Winter 2014: ECE666 Power Systems Operation

Assignment-2: Submission due: Friday 4th April 2014, 4:30 PM

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Question-1: Consider the 4-bus power system shown below. Bus-1 and bus-4 have generators
with 10 $/MWh and 20 $/MWh average cost of generation, respectively. Bus-2 has a load of 180
MW while bus-3 has a load of 320 MW. The line impedances have the following relations: Z1-2 =
Z3-4, Z1-3 = Z2-4; and that, Z1-2 = 2xZ1-3.
a) Find the LMP at each bus, if the transmission line limits are ignored.
b) Find the power flows on the lines for case (a).
c) Find the LMP at each bus, if all transmission lines have a maximum capacity of 250 MW

G1 = 10 $/MWh
0 ≤ PG1 ≤ 600 MW

180 MW
Bus-1 Bus-2
c

c
c

c
Bus-3 Bus-4
320 MW

G4: 20 $/MWh
0 ≤ PG4 ≤ 200 MW
Question-2:
A 3-bus system is shown below. The cost function of generators at Bus-1 and Bus-2 are given as:
2
𝐶1 (𝑃𝐺1 ) = 0.001𝑃𝐺1 + 2.5𝑃𝐺1 + 450 $/ℎ𝑟
2
𝐶2 (𝑃𝐺2 ) = 0.0025𝑃𝐺2 + 2𝑃𝐺2 + 250 $/ℎ𝑟

The load at Bus-1 and Bus-2 are 𝑃𝐷1 = 200 MW and 𝑃𝐷2 = 150 MW, respectively. The load at
Bus-3 is price elastic with a benefit function 𝑊3 (𝑃𝐷3 ) = 4.25𝑃𝐷3 + 500 $/ℎ𝑟. All the
transmission lines have a maximum capacity of 500 MW. The line admittances are 𝑦𝐿1 = −𝑗10
p.u., and 𝑦𝐿2 = −𝑗5 p.u., and the power base is 100 MW. Find the LMPs at each bus and the
market clearing dispatch using the DC OPF method.

Question-3:
There are three supply-side participants (A, B and C) in a single-auction electricity market, and
their supply offers are given below.
ρ ASELL = 0.5 PG A + 25; ρ BSELL = 0.2 PGB + 10; ρCSELL = 0.1PGC + 18

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 (ρA , ρB and ρC are the offer prices)

Given that for an hour, the demand forecast is 500 MW.

a) Assuming a perfect market, determine the uniform market price and the energy cleared
for A, B and C respectively.
b) Consider that A and C are located in Region-West while B is located in Region-East. The
demand in West is 150 MW only while that in East is 350 MW. The line connecting West
and East has a total capacity of 60 MW. Determine the new market clearing conditions
incorporating the transmission line limit.

Question-4:
Consider a double auction electricity market where three suppliers A, B and C offer their energy
for sell at offer prices given below. There are three customers X, Y and Z bidding to buy energy
from the market, and their bid prices are also given below. The transmission line capacities are
shown in the figure.
Area-2
Area-1
B
A PMax = 200 MW

Y X

PMax = 150 MW

Area-3

Z C

ρ ASell = 0.5 ⋅ PG A + 20 ρ XBuy = 200 − 0.5 ⋅ PD X

ρ BSell = 0.2 ⋅ PGB + 10 ρYBuy = 167 − 0.135 ⋅ PDY
ρCSell = 0.4 ⋅ PGC + 25 ρ ZBuy = 252 − 0.412 ⋅ PDZ

a. Find the uniform market clearing price and market clearing dispatches of all participants,
ignoring the transmission limits.
b. Find the market clearing price(s) and dispatches of all participants when transmission limits
are considered.
c. Assuming that Y holds an FTR for 150 MW and X holds an FTR for 50 MW, both in the
direction from Area-2 to Area-1, find the total congestion rent paid by each customer.

Question-5:
There are two supply-side participants (A and B) in a single-auction electricity market, and their
supply offers are given below.

π ASELL = 0.7 PA + 12; π BSELL = 0.27 PB + 35 (πA and πB are the offer prices)

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Given that for an hour, the demand forecast for the whole system is 275 MW. Assuming a
perfectly competitive market, determine the uniform market price and the energy cleared for
participants A and B respectively.

Question-6:
There are two supply-side participants (B and D) and two demand-side participants (A and C), in
a double-auction electricity market. The supply offers and demand bids received by the market
operator are as follows:
ρ ABUY = 200 − PD A ρ BSELL = 0.5 PGB + 25.5
(ρ is the offer / bid price)
ρCBUY = 145 − PDC ρ DSELL = 0.3PGD + 10
a. Determine the uniform market price and the BUY / SELL schedule of each participant
if the market operator settles an unconstrained market using uniform price auction.
b. If participants A and B are located in Region-1, while participants C and D are located
in Region-2, and the two regions are interconnected by a high-voltage transmission
line, what is the total power transaction over this interconnection?
Assume that the transmission line has a maximum capacity of 50 MW. Determine the market
settlement, considering this transmission constraint and find the respective prices in each
region, the BUY / SELL schedule of each participant and the congestion rent earned by the
market operator.

Question-7:
Consider the small power system shown in the figure below. Generator G1 has an incremental
cost of $20/MWh and generator G2 has an incremental cost of $25/MWh. Also given that, all
transmission lines have the same length and line parameters. The maximum capacity of the lines
is 200 MW. The generator limits are as follows:
50 MW ≤ PG1 ≤ 750 MW
50 MW ≤ PG2 ≤ 500 MW

1 2

1 2

150 MW 200 MW

250 MW

i) Evaluate the real power flows on each line and hence find the marginal cost of supplying
power at each bus when:
a. transmission limits are ignored
b. transmission limits are considered
ii) The customer at bus-3 with 250 MW demand has purchased an FTR for 200 MW in the
direction from bus-1 to bus-3. Find the FTR credit it receives when congestion occurs on line1-3,
and the net congestion charge it has to pay.

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Question 8:
There are three supply-side participants (A, B and C) and three demand-side participants (D, E
and F) in a double-auction electricity market, and their supply / demand offers are given below.
SELL = 0.5 PG + 25; ρ SELL = 0.2 PG + 10; ρ SELL = 0.1PG + 18
ρA A B B C C
BUY = −0.25 PD + 180; ρ BUY = −0.40 PD + 210; ρ BUY = −0.37 PD + 195
ρD D E E F E
(ρA , ρB and ρC are the sell-offer prices, ρD , ρE and ρF are the buy-offer prices)
c) Assuming a perfectly competitive electricity market, determine the uniform market
price and the energy cleared for all participants.
d) Consider that A, B, E and F are located in West-Region while C and D are located in the
East-Region. (Assume that all entities within a region are connected at a single bus). The
tie-line connecting the two regions has a total capacity of 150 MW. Determine the new
market clearing conditions (dispatch, price, etc.) incorporating the transmission line
limit.
e) Now consider that the transmission loss on the tie-line is 8%. Also given that the East-
Region bus is the Reference Bus. Find the constraint cost of the tie-line and the LMP at
the East-Region bus and the West-Region bus.
f) How much will be the Congestion Rent (based on the answer of (c)) and which bus
participants will pay?
g) Customers-E and F have jointly purchased a Firm Transmission Right (FTR) of 170 MW
from East-Bus to West-Bus, while Generator-D has an FTR of 225 MW from East-Bus to
West-Bus. Find the net congestion payment of each participant to the transmission
company.

Question-9:
Consider a double auction electricity market where two suppliers A and B offer their energy for
sell at offer prices given below. There are two customers X and Y bidding to buy energy from the
market, and their bid prices are also given below. The transmission line capacity is 200 MW.
East Area
West Area
B
A PMax = 200 MW

Y X

ρ ASell = 0.5 ⋅ PG A + 20 ρ XBuy = 200 − 0.5 ⋅ PD X

ρ BSell = 0.2 ⋅ PG B + 10 ρ YBuy = 167 − 0.135 ⋅ PDY

You are informed that the electricity market price would be 105.24 $/MWh, for the above set of
bids, considering a uniform price settlement, if the transmission limit is ignored. With this
information given, find the electricity market price settlement and market clearing dispatches of
all participants when the transmission line limit is taken into account. Assuming that Y holds an
FTR for 150 MW and X hold an FTR for 50 MW, both in the in the direction from East to West,
find the total congestion rent paid by each customer.

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Question-10:
A 4-area inter-connected power system is shown below. A transaction of 1000 MW takes place
between two parties, injecting in area-1 and extracting in area-4. In each area, the flows on the
“limiting facilities”, arising from this transaction, are shown in the parenthesis.

10
00
M
W
Area-1 Area-3
80%
(5%) (14%)

20 %

90
%
15

%
Area-2 Area-4
10%
(10%) (11%)

10
00
M
W
The available loading capacity (ALC) on each limiting facilities are given as under:
Facility ALC Facility ALC
Area-1 70 MW Tie 1-2 400 MW
Area-2 200 MW Tie 1-3 1200 MW
Area-3 130 MW Tie 2-3 250 MW
Area-4 175 MW Tie 2-4 200 MW
Tie 3-4 900 MW

a. Determine if the above transaction is feasible.

b. Otherwise determine the ATC for the interconnection, and which facility determines the
ATC value in this case.

Question-11:
Area-A Area-B

Load = 3,500 MW Load = 6,000 MW

Generation = 3,000 MW Generation = 6,500 MW

Consider a 2-area, 60 Hz system shown in the figure above. Area-A has a total load of 3500 MW
and a generation of 3000 MW, and a total spinning reserve of 700 MW. Area-B has a total load
of 6,000 MW, total generation of 6,500 MW and a total spinning reserve of 1000 MW.

The following parameters are given:

D1 = 1%, D2 = 1.5%, R1 = 6%, R2 = 5%, B1 = 120 MW/0.1Hz, B2 = 200 MW/0.1Hz.

Find the steady state frequency, generation and load in each area and tie-line power for the
following cases:
i. A sudden decrease of 100 MW load in Area-A when the system is only on primary regulation.
ii. Loss of 100 MW load in Area-A. The units carrying spinning reserve in each area are on AGC.

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