Power System Operation & Economics (Economics)

EEEN70049 Power System Operation & Economics (Economics) 15 Full year Postgraduate Taught Level 7 James Brooks Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Masters/Integrated Masters P4 ' European Credit Transfer & Accumulation System Rating : 7.5 . 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 supplyii)  Introduction to nonlinear optimization concepts and Karush-Kuhn-Tucker (KKT) conditionsiii) Introduction to economic dispatch, KKT solution, and interpretation of Lagrange multipliersiv) Introduction to unit commitment2. 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 costii)  Introduction to risk: Definition; price risk management and contracts; principles of portfolio designiii) Industry restructuring: Objectives; unbundling; market players; basic structures: pool, bilateral and mixediv) Electricity marketplaces: Forward and spot (balancing) markets; power exchanges; generation scheduling; two-settlement systemv)  Participation in electricity markets: producers, retailers, customers, hybrid participantsvi) Network effects: Locational marginal pricing; transmission losses and constraints; transmission rights3. Concepts of power system securityi)   Supply and demand balance over different timeframes: ancillary services in a market environment and concept of (N-x) securityii)  Optimal power flow and DC approximation4. Power system investmenti)   Generation investment: Drivers for capacity expansion and retirement; risksii)  Transmission investment: Costing and pricing of transmission networks; value of transmission; need for regulation; approaches to transmission pricing This unit aims to introduce the student to the fundamentals of power system operation and economics. The emphasis is placed on the need to balance the desire to operate and 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 generation and retail of electricity as well as the opening of the transmission and distribution systems to third party access. INTENDED LEARNING OUTCOMES On successful completion of this course unit, students will be able to:ILO1:     Explain the function and key features of the generation, transmission, distribution and supply businesses.  ILO2:     Appraise the ways in which monopolistic and deregulated power systems ensure adequacy and secure operation. ILO3:     Explain the principles and types of utility regulation and including advantages and disadvantages of the rate of return regulation and (RPI - X) regulation; explain the application of utility regulation in the UK. ILO4:     Solve problems of trading in different markets. ILO5:     Solve examples of generation and transmission expansion planning in monopolistic and deregulated power systems.  ILO6:     Define and solve economic dispatching and unit commitment problems. ILO7:     Define trading risks and explain types of contracts. This unit is delivered entirely via part-time distance learning, including assessment. The unit runs for 10 weeks, with a total of 150h of student work. There are some fixed events, such as coursework deadlines, exams, and weekly tutorials but much of the course can be done at a pace that fits the student.Each section consists of: - An overview of the material, presenting the current learning objectives. - Explanatory material (~3h of student activity/section) in the form of video lectures, papers/articles, the course text, and links to further resources. - Exercises (~4h/ section). These are formative, with feedback given in the tutorial. - Discussion (~2h/ section). Students are encouraged to discuss the exercises and material in the forums where tutors will facilitate peer learning, providing feedback/input if necessary. - Tutorial (~1h/week). Student will video conference with their tutor in groups of 6-8 to discuss and give/receive feedback.In addition to the planned activities there is also private study (~50h for the unit) consisting of: - Revision - Coursework - Further practice - Independent/further study   1 Written exam 80% 2 Written assignment (inc essay) 20% Exam - Marked transcriptCoursework - Written comments N The core texts for the unit are:<ul> <li>Wood, Allen J., and Bruce F. Wollenberg. Power generation, operation, and control. John Wiley & Sons, 2012.</li> <li>Kirschen, Daniel S., and Goran Strbac. Fundamentals of power system economics. John Wiley & Sons, 2004.</li> <li>Gómez-Expósito, Antonio, Antonio J. Conejo, and Claudio Cañizares, eds. Electric energy systems: analysis and operation. CRC Press, 2016.</li> <li>Schweppe, Fred C., et al. Spot pricing of electricity. Springer Science & Business Media, 2013.</li></ul>A full reading list is provided via the library reading list service accessible through:<a href="https://manchester.rl.talis.com/lists/A16438E7-C244-E98E-87F2-D43AF6765BB2.html" style="color:blue; text-decoration:underline">https://manchester.rl.talis.com/lists/A16438E7-C244-E98E-87F2-D43AF6765BB2.html</a> 150