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Lecture17

The document discusses models of trading arrangements in restructured power systems, focusing on unit commitment and centralized unit commitment processes. It includes illustrative examples of Tata Power Generation's bidding strategies, cost calculations, and the impact of various constraints on generation. Additionally, it covers congestion management, locational pricing, ancillary services, and the decentralized model of energy trading.

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Neha Mahendran
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0% found this document useful (0 votes)
18 views16 pages

Lecture17

The document discusses models of trading arrangements in restructured power systems, focusing on unit commitment and centralized unit commitment processes. It includes illustrative examples of Tata Power Generation's bidding strategies, cost calculations, and the impact of various constraints on generation. Additionally, it covers congestion management, locational pricing, ancillary services, and the decentralized model of energy trading.

Uploaded by

Neha Mahendran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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22-02-2025 © Deep Kiran, IIT Roorkee (2025) 1

EEN/L-671:
RESTRUCTURED POWER
SYSTEMS
LECTURE 17: Models of trading
arrangements
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 2

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

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 3

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 4

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 5

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

• What if Ramp-up limit for Gen 3 is 50 MW/hour?


• What if Ramp-down limit for Gen 4 is 50 MW/hour?
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 6

Tata Power Generation


Unit Commitment Unit MC Pmax (MW)
1 10 100
• If Ramp-up limit for Gen 3 is 50 MW / hour 2 20 200
• If Ramp-down limit for Gen 4 is 50 MW / hour 3 30 300
4 40 400
5 50 500
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 50 0 350 0 500 16000
3 100 200 50 350 0 700 20500
4 0 0 0 300 0 300 12000
5 100 0 0 250 0 350 11000
Total Cost for 5 hours 94500
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 7

What is Central Unit Commitment?


• In the simplistic illustrative example discussed earlier, we
have seen that a generator company decides which of its
unit should be ON and which should be OFF for a certain
time horizon
• In Central Unit Commitment, complex bids of all such
generating companies is available with ISO
• ISO solves an optimization problem to centrally schedule
the units of various generators
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 8

Central Unit Commitment block-diagram

Complex Real power


bids dispatch

Central Unit Commitment


Reactive
Network
power
parameters
dispatch
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 9

Attendance
• MS Teams: l6ahq8m
• Please ensure 75% of attendance for ETE.

• Please finalize a paper from IEEE TEMPR in a team of two.


Please get it confirmed from me at the earliest!
• Brief introduction to the work done in the chosen paper.
• What was the situation before the authors did the work? What was the
motivation for the authors that led them to do this work?
• Describe the methodology of the work in the chosen paper. Explain the
optimization model.
• Describe the key numeric results given in the paper which justify the
findings of the paper.
• What do you think about the actual implementation/ validation/ testing
of the work proposed in real life world/ test bed?

• Assignment 2: Please submit an executable code file.


22-02-2025 © Deep Kiran, IIT Roorkee (2025) 10

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 11

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 12

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
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 13

Central Optimization block-diagram

Complex bids

Network Real power


parameters dispatch

Network
capacities (effect Reactive
Central Unit Commitment power dispatch
of congestion)

Reserve Locational
requirements marginal prices
(LMP)

Reliability
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 14

De-centralized Model
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 15

De-centralized Model
Sellers Buyers

Energy Forward contracts


Power exchange

Ancillary Congestion

System Operator

Scheduling
22-02-2025 © Deep Kiran, IIT Roorkee (2025) 16

The Decentralized Model


• The participants provide schedules to SO
• SO is not involved in DA market
• The real time balancing is administered by SO
(administrative or competitive basis)
• In India, frequency linked unscheduled interchange (UI)
pricing is used for real time balancing

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