Power System Operation and Economics

EEEN40321 Power System Operation and Economics 15 Semester 1 Undergraduate Level 4 Eduardo Martinez Cesena Unit coordinator Victor Levi Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Masters/Integrated Masters P4 ' European Credit Transfer & Accumulation System Rating : 7.5 <div>1. Introduction to optimisation and optimal economic system operationi)   Introduction to power system economics: electricity as a commodity and trade-off between economical and secure supply (1 lecture)ii)  Introduction to nonlinear optimization concepts and Karush-Kuhn-Tucker (KKT) conditions (1 lecture)iii) Introduction to economic dispatch, KKT solution, and interpretation of Lagrange multipliers (2 lecture)iv) Introduction to unit commitment (1 lecture)2. Electricity markets and power system economicsi)   Foundations of microeconomics: Supply and demand; price elasticity; surplus; social welfare; market equilibrium; theory of the firm; fixed cost, marginal cost, average cost (2 lecturesii)  Introduction to risk: Definition; price risk management and contracts; principles of portfolio design (1 lecture)iii) Industry restructuring: Objectives; unbundling; market players; basic structures: pool, bilateral and mixed (1 lecture)iv) Electricity marketplaces: Forward and spot (balancing) markets; power exchanges; generation scheduling; two-settlement system (1 lecture)v)  Participation in electricity markets: producers, retailers, customers, hybrid participants (2 lectures)vi) Network effects: Locational marginal pricing; transmission losses and constraints; transmission rights (3 lectures)3. Concepts of power system securityi)   Supply and demand balance over different timeframes: ancillary services in a market environment and concept of (N-x) security (2 lectures)ii)  Optimal power flow and DC approximation (2 lectures)4. Power system investmenti)   Generation investment: Drivers for capacity expansion and retirement; risks (1 lecture)ii)  Transmission investment: Costing and pricing of transmission networks; value of transmission; need for regulation; approaches to transmission pricing (4 lectures)</div> <div>1. Introduction to optimisation and optimal economic system operationi)   Introduction to power system economics: electricity as a commodity and trade-off between economical and secure supply (1 lecture)ii)  Introduction to nonlinear optimization concepts and Karush-Kuhn-Tucker (KKT) conditions (1 lecture)iii) Introduction to economic dispatch, KKT solution, and interpretation of Lagrange multipliers (2 lecture)iv) Introduction to unit commitment (1 lecture)2. Electricity markets and power system economicsi)   Foundations of microeconomics: Supply and demand; price elasticity; surplus; social welfare; market equilibrium; theory of the firm; fixed cost, marginal cost, average cost (2 lecturesii)  Introduction to risk: Definition; price risk management and contracts; principles of portfolio design (1 lecture)iii) Industry restructuring: Objectives; unbundling; market players; basic structures: pool, bilateral and mixed (1 lecture)iv) Electricity marketplaces: Forward and spot (balancing) markets; power exchanges; generation scheduling; two-settlement system (1 lecture)v)  Participation in electricity markets: producers, retailers, customers, hybrid participants (2 lectures)vi) Network effects: Locational marginal pricing; transmission losses and constraints; transmission rights (3 lectures)3. Concepts of power system securityi)   Supply and demand balance over different timeframes: ancillary services in a market environment and concept of (N-x) security (2 lectures)ii)  Optimal power flow and DC approximation (2 lectures)4. Power system investmenti)   Generation investment: Drivers for capacity expansion and retirement; risks (1 lecture)ii)  Transmission investment: Costing and pricing of transmission networks; value of transmission; need for regulation; approaches to transmission pricing (4 lectures)</div> <div>The unit aims to introduce the student to the operation of power systems. The emphasis is placed on the need to balance the desire to operate (as well as plan) as economically as possible with the need to maintain the security of the system. In order to do so in a market context, the unit also gives an understanding of the economic principles underlying the introduction of competition in the supply and retail of electricity as well as the opening of the transmission and distribution systems to third party access.</div> On successful completion of the course, a student will be able to:ILO 1: Use a software package to solve optimization of the test generation – transmission system and analyse and explain the simulation results.ILO 2: Explain different electricity wholesale markets and associated contracts, and solve problems that take into account all trading arrangements in the wholesale market.ILO 3: Explain fundamentals of locational marginal pricing used for transmission congestion management and solve problems of small dimensions.ILO 4: Explain market structures, differences between competition, oligopoly and monopoly, and define Nash equilibrium.ILO 5: Explain fundamental concepts of microeconomics, theory of the firm and markets, and calculate relevant examples.ILO 6: Explain application of the generalized non-linear optimization to economic operation of power systems and calculate examples of small dimensions.ILO 7: Explain and calculate technical aspects of the power system security and balancing, and explain ancillary services with examples from the GB industry.ILO 8: Describe fundamental principles of the regulated business applied for the regulation of “monopolistic” utilities, and define essential economic price control principles.ILO 9: Describe technical, financial, price and external risks related to power system operation and planning, and produce relevant examples.ILO 10: Analyse generation and transmission system and solve problem of marginal pricing in wholesale markets. 0 Other 20% 1 Written exam 80% Written ExaminationFour compulsory questions, answer all questionsDuration: 3 hoursCalculators are permittedThis examination forms 80% of the unit assessmentCoursework/LaboratoriesThe number of laboratories attended: 2Laboratory 1The length of each laboratory: 3 hoursA report of a maximum of 10 pages on on Optimal Power Flow and Power System OperationThis course work forms 20% of the unit assessmentLaboratory 2Power system design exercise running through the entire semester for full time students onlySatisfactory engagement with the exercise and participation in the group presentationThis course work is a pass / fail . EEEN30131 Power System Analysis Pre-Requisite Compulsory To select unit EEEN40321, you need to have selected unit EEEN30131 (Power System Analysis) in your 3rd Year. N Lectures 24 Practical classes & workshops 3 Tutorials 12 0 111