Laboratory 1
1 Objective:
In this session, you will practice in analyzing a transmission expansion plan in a simple power system and learn how to analyze the effects of new transmission lines on the power system operation in a market environment.
You will learn important concepts on market operation mechanism and transmission planning. You will also practice skills on system analysis methods. The capabilities to work in a group on a systematic project and present the results in a clear and concise manner are also very important.
2 Lab Instructions:
In this lab, you will be grouped to work on a market design and a transmission plan in a simple power system. Assume there are two independent power systems A & B. The supply function for System A is:
πA = MCA = 12 + 0.02PA ($/Mwh)
and the supply function for System B is:
πB = MCB = 15 + 0.01PB ($/Mwh)
Scenario 1: Both system A & B are operated separately. The inverse demand function for system A is
πLA = 20 - 0.03PLA ($/Mwh)
The inverse demand function for system B is
πLB = 27 - 0.02PLB ($/Mwh)
Analyze the electricity price, revenue of generating plants from the sale of the electrical energy and the payments made by a group of consumers for the purchase of the electrical energy in each market; Find the total revenue of generators and total payments of consumers for this two-area system. Analyze the results. Draw the supply curve and demand curve of each system separately. Analyze how the separated markets might affect the consumers and use the diagrams to assist your analysis when appropriate.
Scenario 2: System A has a fixed load 100 MW and System B has a fixed load 500MW. The supply functions of generators in both areas are the same as Scenario 1. They are considering building a transmission line to connect them so that they can support the energy supply to each other. The planned transmission capacity between these two systems will be 300MW (N-1 criterion has been checked). Analyze qualitatively what this transmission corridor will bring to the markets. Analyze the feasibilities of the unit commitment plan that all loads are supplied by generators of a single area. Find the right supply pattern under the market operational mechanism, including the production in each area, the power transferred through the transmission corridor, the market price, revenue of generating plants from the sale of the electrical energy and the payments made by a group of consumers for the purchase of the electrical energy in each market and the total revenue of generators and total payments of consumers for this two-area system. Keep the electricity demands in this scenario but if this new transmission line is not built, then solve the market prices in area A and area B, the payments made by the load and the revenue collected by the generating companies. Analyze the effects of building this transmission corridor on the market operation. Use diagrams of supply and demand curves to assist your analysis when appropriate.
Scenario 3: Both System A and System B are considering to build a transmission line so that they can be connected. However, the planned transmission capacity between these two systems will be 100MW (N-1 criterion has been checked). Redo the analysis in Scenario 2 and discuss the effects of building this transmission corridor.
Scenario 4: Now extend the analysis in the scenarios 2&3 and draw the curves of the market prices of System A and System B, the total revenues of generators and the total payments of consumers in this two-area system with respect to the transmission capacity of the newly built transmission line using Matlab. Analyze the effects of the transmission capacity on the market price and the surplus between the revenues and the payments.
Scenario 5: In the above analysis, the transmission line loss is neglected. If we assume the power transferred on the newly built transmission line is ptie, and the transmission line is not constrained, the network loss can be approximated by
ΔP = 0.1ptie
Draw the total generation cost of this two-area system with respect to ptie using Matlab for both scenarios where the transmission line loss is neglected and considered. (In the case of considering the transmission line loss, assume the transmission line loss is equally shared by generators in both areas.) Find the optimal operation point in both cases and analyze the effects of transmission line power loss on the total generation cost. Discuss the effects of the transmission line power loss on the market price. Then use the conclusion derived to find the market prices of System A & B when the power flowing through the intertie is 100MW. Analyze and compare the results with the earlier work for Scenario 3.