ECONOMIC DISPATCH FOR GENERATION COMPANY CONSIDERING WHEELING CHARGES

Abstract

Right from the beginning up to early 1990's, electric power supply industry was regulated by the government. Then this traditional vertically monopolistic structure of electric power supply industry has been deregulated in order to create competition. This competition in the generation & distribution market with the open access to the transmission network introduced with expectations that it would bring many benefits to the end consumers, such as lower electricity prices and better services. There were several. complexity involved in restructuring and many new issues are still emerging. Because of the deregulation it becomes necessary to have open access of the transmission system and hence charges must be paid to transmission system owner for its use. In this dissertation work, firstly an economic dispatch model in view of wheeling charges for bilateral contract is considered. Wheeling charges are evaluated on the basis of extent of use of transmission system by Non Utility Generators (NUG) when they transact power to their designated customer. Then this model is modified for theinclusion of power demand elasticity i.e. for maximizing social surplus. Transmission congestion is an issue related with the transmission line limits and it takes place when all pool or bilateral/multilateral transactions would result in violation of operational constraints. An economic dispatch model with the inclusion of transmission congestion and social surplus is developed and solved which is based on the maximization of the social welfare and revenue adequacy constraints of both supplier and customer considering bus power, bus voltage and branch flow limitations. Finally all the developed models are tested on IEEE 14 bus and IEEE 30 bus systems