Operating Reserves Provided by Distributed Generation

FRANCISCO D MOYA CH (a), DUVIER BEDOYA BEDOYA (b), Dr GILBERTO DE MARTINO

JANNUZZI (c), Dr LUIZ CARLOS PEREIRA DA SILVA (d),
FEM, FEEC, UNICAMP
Cidade Universitária "Zeferino Vaz", Campinas, São Paulo
BRAZIL
(a)
framo@fem.unicamp.br http://lattes.cnpq.br/6867376592649835
(b)
duvier@ieee.org http://lattes.cnpq.br/0918270598381687
(c)
jannuzzi@fem.unicamp.br http://www.fem.unicamp.br/~jannuzzi/index.html
(d)
lui@dsee.fee.unicamp.br http://www.dsee.fee.unicamp.br/~lui

Abstract: - Among the ancillary services, the operating reserves are important researching aspects, which deal
with supplying way and selling-buying prices. Currently, distributed generation (DG) rises as a new participant
in providing ancillary services, therefore, it is of main importance in operating reserves subject. This work
shows some advantages and technical drawbacks by using DG when operating reserves are supplied. Different
sceneries were computed where the electric generation was performed in a centralized and non-centralized way
respectively. A methodology for identifying the maximum DG, which can be allocated, is proposed; this
maximum level can be assessed without carrying out a negative impact in the network. Diverse DG technologies,
which present better performance in supplying such reserves, are also presented.

Key-Words: - Distributed Generation, Operating reserves, Ancillary services.

1 Introduction services, when they take part into the electricity

The reliability concept deals with different elements
in electric power systems: security and sufficiency.
Security is described as the capacity of the system to
face different disturbs, this is used combined with
protection devices, power dispatch and other
auxiliary services. Sufficiency represents the
capability of the system for attending the demand
requirements in any time.
In economical terms, security concept can be defined
as a public good. Transit systems, national defense
infrastructure, laws, etc, are considered as public
goods also. Some authors consider the system
security as a public good [1], being operating reserves
of an electric system a key security element.
As other public goods, power system security has no
clear indications of its cost per user. Some users can
disagree paying the operating reserves when they
don’t utilize such reserves and also if they are paying
for extra security which is provided for other users.
The difficulty is defining the optimal acquisition level
for every user and develops a methodology for
carrying out this acquisition as well as its costs.
The electricity markets in different countries are
discriminated mainly in the methodologies or
procedures in the operative reserve management. For
instance, in Britain the reserves are obtained by long-
term contracts. In the Nord Pool market, the energy
utilities, are required to supply specific auxiliary
market. In California there is a reserve market
independent and parallel to the electricity market. In
New England, there is a capacity market, similar to
an operative reserve market. In Brazil, the regulatory
agency establishes an operating reserve total for the
whole system, equal to the capacity of the major
generator unit. Thus the Itaipu power plant with 6,3
GW sets up the maximum level of the operating
reserves. The current capacity of the Brazilian Power
System is 91,17 GW, being the operative reserve
6,7% of the total installed capacity.
Currently, electric systems are changing and with the
distributed generation (DG) growing up, the
distribution systems are turning into from passive to
active entities [2]. The new and future DG schemes
are allowing a wide possibility of new energy
suppliers and complementary services such as
auxiliary services in which the operating reserves
takes part into. DG is a new participant in the current
and future electric systems related to programming
and the operating reserves dispatch [3], [4].
Dispatch of centralized units requires a higher
generation level, which should supply energy to all
the network points, including all the load power and
the network losses in the whole system, the
transmission system and the final points related to the
distribution system [5].
On the other hand, delivering active power by the
generators in the distribution system, close to the
load, reduces the losses and consequently, improves
the voltage levels and increases the system security.
This work shows some technical advantages when
DG is used in the dispatch of active and reactive
power reserves. In the following section, the
formulation of the problem is described. Afterwards,
it is showed and explanation of the methodology
used. It is also proposed a methodology for
establishing the maximum DG level that can be
installed and at the same time, caring of the negative
impacts in the network and consequently the
maximum DG level that can be provided for the
supply of operating reserves.
An application is also showed; it is presented an
analysis when DG is used for supplying operating
reserves. Furthermore, the DG technologies that
attend more efficiently the reserves management is
described. Finally the conclusions of this work are
presented.
2 Problem Formulation
The connection of energy supplies to the distribution
systems modifies the traditional hierarchical
generation way before known. The energy injection
in the distribution networks modifies the power flow
and can develop several impacts such as: losses,
investments, voltage profile, maintenance people
security, power quality, short circuit power, and
system operation. This work analyzes the impact on
the active and reactive power losses, and the voltage
profile impact on the network.
2.1 Loses modification when DG is used
The problematic associated to the DG impact has
several implications (economic, technical and
environmental). For this reason, in the last years
researchers have began to take it into account.
Currently due to the multiple studies, it is known that
DG presents limited advantages related to the losses
reduction. In [6] and [7] it is known the importance of
the active and reactive energy supplied by the DG. In
these works it is also demonstrated that with higher
levels of DG the losses may increase. Thus it is
necessary known the DG capacity that can be
installed without increasing the losses and not
affecting the voltage profile. It is required to know
the energy generation limits through DG, it makes
essential to know the maximum DG capacity for
supplying the operating reserves.
In the first part of this work, a methodology for
determining the DG installation limits is presented. It
is also studied the influence on the losses in the
transmission, sub transmission and distribution
systems.
2.1 The DG and its role with the Operating
reserves
After presenting the DG advantages and drawbacks,
it is possible to note that the operating reserves with
DG present different implications; therefore, it is also
necessary assessing the advantages and
disadvantages. With this aim, in the second part of
this work is presented an analysis related to the active
and reactive energy supplied by DG when centralized
generators outages occur.
3 Methodology
The development of a methodology that lets know the
DG energy production limits, allows assessing
directly the DG maximum capacity for providing
operating reserves. In some works such as [8] and [9],
it is described the importance of the DG allocation
and establishing the necessary capacity for DG
installation in order to reduce the distribution system
losses. However, its neglects the analysis of possible
impacts like overvoltages produced by DG
installation.
For knowing the effects on determined electric
system when DG is studied, it is convenient to know
the electric parameters of such system when
centralized generators are used. For instance, when a
load flow is computed it is possible to know some of
the most important electric parameters (such as:
voltage profile and the losses level) without using DG
on the system. After that, it is possible obtaining the
base case for comparing with the alterations in the
presence of generators connected to the distribution
system. The base case allows also verifying the
buses, which presents greater voltage drops and the
areas and branches where the losses are more critical.
This buses and areas are the best locations for the DG
installation. After the DG installation in such
sceneries, the possible presence of overvoltages is
lower and the losses reduction is more effective.
This section is based on the procedure presented in
[8]. After assessing the DG units to be installed in the
distribution system, it is necessary to compute load
flows by increasing the generators capacity and
assessing the new electric parameters in order to
evaluate the overvoltage levels produced.
This methodology is presented in Fig. 1.

Fig. 1 Methodology for establishing the
maximum DG installation level.
This methodology allows computing the maximum
DG installation level without damaging the network.
It is also possible to establish the maximum DG level
for the operating reserves. Some works such as [10]
and [11] have presented a methodology for
computing the amount of operating reserves which
can be established for an electric system, but
currently there are no studies related to the evaluation
of such reserves in DG. The methodology proposed
in this work arises in response to the necessity of
determining the maximum DG admissible level for
supplying operating reserves.
3.1 Study Case
In this work it is implemented a simulation for
different sceneries with the aim of comparing
technical centralized generation aspects and non-
centralized generation when DG is involved.
These sceneries were computed by using a load flow
(static model) for an electric system which takes into
account voltage levels for transmission, sub
transmission and distribution in order to assess the
DG impact in every voltage level. The IEEE30 bus
system was used [12] for carrying out the study. Two
buses on the medium voltage level were separated for
generating the distribution network (low voltage
level). At the buses 30 and 24 it was connected a
distribution system of 70 buses TS2 [13] that is
presented in Fig. (2).
For computing the optimal flow the Newton-Raphson
and Fast-Decoupled Newton methods were used. In
order to develop the simulations, the program for
power system analysis MATPOWER [14] was
utilized.
Fig. 2 Distribution circuit used.
Below the process for the sceneries studied is
presented as follows:
Phase I: Load flow without DG (base case): for this
case the active energy generation (P) and the reactive
(Q) were delivered in a centralized way without DG.
In this case it is considered that the centralized
generators supply all the active and reactive demand,
supposing that the generators are delivering the
operating reserves scheduled previously. In this work
the reserves classified in accordance with the
response were not considered.
Phase II: Losses and voltage profile analysis: After
computing the base case, it is possible to obtain the
areas where the higher losses level is presented. The
results for the case analyzed in this work, in only one
of the distribution circuits and determined areas that
are represented with the gross line Fig. (2).
In addition, Fig. (3) shows losses level in the
distribution circuit circuit which has more losses. It is
important to emphasize that only one distribution
circuit presents the higher losses level
Fig. (4) shows the voltage profile (V) for each
voltage level: transmission, sub transmission and
distribution (gross line) at base case. The load flow
results show that the voltage levels decrease from the
transmission level until the more distant buses in the
distribution system. These areas are represented with
circles and they are named V1 to V7 Fig. (2).
Phase III: Selection of the more appropriate buses for
the DG installation: After obtaining the areas with
major losses, it is possible to establish the areas
where the generators can be allocated in the
distribution system.
Phase IV: For determining the possible DG impacts
affecting the voltage level, the smaller generators
should be connected only to one of the distribution
circuits and assess the impact when compared with
the distribution circuit without DG presence. For the
case studied, four generators in the first distribution
system were installed. The first distribution system
corresponds to the areas V5, V4 and V7 (allocated in
the bus 30) Fig. (2).
Table 1 shows all the generators of the system with
their basic features.
Phase V: After installing the generators, several load
flows were computed increasing the DG installed
capacity, with the aim of obtaining the impact on the
different voltage levels of the system that is being
studied.
The generators selected were allocated for a operation
with a power factor of 0,9 in capacitive or inductive
way.
Phase VI: Verification of the electric parameters
after DG installation: in this part of the procedure it is
compared the voltage level and the losses presented
when DG is used related to the base case.
a) Losses analysis: in Fig. (5), it is possible to analyze
the losses behavior in the transmission, sub
transmission and distribution branches by increasing
the DG from zero up to 3,73 % of the total system
load. This is known as DG Penetration Level
(DGPL).

Fig. 3 Losses level in the distribution

system

Fig. 5 Losses increasing the DG

penetration
In this case, the active losses level of the transmission
system decreases by 14% and for the sub
transmission system the losses where reduced by 29%
when the DGPL is 10%.
In relation to the distribution system, the losses
decrease up to determined level, after this DGLP
Fig. 4 Voltage profile at base case level the losses rises highly. At the base case, when
the DGLP is 0,78%, a limit for the reduction of the
P max Power
Generator Type
(MW) Factor
active losses is obtained. For the reactive limit, it is
G1 Centralized 200 Free
presented a DGLP different of the active one due to
G2 Centralized 80 Free
the reduction of active energy. Table 2 shows the
G3 Centralized 50 Free numerical results that the load flow provided for three
G4 Centralized 40 Free DGPL levels. Thus, DG presents more advantages in
G5 Centralized 30 Free the active and reactive losses reduction in
G6 Centralized 40 Free transmission and sub transmission levels and with a
G7 Distributed 2,53 0,9 limit in through the distribution levels. However, it is
G8 Distributed 2,53 0,9 possible to reduce the losses in a greater rate in the
G9 Distributed 2,53 0,9 distribution circuit than in the other circuits.
G10 Distributed 2,53 0,9 For instance, at base case, it was possible to reduce
the losses in the distribution system by 33% with only
Table 1 Generators features a 0,78 DGPL level.

DGPL(%)
Net Power 0 0,38 1,23
Transmission
P (MW) 2,65 2,57 2,28
Q(MVAr) 9,41 9,14 8,12
P (MW) 1,33 1,19 0,95
Sub transmission
Q(MVAr) 10,44 9,85 8,68
P (MW) 0,12 0,08 0,60
Distribution
Q(MVAr) 0,23 0,15 0,47
Table 2 Losses in different system
levels
For analyzing the possible impact that DG can
develop in other distributed systems where initially
DG was not installed, it is necessary assessing the
losses behavior, they are showed in Fig. (6).
The losses in the distribution system where DG has
no been installed, present a similar behavior in the
transmission and distribution systems. The reduction
losses curve presents a linear behavior in the
distribution system, whereas, the reduction losses for
the transmission system is concave. This feature for
distribution systems is also shown in [7].
In a persuasive way, the DG decreases the active and
reactive losses in distribution systems where DG is
not intall. As was explained earlier (see Phase IV),
four generators in the first distribution system only
were installed. In addition, when the DGPL is 0.78%,
in the second distribution circuit a losses reduction of
0,36% is obtained, see Fig. (6). The DG presents also
advantages in the active and reactive losses reduction
in others distribution circuits of electrical system.
The total losses reduction in the system can be to
measure and compensate economy to DG for this
contributions.
Fig. 6 losses in the distribution system
b) Voltage analysis:
The DG energy production in the distribution system
carries out an increase in the voltage profile of the
system [15], [16]. This impact is due to the local
energy supplied and to the injection or consumption
of energy in the system. In the first place, the active
demand reduction that the generator delivers is lower
than when DG is not used, producing a minor voltage
drop. In addition, the active and reactive power
injection increase the voltage profile. In Fig. (4) is
showed a voltage profile for the base case and when
the DGPL is 1,23%. In Brazil, the technical
regulation establishes that the minimum and
maximum values for systems with voltages level up
to 231 kV should not be minor and major than 95%
and 105% respectively.
Fig. (6) shows that the voltage levels in the base case
don’t infringe the limits, however, the upper limits
are infringed when the DGPL is greater than 1,23%.
After increasing the active and reactive power output
in the distribution network, overvoltages can occur,
mainly in the distribution system, and with less
importance in the sub transmission and transmission
systems. An alternative for avoiding such violations
is increase the number of smaller generators in the
distribution networks, this is known as an augment in
the DG dispersion level of lower power, it is shown
in [7] and [16].
The methodology proposed in this work recommends
increasing the DGPL and verifying at which values
the generation be on the voltage network limit. Fig.
(4) shows that the maximum voltage values are
presented exactly in the distribution system where the
DG has been installed. In this case, when the DGPL
is 1,23 % the maximum value is obtained when the
voltage limits are not violated (in Brazil for systems
up to 231 kV).
The penetration value is showed in Fig. (6) for GD3,
this means that respecting the maximum voltage
limit, the maximum losses reduction value is not
reached, however, the advantage is obtained with a
major losses reduction in other branches of the
system (transmission, sub transmission and other
distribution networks). All the results are shown in
Table 2.
Phase VII) With the identification of the maximum
penetration level, the electric parameters established
are respected so, it is possible to obtain the maximum
DG value without carrying out a negative impact on
the system, as was explained earlier, in this case
when the DGPL is 1,23 %. Therefore, with this
methodology it is also possible to obtain the
maximum level that DG can deliver in relation to the
operating reserves.
4 DG as an Operating Reserve Supplier
With the aim of verifying the DG performance and its
impacts in operating reserves deliver, it is necessary
analyzing situations for possible outages of
centralized generators. For this analysis it is studied
the base case where all the centralized generators are
supplying active and reactive power for all the
system.
In the second part of this work, other cases were
simulated turning off a centralized generator in each
case and the DG deliver operating reserves. The
DGPL is also increased with the aim of assessing the
electric parameters in the system with the output of a
centralized generator and the entry of DG.
4.1 Voltage Analysis
For the analyzed system, the results showed that the
voltage profiles in every one of the subsystems were
not modified in an important way with the outage of
the centralized generators at base case. This means,
without the DG presence, the centralized generators
supplied in an effective way the active and reactive
power demand with the outage of any centralized
generator.
The load flow results showed also that the voltage
profiles are not modified seriously when DGPL is
increase, being almost the same voltage profiles as
showed in Fig. (4) Section (3.1 b.)
4.2 Losses Analysis
Fig. (7) shows the losses level in the transmission and
sub transmission branches when compared with the
base case in the worst case, which is when G3 is out
operation. In this case, for the transmission system
the losses increase up to 261% for active power and
254% for reactive power.
The impact in the sub transmission and distribution
networks is minor when G3 is out, the total losses
increases by 2,7% and by 0,7% for active and
reactive power respectively.
Fig. 7 Transmission and sub
transmission losses increasing the DG
penetration and with G3 out of operation
Fig. (7) also shows the losses behavior when DGPL
is increased form zero up to 3,73%. This is done with
the objective of analyzing the DG impact in the worst
scenery, this happens when the generator G3 is out,
as mentioned before.
It is possible to prove that by using DG a minor
losses level is presented when a centralized generator
is out. For the studied case, the losses reduction
related to the base case where G3 is out and there is
no DG, the losses level decreased by 7,45% for active
power and by 7,33% for reactive power. In the sub
transmission area, the reduction was by 14,7% and by
7,48% for active and reactive power respectively. In
the distribution system, there are major advantages;
the losses reduction is 23% for active power and
42.3% for reactive power. These results are illustrated
in Table 2.
DGPL(%)
Net Power 0* 0** 1,23
P(MW) 2,646 6,90 6,70
Transmission
Q(MVAr) 9,407 23,92 23,23
P(MW) 1,334 1,37 1,17
Sub transmission
Q(MVAr) 10,44 10,49 9,71
P(MW) 0,123 0,12 0,09
Distribution
Q(MVAr) 0,229 0,23 0,13
Table 3 Losses in different DG levels
* base case, all centralized generators on
** base case and G3 is out
Fig. (8) illustrates the curves for the active losses for
the distribution circuits in each case when the
generators are out of operation.
Curves PLC21, PLC22, PLC23 and PLC24, represent
when the generators G1, G2, G3, y G4 are out
respectively. It is observed that for the distribuited
circuit (1) where DG is installed, there are no changes
in the losses level when the centralized generators are
out.
Fig. 8 Distribution losses increasing the
DG penetration when G3 is out of
operation
As explained before (Section 3.1. a.), the losses in the
distribution circuit where DG is not installed present
a linear behavior. Whereas, the curve for the other
distribution circuit presents a concave behavior, a
feature of the distribution systems where DG is
installed. In Fig. (8) the area under the curve PLC23
between 0 and GD3 represents the maximum losses
reduction that the DG installation can obtain when
G3 is out. In Section 3.1. b. it was explained that
GD3 represents the maximum DGPL where there are
no violations on the voltage limits, that means, this
point represents the maximum penetration value and
therefore the maximum operating reserves value. This
is the maximum operating reserves value that DG can
contribute without originating negative impacts on
the system. This work shows a individual case, is
necessary to apply this methodoly for peak hours, low
hours and for summer and winter period.
4.3 DG Technologies for providing operating
reserves
There are different technologies that can be used for
DG applications (wind generation, photovoltaic, co-
generation, etc). Every technology presents a
operating reserve difference each electricity markets.
Normally, Spinning Reserve (also is known as
primary reserves) is the use of generating equipment
that is online and synchronized to the grid such that
the generating equipment can begin to increase output
delivery immediately in response to changes to
interconnection frequency, and be fully utilized
within seconds to <10 minutes to correct for
generation/load imbalances caused by generation or
transmission outages. Most on-line DG could perform
spinning reserve and respond in less than 10 seconds.
Supplemental reserve (non-spinning also is known as
secundary and third reserves) differs from spinning
reserve because supplemental does not need to
respond to an outage immediately. Traditional non-
spinning reserve needs to be available within 10
minutes.
Supply Demand Operating
Technologies following Reserves
Natural Gas Turbine øøø øøø

different production profile, therefore, the load flows Micro-turbine øøø øøø
Steam Turbine øøø øøø
and losses impact depends on each technology.
Combined Cycle øøø øøø
Generally, the DG profile varies constantly. This
Electrochemical Devices øøø øøø
variation can be produced by the primary resource
Small hydro ▲▲▲ ▲
(wind, sun, water, etc) or due to the process features
Wind turbines ▲▲▲ ▲▲▲
(e.g. co-generation process).
Mini-Wind ▲▲▲ ▲▲▲
As the DG production profile is adapted to the
PhotoVoltaic ▲▲▲ ▲▲▲
demand profile of the buses where the DG is
PhotoThermal øø ▲
installed, the electric parameters will be better or
Fuel Cell øø ▲▲
worse. For instance, if the DG production in each bus
is exactly equal to the demand in each bus, the losses Table 4 DG technologies behaviors for
will be annulated since all the demand is supplied operating reserves supplying [17]
locally and there are no flows in the network. øøø: very good
Therefore, the GD more appropriate technologies for øø: good
supplying operating reserves are with constant ▲: normal
production profiles. ▲▲: bad
In this category can be classified the generators ▲▲▲: very bad
which supply almost constant power all the time
(higher utilization factor, generally classified from 0
up to 1, where 1 is the maximum value). In some
cases the DG production can be practically constant, 5 Conclusion
which is the case of combustible-cells, biomass plants Providing operating reserves by DG makes that the
and the gas micro-turbines. These technologies are large centralized generators reduces the schedule
well conditioned to the demand profile. In [7] was energy for delivering reserves. Therefore, these large
shown that the wind and photovoltaic generation are generators can have more available power for the
ill conditioned for the demand profile. Table 4 shows basic energy supplied to the system.
the technologies behavior related to the demand and By using DG, overvoltage levels can appear, mainly
the operating reserves delivery. in the distribution network and with less impact in the
sub transmission and transmission systems. An
As was explained earlier, the electricity markets in alternative for avoiding these overvoltages is
different countries are discriminated mainly in the increasing the DG penetration level with low power
methodologies or procedures in the operative reserve generators, it means with a greater DG dispersion.
management. In general, the maximum level of The DG contribution to the operating reserves
operating reserves and the time for the entry presents more advantages related with losses in sub
transmission and sub transmission systems, in the
distribution systems the losses reduction is more
conservative since it depends on the technical system
variables and can be manage with a major DG
dispersion.
The DG impact on the system depends generally on
the production profile and how it is adaptable to the
demand profile. The DG technologies that can
accomplish a better role in the operating reserves
delivery are those with a constant production profile
and also those that can begin to increase output
delivery immediately in response to changes to
interconnection frequency to correct for
generation/load imbalances caused by generation or
transmission outages.
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Biographies
Francisco D. Moya Ch received the P.E. in Electrical
Engineering from the National University of
Colombia and the M.S. in electrical Engineering
from University Los Andes, Colombia, in 2000 and
2005, respectively. He presently is a Ph.D. student in
electrical engineering at UNICAMP (University of
Campinas), Brazil. His main research interests are in
power quality, distributed energy systems, energy
efficiency and conservation, renewables, energy and
environmental policy.
Duvier B. Bedoya areceived the P.E. in Electrical
Engineering with first class honours from the
National University of Colombia, Manizales,
Colombia, in 2004, the M.S. in Electrical Engineering
from UNICAMP (University of Campinas), in 2007,
where he is currently researcher. His main research
interests are in voltage stability, high voltaje and
embedded generation studies.

Gilberto de Martino Jannuzzi received Ph.D. degree

from Cambridge University, U.K. (Energy Research
Group, Cavendish Laboratory). He is an Associate
Professor of Energy Systems at the Department of
Energy, Mechanical Engineering Faculty, UNICAMP
(University of Campinas), He is Executive Director
of the International Energy Initiative , a Southern-
conceived, Southern-led and Southern-located South-
South-North partnership. My interests are related to
energy planning, with special emphasis on energy
efficiency and conservation, renewables, energy and
environmental policy, and technology transfer issues.

Luiz Carlos P. Silva received the B.S. degree in

Electrical Engineering from Goias Federal University
(UFG), Goiania, Brazil, in 1995, and the M.S. and
Ph.D. degrees from UNICAMP, in 1997 and 2001,
respectively. Currently, he is an Assistant Professor at
UNICAMP (University of Campinas), where he has
been with since 2002. His research interests include
dynamic and static voltage stability analysis and
generation distribution systems.