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Objectives
• Recall the power flow problem
• Recall economic dispatch
• Optimal power flow =
economic dispatch + power flow
• Examples with power flow programs
– PowerWorld

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 Economic Dispatch: Formulation
• What is the economic dispatch for a two
generator problem with:
(The cost curve units are $/hr)

C1 (PG1 ) = 1000 + 20PG1 + 0.01PG12

C2 (PG 2 ) = 400 + 15PG 2 + 0.03PG22
PG1 + PG 2 = PL = 500MW

ED With Inequality Constraints

• For our problem, we previously found that
– PG1 = 312.5MW;
– PG2 = 187.5MW
– l = $26.2/MWh
• But now PG1 output must be <= 300 MW,
so what should we do?
– With only 2 generators we can set PG1 = 300
MW and observe that we then require PG2 =
200 MW
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 ED With Inequality Constraints
• Note, for the HW
– If we have three generators (or more), and
you find that one of them must be set equal to
a limiting value,
– Then we have two generators remaining, and
we cannot simply ‘observe’ the economic
dispatch solution…
– In this case, re-solve the Lagrangian problem
with the remaining 2 generators, and the
value PL adjusted as is appropriate
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ED With Inequality Constraints

• Interpret our results
– What is system-lambda now, and what does it
represent?
– What inefficiencies have been introduced into
our solution as a result of the binding
generator limit?

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 Four Generator Example
• A power system has four generators with
the following cost characteristics
– C1 = 1000 + 15P1 + 0.05P12 $/MWh
– C2 = 1200 + 25P2 + 0.12P22 $/MWh
– C3 = 2060 + 20P3 + 0.01P32 $/MWh
– C4 = 2500 + 12P4 + 0.03P42 $/MWh
• Typical demand, PL, levels are:
à 750MW, 1000MW, 1500MW, and 2500MW
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Problem Formulation
• Write the equations you would use to find
the least cost dispatch for this system
• How might you go about finding the least
cost dispatch?
• What form will your results take?

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 Problem Formulation
• Equations…

Linear Algebra Solution Setup

Matrix A: Vector B:
0.1 0 0 0 -1 -15
0 0.24 0 0 -1 -25
0 0 0.02 0 -1 -20
0 0 0 0.06 -1 -12
1 1 1 1 0 2500

• Solve in Matlab using x = (A)-1 ·(B)

• Where x = ?
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 Matlab Results
• For changing load levels:

PL PG1 PG2 PG3 PG4 Lambda

750 123 9 363 254 27
1000 154 22 518 306 30
1500 216 48 827 409 37
2000 277 74 1137 512 43
2500 339 100 1446 615 49

(the units are ___?)

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Matlab Results à Interpret …

• The solution is:
Ø with PL = 2500 MW
Ø PG1 = 339 MW
Ø PG2 = 100 MW
Ø PG3 = 1446 MW
Ø PG4 = 615 MW
Ø λ = $49/MWh

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 Results Plotted
Dispatch for Increasing Load
1600 50

45
1400
Generator Output (MW)

40
1200
35

Lambda($/MWh)
1000
30

System
800 25

20
600
15
400
10
200
5

0 0
750 1000 1500 2000 2500

Load Level (MW)

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PG1 PG2 PG3 PG4 Lambda

Visualizing Equal Marginal Cost;

Quadratic Cost Curves Graphed

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Visualizing Equal Marginal Cost

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Including Inequality Constraints

• Include Pmin and Pmax values
– Each generator must generate more than
50MW
– P1 and P2 must generate less than 500 MW
– P3 and P4 must generate less than 1400 MW
• How would you formulate the problem with
these inequality constraints?

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 Discussion
• Key results for Economic Dispatch?
– The ‘marginal’ or ‘incremental’ cost of all
generating units is equal
– This incremental cost is the Lagrangian
multiplier, l
– ‘l’ is called the ‘System l’ and is the system-
wide cost of generating electricity
• This is the price charged to customers
• On ISO websites, this is called either ‘System l’ or
LMP (locational marginal price)
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Economic Dispatch Ignores…

• Economic dispatch determines the best
way to minimize the generator operating
costs
– It is not concerned with determining which
units to turn on/off (this is the unit commitment
problem)
– It ignores the transmission system limitations

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 Self-Review: You are asked to run a
power flow – What does this mean?

• What input data do you need?

• How do you specify each type of bus?
– Generator
– Load
– Slack bus
• How do we specify transmission lines?
• What output do you expect?
• How do you use the output information?
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Review: Power Flow Equation

Development
1. Start with KCL
§ Ii = ΣIik à Note use of Ii vs. Iik
2. Substitute in Ohm’s law (using Y not Z)
§ Ii = ΣYikIk
3. Write the expression for complex power
§ Si = ViIi*
4. Substitute expressions for complex values,
and solve for Pi and Qi
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 Review: Power Flow Equations
Si = Pi + jQi
n
Pi = ∑ Vi Vk ( gik cosθ ik + bik sin θ ik )
k=1
n
Qi = ∑ Vi Vk ( gik sin θ ik − bik cosθ ik )
k=1

• For every bus i, the power – P and Q – injected into bus i from local
generation (net demand) is equal to the sum of power flowing to every
other bus k (only if i is connected to k) à This is a version of KCL
€ • The ‘solution’ contains values for S and V at each bus, from which we
can calculate the power flowing between buses 21

Optimal Power Flow

• Economic dispatch + power flow equations
– Objective
• Minimize total cost of supplying electricity
– Constrained by
• Total generation = total demand (energy balance)
• Generators must be within min and max bounds
• Transmission system must actually be able to
support the flow of power (obey circuit laws)
• Optimal Power Flow = Power Flow + ED
– Referred to as “OPF”
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 Optimal Power Flow
• Write out problem formulation

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Discussion for ED & OPF

1) Interpret: A power flow solution does not
exist for a given economic dispatch
solution (PGi values)
2) Discuss ‘marginal unit’ for a system with
hundreds of generators
• Many units are at their generating limits
• Only the ‘marginal’ units participate in the ED solutions
3) ED and OPF solutions
– What is the role of network losses?
– What is the role of congestion/constraints?
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• (Transmission congestion – what is it?)

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 If you do not obey constraints…
• Transformer explosion, slow motion at end:
http://www.youtube.com/watch?v=2PaeJ3G3F6Y&NR=1
• Residential line fire http://www.youtube.com/watch?v=eYUmdqQ94Ao&NR=1
• Night time city explosion http://www.youtube.com/watch?v=4YY7TGnSaHw
• Transformer Substation, http://www.liveleak.com/view?i=ecd_1289630391 good
explosion
• OMG: http://www.liveleak.com/view?i=18e_1296160516

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 Control Center

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Price à “LMP”
• Electricity price = system lambda = LMP (locational marginal price)
• ISO New England: http://www.iso-ne.com/
• PJM
– https://edata2007.pjm.com/eData/index.html
– http://www.pjm.com/markets-and-operations/energy/real-time/monthlylmp.aspx - above link,
linked from here
• NYISO
– http://www.nyiso.com/public/markets_operations/market_data/maps/index.jsp
– above linked under “Market Data” from:
http://www.nyiso.com/public/markets_operations/index.jsp
• CAISO:
– Links to 3 LMP maps: http://oasis.caiso.com/mrtu-oasis/lmp/maps_home.html
– http://oasis.caiso.com/mrtu-oasis/lmp/RTM/POINTMap.html
• MISO
– http://www.midwestmarket.org/page/LMP+Contour+Map+%28EOR%29
– (Need Adobe SVG plug-in)

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 Power World 37-bus Example
• Robustness of the system (example 6_13)
– As open lines around the system
– As open breakers connecting gens and loads
• Watch power flows change, look for patterns
• To start playing with the system:
– Open far right major line, JO345 AND Job138 to Lynn – see other
small lines in middle approach overload
– Open line from TIM to HANA and see overloads (upper left)
– Take out both major lines far right and top at buses JO345 AND
Slack 345
• Without these two major lines, the system is fine
• Without Tim-Hana – two other lines overload
• What is the role of and importance of the power flow limit?
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Power World HW: OPF

• Objective of next homework
– Practice playing with operating a power system
– Continue discovering patterns of system behavior
– Discover that intuition may not help in understanding
behavior in all cases
– Familiarity with power system variables and behavior
• Example 12_11
– Optimal power flow & electricity prices

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