[Show abstract][Hide abstract] ABSTRACT: With the proliferation of electricity markets for the purchase and sale of firm and non-firm power and capacity, the possibility exists for using trade in these commodities to minimize the cost impact of operating dams to restore downstream flows to pre-dam patterns—so called Run of River (ROR) dam operation. We examine the impact of such markets on the incremental costs of ROR operation relative to least cost operation via a stochastic, dynamic optimization model. We identify features of the dam structure and of the economic environment that are critical to achieving ROR operation at modest incremental cost.
[Show abstract][Hide abstract] ABSTRACT: The Purdue Long-Term Electricity Trading and Capacity Expansion Planning Model simultaneously optimizes both transmission and generation capacity expansions. Most commercial electricity system planning software is limited to only transmission planning. An application of the model to India's national power grid, for 2008–2028, indicates substantial transmission expansion is the cost-effective means of meeting the needs of the nation's growing economy. An electricity demand growth rate of 4% over the 20-year planning horizon requires more than a 50% increase in the Government's forecasted transmission capacity expansion, and 8% demand growth requires more than a six-fold increase in the planned transmission capacity expansion. The model minimizes the long-term expansion costs (operational and capital) for the nation's five existing regional power grids and suggests the need for large increases in load-carrying capability between them. Changes in coal policy affect both the location of new thermal power plants and the optimal pattern inter-regional transmission expansions.
[Show abstract][Hide abstract] ABSTRACT: This paper reports on a case study for Ghana's thermal/hydroelectric generation system that evaluates the incremental cost of returning dam outflows to pre-dam or near pre-dam conditions. This mode of operation is termed Run of River (ROR) operation. It appears that two key factors - the availability of alternatives for economically expanding hydro generation and the existence of well developed markets for energy and electricity - have a large influence on the increase in cost of ROR operation relative to the least cost operating rules.
[Show abstract][Hide abstract] ABSTRACT: This paper presents the strategy for development of a stochastic programming model of the operation and capacity additions to a large hydro/thermal electricity generation complex. The proposed model minimizes the incremental costs of operating the complex so as to return river flows to pre-dam patterns. The paper focuses on a representative year made up of wet and dry seasons far enough into the future to allow adjustment of thermal and hydro generating capacities and the initial level of the reservoir, but not the capacity of the reservoir itself. The model was run first to find the operating and investment strategies which minimize electricity costs, and then run so as to minimize cost subject to equating seasonal reservoir inflows to seasonal outflows - so called ldquorun of river, RORrdquo operation. Using data from Ghanapsilas Akosombo/Kpong complex, likely outcomes of the model are presented and compared, based on existing capacities of the system.
[Show abstract][Hide abstract] ABSTRACT: Purpose – Indiana is listed among the top ten coal states in the USA and annually mines about 35 million short tons (million tons) of coal from the vast reserves of the US Midwest Illinois Coal Basin. The implementation and commercialization of clean coal technologies is important to the economy of the state and has a significant role in the state's energy plan for increasing the use of the state's natural resources. Coal is a substantial Indiana energy resource and also has stable and relatively low costs, compared with the increasing costs of other major fuels. This indigenous energy source enables the promotion of energy independence. The purpose of this paper is to outline the significance of clean coal projects for achieving this objective. Design/methodology/approach – The paper outlines the clean coal initiatives being taken in Indiana and the research carried out at the Indiana Center for Coal Technology Research. Findings – Clean coal power generation and coal for transportation fuels (coal-to-liquids – CTL) are two major topics being investigated in Indiana. Coking coal, data compilation of the bituminous coal qualities within the Indiana coal beds, reducing dependence on coal imports, and provision of an emissions free environment are important topics to state legislators. Originality/value – Lessons learnt from these projects will be of value to other states and countries.
No preview · Article · Jan 2007 · International Journal of Energy Sector Management
[Show abstract][Hide abstract] ABSTRACT: A unit commitment problem has long been known in the class of short-term functions and decisions, inherited from vertically integrated utility. In the competitive environment, the problem has become more complicated due to the fact that any action taken will now influence profitability of decision maker such as generation companies, load serving entities, and so forth. Thus, not only do economic agents face operational risks, but they also need to procure their operations against financial risks from volatility in fuel contract, and electricity prices. This leads to the evolution of stochastic unit commitment in this paper integrating risk management tools, ie., electricity derivatives, so as to reduce the impacts from both operational and financial risks in the short run. The planning model is structured of stochastic mixed-integer program with recourse cost A case study will be addressed with preliminary result presenting an improved solution.
[Show abstract][Hide abstract] ABSTRACT: Electricity suppliers are always confronted with demand uncertainty even though the state-of-the-art forecast and sophisticated control systems are employed to ensure both security and reliability. With the emergence of power market, the market participants such as generation companies, load serving entities, etc., even face higher degree of uncertainty in its operation planning. This is due to the unique characteristics of electricity which could result in unprecedented price spikes. A portfolio of supply contracts including forwards and options is a set of tools for reducing the impacts of both demand uncertainty and price volatility by increasing production flexibility. Thus, a procurement strategy can be implemented by providing more choices via contracting in addition to self generation and spot market transactions. In this framework, a two-stage planning model is developed for improving the short-term operation by incorporating risk hedging strategy in the planning problem so as to meet stochastic demand
[Show abstract][Hide abstract] ABSTRACT: Most countries of the world are becoming more aware of the importance of integrated energy systems to their economies. What benefits are to be achieved from integrated energy systems, across a region, to the participating member countries? A large-scale optimization model for natural gas production, shipment, and storage, is being designed at Purdue University, for an application to the GCC Region. This regional gas model determines the least cost (present value) for meeting the region's total domestic and export demands for natural gas. It is a natural gas supply model that will interface with the long-term regional electricity supply model created by Purdue's State Utility Forecasting Group (SUFG) in 1997-2000. Using similar methodologies both models will optimize simultaneously to reach solutions that represent the inter-dependency between natural gas supply and electricity supply. The plan to establish a natural gas network in the GCC region is now under-way. The gas model will assist the GCC in its planning of the new gas infrastructure and provide least cost analysis for expansion to its facilities in the next 10 to 20 years. 1. Regional Gas Model Concepts In this paper, we outline a mathematical programming model for the distribution of natural gas in the GCC region. The model will shed light on the importance of an integrated gas distribution system connecting these countries in terms of increased potential for electricity generation. As we will discuss later, the establishment of such a system comes with it a host of costs and restrictions, both physical as well as monetary, and these costs and restrictions ought to be included in order for the model to be accurate and the results that may be drawn from it to be feasible. Figure 1 depicts a simple topology of the gas model. The square represents the gas source. Circles represent cities - residential or industrial. Triangles represent electric power plants. The Diamond represents a storage site. Links represents pipelines. Arrowed links represent pipelines that run in one direction and undirected links represent pipelines that run in both directions and can represent more than two pipelines. Circle with + sign represents a gas import port while the circle with × sign represents a gas export port.
[Show abstract][Hide abstract] ABSTRACT: Vital new transmission lines are high on the agenda of energy planners in the various regions of Africa. These lines are identified within the power pools of Southern Africa and West Africa. The new Central Africa power pool is in the process of identifying these lines as also is the East Africa region. What are the economic gains from these new lines and what are the plans for a continent wide network? The power pool modeling at Purdue University is helping utilities across Africa to answer these questions. This paper outlines some of the transmission modeling issues that are being considered at Purdue and with colleagues across Africa.
[Show abstract][Hide abstract] ABSTRACT: New high voltage (HV) transmission lines are at the top of the agenda for many energy planners in the various regions of Africa. These lines are identified within the power pools of Southern Africa and West Africa. The new Central Africa Power Pool is in the process of identifying its new HV lines and the East Africa region is about to start. This paper looks at the centrality of the huge hydropower potential of the Grand Inga Project and the sensitivity of pricing electricity exports as they relate to transmitting power across Africa's proposed new HV lines.
[Show abstract][Hide abstract] ABSTRACT: This paper presents a safety and security constrained hydrothermal scheduling model system. Safety is defined as the measure to take for reducing the potential damage of huge upstream dams while security is defined as the consideration of transmission capacity. The modeling system consists of three submodels: a long-term maintenance model, a long-term stochastic scheduling model and a short-term scheduling model. The paper concentrate on the maintenance model and an application to a large hydrothermal system.
[Show abstract][Hide abstract] ABSTRACT: In those cases where load fluctuations are small, a utility or independent system operator (ISO) may not incur significant costs in meeting these loads. In contrast, a utility confronted with large load variations due to industrial customers can experience significant costs in order to maintain system parameters. Therefore, highly varying load (HVL), containing uncertain components which are observable in short-term and realtime operations, generally results in the incremental cost in order for the electric utility to meet its customer demand without compromising electric power quality and reliability. The purpose of this study is to present a framework for measuring costs of uncertainty by considering system control and financial market functions and decisions in parallel with any activity that a utility anticipates HVL. The methods for cost measurement are also provided in order to assess the impacts of HVL in terms of costs of uncertainty in short-term and real-time operations.
[Show abstract][Hide abstract] ABSTRACT: This work discusses the Purdue long-term expansion model (LTEM), which is used in both the SAPP and WAPP policy planning. This policy is a 20-year planning system for energy and reserve trade between countries, which minimizes the present value of electricity generation costs, and generation/transmission capacity expansion costs. Modeling demonstrations consistently indicate the importance of several particular international transmission lines in Africa. Also expansions on existing lines and the addition of new proposed lines are indicated as providing the most cost effective investments for improving reliability of supplies across Africa.
[Show abstract][Hide abstract] ABSTRACT: This paper investigates the impact of transmission networks on imperfect competition in deregulated electricity markets. Electricity producers are assumed to engage on a noncooperative gaming with complete but imperfect information. The problem is formulated as a vector profit optimization model. It shows that increasing wheeling charges can both increase market prices and reduce producers' profits, a phenomenon that cannot be explained by a nonspatial framework. Transmission limits have a significant impact on outcomes of market gaming, indicating that reducing transmission congestion would mitigate market power.
[Show abstract][Hide abstract] ABSTRACT: This paper presents a locational (spatial) gaming model with CO2 emission and transmission capacity limits. It is developed for simulating strategic behavior of electricity producers in deregulated electricity markets. The model has multiple players, each maximizing their individual profit with a CO2 emission tax included to reflect the societal cost of environment damages caused by CO2 emission from different locations. In the paper, the multiple-producer profits are converted into a set of Lagrangian functions with power production and supply as the primary control variables, resulting in a set of unconstrained, individual profit maximization equations. The Karush–Kuhn–Tucker necessary conditions are then derived and solved simultaneously incorporating Cournot gaming strategy. Case studies show the successful application of the model.
No preview · Article · Aug 2001 · International Journal of Electrical Power & Energy Systems
[Show abstract][Hide abstract] ABSTRACT: This paper evaluates the impact of mergers of electricity generation companies on wholesale electricity prices. A spatial gaming model, with the Cournot-Nash strategy, is used for the evaluation. The proposed merger evaluation method has certain advantages over the traditional HHI index for measuring potential market power of generators. Case studies are provided to illustrate the use of the model
[Show abstract][Hide abstract] ABSTRACT: This paper presents a large spatial gaming model with price caps
for the Midwest electricity markets. Price caps are enforced in several
deregulated regional electricity markets in the USA, a logical step is
to reflect this reality in imperfect competition modeling.
Unfortunately, most current gaming models have not included any price
cap formulation. This paper is one of the first to address the issue. A
transportation formulation is used for representing the spatial nature
of an electrical network. An algorithm is proposed to find a Nash
equilibrium under the enforcement of price caps based on the Kuhn-Tucker
vector optimization theorem. Case studies show the successful
application of the model. The conclusion is that, given appropriate
price caps, market power impact can be reduced in the short run
[Show abstract][Hide abstract] ABSTRACT: This paper presents a market power monitoring model for
electricity markets. It is a social welfare maximization model subject
to nonnegative short-term profit constraints. Traditional economics
claims that market power exists whenever the price is above the
corresponding marginal cost. However, this paper argues that a generator
cannot be considered to be exercising any market power if it earns zero
profit considering only variable cost
No preview · Article · Aug 2000 · IEEE Power Engineering Review