CHAPTER 7

OPTIMAL DISPATCH OF GENERATION

 Review: Classification of buses in Power Flow
Analysis
 Slack Bus
- Swing bus: voltage magnitude and angle are specified

 Load Bus
- PQ bus: real and reactive power are specified

 Generator Bus
- PV bus/voltage controlled bus: real power and voltage
magnitude are specified.
- The power flow solution provides the voltage phase
angle and reactive power generation.
 Example
Q3 = ?
S3 = ?

∠ 3 =?
P1 = ?
Q1= ? S1 = ?

V2∠ 2 =?
 Generator Bus
 In a practical power system:
- Power plants are usually located away from the
center of load.
- Different fuel costs

 Under normal operating conditions:

- Generation capacity > total load demand and losses.
Thus,
 In interconnected power system, there are so many
options for generation scheduling.
 Optimal Power Flow (OPF)
 In an interconnected power system, the objective is:
- To find the real and reactive power scheduling of
each plant in such a way as to minimize the
operating cost.

 The generator’s real and reactive power are allowed

to vary within certain limits so as to meet a particular
load demand within minimum fuel cost.

 Minimize selected objective functions (cost

functions: economic costs, system security…) while
maintaining an acceptable system performance in
terms of generator capability limits and the output of
the compensating devices.
 Optimal Reactive Power Dispatch (ORPD)
• Minimize the network real power loss, improve
voltage profiles by regulating the generator bus
voltage, switching on or off static VAR compensators
and changing transformer tap-settings so as to keep
the reactive power generations in their secure limits.

• The analysis in this course is focusing on Optimal

Dispatch of Generation.

• The objective functions also known as cost function

may present the economic costs, system security or
other objectives.
 Non-linear Function Optimization
- (Non-Linear Programming)
Basic goal:
Minimize some nonlinear objective cost function subject to
nonlinear equality and inequality

• Multivariable calculus
Unconstrained
• Solve: gradient vector
parameter /Hessian matrix
optimization /Eigenvalues

• Equality constraints
Constrained
• Inequality constraint
parameter
• Solve:Lagrange
optimization multiplier
 Unconstrained parameter optimization
• General cost function: f (x1, x2, …,xn) = C

• The first derivative of f vanishes at a local

extrema

• For f to be a local minimum, the second

derivative must be positive at the local
extrema

• Single local minima global minimum

 Unconstrained parameter optimization
For a set of parameters, the gradient of f vanishes at a local
minimum, the Hessian must be a positive definite matrix (i.e
positive eigenvalues)

Cost function: f (x1, x2, …,xn)

Gradient vector:

Second derivatives:
 Example 7.1 (page 259)

Equate the first derivative to zero: Using MatLab:

|
.........(1) |
| >> A=[8 16 32]
| A = 8 16 32
|
….(2) >> B=[2 1 0;1 4 1; 0 1 6]
|
| B= 2 1 0
| 1 4 1
….(3)
| 0 1 6
|
OR | >> X=A/B
| X = 3.0000 2.0000 5.0000
|
| X=A/B = (3,2,5)
|
f (3,2,5) = 2

Is f (3,2,5) = 2 a minimum point?

 Is f (3,2,5) = 2 a minimum point?

.........(1) |
| Find the eigenvalues of H:
|
….(2) | >> eig(H)
|
| ans =
….(3) |
| 1.5505
| 4.0000
Evaluate the second derivative of 6.4495
|
eqns. (1), (2), (3) and form Hessian |
matrix: |
|
|
|
| All the eigenvalues are positive

The eigenvalues are all positive; hence, f(3,2,5) is a

minimum point.
Non-linear Function Optimization
- (Non-Linear Programming)
Basic goal:
Minimize some nonlinear objective cost function subject to
nonlinear equality and inequality

• Multivariable calculus
Unconstrained
• Solve: gradient vector
parameter /Hessian matrix
optimization /Eigenvalues

• Equality constraints
Constrained
• Inequality constraint
parameter
• Solve:Lagrange
optimization multiplier
 Constrained parameter optimization:
Equality constraints
• When there are functional dependencies
among the parameters to be chosen.
• Cost function:
f (x1, x2, …,xn)
• Equality constraints:

• Solve using Lagrange multiplier method; an

augmented cost function:

Where is k-vector of
undetermined quantities
 Constrained parameter optimization:
Equality constraints

Condition for constrained local minima of :

1)

2)
 Ques: 7.1 (page 309)
Find a rectangle of maximum perimeter that can be inscribed
in a circle of unit radius given by

g(x; y) = x2 + y2 -1 = 0

Check the eigenvalues for sufficient conditions.

 Solution
The problem is to find the maximum parameter of
the function:

Subject to the equality constraint:

using Lagrange multiplier method; an augmented

function/Lagrange function:
Check for conditions of constrained local minimum of

Find the value of x, y, and from the three equations above and
find the value of the perimeter that can be inscribed in a circle .
Evaluate to see if the parameter is maximum using
the second derivatives

Hessian matrix

Find the eigenvalues of H:

eig(H) =
 Non-linear Function Optimization
- (Non-Linear Programming)
Basic goal:
Minimize some nonlinear objective cost function subject to
nonlinear equality and inequality

• Multivariable calculus
Unconstrained
• Solve: gradient vector
parameter /Hessian matrix
optimization /Eigenvalues

• Equality constraints
Constrained
• Inequality constraint
parameter
• Solve:Lagrange
optimization multiplier
 Constrained parameter optimization:
Inequality constraints
• When there are functional dependencies among the parameters to be
chosen.

• Cost function:
f(x1, x2, …,xn)

Subject to equality constraints:

gi(x1, x2, …,xn)=0 i=1,2,…,k

and the inequality constraints:

uj(x1, x2, …,xn) 0 j=1,2,…,m

• Solve using Lagrange multiplier method; an augmented cost function:

k-vector | the undetermined

m-vector | quantities
Necessary conditions for constrained local
minima of
REFER TO EXAMPLE 7.3
(page 265)
 POWER GENERATION
- thermal plant

Prime
Btu/h Generator MW
Mover
 Operating cost of a thermal plant
Factors influencing the minimum cost of power generation:
Fuel Operating efficiency of Transmission
cost prime mover and losses
generator

However, the above factors correlate with each other, e.g.

 A very efficient generator may not be the cheapest if its fuel cost is high.
 A plant located away from the load center may cost more to generate due
to transmission losses.
The challenge is to determine how much each
generator must generate so that the total
operating cost would be minimum

Total operating cost =

fuel cost + labor cost + supplies + maintenance
 Btu – the input fuel energy
 Btu/h – the fuel input energy rate

 Btu/Wh – the fuel energy input per unit of

electrical energy output - heat
energy conversion rate.

 Heat-rate: Btu/Wh
 Thermal fuel-cost characteristics
Fuel input rate of a generating unit:

Btu/h

Fuel
Input,
Btu/h

PGi, MW
 Fuel cost of operating the generating unit:

$/h
 Where, kf = fuel cost

$/h

Cost
Ci,
$/h

PGi, MW
Incremental cost of operating the generating
unit

$/MWh

i,
$/MWh

PGi, MW
 Fuel cost per unit notation
PR reference power [MW]

$/h

$/h

$/h

$/Wh
Economic Dispatch
Neglecting Neglecting
losses and losses and
Including
no including
losses
generation generation
limit limit
 Optimal Economic Dispatch:
Lossless Case and No Generator Limit
• This model assumes that the system is only
“one bus” with all generation and loads
connected to it – common bus.

C1 C2

P1 P2

PD
Ct – the total production cost
Ci – the production cost of ith plant
• The problem is to find the real power generation for each
plant such that the objective function (i.e. total production
cost )

| From the previous

| slide:
|
|
is minimum, subjected to |
the constraint: |
|
|
Ct – the total production cost |
Ci – the production cost of ith plant |
Pi – the generation of ith plant |
|
PD – the total load demand |
ng – the total number of dispatchable |
|
generating plants
 Typical approach: augment the
constraint into objective function

• The minimum point is found when the partials of

the function to its variables are zero:
 • First condition

but,

Thus,

Therefore, the condition for optimum dispatch:

• Second Condition

Coordination equation
 but hence,

Or

• Find the value of and substitute into the coordination

equation to obtain the optimal scheduling of
generation.

• Refer to Example 7.4 (page271)

 Example 7.4 (page 271)
• The fuel-cost function for the thermal plants in $/h are
given by:

where P1, P2 and P3 are in MW. The total load, PD is

800MW. Neglecting line losses and generator limits, find
the optimal dispatch and the total cost in $/h

a) by analytical method
b) by graphical method
c) by iterative technique using gradient method
Example 7.4 – Neglecting losses and no generator limits: Analytical
method
PD=800MW

|
1a. Find λ | Answer: λ =8.5 $/MWh
|
|
| P1=400.0000
| P2=250.0000
1b. Find generation P3=150.0000
|
------------------------------------------------------------ |
2a. Find |
condition for |
optimal |
dispatch |
|
|
2b. Subject to: P1+P2+P3 = PD |
Plot the incremental cost for each plant for an optimal
dispatch – graphical demonstration

10.5

10

9.5

9
$/MWh

8.5

7.5

7
0 50 100 150 200 250 300 350 400 450
P, MW
 3. Numerical solution: The gradient method
1) Assume =6.0

2) Find generation:

3) Check for: Since PD=800MW

4) Check for:

5) Assume new
 3. Numerical solution: Using the gradient method

• Assume (2) =6.0+2.5=8.5

Find generation:

Since PD=800MW

Check for:
 Optimal Economic Dispatch: Lossless Case and
Including Generator Limits
• The power output of any generator should not
exceed its rating nor should it below the
necessary for stable boiler operation.
• The problem:
- Find the real power generation for each plant
that the total production cost

is minimum, subjected

to inequality constraint: Pi(min) Pi Pi(max)

Conditions for optimal dispatch- Kuhn-
Tucker conditions:

for Pi(min) < Pi < Pi(max)

for Pi = Pi(max)

for Pi = Pi(min)
 Steps taken to solve the problem
1. Estimate
2. Pi are found from the coordinated equation
3. Iteration is continued until Pi = PD

 As soon as any plant reaches max or min, the plant

is pegged at the limit
- The plant output becomes a constant.
- Only the unviolated plants must operate at
incremental cost.
 Example 7.6 (Page 277)
• Find the optimal dispatch and the total cost in
$/h for the thermal plants of example 7.4 if the
total load is 975MW with the following generator
limits (in MW):

• 200 P1 450
• 150 P2 350
• 100 P3 225

• Assume the initial (1) = 6.0

 Example 7.6 (page 277)
• Generator limits: 200 P1 450
150 P2 350
100 P3 225; PD = 975MW
1. Estimate

2. Find Pi

3. Check

4. Check
5. Use new (i+1) = (i) + for the next iteration.

6. Check the constraints (generator capability)

and P
 Economic Dispatch including losses
• When transmission distances are very small and
load density is very high, transmission losses may
be neglected and the optimal generation dispatch
is achieved with all plants operating at equal
incremental production cost.
• In large interconnected network where power is
transmitted over a long distances with low load
density areas, transmission losses are a major
factor and affect the optimum dispatch of
generation.
• Include the effect of transmission losses:

• Kron’s loss formula:

• Bij – loss coefficients or B-coefficient

(assumed constant)
 Functions and constraints

Generation = total demands + losses

 Functions and constraints
Inequality constraints:
Pi(min) Pi Pi(max) i = 1,……,n g

Using the Lagrange Multiplier and adding additional terms to

include the inequality constraints:

i(max) = 0 when Pi <Pi(max) maximum generating limit

i(min) = 0 when Pi >Pi(min)] minimum generating limit
The constraint becomes active when violated.
The minimum of the unconstraint function is found at
the point where the partials of the function to its
variables are zero. Hence, the conditions:

| these two eqns. imply

| that Pi should not be
| allowed to go beyond
| its limit.
 Conditions (con’t)

• Since

• Then

• Condition for optimal dispatch

i=1,…, ng

where is the incremental

transmission loss
 Condition (con’t)
• The equality constraint

• Condition for optimum dispatch:

where Li is the penalty factor:

The minimum cost is obtained when the incremental cost of each plant
multiplied by its penalty factor is the same for all plants
 Example 7.7 (page 284)
• Fuel cost in $/h of three thermal power plants:

 Plant output limit:

10MW P1 85MW
10MW P2 80MW PD = 150MW
10MW P3 70MW
 The real power loss:

Base power = 100MW

Using gradient method:

1. Formula for the real power loss in MW:

2. Assume initial (1) = 8.0 $/MWh to calculate power
generated for each plant using gradient method:
3.The real power loss in MW:

4. Given PD = 150MW, P(1) is calculated:

5. To calculate new :
- Take partial derivative of:
- Calculate

- Calculate the new (2) :

7. Second iteration using (2) :

 When does the iteration stop?

Until the value of is small, which shows that

the equality constraint is met.
 Calculate:

 P1, P2, and P3 based on the last value of .

 The real power loss (total system loss): PL

 The total fuel cost (total generation cost):

Ct
 Derivation of Loss Formula
• One of the major steps in the optimal dispatch of
generation is to express the system losses in terms of
generator’s real power outputs.

• The total complex power injected at the bus I

• The summation of powers over all buses gives the total

losses

PL and QL are the real and reactive power losses of the

system
 Bus current:

But:

The real and reactive power losses, PL and QL of the system:

 Question 1
• The power needs a large plant are served by
three generating units, which have the following
incremental cost functions:

• Determine the optimal economic dispatch for a

total power demand of PD=800MW. What is the
cost in cents per kWh at this incremental cost?
 Question 2

• PD = 700MW
• Use optimal dispatch rule to find PG1 and PG2
• If the generation limits:
50MW PG1 200MW
50MW PG2 600MW
• Find the optimal dispatch for PD = 700MW
 Question 3
QUESTION 1 [20Marks]
The fuel-cost functions in $/h for three thermal plants are given by:

Where P1, P2, and P3 are in MW

a) If the power plants were to generate output power equally to meet the
demand of 600MW, which power plant would have the least cost and the
least incremental cost? Support your answer based on the concept of
incremental cost for optimal dispatch [8 marks]
b) Sketch the graph to support and prove your answer in part a).
[8 marks]
c) When power system network splits into 2 regions after system
disturbances, one region may experience underfrequency while the
other region will experience overfrequency phenomena. Please explain
why. [4 marks]
THANK YOU
Generator Capability Curve
Field heating

Armature heating
 The Economic Dispatch of Real Power
Generation
• Hessian Matrix
(http://en.wikipedia.org/wiki/Hessian_matrix)
- Hessian matrices are used in large-scale
optimization problems within Newton-type
methods
• the Hessian matrix is the square matrix of
second-order partial derivatives of a function.
Given the real-valued function
f(x1, x2, …,xn)
 Hessian matrix
(From Wikipedia, the free encyclopedia )

- In mathematics, the Hessian matrix is the square matrix of second-order partial

derivatives of a function. Given the real-valued function .

- if all second partial derivatives of f exist, then the Hessian matrix of f is the matrix

- where x = (x1, x2, ..., xn) and Di is the differentiation operator with respect to the
ith argument:

- (Some mathematicians define the Hessian as the determinant of the above

matrix).
 Lagrange Multiplier
• In mathematical optimization problems, the
method of Lagrange multipliers, named after
Joseph Louis Lagrange, is a method for finding
the extrema of a function of several variables
subject to one or more constraints; it is the
basic tool in nonlinear constrained
optimization.