of deficit regions. from a surplus region as well as for
evacuation of power from project(s) located in QI\e region to the beneficiaries located in
other region(s).
'::>'niciure of Power System:
Generating statkm 11 ltV
_Stspdown~
22QkV/33kV
.. ::::-
I
"
Dept. ofEEE, SJBIT Page 5
Power System Planning IOEE761
l. An essential component of power systems is the three-phase ac generator known as

synchronous generator or alternator.
2. The source of the mechanical power, commonly known as the prime mover, may be
hydraulic turbines, steam turbines whose energy comes from the burning ••of coal, gas
and nuclear fuel, gas turbines, or occasionally internal combustion engines burning oil
3. The transformer transfers power with very high efficiency from one level of voltage to
another level The power transferred to the secondary is almost the same as the primary,
except for losses in the transfurmer.
4. An overhead transmission network transfers electric power from generating units to the
distnbution system which ultimatelv supplies the load.
5. High voltage transmission lines are terminated in substations, which are called .: high-
voltage substations, receiving substations, or primary substations.
/; . The distribution system connects the distribution substations to the consumers' service-
ntrance equipment. The primary distnbution lines from 4 to 34.5 kV and supply the
load in a well-defined geographical area.
Industrial loads are composite loads, and induction motors form a high proportion of
these loads. These composite loads are functions of voltage and frequency and fonn a
. major part of the system load .
. Planning Tools:
I. Planning engineer's pnmary requirement is to give power supply to consumers m a

reliable manner at a minimum cost with due flexibility for future expansion.
2. The criteria and constraints in planning an energy system are reliability, environmental
economics, electricity pricing, financial constraints, society impacts.
3. reliability, environmental, economic and financial constraints can be quantified. Social
effects are evaluated qualitatively.
4. The system must be optimal over a period of time from day of operation to the lifetime.
S. Various computer programs are availabIe and are used for fast screening of alternative
plans with respect to technical, environmental and economic constraints.
The available tools for power system planning can be split into:
• Simulation tools: these simulate the behavior of the system under certain conditions
and calculate relevant indices. Examples are load flow models, short circuit models,
stability models, etc.
• Optimization tools: these minimize or maximize an objective function by choosing
adequate values fur decision variables. Examples are optimum power, least cost
expansion planning, generation expansion planning, etc.
• Scenario tools: this is a method of viewing the future in a quantitative fashion. All
possible outcomes are investigated. The sort of decision or assumptions which might be
made by a utility developing such a scenario might be: should we computerize
automate the management of power system after certain date.

Least Cost Utility Planning:
There are two fimdarnental problems inherent in traditional planning. The first is that
demand forecasting and investment planning are treated as sequential steps in planning, rather
than as interdependent aspects of the planning process. The second problem is that planning
efforts are inadequately directed at the main constraints facing the sector, namely the serious
shortage of resources.
1. Demand forecasts are little more than extrapolations of past trends of consumption, no
attempt is made to understand neither the extent of unrnet demand nor the extent to which
the prices influence the demand growth, Greater attention should be paid to end use
efficiency, plant rehabilitation, loss reduction program, etc.
2. Least cost planning (LCUP) is least cost utility planning strategy to provide reliable
electrical services at lowest overall cost with a mix of supply side and demand side .
options.
3. The LCUP uses various options like end use efficiency, load management, transmission
and distnbution options, alternative tariff options, etc.
4. This planning process can yield enon11OUSbenefits to consumers and society because it
affords acquisition of resources' that meet consumer energy service needs that are low in
cost, environmentally friendly.
S. LCUP as a planning and regulatory process can greatly reduce the uncertainty and risks
faced by utilities. The logic for least cist planning is shown in the figure below:
Options
_ ..
(plans)
-
Regulations
Least Cost
Planning
Process
~>
- Attributes:
6. For an investment to be least cost, the lifetime costs are considered. These include capital
costs, interest on capital, fuel cost and operation and maintenance costs.

Power System Planning IOEE761
..
social and simulation
environmental resource mixes 1----+ analysis
factors
monitor
Fig: flowchart for least cost planning
Electricity Regulation:
THE ELECTRICITY REGULATORY COMMISSIONS ACT, 1956
• Act to provide for the establishment of a Central Electricity Regulatory Commission and
state Electricity Regulatory Commissions, rationalization of electricity tariff; transparent
policies regarding subsidies, prormtion of efficient and environmentally benign policies
and matters connected therewith or incidental there to.
• Be it enacted by Parliament in the Forty-ninth Year of the republic of India as follows:
STATEMENT OF OBJECTS AND REASONS
• India's power sector is beset by problems that impede its capacity to respond to the
rapidly growing demand for energy brought about by economic hberalisation. Despite the
stated desire for reform and the initial measures that have been implemented, senous
problems persist.
• As the problems of the Power Sector deepen, reform becomes increasingly difficult
underscoring the need to act decisively and without delay. It is essential that the
Government exit implement significant reforms by focussing on the fimdamental issues

facing the power sector, namely the lack of rational retail taritfs, the high level of cross-
subsidies, poor planningand operation, inadequate capacity, the neglect of the consumer,
the limited involvement of private sector skills and resources and the absence of an
independent regulatory authority.
• Considering the pararoount importance of restructure power sector, Government of India

organised two Conferences of Chie Ministers to discuss the whole gamut of issues in the
power sector and the outcome of these meetings was the adoption of the Common
Minimum National Action Plan for Power (CMNPP).
i.
• The CMNPP recognised that the gap between demand and supply of power is widening
. and acknowledged that the financial position of State Electricity Boards is fast
deteriorating and' the future development in the power sector cannot be sustained without
viable State Electricity Boards and improvement of their operational performance.
II The CMNPP identified creation of regulatory Commission as a step in this direction and
specifically provided for establishment of the Central Electricity Regulatory Commission
(CERC) and State Electricity Regulatory commissions (SERCs). After the finalisation of
the, national agenda contained in CMNPP, the Ministry of Power assigned the task of
studying the restructuring needs of the regulatory system to Administrative Staff College
of India "(ASCI), Hyderabad. The ASCI report strongly recommended the creation of
independent Electricity Regulatory Corrmissions both at the Centre and the States.
• To grve effect to the aforesaid proposals, the Electricity Regulatory Commissions Bill.
1997 was introduced in the Lok Sabha on 14th August, 1997, However it could not be
passed due to the dissolution of the Eleventh Lok Sabha.
• This has resulted in delay in establishing the Regulatory Commissions leading to

confusion and misgivings in various sections about the commitment of the Government
to the reforms and restructuring of the power sector. Needless to say, this has also slowed
down the flow of public and private investment in power sector.
• Since it was considered necessary to ensure the speedy establishment of the Regulatory
Commissions and as Parliament was not in session, the President promulgated the
Electricity Regulatory Commissions Ordinance, 1998 on 25th day of April, 1998 .
..
• The salient features of the -said Ordinance are as follows: -
(a) It provides for the establishment of a Central Electricity Regulatory Commission at the
Central level and State Electricity Commissions at the State levels-,
(b) The main functions of CERC are: -

Power System Planning 1OEE761
(i) To regulate the tariff of generating comparues owned or controlled by the Central
Government;
(ii) To regulate inter-State transmission including tariff of the transmission utilities;
(iii) To regulate inter-State sale of power;
(iv) To aid and advise the Central Government in the fomrulation of tariff policy.
(c) The main fimctions of the SERC, to start with, shall be: -
(i) To determine the tariff for electricity, wholesale, bulk, grid and retail;
(ii) To determine the tariff payable for use of the transmission facilities;
(iii) To regulate power purchase the procurement process of the transmission utilities; and
(iv) Subsequently, as and when each State Government notifies, other regulatory fimctions could
also be assigned to SERCS. ..
(I; .lso aims at improving the financial health of the State Electricity Boards (SEBS) which
are loosing heavily on account of irrational tariffs and lack of budgetary support from the State
Goverrunents as a result of which, the SEBs have become incapable of even proper maintenance,
leave alone purposive investment. Further, the lack of creditworthiness of SEBs has been a
deterrent in attracting investment both from the public and private sectors.
Hence, it is made mandatory for State Commissions to fix tariff in a manner that none of
the consumers or class of consumers shall be charged less than fifty per cent. of the
average cost of supply, it enables the State Govemments to exercise the option of
providing subsidies to weaker sections on condition that the state Goverrunents through a
subsidy compensate the SEBS.
• As regards the agriculture sector, it provides that if the State Commission considers it
necessary it may allow the consumers in the agricultural sector to be charged less than
fifty per cent, fora maximum period of three years from the date of commencement of
the Ordinance.
• It also empowers the State Goverrunent to reduce the tariff further but in that case it shall
compensate the SEBs or its successor utility, the different between the tariff fixed by the
State Commission and the tariff proposed by the State Goverrunent by providing
budgetary allocations.Therefore, it enables the State Goverrunents to fix any tariff for
agriculture and other sectors provided it gives subsidy to State Electricity Boards to meet
the loss.
Forecasting Techniques:
Load forecasting is vitally important for the electric industry in the deregulated economy.
It has many applications including energy purchasing and generation, load switching, contract
evaluation, and infrastructure development. A large variety of mathematical methods have been
developed for load forecasting. In this chapter we discuss various approaches to load forecasting.

Power System Planning I OEE76 I
Forecasting Methods
• Over the last few decades a mnnber of forecasting methods have been developed. Two of
the thods, so-called end-use and econometric approach are broadly used fur medjum- and
long-term forecasting. Avariety of methods, which include the so-called similar day
approach, various regression models, time series, neural networks, expert systems.fuzzy
logic, and statistical learning algorithms, are used for short-term forecasting.
• The development, improve:rrents, and investigation of the appropriate mathematical tools
will lead to the development of more accurate load forecasting techniques. Statistical
... approaches usually require a mathematical model that represents load as fimction of
different factors such as time, weather, and customer class.
• The two important categories of such mathematical models are: additive models and
,. muhiplicative models. They differ in whether the forecast load is the sum (additive) of a
number of components or the product (multiplicative) of a munber of factors. For
example, Chen et al. [4] presented an additive model that takes the form of predicting
load as the fimction offour components:
L = Ln + L w + Ls + Lr,
where L is the total load, Ln represents the ''nonna!'' part of the load,which is a set of
standardized load shapes for each "type" of day that has been identified as occurring throughout
th~ year, L w represents the weather sensitive part of the load, Ls is a special event component
that create a substantial deviation from the usual load pattern, and Lr is a completely random
term, the noise.
• A multiplicative model may be of the form
L = Ln . Fw . Fs . Fr,
where Ln is the normal (base) load and the correction factors Fw, Fs, and Fr are positive
numbers that can increase or decrease the overall load. These corrections are based .on current
weather (Fw), special events (Fs), and random fluctuation (Fr). Factors such as electricity
pricing (Fp) and load growth (Fg) can also be included. Rahman [29] presented a' mlebased
forecast using a multiplicative model. Weather variables and the base load associated with the
weather measures were included in the model.
Forecasting Modeling
Depends on
1. Degree of Accuracy Required
2. 2 Cost of Producing Forecasts
3. 3 Forecast Horizon
4. 4 Degree of Complexity Required
5. 5 Available Data
Classification of Estimation Methods
1. Time Series Methods

2. Causal Methods
3. Judgemental Methods
Time Series Methods: Use historical data as a basis, Underlying patterns are fairly stable.
1. Autoregressive Moving Average (ARMA)
Dept. ofEEE, SJBIT Page II

2. Exponential Smoothing
3. Extrapolation
4. Linear Prediction
5. Trend Estimation
6. Growth Curve
7. Box-Jenkins Approach
Causal Methods
Belief that some other time senes can be useful. Assumption that it is possible to identify the
underlying factors
1. Regression Analysis
2. Linear Regression
. 3. Non-Linear Regression
4. Econometrics

UNIT 2&3
Generation Planning
The electric utility planning process begins with the electricity load-demand forecast. The
demand fur electricity initiates actions by utilities to add generation, transmission, or distribution
capacity. Because of the long lead time required to construct new facilities, decisions are often to
be made 2 to 10 years in advance.
A load forecast was developed for the Kingdom and the results are presented in the following
sections covering the study period 2008 to 2023. Load forecasts are developed for all SEC
operating areas.
TI1emethodology and the basis of development of demand forecast are highlighted below:
• Multiple regression analysis is used to forecast the Energy for the KSA.
• Independent variables are chosen .to be the population and the Gross Domestic Product (GDP) .
• The dependent variable is the Energy forecast for KSA.
•. The data for the historical and the forecasted GDP has been obtained from the Ministry of
Planning.
The forecast for the total sold energy for the Kingdom was obtained using the regression model.
The total sold energy was then divided between the four operating areas using historical value of
percentage energy sales for each operating areas. This gives the. total sold energy forecast for
each of the operating areas.
Peak Demand is calculated using the. equation

Forecasted Peak Demand in Region= Forecasted Energy in RegioDl8760*Load Factor.
Co-Generation! Captive Power
Captive power plants are associated with specific industrial complexes, and their output is almost
entirely consumed by that industrial plant. Another term that may sometimes be synonymous is
'cogeneration' in which the power plant produces multiple forms of energy (e.g., electric power
and steam), and where both are raw-materials for a related industrial process. Probably the most
classic example is that of a paper mill. Boilers produce steam The steam passes through a
turbine that spins a generator to produce electricity. Exhaust steam from the turbine is then used
as a source of heat to dry freshly-made paper befure is is finally condensed into water and
returned to the boiler. The boiler itself burns the bark that itself cannot be used to make paper
and would otherwise be a waste material. In addition, the process of making pulp produces a
chemical waste called ''black liquor' that can also be burned as a fuel in a boiler.
Captive power plants don't necessarily have to be islands that are disconnected from 'the grid'. In
fact, it is often the case that the demand of the industrial process exceeds the capacity of the
captive plant, and power must be taken from the grid to make up the difference. Also, there must
be some provision to 'bootstrap' the integrated process into operation - often this means relying

on grid power to start-up the plant following an outage. And it is possible that there are times
when the captive plant will produce more power than can be consumed in the industrial process,
and rather than throttle back the excess is sold to the grid.
TYPES OF COGENERATION SYSTEMS
1. Steam Turbine Cogeneration System
Steam turbines are one of the most versatile and oldest prime mover technologies still in general
production Power generation using steam turbines has been in use for about 100 years, when
they replaced reciprocating steam engines due to their higher efficiencies and lower costs. The
capacity of steam turbines can range from 50 kW to several hundred MWs for large utility power ".
plants. Steam turbines are widely used for combined heat and power (CHP) applications.
2. Back Pressure Steam Turbine

A back pressure steam turbine is the simplest configuration. Steam exits the turbine at a pressure
higher or at least equal to the atmospheric pressure, which depends on the needs of the thermal
load. This is why the term back- pressure is used. It is also possible to extract steam from
intermediate stages of the steam turbine, at a pressure and temperature appropriate for the
thermal load. After the exit from the turbine, the steam is fed to the load, where it releases heat
and is condensed.
Fig. Back Pressure Steam Turbine
3. Extraction Condensing Steam Turbine

In such a system, steam for the thermal load is obtained by extraction from one or more
intermediate stages at the appropriate pressure and temperature. The remaining steam is
exhausted to the pressure of the condenser, which can be as low as 0.05 bar with a
corresponding condensing temperature of about 33°C. It is rather improbable that such
low temperature heat finds useful applications. Consequently, it is rejected to the
environment. In comparison to the back - pressure system, the condensing type turbine
has a higher capital cost and, in general, a lower total efficiency. However, to a certain
extent, it can control the electrical power independent of the thermal load by proper
regulation of the steam flow rate through the turbine.
4. Gas Turbine Cogeneration System

Gas turbine systems operate on the thermodynamic cycle known as the Brayton cycle. In a
Brayton cycle, atmospheric air is compressed, heated, and then expanded, with the excess of
power produced by the turbine or expander over that consumed by the compressor used for
power generation.
Gas turbine cogeneration systems can produce all or a part of the energy requirement of the site,
and the energy released at high temperature in the exhaust stack can be recovered fur various
heating and cooling applications (see Fig 4 below). Though natural gas is most commonly used,
other fuels such as light fuel oil or diesel can also be employed. The typical range of gas turbines
... varies from a fraction of a MW to around 100 MW .
Figure 4. Open Cycle Gas Turblne Cogeneration

Air
5. Closed-cycle gas turbine cogeneration: systems

In the closed-cycle system, the working fluid (usually helium or air) circulates in a closed circuit.
It is heated in a heat exchanger before entering the turbine, and it is cooled down after the exit of
the turbine releasing useful heat. Thus, the working fluid remains clean and it does not cause
corrosion or erosion. As shown in Fig.5 below.

...
FiuUre 5: Closed Cycle Gas Turbine Co~eneration system
6. Reciprocating Engine Cogeneration System

Reciprocating engines are well suited to a variety of distnbuted generation applications,
industrial, commercial, and institutional facilities for power generation and CHP. Reciprocating
engines start quickly, follow load well, have good part-load efficiencies, and generally have high
reliabilities. In many cases, multiple reciprocating engine units further increase overall plant
capacity and availability. Reciprocating engines have higher electrical efficiencies than gas
turbines of comparable size, and thus lower fuel-related operating costs.
Le,Eng
Power Pooling:
Power pooling is used to balance electrical load over a larger network (electrical grid) than a
single utility. It is a mechanism for interchange of power between two and more utilities which

provide or generate electricity For exchange of power between two utilities there is an
interchange agreement which is signed by them, but signing up an interchange agreement
between each pair of utilities within a system can be a difficult task where several large utilities
are interconnected. Thus, it is more advantageous to form a power pool with a single agreement
that all join. That agreement provides established terms and conditions for pool members and is
generally rmre complex than a bilateral agreement.
In one model, the power pool, fonned by the utilities, has a control dispatch office from where
the pool is administered. All the tasks regarding interchange of power and the settlement of
disputes are assigned to the pool administrator.
The formation of power pools provide the following potential advantages:
1. decrease in operating costs
2. saving in reverse capacity requirements
3. help from pool in unit commitment
4. minimization of costs of maintenance scheduling
5. more reliable operation
The formation of a power pool is associated with a number of problems and constraints. These
include:
1. pool agreement may be very complex
2. costs associated with establishing central dispatch office and the needed cornmmication
and computational facilities
3. the opposition of pool members to grve up their rights to engage in independent
transactions outside the pooL
4. the complexity towards dealing with regulatory authorities, if pool operates in more than
one state.
5. the effort by each member of the pool to maximize its savings.
Power pooling is very important for extending energy control over a large area served by
multip le utilities
Power Trading
In economic terms, electricity (both power and energy) is a commodity capable of being bought,
sold and traded. An electricity market is a system fur effecting purchases, through bids to buy;
sales, through offers to sell; and short-term trades, generally in the form of financial or obligation
swaps. Bids and offers use supply and demand principles to set the price. Long-term trades are
contracts similar to power purchase agreements and generally considered private bi-lateral
transactions between counterparties.
Wholesale transactions (bids and offers) in electricity are typically cleared and settled by the
market operator or a special-purpose independent entity charged exclusively with that fimction.
Market operators do not clear trades but often require knowledge of the trade in order to maintain

generation and load balance. The corrnnodities within an electric market generally consist of two
types: power and energy. Power is the metered net electrical transfer rate at any given moment
and is measured in megawatts (MW). Energy is electricity that flows through a metered point for
a given period and is measured in megawatt hours (MWh).
Markets for energy-related corrnnodities trade net generation output for a number of intervals
usually in increments of 5, 15 and 60 minutes. Markets for power-related commodities required
and managed by (and paid for by) market operators to ensure reliability, are considered ancillary
services and include such names as spinning reserve, non-spinning reserve, operating reserves,
responsive reserve, regulation up, regulation down, and installed capacity.
In addition, for most major operators, there are markets for transmission congestion and ..
electricity derivatives such as electricity futures arid options, which are actively traded. These
markets developed as a result of the restructuring of electric power systems around the world.
This process has often gone on in parallel with the restructuring of natural gas markets.
Transmission and Distribution Planning:

Electricity distnbution is the final stage m the delivery of electricity to end" users .. A
distnbution system's network carries electricity from the transmission system and delivers it to
consumers. Typically, the network would include medium-voltage (2kV to 34.SkV) power lines,
substations and pole-mounted transformers, low-voltage (less than 1 kV) distnbution wiring such
as a Service Drop and sometimes meters.
• The modem distribution system begins as the primary circuit leaves the sub-station and
ends as the secondary service enters the customer's meter socket by way of a service
drop. Distnbution circuits serve many customers.
• The voltage used is appropriate for the shorter distance and varies from 2,300 to about
35,000 volts depending on utility standard practice, distance, and load to be served.
Distribution circuits are fed from a transformer located in an electrical substation, where
the voltage is reduced from the high values used for power transmission.
• Conductors for distnbution may be carried on overhead pole lines, or in densely

populated areas, buried underground
• . Urban and suburban distnbution is done with three-phase systems to serve both
residential, corrmercial, and industrial loads. Distnbution in rural areas may be only
single-phase if it is not economical to install three-phase power for relatively few and
small customers.

• Only large consumers are fed directly from distnbution voltages; most utility customers
are connected to a transfurmer, which reduces the distnbution voltage to the relatively
low voltage used by lighting and interior wiring systems.
• The transformer may be pole-mounted or set on the ground in a protective enclosure. In

rural areas a pole-mount transformer may serve only one customer, but in more buih-up
areas multipIe customers may be connected.
• In very dense city areas, a secondary network may be formed with many transformers
feeding into a common bus at the utilization voltage. Each customer has a service
drop connection and a meter fur billing.
,.
• A ground connection to local earth is normally provided for the customer's system as well
as for the equipment owned by the utility. The purpose of connecting the customer's
system to ground is to limit the voltage that may develop if high voltage conductors full
down onto lower-voltage conductors which are usually mounted lower to the ground, or
if a failure occurs within a distnbution transformer .
.;, If all conductive objects are bonded to the same earth grounding system, the risk of
electric shock is minimized. However, multiple connections between the utility ground
and customer ground can lead to stray voltage problems; customer piping, swirrnning
pools or other equipment may develop objectionable voltages. These problems may be
difficult to resolve since they often originate from places other than the customer's
prenuses.
Distribution network configurations

...................•............•.•.••..................•...............••.•....
• Distnbution networks are typically of two types, radial or interconnected.
• A radial network leaves the station and passes through the network area with no normal
connection to any other supply. This is typical of long rural lines with isolated load areas.
An interconnected network is generally found in more urban areas and will have multiple
connections to other points of supply.
• These points of connection are normally open but allow various configurations by the
operating utility by closing and opening switches. Operation of these switches may be by
'I
remote control from a control center or by a lineman, The benefit of the interconnected
model is that in the event of a fault or required maintenance a small area of network can
be isolated and the remainder kept on supply.
• Within these networks there may be a mix of overhead line construction utilizing
traditional utility poles and wires and, increasingly, underground construction with cables

and indoor or cabinet substations. However, underground distribution is significantly

more expensive than overhead construction
• In part to reduce this cost, underground power lines are sometimes co-located with other
utility lines in what are called corrnnon utility ducts. Distribution feeders emanating from
a substation are generally controlled by a circuit breaker which will open when a fault is
detected. Automatic circuit reclosers may be installed to further segregate the feeder thus
minimizing the impact of faults. ....
• Long feeders experience voltage drop requiring capacitors or vohage regulators to be
installed. ..
Cl.sractcrisrics of the supply given to customers are generally mandated by contract between the
supplier and customer. Variables of the supply include:
• AC or DC - Virtually all public electricity supplies are AC today. Users of large amounts of
DC power such as some electric railways, telephone exchanges and industrial processes such
_,,,aluminium smelting usually either operate their own or have adjacent dedicated generating
equipment, or use rectifiers to derive DC from the public AC supply.
Nominal voltage, and tolerance (for example, +/- 5 per cent)
Frequency, commonly 50 or 60 Hz, 16.7 Hz and 25 Hz for some railways and, in a few older
industrial and mining locations, 25 Hz.
• Phase configuration (single-phase, polyphase including two-phase and three-phase)
• Maximum demand (some energy providers measure as the largest mean power delivered
within a 15 or 30 minute period during a billing period)
• Load factor, expressed as a ratio of average load to peak load over a period of time. Load
factor indicates the degree of effective utilization of equipment (and capital investment) of
distribution line or system
• Power factor of connected load
• Earthing systems - TI, 1N-S, TN-C-S or 1N-C
• Prospective short circuit current
• Maximim level and frequency of occurrence of transients
Power System Economics:

• Power is the rate of flow of energy. Similarly, generating capacity, the ability to produce
power is itself a flow. A megawatt (MW) of capacity is worth little if it lasts only a
minute just as a MW of power delivered for only a minute is worth little.

Power System Planning 1OEE76 1
• But a MW of power or capacity that flows fur a year is quite valuable. The price of both
power and energy can be measured in $IMWh, and since capacity is a flow like power
and measured in MW, like power, it is priced like power, in $1MWh.
• Many find this confusing, but an examination of screening curves shows that this is
traditional (as well as necessary).
:) Since fixed costs are mainly the cost of capacity they are measured in $IMWh and can
be added to variable costs to find total cost in $1MWh. When generation cost data are
presented, capacity cost is usually stated in $IkW.
·~ • TIlls is the cost of the flow of capacity produced by a generator over its lifetime, so the
true (but unstated) units are $IkW -lifetime. TIlls cost provides useful information but
only for the purpose of finding fixed costs that can be expressed in $IMWh. No other
r useful economic computation can be performed with the "overnight" cost of capacity
given in $IkW because they cannot be compared. with other costs until "Ievelized."
While the U.S.
• Department of Energy sometimes computes these economically useful (levelized) fixed'
costs, it never publishes them Instead it combines them with variable costs and reports
total levelized energy costs.This is the result of a widespread lack of understanding of
the nature of capacity costs. Confusion over units causes too many different units to be
used, and this requires unnecessary and sometimes impossibIe conversions.
Private Paticpation:
• Private participation in 1991 to hasten the increase in generating capacity and to improve the
system efficiency as well. However, although several plants are under construction, till early
1999, eneration had commenced at private plants totalling less than 2,000 MW.
• In contrast, some state undertakings have completed their projects even earlier than
scheduled.Independent power producers (JPPs) claim that their progress has been hindered by
problems such as litigation, fmancial arrangements, and obtaining clearances and fuel supply
agreements. On the other hand, the State Electricity Boards have been burdened by power
purchase agreements (PPAs) that favour the IPPs with such clauses as availability payment
irrespective of plant utilization, tariffs retlecting high capital costs and returns on equity, etc.
• The process of invitingprivate participation in the power sector and the problems experienced
seem to have spurred on the restructuring of the power sector, includingthe formation of Central
and State Electricity Regulatory Commissions.
• However, some important problems have not been addressed. Additions to the generation
capacity without corresponding improvement of the transmission and distribution facilities are
likely to further undermine the system efficiency.

• What is more, issues like the reduction of "commercial losses" appear to have been ignored.Most
importantly, investment in infrastructure has been a state responsibility because the intrinsically
long gestation coupled with the relatively low returns from serving all categories of consumers
have rendered such projects commercially unprofitable. Whether or not private participation can
take on such tasks is to be seen.
Rural Electrification Investment:
• Rural Electrification Corporation Limited (REC) is a leading public Infrastructure

Finance Company in India's power sector. ..
it The company finances and promotes rural electrification projects across India, operating
through a network of 13 Project Offices and 5 Zonal Offices, headquartered in New
Delhi. The company provides loans to Central/ State Sector Power Utilities, State
Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.
• REC is a N avratna Company fimctioning under the purview of the Ministry of Power -
Government of India. The company' is listed on both National Stock Exchange of
India and Bombay Stock Exchange.
• The company is primarily engaged ill providing finance for rural electrification projects
across India and provides loans to Central/ State Sector Power Utilities, State Electricity
Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.
• The company sanctions loan as a sole lender or co-lender or in consortium with or

without the status of lead financer. It also provides consultancy, project monitoring and
financial/ technical appraisal support for projects, also in the role of nodal agency for
Government of India schemes or projects. REC finances all types of Power
Generation projects including Thermal, Hyde], Renewable Energy, etc. without limit on
size or location.
• The company aim; to mcrease presence ill emergmg areas like de-centralised distnbuted
generation (DDG) projects, and new and renewable energy sources to reach remote and
difficult terrains not connected by power grid network.
• In Transmission & Distnbution (T&D), REC is primarily engaged ill ascertaining

financial requirements of power utilities in the country in the T&D sector along with
appraising T&D schemes for financing.
• REC has financed T&D schemes for system improvement, intensive electrification,
pump-set energisation and APDRP Programme. The company is also actively involved in
physical as well as financial monitoring ofT&D schemes.

• REC also offers loan products for financingRenewable Energy projects. The company
has tied up a line of credit for EUR 100 rnn(approximately{ 6000 rnn) with KfW under
Indo-German Development Cooperation fur financingrenewable energy power projects
at concessional rates of interest.
;j Eligible projects include Solar, Wind, Small Hydro, Biomass Power, and Cogeneration
Power & Hybrid Projects .
.~
Wheeling:
In electric power transmission, wheeling is the transportation of electric power

(rregawatts or rregavolt-aroperes) over transmission lines.[l]
• Electric power networks are divided into transmission and distnbution

networks. Transmission lines move electric power between generating
fucilitiesand substations, usually in or near population centers. From substations, power
is sent to users over a distnbution network. A transmission line might move power over a
few miles or hundreds of miles.
* An entity that generates power does not have to own power transmission lines: only a
connection to the network or grid. The entity then pays the owner of the transmission line
based on how much power is being moved and how congested the line is.
• Some power generating entities join a group which has shared ownership of transmission
lines. These groups may include investor-owned utilities, government agencies, or a
combination of these.
• Since prices to move power are based on congestion m transmission line networks,
utilities try to charge customers more to use power during peak usage (demand) periods.
This is accomplished by installing time-of-use meters to recover wheeling costs .

UNIT 4:
Computer aided Planning:

With the increasing complexity of electrical power systems, the need for accm-ate tools
for their design, planning and operation become a necessity. Investigations are made on the
appropriate design tools for analyzing complicated energy system configurations under different
....
contingencies in order to cope with the challenges. Education and training using these tools
requires familiarization with software and hardware employed in this process. Studies shows that
the new delivery modes using the, fi.J11advantage of digital computers in a multi-media ..
environment will nnprove the efficiency of instruction., and understanding of complex problems.
Environmental impact:
• The environmental impact of electricity generation is' significant because 1110dem society
uses large amounts of electrical power. This power is normally generated at power
plants that convert -some other kind of energy into electrical power. Each system has
advantages and disadvantages, but many of them pose environmental concerns.
• The amount of water usage is often of great concem for electricity generating systems as
populations increase and droughts become a concern. Still, according to the U.S.
Geological Survey, thermoelectric power generation accounts for only 3.3 percent of net
freshwater consumption with over 80 percent going to irrigation. Likely future trends in
water consumption are covered here. General numbers for fresh water usage of different
power sources are shown below.
• Steam-cycle plants (nuclear, coal, NG, solar thermal) require a great deal of water for
cooling, to remove the heat at the steam condensors. The amount of water needed relative
to plant output will be reduced with increasing boiler temperatures. Coal- and gas- fired
boilers can produce high steam terrperatures and so are more efficient, and require less
cooling water relative to output. Nuclear boilers are limited in steam temperature by
material constraints, and solar is limited by concentration of the energy source.
• Thermal cycle plants near the ocean have the option of using seawater. Such a site will
not have cooling towers and will be much less limited by environmental concerns of the
discharge temperature since dumping heat will have very little effect on water
temperatures, This will also not deplete the water available for other uses. Nuclear power
in Japan for instance, uses no cooling towers at all because all plants are located on the
coast. If dry cooling systems are used, significant water from the water table will not be

Power System Planning I OEE76 I
used. Other, more novel, cooling solutions exist, such as sewage cooling at the Palo
Verde Nuclear Generating Station.
• Most electricity today is generated by burning fossil fuels and producing steam which is
then used to drive a steam turbine that, in tum, drives an electrical generator. Such
systems allow electricity to be generated where it is needed, since fossil fuels can readily
be transported. They also take advantage of a large infrastructure designed to support
consumer automobiles.
·~
• The world's supply of fossil fuels is large, but finite. Exhaustion of low-cost fossil fuels
,. will have significant consequences for energy. sources as \\_'ell as for the manufacture
of plastics and many other things. Various estimates have been calculated for exactly
when it will be exhausted (see Peak oil). New sources of fossil fuels keep being
discovered, although the rate of discovery is slowing while the difficulty of extraction
simultaneously increases.
• Nuclear power plants do not bum fossil fuels and so do not directly emit carbon dioxide;
because of the high energy yield of nuclear fuels, the carbon dioxide emitted during
mining, enrichment, fabrication and transport of fuel is .small when compared with the
carbon dioxide emitted by fossil fuels of similar energy yield.
;) A large nuclear power plant may reject waste heat to a natural body of water; this can
result in undesirab Ie increase of the water temperature with adverse effect on aquatic life.
Green House Effect:
The greenhouse effect is a process by which thermal radiation from a planetary surface is
absorbed by atmospheric greenhouse gases, and is re-radiated in all directions. Since part of this
re- radiation is back towards the surface and the lower atmosphere, it results in an elevation of the
average surface temperature above what it would be in the absence of the gases.
Solar radiation at the frequencies of visible lightlargely passes through the atmosphere to warm
the planetary surface, which then emits this energy at the lower frequencies of infrared thermal
radiation. Infrared radiation is absorbed by greenhouse gases, which in turn re-radiate much of
the energy to the surface and lower atmosphere. The mechanism is named after the effect of solar
radiation passing through glass and warming a greenhouse, but the way it retains heat is
fundamentally different as a greenhouse works by reducing airflow, isolating the warm air inside
the structure so that heat is not lost by convection.

Insulation Co-ordination:
• The term Insulation Co-ordination was originally introduced to arrange the insulation
levels of the several components in the transmission system in such a manner that an
insulation failure, if it did occur, would be confined to the place on the system where it
would result in the least damage, be the least expensive to repair, and cause the least
disturbance to the continuity of the supply. The present usage of the term is broader.
• Insulation co-ordination now comprises the selection of the electric strength of equipment
...
in relation to the voltages which can appear on the system for which the equipment is
intended. The overall aim is to reduce to an economically and operationally acceptable
level the cost and disturbance caused by insulation failure and resulting system outages.
• To keep interruptions to a minimum, the insulation of the various parts of the system
must be so graded that flashovers only occur at intended points. With increasing system
voltage, the need to reduce the amount of insulation in the system, by proper co-
ordination of the insulating levels. become more critical.
Reactive compensation:
• Except in a very few special situations, electrical energy is generated, transmitted,

distnbuted, and utilized as alternating current (AC). However,alternating current has
several distinct disadvantages. One of these is the necessity of reactive power that
needs to be supplied along with active power.
• Reactive power can be leading or lagging.While it is the active power that contnbutes
to the energy consumed, or transmitted, reactive power does not contribute to the
energy. Reactive power is an inherent part of the "total power."
• Reactive power is either generated or consumed in ahnost every component of the
system, generation, transmission, and distnbution and eventually by the loads. The
impedance of a branch of a circuit in an AC system consists of two components,
resistance and reactance.
• Reactance can be either inductive or capacitive, which contnbute to reactive power in
the circuit.Most of the loads are inductive, and must be supplied with lagging reactive
power.
• It is economical to supply this reactive power closer to the load in the distnbution
systemReactive power compensation in power systems can be either shunt or series. ..

Slut Capadors:
Shunt capacitors are employed at substation level for the following reasons:
• Redicrg power bsses

Compensating the load lagging power factor with the bus connected shunt capacitor bank
improves the power factor and reduces current flow .through ...the transmission lines,
transformers, generators, etc. This will reduce power losses (I2R losses) in this equipment.
·~
• lnreased lifuatbn of equprren
,. Shunt compensation with capacitor banks reduces kVA loading of lines, transformers, and
. generators, which means with compensation:' they can be used for delivering more power
without overloading the equipment. Reactive power compensation in a power system is of two
types-shunt and series. Shunt. compensation can be installed near the load, in a distnbution
substation, along the distnbution feeder, or in a transmission substation.
• Volage regubtbn
The main reason that shunt capacitors are installed at substations is to control the voltage
within required levels. Load varies <;lver.the day, with very low load from midnight toearly
morning and peak values occurring 'm
the evening between 4 PM and 7 PM. Shape of the load
curve also varies from weekday to weekend, with weekend load typically low.
't Shrt Reactse PowerCorrpensatbn
Since most loads are inductive and consume lagging reactive power, the compensation
required is usually supplied by leading reactive power. Shoot compensation of reactive power
can be employed either at load level, substation level, or at transmission level
• It can be capacitive (leading) or inductive (lagging) reactive power, although in most
cases compensation is capacitive. The most common form of leading reactive power
compensation is by connecting shunt capacitors to the line.
• As the load varies, voltage at the substation bus and at the load bus varies. Since the
load power factor is always lagging, a shunt connected capacitor bank at the substation
can raise voltage when the load is high. The shoot capacitor banks can be permanently
connected to the bus (fixed capacitor bank) or can be switched as needed. Switching
can be based on titne, if load variation is predictable, or can be based on voltage, power
factor, or line current.

UNIT 5&6
Power Supply Reliability:
• The term reliability is broad in meaning. In general, reliability designates

the ability of a system to perform its assigned fimction, where past experience helps to
form advance estimates of future performance.
• Reliability can be measured through the mathematical concept of

probability by identifying the probability of successful performance with the degree of
reliability. Generally, a device or system is said to perform satisfactorily if it does not fail
during the time of service. On the other hand, a broad range of devices are expected to
undergo failures, be repaired and then returned to service during their entire useful life.
• In this case a more appropriate measure of reliability is the availability of

the device, which is defined as follows:
• The indices used in reliability evaluation are probabilistic and,

consequently, they do not provide exact predictions. TIley state averages of past events
and chances of future ones by means of most frequent values and long-run averages. 111is
infonmtion should be complemented with other economic and policy considerations for
decision-making in planning, design and operation. The fimction of an electric power
system is to provide electricity to its customers efficiently and with a reasonable
assurance of continuity and quality.
• The task of achieving economic' efficiency is assigned to system operators

or competitive markets, depending on the type of industry structure adopted. On the other
hand, the quality of the service is evaluated by the extent to which the supply of
electricity is available to customers at a usable voltage and frequency. TIle reliability of
power supply is, therefore, related to the probability of providing customers with
continuous service and with a voltage and frequency within prescnbed ranges around the
nominal values.
Load management:
• Load management, also known as demand side management (DSM), is the process
of balancing the supply of electricity on the network with the electrical load by adjusting
or controlling the load rather than the power station output.
• 111is can be achieved by direct intervention of the utility in real time, by the use of
frequency sensitive relays triggering circuit breakers (ripple control), by time clocks, or
by using special tariffs to influence consumer behavior.
• Load management allows utilities to reduce demand for electricity during peak usage
times, which can, in turn, reduce costs by eliminating the need for peaking power plants.
In addition, peaking power plants also often require hours to bring on-line, presenting
challenges should a plant go off-line unexpectedly,

• Load management can also help reduce harmful emissions, smce peaking plants or
backup generators are often dirtier and less efficient than base load power plants. New
load-management technologies are constantly under development - both by private
industry and public entities.
Load Prediction:
.... Electric load forecasting is the process used to forecast fiiture' electric load, given
historical load and weather information and current and forecasted weather information. In the
past :few decades, several models have been developed. to. forecast .electric . load more
accurately. Load forecasting can be divided into three major categories:
~ Long-term electric load forecasting, used to supply electric utility company
. management with prediction of future needs for expansion, equipment
purchases, or staff hiring
• Medium-term forecasting, used for the purpose of scheduling. fuel supplies and
unit maintenance
. . .
• Short-term forecasting, used to supply necessary information for the system
. managerrent of day-to-day operations and unit commitment.
Reactive Power balance:
The balance for the reactive power m a who le- or a part of a system 1$ the next:
LQE+QI=LQF+QH, where:
LQE is the amount of the reactive power from the power plants QI is the balance of the
imported reactive power flows (incoming is the positive) LQF is the amount of the substations
reactive power consrnnptions Q H is the amount of the system elements reactive power
consrnnptions (wires, cables, transformers, reactors, static compensators, etc.). The reactive
power flows from the capacitors and overexcited generators called reactive power production,
the under excited generators and inductances reactive power called reactive power
consrnnption. The reactive power is positive, if the current is delaying to the voltage, while the
active power is positive compared to the power flows on an arbitrary system element S=P+jQ.
These principles considers to the high/middle voltage level systems, but there is no reason to
not to use in micro/smart grid systems as well.
, Online power flow studies:

In power engineering, the power-flow study, also known as load- flow study, is an
important tool involvingnumerical analysis applied to a power system A power- flow study
usually uses simplified notation such as a one-line diagram and per-unit system, and focuses on
various fonns of AC power (i.e.: voltages, voltage angles, real power and reactive power). It
analyzes the power systems in normal steady-state operation. A number of software
implementations of power- flow studies exist.

• Many software implementations perform other types of analysis, such as short-

circuit fault analysis, stability studies (transient & steady-state), unit corrnnitment
and economic dispatch. In particular, some programs use linear programming to find
the optimal power flow, the conditions which give the lowest cost per kilowatt
hour delivered.
• Power-flow or load-flow studies are important for planning future expansion of power
systems as well as in determining the best operation of existing systems. The principal
information obtained from the power-flow study is the magnitude and phase angle of the
voltage at each bus, and the real and reactive power flowing in each line.
• Commercial power systems are usually too large to allow for hand solution of the power
flow. Special purpose network analyzers were built between 1929 and the early 1960s to
provide laboratory models of power systems; large-scale digital computers replaced the
analog methods.
• Newton-Raphson method is the most widely accepted load flow solution algorithm
However LU factorization remains a computationally challenging task to meet the real-
time needs of the power system
• The application of very fast multifrontal direct linear solvers for solving the linear system
sub-problem of power system real-time load flow analysis by utilizing the state-of-the-art
algorithms for ordering and preprocessing.
• Additionally the unsyrrnuetric rilultifrontal method for LU factorization and highly

optimized Intel Math Kernel Library BLAS has been used. Two state-of-the-art
multifrontal algorithms for unsymmetric matrices namely UMFPACK VS.2.0 and
sequential MUMPS 4.8.3 ("Multifrontal Massively Parallel Solver'') are customized for
the AC power system Newton-Raphson based load flow analysis.
• The multifrontal solvers are compared against the state-of-the-art sparse Gaussian
Elimination based HSL sparse solver MA48. This study evaluates the performance of
above muhifrontal solvers in terms of number of factors, computational time, number of
floating-point operations and memory, in the context of load flow solution on nine
systems including very large real power systems.
•
• The resuhs of the performance evaluation are reported. The proposed method achieves
significant reduction in computational time.

Power System Planning
10EE761
State Estimation:
State estimators allow the calculation of these variables of interest with high confidence
despite measurements that are corrupted by noise measurements that may be missing or grossly
Inaccurate.
Objectives:
• To provide a view of real-time power system conditions
·... • . Real-time data primarily come from SCADA SE supplements SCADA data: filter, fill,
smooth,
• .To provide a consistent representation for power system security analysis
• On-line dispatcher power flow
'J Contingency Analysis
• Load Frequency Control
• To provide diagnostics for modeling & maintenance
Computerized management:
Research shows that personal computers (PC) are not being actively used during the vast
.majority of the time that they are kept on. It is estimated that an average PC is in use 4 hours
each work day and idle for another 5.5 hours. It's also estimated that some 30-40 percent of the
US's work PCs are left running at night and on weekends.
Office equipment is the fastest growing electricity load ill the commercial
sector. Computer systems are believed to account for 10 percent or more of commercial
electricity consumption already. Since computer systems generate waste heat, they also increase
the amount of electricity necessary to cool office spaces.
For the Medical Center, we estimate the savings from PC power management to be
hundreds of thousands of dollars annually, even without factoring in increased office cooling
costs. Considerable savings are also possible from easing wear-and-tear on the computers
themselves.
Power System Simulator:
Power system simulation models are a class of computer simulation programs that focus on the
, operation of electrical power systems. These computer programs are used in a wide range of
planning and operational situations including:
l. Long-term generation and transmission expansion planning

2. Short-term operational simulations
3. Market analysis (e.g. price forecasting)

Power System Planning lOEE76 1
These program; typically make use of mathematical optimization teclmiques such linear
prograrmning, quadratic prograrmning, and mixed integer programming.
Key elements of power system; that are modeled include:
1. Load flow (power flow study)

2. Short circuit
3. Transient stability "'.
4. Optimal dispatch of generating units (unit cormnitment)
5. Transmission (optimal power flow)

Power System Planning 1OEE76 1
UNIT 7&8:
Optimal Power System Expansion Planning:
Dptirnization Techniques:
In everyday life, all of us are confronted with some decision makings. Normally, we try to decide
or the best. If someone is to buy a corrnnodity, he or she tries to buy the best quality, yet with the
east cost. These types of decision makings are categorized as optimization problems in which the
. ~.. aim is to find the optimum solutions; where the optimum may be either the least or the most.
Most of the operational and planning problems consist of the fullowing three major steps
, . • Definition
• Modeling
• Solution algorithm
Decision variables are the independent variables; the decision maker has to determine their
optimum values and based on those, other variables (dependent) can be determined. For instance,
in an optimum generation scheduling problem, the active power generations of power plants may
be the decision variables. The dependent variables can be the total fuel consumption, system
losses, etc. which can be calculated upon determining the decision variables. In a capacitor
allocation problem, the locations and the sizing of the capacitor banks are the decision variables,
whereas the dependent variables may be bus voltages, system losses, etc. Mathematical
Algorithms.
A mathematical optnruzation technique formulates the problem m a mathematical

representation; as given by (2.2) through (2.4) .. Provided the objective function and/or the
constraints are nonlinear, the resulting problem is designated as Non Linear optimization
Problem (NLP). A special case of NLP is quadratic programming in which the objective function
;0; a quadratic function of x. If both the objective functions and the constraints are linear
functions of X, the problem is designated as a Linear Programming (LP) problem Other
categories may also be identified based on the nature of the variables. For instance, if x is of
integer type, the problem is denoted by Integer Programming (IP). Mixed types such as
MILP(Mixed Integer Linear Programming) may also exist in which while the variables may be
both real and integer, the problem is also of LP type. For mathematical based formulations, some
algorithms have, so fur, been developed; based on them some commercial software have also
• been generated. In the following subsections, we briefly review these algorithms. We should,
however, note that generally speaking, a mathematical algorithm may suffer from numerical
, problems and may be quite complex in implementation. However, its convergence may be
guaranteed but finding the global optimum solution may only be guaranteed for some types such
as LP. There is no definite and fixed classification of mathematical algorithms. Here, we are not
going to discuss them in details. Instead, we are going to introduce some topics which are of
more interest in this book and may be applicable to power system planning issues. 1 Some topics,
such as game theory, which are of more interest for other power system issues (such as market
analysis of power ystems), are not addressed here.

Power System Planning IOEE76I
Calculus Method:
These types of methods are the traditional way of seeking optirrnnn points. These are applicable
to continuous and differentiable functions of both objective and constraints terms. They make
use of differential calculus in locating the optimum points. Based on the basic differential
calculus developed for finding the optirrnnn points of C(x) , the method of Lagrange Multipliers
has been developed in finding the optimum points; where equality constraints may also apply. If
inequality constraints (2.4) are also applicable, still the basic method may be used; however, the
so called Kulm-Tucker conditions should be observed. The solution is not so straightforward in
that case. ....
Linear Programming (LP) Method:
As already noted, LP is an optimization method in which both the objective function and the
constraints are linear functions of the decision variables. This type of problem was first
recs'-clzed in the 1930s by the economists in developing methods for the optimal allocation of
resources. Noting the fact that
• Any LP problem can be stated as a minimization problem; due to the fact that, as already
described, maximizing C(x) is equivalent to minimizing (-C(x». The problem can be stated in a
form known as canonical Then, a solution known as the simplex method, first devised in 1940s,
, \-'1" used to solve the problem Using the simplex method normally requires a large amount
of computer storage and time. The so called revised simplex method is a revised method in
which less computational time and storage space are required. Still another topic of interest in LP
problems is the duality theory. In fact, associated with every LP problem, a so called dual
-roblem may be fonnulated. In many cases, the solution of an LP problem may be more easily
obtained from the dual problem If the LP problem has a special structure, a so called
decomposition principle may be employed to solve the problem in which less computer storage
,is required. '
Non Linear Programming (NLP) Method:

We noted earlier that if the objective function and/or the constraints are nonlinear functions of
the decision variables, the resulting optimization problem is called NLP. Before proceeding
further on NLP problems, we should note that most practical problems are of constrained type in
which some constraint functions should be satisfied. As for constrained problems, however,
some algorithms work on the principle of transforming the problem into a unconstrained case,
we initially review some existing algorithms on solving unconstrained problems. The solution
methods for unconstrained problems may be generally classified as direct search (or non-
gradient) methods and descent (or gradient) methods. The fonner methods do not use the partial •
derivatives of the objective function and are suitable for simple problems involving a relatively
small number of variables. The latter methods require the evaluations of the first and possibly,
the higher order derivatives of the objective function. As a result, these methods are generally ..
more efficient than the direct methods. All the unconstrained optimization methods are iterative
in nature and start from an initial trial solution; moving stepwise in a sequential manner towards
the optimum solution. The gradient methods have received more attention in power system
literature. For instance, in the so called steepest descent method; widely used in power system
literature, the gradient vector is used to calculate the optimum step length along the search
direction so that the algorithm efficiency is maxirnized.

Let us come back to the constrained case. Two types of methods, namely, direct and indirect
methods apply. In the former methods, the constraints are handled in an explicit manner, while in
most of the latter methods; the constrained problem is converted into a sequence of
unconstrained problems and solved through available algorithms. As an example of the direct
methods, in the so called constraint approximation method, the objective fimction and the
constraints are linearized about some point. The resulting approximated LP problem is solved
using LP techniques. The resulting solution is then used to construct a new LP problem The
process is continued until a convergence criterion is satisfied. As an example of the indirect
methods, the so called penalty fimction method, works on the principle of converting the
_"
problem into an unconstrained type. It is, in tum, classified as interior and exterior penalty
function methods. In the former, the sequence of unconstrained minima lie in the feasible region
while in the latter, they lie in the infeasible region. In both, they move towards the desired.
"Jpamic Programming (DP) Method:

Dynamic Programming is a widely used technique in power system studies. It is, in fact, a
mathematical technique used for muhistage decision problems; originally developed in 1950s. A
multistage decision problem is a problem in which optimal decisions have to be made over some
stages. The stages may be different times, different spaces, different levels, etc. The important
point is that the output of each stage is the input to the next serial stage. The overall objective
fimction is to be optimized over all stages. It is normally a fimction of the decision variables (xi)
of all stages. The important fact is that one cannot start from optimizing the first stage; moving
forward toward the final stage; as there may be some correlations between the stages, too. To
make the problem clear, let us express a power system example. Suppose we are going to
minimize the generation cost of a power system over a 24-h period. Some information is as
follows .
• There are four generation units available; each of which may be either off or on (so that various
combinatio ns are possible, such as, 1111, 1101, 1001" 00 11, ... ).
• The unit efficiencies are different; so that if the system load is low and say, two units can meet
the load, we should use the higher efficient units to supply the load.
• The load varies throughout the 24-h period; changing at each hour (stage). The multistage
decision problem is, in fact, deciding on the units to be on at each stage so that the overall
generation cost over the 24-h period is minimized. We note that if no other constraint was
imposed, we should optimize our problem at each. stage and sum it over all stages. In other
words, 24 single stage optimization problems2 have to be solved to find the final solution.
Suppose that the final solution looks like Fig. 2.5 in which the unit combinations are shown at
each stage. As shown, unit 1 is on at hours 1 and 2, off at hour 3, and on again at hour 4. Now
• what happens if a constraint is imposed expressing the fact that if unit 1 is turned off, it cannot be
turned on unless a 5-h period is elapsed.
,
Integer Programming Method:
In the algorithms discussed so fur, each of the decision variables may take any real value. What
happens if a decision variable is limited to take only an integer value? For instance, if the
decision variable is the number of generation units, taking a real value is meaningless. The
optimization algorithms developed for this class of problems are classified as IP methods. If all
decision variables are of integer type, the problem is addressed as IP problem If some decision
variables are of integer type while some others are of non-integer type, the problem is known as

Power System Planning IOEE76 I
mixed integer programming problem Moreover, based on the nature of the original problem,
both integer linear programming and integer nonlinear programming methods have been
developed. As a resuh, in power system literature, some terms such as MILP have appeared.
2.3.2 Heuristic Algorithms Most mathematical based algorithms can guarantee reaching an
optimal solution; while do not necessarily guarantee reaching a global optimum Global
optimality may be only reached, checked or guaranteed for simple cases. On the other hand,
many practical optimization problems do not full in strict forms and assumptions of
mathematical based algorithms. Moreover, if the problem is highly complex, we may not readily
be able to solve them, at all, through mathematical algorithms. Besides, finding global optimum ....
is of interest, as finding a local one would be a major drawback. Heuristic algorithms are devised
to tackle the above mentioned points. They, normally, can solve the combinatorial problems,
sometimes very complex, yet in a reasonable time. However, they seek good solutions, without
being able to guarantee the optimality, or even how close the solutions are to the optimal point.

Power System planning 10EE761
Assignment Questions
UNIT I
1. Explain Lease Cost Planning with flowchart

2. Descnbe the two techniques of load forecasting in power system
3. Discuss the different planning tools.
4. What do you mean by planning process? Explain step by step procedme for strategic
planning.
5. Explain national and regional planning.
6. Explain forecast modeling.
7. Explain the different components of power system
8. Explain the electricity regulation act 1956.
UNIT 2&3
1. Explain the strategy for transmission expansion in power system

2. What are the basic processes of co-generation? Explain.
3. What is the need for private participation in generation planning? How can it improve the
power situation in India?
4. Discuss in brief the basic: tariff making philosophy.
5. Explain the benefit of cogeneration.
6. What are the objectives of sound pricing? Explain.
7. Discuss the factors to be considered for dispatchability in power system planning studies.
8. Write a note on rural electrification investment.
9. With the help of block diagram, explain distnbuted power generation planning. List plan
options, uncertainties and attnbutes.
10. Write a note on distnbution planning.
• II. Discuss in brief rational tariff.
UNIT 4
,
1. What are the source of absorption and generation of reactive power in transmission and
distnbution lines? Compare advantages and disadvantages of any 4 compensating
equipments.
2. Explain the methods of post combustion cleanup process to reduce gaseous pollutions.
3. Explain computer aided planning with block diagram
4. Write a note on greenhouse effect of power generation.
Department of EEE, SJBIT Page 1

Power System planning 1OEE761
5. Discuss wheeling in power system and list the typical objectives in wheeling.
6. Explain the effect of power generation on environment.
7. Explain insulation coordination with a neat sketch.
8. What are the technological impacts from power generation?
9. Write a note on reactive compensation.
UNIT 5&6
1. Define system reliability and explain reliability planning criteria.

2. With the help of schematic diagram, explain load management technique.
3. Explain reactive power balance in power system
4. With the help of block diagram, explain computerized management of power system
5. Explain power system simulator with a neat sketch.
6. Explain in brief the following real time operations:
a. State estimation.
b. AGe
c. Economic load dispatch
d. Stability.
7. What is load prediction?
8. Write a note on online power flow studies
9. With the help of a schematic diagram, explain state estimation.
UNIT 7&8
1. Develop mathematical objective function of power system expansion planning.

2. What are the constraints observed during optimization process of power system
expansion planning?
3. Explain least cost optimization problem
4. Explain in brief two optimization techniques.
5. Explain least cost optimization problem for thermal plants
6. Explain least cost optimization problem for hydro plants •
7. Explain least cost optimization problem for nuclear plants
8. Explain least cost optimization problem for non-conventional plants.

VTU QUESTION BANK
UNIT 1
1. Explain Lease Cost Planning with flowchart. [Dec 201311an 2014]

2. Descnbe the two techniques of load forecasting in power system [Dec 201311an 2014]
3. Discuss the different planning tools. [Dec 201311an 2014]
UNIT 2&3
1. With the help of block diagram, explain distnbuted power generation planning. List plan
options, uncertainties and attnbutes. [Dec 201311an 2014]
2. What is co-generation? Descnbe the two techniques ofcogeneration.[Dec 201311an 2014]
~. Write a note on distnbution planning. [Dec 201311an 2014]
4. Discuss in brief rational tariff. [Dec 20 1311an2014]
power situation in India? [Dec 201311an 2014]
UNIT 4
[Dec 201311an 2014]
2. Explain the effect of power generation on environment. [Dec 201311an 2014]
distribution lines? Compare advantages and disadvantages of any 4 compensating
equipments. [Dec 201311an 2014]
UNIT 5&6
,
1. Define system reliability and explain reliability planning criteria. [Dec 201311an 2014]
2. Explain in brief the following real time operations: [Dec 20 1311an2014]
s. State estimation.
b. AGC
c. Economic load dispatch
d. Stability.

Power System planning lOEE761

[Dec 20l3/Jan 2014]
4. Explain reactive power balance in power system [Dec 20l3/Jan 2014]
5. With the help of block diagram, explain computerized management of power system
[Dec 2013/Jan 2014]
UNIT 7&8
1. Develop mathematical objective function of power system expansion planning: .

[Dec 2013/Jan 2014]
expansion planning? [Dec 2013/Jall 2014]
3. Explain least cost optimization problem [Dec 20l3/Jan 2014]
4. Explain in brief two optimization techniques. [Dec 2013/Jan 2014]
Department of EEE, SJBfT Page 2

Solution to VTU Question Bank
UNIT 1
I. Explain Lease Cost Planning with flowchart. [Dec 2013/Jan 2014]

Least Cost Utility Planning:
There are two fimdamental problems inherent in traditional planning. The first is that
.... demand forecasting and investment planning are treated as sequential steps in planning, rather
than as interdependent aspects of the planning process. The second problem is that planning
efforts are inadequately directed at the main constraints facing the sector, namely the serious
shortage of resources.
1. Demand forecasts are little more than extrapolations of past trends of consumption, no
attempt is made to understand neither the extent of unmet demand nor the extent to which
the prices influence the demand growth. Greater attention should be paid to end use
efficiency, plant rehabilitation, loss reduction program, etc.
2. Least cost planning (LCUP) is least cost utility planning strategy to provide reliable
electrical services at lowest overall cost with a mix of supply side and demand side
options.
3. The LCUP uses various options like end use efficiency, load management, transmission
and distnbution options, alternative tariff options, etc.
4. This planning process can yield enormous benefits to consumers and society because it
affords acquisition of resources that meet consumer energy service needs that are low in
cost, environmentally fiiendly.
5. LCUP as a planning and regulatory process can greatly reduce the uncertainty and risks
faced by utilities. The logic for least cist planning is shown in the figure below:
Op tions
...
(plans)
Regula tions
Least Cost
Planning
Process
- >Attributes:
,
6. For an investment to be least cost, the lifetime costs are considered. These include capital
costs, interest on capital, fuel cost and operation and maintenance costs.
Department ofEEE, SJBIT Page 1

social and simulation

environmental resource mixes 1----+'analysis
factors
monitor
Fig: flowchart for least cost planning
2. Descnbe the two techniques of load forecasting in power system [Dec 20 13/Jan 2014]
Forecasting Techniques:
Load forecasting is vitally important for the electric industry in the deregulated economy.
It has many applications including energy purchasing and generation, load switching, contract
evaluation, and infrastructure development. A large variety of matherratical methods have been
developed for load forecasting. In this chapter we discuss various approaches to load forecasting. ...
Forecasting Methods
•
• Over the last few decades a number of forecasting methods have been developed. Two of
the thods, so-called end-use and econometric approach are broadly used for medium- and
long-term forecasting. Avariety of methods, which include the so-called similar day
approach, various regression models, time series, neural networks, expert systems,fuzzy
logic, and statistical learning algorithms, are used for short-term forecasting.
• The development, improvements, and investigation of the appropriate mathematical tools
will lead to the development of more accurate load forecasting techniques. Statistical

approaches usually require a mathematical model that represents load as fi.mction of

different factors such as time, weather, and customer class.
• The two important categories of such mathematical models are: additive models and
multiplicative models. They differ in whether the forecast load is the sum (additive) of a
mnnber of components or the product (multiplicative) of a number of factors. For
example, Chen et al. [4] presented an additive model that takes the form of predicting
load as the fimction offour components:
L = Ln + L w + Ls + Lr,
where L is the total load, Ln represents the "normal" part of the load,which is a set of
standardized load shapes for each "type" of day that has been identified as occurring throughout
the year, Lw represents the weather sensitive part of the load, Ls is a special event component
that create a substantial deviation from the usual load pattern, and Lr is a completely random .
• term, the noise.
~ A multiplicative model may be of the form
L = Ln . Fw . Fs . Fr,
where Ln is the normal (base) load and the correction factors Fw, Fs, and Fr are positive·
numbers that can increase or decrease the overall load. These corrections are based on current
weather (Flv), special events (Fs), and random fluctuation (Fr). Factors such as electricity
pricing (Fp) and load growth (Fg) can also be included. Rahman [29] presented a rulebased
forecast using a multiplicative model. Weather variables and the base load associated with the
weather measures were included in the modeL .
3. Discuss the different planning tools. [Dec 2013/Jan 2014]
Planning Tools:
1. Planning engineer's primary requirement is to give power supply to consumers in a

reliable manner at a minimum cost with due flexibility for future expansion.
2. The criteria and constraints in planning an energy system are reliability, environmental
economics, electricity pricing, financial constraints, society impacts.
3. reliability, environmental, economic and financial constraints can be quantified. Social
effects are evaluated qualitatively.
4. The system must be optimal over a period of time from day of operation to the lifetime.
S. Various computer programs are available and are used for fast screening ofaltemative
plans with respect to technical, environmental. and economic constraints.
, The available tools for power system planning can be split into:
• Simulation tools: these simulate the behavior of the system under certain conditions
and calculate relevant indices. Examp les are load flow models, short circuit models,
stability models, etc.
• Optimization tools: these minimize or rraxrrmze an objective fimction by choosing
adequate values for decision variables. Examples are optimum power, least cost
expansion planning, generation expansion planning, etc.
Department of E EE, SJBIT Page 3

e. MAIN DISCONNECT
To insure the uhimate in safety for the City of Gallup fire personnel, all new or rewired
electric services shall have a single disconnect point on the exterior part of the building
so that the fire department can de-energize the building if necessary in case of fire. The
Developer shall provide the size of the main disconnect on the design submitted.
4. Discuss in brief rational tariff. [Dec 20l3/Jan 2014]
• Power is the rate of flow of energy. Similarly, generating capacity, the ability to produce
power is itself a flow. A megawatt (MW) of capacity is worth little if it lasts only a
minute just as a MW of power delivered for only a minute is worth little.
But a MW of power or capacity that flows for a year is quite valuable. The price of both
power and energy can be measured in $/MWh, and since capacity is a flow like power
and measured in MW, like power, it is priced like power, in $/MWh.
, Many find this confusing, but an examination of screening curves shows that this is
traditional (as well as necessary).
Since fixed costs are mainly the cost of capacity they are measured in $IMWh and can
be added to variable costs to find. total cost in $lMWh. When generation cost data are
presented, capacity cost is usually stated in $/kW .
., This is the cost of the flow of capacity produced by a generator over its lifetime, so the
true (but unstated) units are $/kW -lifetime. This cost provides useful information but
only for the purpose of finding fixed costs that can be expressed in $/MWh. No other
useful economic computation can be performed with the "overnight" cost of capacity
given in $/kW because they cannot be compared with other costs until "levelized."
While the U.S.
• Department of Energy sometimes computes these economically useful (levelized) fixed
costs, it never publishes them Instead it combines them with variable costs and reports
total levelized energy costs.This is the result of a widespread lack of understanding of
the nature of capacity costs. Confusion over units causes too many different units to be
used, and this requires unnecessary and sometimes impossible conversions.
power situation in India? [Dec 2013/Jan 2014]
, Private Paticpation:
• Private participation in 1991 to hasten the increase in generating capacity and to improve the
system efficiency as well However, although several plants are under construction, till early
1999, eneration had commenced at private plants totalling less than 2,000 MW.
• In contrast, some state undertakings have completed their projects even earlier than
scheduled.Independent power producers (IPPs) claim that their progress has been hindered by

problems such as litigation, fmancial arrangements, and obtaining clearances and fuel supply
agreements. On the other hand, the State Electricity Boards have been burdened by power
purchase agreements (PPAs) that favour the IPPs with such clauses as availability payment
irrespective of plant utilization, tariffs reflecting high capital costs and returns on equity, etc.
• The process of inviting private participation in the power sector and the problems experienced
seem to have spurred on the restructuring of the power sector, including the formation of Central
and State Electricity Regulatory Commissions.
• However, some important problems have not been addressed. Additions to the generation
capacity without corresponding improvement of the transmission and distribution facilities are
likely to further undermine the system efficiency ..
• What is more, issues like the reduction of "commercial losses" appear to have been ignored.Most
importantly, investment in infrastructure has been a state responsibility because the intrinsically
long gestation coupled with the relatively low returns from serving all categories of consumers
have rendered such projects commercially unprofitable. Whether or not private participation can
take on such tasks is to be seen.
UNIT 4
[Dec 2013/Jan 2014]
Wheeling:
• In electric power transmission, wheeling is the transportation of electric power

(megawatts or megavolt-amperes) over transmission lines.[I]
• Electric power networks are divided into transmission and distnbution

networks. Transmission lines move electric power between generating
facilitiesand substations, usually in or near population centers. From substations, power
is sent to users over a distnbution network. A transmission line might move power over a
few miles or hundreds of miles.
• An entity that generates power does not have to own power transmission lines: only a
connection to the network or grid. The entity then pays the owner of the transmission line
based on how much power is being moved and how congested the line is.

• Some power generating entities join a group which has shared ownership of transmission
lines. These groups may include investor-owned utilities, government agencies, or a
combination of these.
• Since prices to move power are based on congestion in transmission line networks,
utilities try to charge customers more to use power during peak usage (demand) periods.
This is accomplished by installing time-of-use meters to recover wheeling costs.
2. Explain the effect of power generation on environment. [Dec 2013/Jan 2014]
Environmental impact:
The environmental impact of electricity generation is significant because modem society

uses large 'amounts of electrical power. This power is normally generated at power
plants that convert some other kind of energy into electrical power. Each system has
advantages and disadvantages, but many of them pose environmental concerns.
The amount of water usage is often of great concern for electricity generating systems as
populations increase' and droughts become a concern. Still, according to the U.S.
Geological Survey, thermoelectric power generation accounts for only 3.3 percent of net
freshwater consumption with over 80 percent going to irrigation. Likely future trends in
water consumption are covered here. General numbers for fresh water usage of different
power sources are shown below.
• Steam-cycle plants (nuclear, coal, NG, solar thermal) require a great deal of water for
cooling, to remove the heat at the steam condensors. The amount of water needed relative
to plant output will be reduced with increasing boiler temperatures. Coal- and gas-fired
boilers can produce high steam temperatures and so are more efficient, and require less
cooling water relative to output. Nuclear boilers are limited in steam temperature by
material constraints, and solar is limited by concentration of the energy source.
• Thermal cycle plants near the ocean have the option of using seawater. Such a site will
not have cooling towers and will be much less limited by environmental concerns of the
'i discharge temperature since dumping heat will have very little effect on water
temperatures. This will also not deplete the water available for other uses. Nuclear power
in Japan for instance, uses no cooling towers at all because all plants are located on the
coast. If dry cooling systems are used, significant water from the water table will not be
used. Other, more novel, cooling solutions exist, such as sewage cooling at the Palo
Verde Nuclear Generating Station.
• Most electricity today is generated by burning fossil fuels and producing steam which is
then used to drive a steam turbine that, in tum, drives an electrical generator. Such

systems allow electricity to be generated where it is needed, since fossil fuels can readily
be transported. They also take advantage of a large infrastructure designed to support
consumer automobiles.
• The world's supply of fossil fuels is large, but finite. Exhaustion of low-cost fossil fuels
will have significant consequences for energy sources as well as for the manufacture
of plastics and many other things. Various estimates have been calculated for exactly
when it will be exhausted (see Peak oil). New sources of fossil fuels keep being
discovered, although the rate of discovery is slowing while the difficulty of extraction
simultaneously increases.
distnbution lines? Compare advantages and disadvantages of any 4 compensating
equipments. [Dec 20l3/Jan 2014]
leactive compensation:
• Except in a very few special situations, electrical energy is generated, transmitted,

distnbuted, and utilized as alternating current (AC) .. However.alternating current has
several distinct disadvantages. One of these is the necessity of reactive power that
needs to be supplied along with active power.
• Reactive power can be leading or lagging.While
. it is the' .active power that contnbutes
to the energy consumed, or transmitted, reactive power does not contnbute to the
energy. Reactive power is an inherent part of the "total power."
• Reactive power is either generated or consumed in almost every component of the
system, generation, transmission, and distnbution and eventually by the loads. The
impedance of a branch of a circuit in an AC system consists of two components,
resistance and reactance.
• Reactance can be either inductive or capacitive, which contnbute to reactive power in
the circuit.Most of the loads are inductive, and must be supplied with lagging reactive
power.
• It is economical to supply this reactive power closer to the load in the distrIbution
systemReactive power compensation in power systems can be either shunt or series.
,
Shurt Capadors:
Shoot capacitors are employed at substation level for fullowing reasons:
• Reducilg power bsses

Compensating the load lagging power factor with the bus connected shunt capacitor bank
improves the power factor and reduces. current flow through the transmission lines,
transformers, generators, etc. This will reduce power losses (l2R losses) in this equipment.
• lnreased uiizaton of equprren

Shunt compensation with capacitor banks reduces kVA loading of lines, transformers, and
generators, which means with compensation they can be used for delivering more power
without overloading the equipment. Reactive power compensation in a power system is of two
types-shoot and series. Shunt compensation can be installed near the load, in a distnbution
substation, along the distnbution reeder, or in a transmission substation.
• Vo~ regulrtim
The main reason that shunt capacitors are installed at substations is to control the voltage
within required levels. Load varies over the day, with very low load from midnight toearly
morning and peak values occurring in the evening between 4 PM and 7 PM. Shape of the load
curve also varies from weekday to weekend, with weekend load typically low.
• Slut Reactse Power Corrpersaton
Since most ·loads are inductive· and consume lagging reactive power, the compensation
required is usually supplied by leading reactive power. Shunt compensation of reactive power
.can. be .employed either at load level, substation level, or at transmission level
• It can be capacitive (leading) or inductive (lagging) reactive power, although in most
cases compensation is capacitive. The most common form of leading reactive power
compensation is by connecting shunt capacitors to the line.
• As the load varies, voltage at the substation bus and at the load bus varies. Since the .-
load power factor is always lagging, a shunt connected capacitor bank at the substation .
can raise voltage when the load is high. The shunt capacitor banks can be permanently .
connected to the bus (fixed capacitor bank) or can be switched as needed. Switching
can be based on time, if load variation is predictable, or can be based on voltage, power
factor, or line current.
UNIT 5&6
1. Define system reliability and explain reliability planning criteria. [Dec 20l3/Jan 2014]
Power Supply Reliability:
• The term reliability is broad in meaning. In general, reliability designates

the ability of a system to perform its assigned fimction, where past experience helps to
form advance estimates of future performance.
• Reliability can be measured through the mathematical concept of

probability by identifying the probability of successful performance with the degree of
reliability. Generally, a device or system is said to perform satisfactorily if it does not mil

during the time of service. On the other hand, a broad range of devices are expected to
undergo failures, be repaired and then returned to service during their entire useful life.
• In this case a more appropriate measure of reliability is the availability of

the device, which is defined as follows:
• The indices used in reliability evaluation are probabilistic and,

consequently, they do not provide exact predictions. They state averages of past events
and chances of future ones by means of most frequent values and long-run averages. This
information should be complemented with other economic and policy considerations for
decision-making in planning, design and operation. The function of an electric power
system is to provide electricity to its customers efficiently and with a reasonable
assurance of continuity and quality.
• The task of achieving economic efficiency is assigned to system operators

or competitive markets, depending on the type of industry structure adopted. On the other
hand, the quality of the service is evaluated by the extent to which the supply of
electricity is available to customers at a usable voltage and frequency. The reliability of
power supply is, therefore, related to the probability of providing customers with
continuous service and with a voltage and frequency within prescnbed ranges around the
nominal. values.
2. Explain in brief the following real time operations: [Dec 2013/Jan 2014]
a. State estimation:
State estimators allow the calculation: of these variables of interest with high confidence
despite measurements that are corrupted by noise measurements that may be missing or grossly
Inaccurate.
Objectives:
• To provide a view of real-time power.system conditions
• Real-time data primarily come from SCADA SE supplements SCADA data: fiher, fill,
•
smooth.
To provide a consistent representation for power system security analysis
..
• On-line dispatcher power flow
•
•
Contingency Analysis
Load Frequency Control
•
• To provide diagnostics for modeling & maintenance
b. AGe: In an electric power system, Automatic generation control (AGC) is a system

for adjusting the power output of multiple generators at different power plants, in
response to changes in the load. Since a power grid requires that generation and load
Department of EEE, 5JBfT Page 12

c10sely balance moment by moment, frequent adjustments to the output of generators

are necessary. The balance can be judged by measuring the system frequency; if it is
increasing, more power is being generated than used, and all the machines in the
system are accelerating. If the system frequency is decreasing, more 10ad is on the
system than the instantaneous generation can provide, and all generators are slowing
down.
c. Economic load dispatch: Economic dispatch is the short-term determination of the

optimal output of a number of electricity generation facilities, to meet the system
load, at the lowest possible cost, subject to transmission and operational constraints.
The Economic Dispatch Problem is solved by specialised computer software which
should honour the operational and system constraints of the availabIe resources and
corresponding transmission capabilities. The main idea is that in order to serve 10ad at
minimum total cost, the set of generators with the lowest marginal costs must be used
first, with the marginal cost of the final generator needed to meet load setting the
.system marginal cost. This is the cost of delivering one additional MW of energy onto
the system The historic methodology for economic dispatch was deve10ped to
manage fossil fuel burning power plants, relying on calculations involving the
input/output characteristics of power stations.
d. Stability: TIle stability of a system refers to the ability of a system to return back to
its steady state when subjected to, a disturbance. As mentioned before, power is
generated by synchronous generators that operate in synchronism' with the rest of the
system A generator is synchronized with a bus when both of them have same
frequency, voltage and phase sequence. We can thus define the power system stability
as the ability of the power system to return to steady state without losing
synchronism Usually power system stability IS categorized into Steady
State, Transient and Dynamic Stability.

[Dec 2013/Jan 2014]
Load management:
• Load management, also known as demand side management (DSM), is the process
of balancing the supply of electricity on the network with the electrical 10ad by adjusting
or controlling the load rather than the power station output.
• This can be achieved by direct intervention of the utility in real time, by the use of
frequency sensitive relays triggering circuit breakers (ripple control), by time clocks, or
by using special tam to influence consumer behavior.
• Load management allows utilities to reduce demand for electricity during peak usage
times, which can, in turn, reduce costs by eliminating the need for peaking power plants.
Department of EEE, SJB!T Page 13

In addition, peaking power plants also often require hours to bring on-line, presenting
challenges should a plant go off-line unexpectedly.
• Load management can also help reduce harmful emissions, since peaking plants or
backup generators are often dirtier and less efficient than base load power plants. New
load-management technologies are constantly under development - both by private
industry and public entities.
4. Explain reactive power balance in power system [Dec 20l3/Jan 2014]

Large flows of reactive power have been observed in parts of the network with a large
penetration of wind power.
-The transfer of reactive power leads to the following problems:-
Occupation of active power transfer capacity-
Thermal losses-
Voltage differences-
Occupation of dynamic compensation reserves-
Decrease in vohage stability margin
-The installation of reactors, capacitors, SCs, SVCs or STATCOMs in the transmission
ystem is expensive
-Only little knowledge of the actual reactive power flows in the distribution systems.
5. With the help of block diagram, explain computerized management of power system.
[Dec 2013/Jan 2014]
Computerized management:
Research shows that personal computers (PC) are not being actively used during the vast
majority of the time that they are kept on. It is estimated that an average PC is in use 4 hours
each work day and idle for another 5.5 hours. It's also estimated that some 30-40 percent of the
US's work PCs are left nmning at night and on weekends.
Office equipment is the fastest growing electricity load m the commercial

sector. Computer systems are believed to account for 10 percent or more of commercial
electricity consumption already. Since computer systems generate waste heat, they also increase
the amount of electricity necessary to cool office spaces.
•
For the Medical Center, we estimate the savings from PC power management to be
hundreds of thousands of dollars annually, even without factoring in increased office cooling
•
costs. Considerable savings are also possible from easing wear-and-tear on the computers
themselves.

Power System planning lOEE761
UNIT 7&8
1. Develop mathematical objective function of power system expansion planning.

[Dec 2013/Jan 2014]
A mathematical optimization technique formulates the problem in a mathematical

representation; as given by (2.2) through (2.4). Provided the objective fimction and/or the
constraints are nonlinear, the resulting problem is designated as Non Linear optimization
Problem (NLP). A special case of NLP is quadratic programming in which the objective
fimction is a quadratic fimction of x. If both the objective fimctions and the constraints
are linear fimctions of X, the problem is designated as a Linear Programming (LP)
problem Other categories may also be identified based on the nature of the variables. For
instance, if x is of integer type, the problem is denoted by Integer Programming (IP).
Mixed types such as MILP(Mixed Integer Linear Progrannning) may also exist in which
while the variables may be both real and integer, the problem is also of LP type. For
mathematical based formulations, some algorithms have, so fur, been developed; based
on them some commercial software have also been generated. In the following
subsections, we briefly review these algorithms. We should, however, note that generally
speaking, a mathematical algorithm may suffer from numerical problems and may be
quite complex in implementation.· However, its convergence may be guaranteed but
finding the global optimum solution may only be guaranteed for some types such as LP.
There is no definite and fixed classification of mathematical algorithms. Here, we are not
going to discuss them in details. Instead, we are going to introduce some topics which are
of more interest in this book and may be applicable to power system planning issues.l
Some topics, such as game theory, which are .of more interest for other power system
issues (such as market analysis of power ystems); are not addressed here.
expansion planning? [Dec 2013/Jan 2014]
Constraints
The constraints to be observed during the optimization process are as follows:
• Generation capacity: the capacity sum of newly installed and existing generating
units are more than or equal to the load demand plus reserve in each year within
planning period.
• Reliability: the reliability index LOLP is used to evaluate adequacy of generating
units.
LOLP index of critical period in year t and
• The presence of hydro power plants: this constraint expresses the maximum
energy obtained from a hydro power plant in the different periods of the planning
horizon at different climatic conditions.
• Fuel constraint: maximum fuel supply of different fuel types of thermal plants.
• Emission constraint: maximum production rate of pollution.

Power System planning 1OEE76 1
3. Explain in brief two optimization techniques. [Dec 20l3/Jan 2014]

Energy consumption is rapidly increased in development countries, which effects global
climate change and global and regional energy management. Among the various kinds of
energy carriers, electricity has a special role in helping to attain social and economic
development. The problem of power system planning may be classified as generation
expansion planning (GEP), transmission expansion planning (TEP), and distribution
expansion planning (DEP). This decomposition is normally performed to make the very
highly complex combined problem possible. Generation Expansion Planning (GEP) is
considered one of major parts of power system planning issues. The aim of GEP is to
•
';k the most economical generation expansion scheme achieving an acceptable
reliability level according to the forecast of demand increase in a certain period of time.
The feasibility of the generation structure, the cost of primary energy resources and fuel
for the scheme, and the reliability indices of electricity supply, make generation planning
a very complicated optimization mathematically. Some of these restrictions have been
applied in GEP in the recent literature WASP-IV is powerful software developed by
International Atomic Energy Agency (IAEA) in which a dynamic programming approach
is employed to find an overall optimal required generation capacity for the network so
that an index, such as LOLP, is minimized.
4. Explain least cost optimization problem [Dec 20l3/Jan 2014]
Optimization Techniques:
In everyday life, all of us are confronted with some decision makings. Normally, we try to decide
or the best. If someone is to buy a commodity, he or she tries to buy the best quality, yet with the
east cost. These types of decision makings are categorized as optimization problems in which the
aim. is to find the optimum solutions; where the optimum may be either the least or the most.
Most of the operational and planning problems consist of the following three major steps
• Definition
• Modeling
• Solution algorithm
Decision variables are the independent variables; the decision maker has to determine their
•
optimum values and based on those, other variables (dependent) can be determined. For instance,
in an optimum generation scheduling problem, the active power generations of power plants may
be the decision variables. The dependent variables can be the total fuel consumption, system
losses, etc. which can be calculated upon determining the decision variables. In a capacitor
allocation problem, the locations and the sizing of the capacitor banks are the decision variables,
whereas the dependent variables may be bus voltages, system losses, etc. Mathematical
Algorithms.
Department of EEE, SJ8IT Page 16

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1

POW£R S~ST£M PLANNING

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ANILKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere.

Krishna Xerox 9008281471

UNlT-l~ INTRODUCTION OF POWER PLANNING

ANlLKUMAR K.M., AssistantProfessor in E&EE, B.l.E.T, Davangere.

POWER SYSTb. ...l11J!LAJVJV1N<i

1.3 POWER SYSTEMS

Karnataka during 1902 •

ANILKUMAR K.M ••AssistantProfessor inE&EE. BJ.E.T. Davangere.

POWER SYSTEM PLANNING

1.4 STRATEGIC PLANNING

the allocation of resources necessary to accomplish these goals.

(ii) Demand billing.

planning are shown in the next page.

t4I... Al'lTT VTl1\JI AV TC M A ",,;M<>,..t l>rnfl><:<.:nT ;n F&F'R HJ.E.T. Davaneere.

POLICIES, STRATEGIES . PROCEOURl:S' . BUDGETS.;

Flow chart showing the Components of Planning

ANll..KUMAR K.M., Assistant Professor inE&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

ANaKUMAR K.M., Assistant Professor in E&EE, B.I.E.T, Davangere,

POWER SYSTEM PLANNING

ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T,Davangere.

1.5 POWER DEVELOPMENT

ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T,Davangere.

POWER SYSTEM PLANNING

1.6 PO'VER GROWTH

855 TWh) electricity during 2011-12 fiscal.

to achieve balanced growth in the power sector .

ANILKUMAR K.M., AssistantProfessorin E&EE, B.l.E.T,Davangere.

POWER SYSTEM PLANNING

2. NATIONAL AND REGIONAL PLANNING

ANILKUMAR K.M., AssistantProfessor inE&EE, B.I.E.T,Davangere.

POWER SYSTEM PLANNING

2.2 INTEGRATED RESOURCES PLANNING

ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T, Davangere.

POWER S¥':''1'bM J'LAiV1V./.JVb

ANll.KUMAR K.M., AssistantProfessorin E&EE,B.I.E.T,Davangere.

POWER SYSTEM PLANlVING

The process of least cost planning

3. STRUCTURE OF POWER SYSTEM

ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T,Davangere.

Standard system KV Volt.ag~ (IS: 12360) --

POWER SYSTEM PLANNING

Radial System Loop System

POWER SYSTEM PLANNING

ANILKUMAR K.M., AssistantProfessor in E&EE,B.I.E.T, Davangere.

POWER SYSTEM PLANNING

frequency by m0x:.ethan 3 percent.

place in world ranking .

ANll-KUMAR K.M., Assistant Professorin E&EE, B.I.E.T, Davangere.

POWER SYSTEM PLANNING

Optimum generation Best combination ofdifferenttypes and sizes of generating units

~KUMAR K.M., AssistantProfessor in E&EE, B.lE.T, Davangere.

POWER SYSTEM PLANNING

6. THE ELECTRICITY REGULATIONS

ANILKUMAR K.M.• Assistant Professor in E&EE, B.I.E.T, Davangere.

ANn~KUMAR K.M.. AssistantProfessorin E&EE,RI.E.T, Davangere.

POWER SYSTEM Pl..ANN1N(J

.. premises; identification of earthed conductors; accessibility of bare conductors; provisions

X-ray and high frequency installations.