Economic market design and planning for electric power systems

ECONOMIC MARKET DESIGN AND PLANNING FOR ELECTRIC POWER SYSTEMS......Page 5
CONTENTS......Page 7
PREFACE......Page 13
CONTRIBUTORS......Page 15
1.1 Introduction......Page 19
1.2 Power System Challenges......Page 21
1.2.1 The Power System Modeling and Computational Challenge......Page 22
1.3.1 Modular Description of the EPNES Architecture......Page 23
1.3.2 Some Expectations of Studies Using EPNES Benchmark Test Beds......Page 25
1.4.2 Definition of Objectives......Page 26
1.4.3 Selected Objective Functions and Pictorial Illustrations......Page 27
1.5.1 Power System Model for the Navy......Page 31
1.5.2 Civil Testbed—179-Bus WSCC Benchmark Power System......Page 33
1.6.1 Funded Research by Topical Areas/Groups under the EPNES Award......Page 34
1.6.2 EPNES Award Distribution......Page 35
1.8 Conclusions......Page 36
Bibliography......Page 37
2.1 Introduction......Page 39
2.2 The Basic Structure of a Market for Electricity......Page 40
2.2.1 Consumer Surplus......Page 41
2.2.3 Market Power......Page 42
2.2.4 Architecture of Electricity Markets......Page 43
2.3.1 Brief Literature Review......Page 44
2.3.2 Price-Based Models......Page 45
2.3.3 Quality-Based Models......Page 48
2.4.1 Introduction......Page 50
2.4.2 Congestion Charges and Financial Transmission Rights......Page 51
2.4.3 Example of a 3-Bus System......Page 52
2.5.1 Overview of the Static LMP Problem......Page 57
2.5.2 LMP in Stochastic and Dynamic Market with Uncertainty......Page 58
Bibliography......Page 60
3 ALTERNATIVE ECONOMIC CRITERIA AND PROACTIVE PLANNING FOR TRANSMISSION INVESTMENT IN DEREGULATED POWER SYSTEMS......Page 63
3.1 Introduction......Page 64
3.2.1 A Radial-Network Example......Page 67
3.2.2 Sensitivity Analysis in the Radial-Network Example......Page 74
3.4 Proactive Transmission Planning......Page 75
3.4.1 Model Assumptions......Page 76
3.4.2 Model Notation......Page 78
3.4.3 Model Formulation......Page 79
3.4.4 Transmission Investment Models Comparison......Page 80
3.5 Illustrative Example......Page 82
3.6 Conclusions and Future Work......Page 85
Appendix......Page 86
4 PAYMENT COST MINIMIZATION WITH DEMAND BIDS AND PARTIAL CAPACITY COST COMPENSATIONS FOR DAY-AHEAD ELECTRICITY AUCTIONS......Page 89
4.1 Introduction......Page 90
4.3 Problem Formulation......Page 91
4.4 Solution Methodology......Page 93
4.4.2 Formulating and Solving Unit Subproblems......Page 94
4.4.3 Formulating and Solving Bid Subproblems......Page 97
4.4.5 Generating Feasible Solutions......Page 98
4.5 Results and Insights......Page 99
Bibliography......Page 102
5.1 Introduction and Motivation......Page 105
5.2 Summary and Modeling Approach......Page 107
5.3.1 Notation......Page 108
5.3.2 Generating Firm’s Extremal Problem......Page 110
5.3.3 ISO’s Problem......Page 112
5.4.1 Complementary Conditions for Generating Firms......Page 113
5.4.2 Complementary Conditions for the ISO......Page 115
5.5 Numerical Example......Page 116
Appendix: Glossary of Relevant Terms form Electricity Economics......Page 126
Bibliography......Page 128
6 PLANT RELIABILITY IN MONOPOLIES AND DUOPOLIES: A COMPARISON OF MARKET OUTCOMES WITH SOCIALLY OPTIMAL LEVELS......Page 131
6.1 Introduction......Page 132
6.2 Modeling Framework......Page 134
6.3 Profit Maximizing Outcome of a Monopolistic Generator......Page 136
6.4 Nash Equilibrium in a Duopolistic Market Structure......Page 138
6.5 Social Optimum......Page 140
6.6 Comparison of Equilibria and Discussion......Page 141
6.7 Asymmetric Maintenance Policies......Page 143
6.8 Conclusion......Page 145
Bibliography......Page 146
7.1 Introduction......Page 149
7.1.2 Our Proposed Solutions to the Above Shortcomings......Page 150
7.2.1 Reliability......Page 151
7.2.2 Bulk Power System Reliability Requirements......Page 152
7.2.4 Power System / New Technology......Page 153
7.3.1 Contingency Issues......Page 158
7.3.2 Foundation of Public Perception......Page 159
7.3.3 Available Transmission Capability (ATC)......Page 160
7.3.4 Reliability Measures/Indices......Page 161
7.3.5 Expected Socially Unserved Energy (ESUE) and Load Loss......Page 163
7.3.6 System Performance Index......Page 165
7.3.7 Computation of Weighted Probability Index (WPI)......Page 166
7.4 Design Methodologies......Page 167
7.5.1 Load Flow Analysis with FACTS Devices (TCSC) for WSCC System......Page 168
7.6.1 Load Flow Analysis with FACTS Devices (TCSC) for WSCC System......Page 169
7.6.2 Performance Evaluation Studies on IEEE 30-Bus System......Page 171
7.6.3 Performance Evaluation Studies on the WSCC System......Page 173
7.7 Conclusion......Page 175
Bibliography......Page 176
8 RISK-BASED POWER SYSTEM PLANNING INTEGRATING SOCIAL AND ECONOMIC DIRECT AND INDIRECT COSTS......Page 179
8.1 Introduction......Page 180
8.2 The Partitioned Multiobjective Risk Method......Page 182
8.3 Partitioned Mutiobjective Risk Method Applied to Power System Planning......Page 184
8.4 Integrating the Social and Economic Impacts in Power System Planning......Page 187
8.5.1 Describing the Methodology for Economic and Social Cost Assessment......Page 188
8.5.2 The CRA Method......Page 190
8.5.3 Data Analysis of the California Crises and of the 2003 U.S. Blackout......Page 191
8.6 Conclusions and Future Work......Page 194
Bibliography......Page 195
9.1 Introduction......Page 199
9.2 Planning Processes......Page 202
9.2.1 Engineering Analyses and Cost Responsibilities......Page 203
9.2.2 Cost Recovery for Transmission Owners......Page 205
9.2.3 Economically Motivated Expansion......Page 206
9.3 Transmission Limits......Page 207
9.4 Decision Support Models......Page 209
9.4.1 Optimization Formulation......Page 210
9.4.2 Planning Transmission Circuits......Page 213
9.4.3 Planning Transmission Control......Page 217
9.4.4 Dynamic Analysis......Page 231
9.5 Market Efficiency and Transmission Investment......Page 237
Bibliography......Page 250
10.1 Introduction......Page 255
10.2.1 Overview of Modules......Page 257
10.2.2 Organization......Page 259
10.3.1 Overview......Page 260
10.3.2 Decision Analysis Tools......Page 261
10.3.3 Selected Methods in Classical Optimization......Page 266
10.3.4 Optimal Control......Page 268
10.3.5 Dynamic Programming (DP)......Page 270
10.3.6 Adaptive Dynamic Programming (ADP)......Page 271
10.3.7 Variants of Adaptive Dynamic Programming......Page 273
10.3.8 Comparison of ADP Variants......Page 276
10.4.1 Overview......Page 278
10.4.2 Framework for Implementation of DSOPF......Page 279
10.4.3 Applications of DSOPF to Power Systems Problems......Page 280
10.5 Grant Challenges in Next Generation Optimization and Research Needs......Page 290
Acknowledgments......Page 291
Bibliography......Page 292
INDEX......Page 295