Lecture17
Lecture17
EEN/L-671:
RESTRUCTURED POWER
SYSTEMS
LECTURE 17: Models of trading
arrangements
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Illustrative Example
Tata Power Generation Hourly forward contracts
Unit MC Pmax (MW) Hour MW
1 10 100 1 1100
2 20 200 2 500
3 30 300 3 700
4 40 400 4 300
5 50 500 5 350
Illustrative Example
• How will Tata Power Generation bid in centralized
market?
• Will it provide MW schedules or Bids in ₹/MW?
• For Hour 1 Tata Power Generation
• Price MW Unit MC Pmax (MW)
• 10 100 1 10 100
• 20 300 2 20 200
• 30 600 3 30 300
• 40 1000 4 40 400
• 50 1500 5 50 500
• Similarly for all hours
• Information about other technical constraints will also be
provided
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From ELD to UC
• ELD: For a snap-shot
• UC: For a certain time horizon
• Other Constraints:
• Block bid
• No-load cost
• Start-up cost
• Dynamic constraints
• Environmental constraints
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Unit Commitment
Tata Power Generation Unit Commitment
Hour Gen 1 Gen 2 Gen 3 Gen 4 Gen 5 Total Gen Total Cost
1 100 200 300 400 100 1100 35000
2 100 200 200 0 0 500 11000
3 100 200 300 100 0 700 18000
4 100 200 0 0 0 300 5000
5 100 200 50 0 0 350 6500
Total Cost for 5 hours 75500
Attendance
• MS Teams: l6ahq8m
• Please ensure 75% of attendance for ETE.
Congestion Management
• The value of congested transmission corridor is equal to
the price of energy in import area, minus the price in
export area
• Transmission capacity is allocated as part of the
optimization process in which transmission value is
maximized
• Traders who get to use transmission are charged energy
price difference between two ends of the transmission line
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Locational Prices
• Under locational pricing, the price of each location is set
equal to marginal cost at each location as represented by
the offers
• Locational prices give efficient signals for
• Production and consumption of energy
• Construction of new generation and transmission
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Ancillary Services
• Considered as a “common good” to who share the
transmission system
• According to FERC Ancillary services are:
• Scheduling, System control and Dispatch
• Reactive supply and voltage control
• Regulation and frequency response
• Energy imbalance service
• Operating reserve – Spinning reserve
• Operating reserve – Supplemental reserve
• Reactive power is scheduled using central optimization
• Reserves are allocated using joint central optimization
with real and reactive energy
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Complex bids
Network
capacities (effect Reactive
Central Unit Commitment power dispatch
of congestion)
Reserve Locational
requirements marginal prices
(LMP)
Reliability
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De-centralized Model
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De-centralized Model
Sellers Buyers
Ancillary Congestion
System Operator
Scheduling
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