Abstract
The transition to competitive wholesale and retail markets for electric utilities around the world has been a difficult and controversial process. One of the difficulties that hindered the development and growth of the competitive wholesale power market is the absence of efficient computational tools to assist the design, analysis and operation of a competitive power market. PowerWorld simulator is an industry standard software package that has strong analytical and visualization functions suitable for extensive power flow study of a large power system. However, PowerWorld is not designed in such a way that can be used for the analysis and evaluation of a competitive wholesale power market. This paper investigates mathematical models associated with a competitive wholesale power market and how these models can be converted and transformed in such a way that makes it possible to use PowerWorld for optimal power dispatch study of a competitive power market. The paper also develops a co-simulation mechanism to integrate PowerWorld and MatLab for a combined optimal power dispatch and unit commitment study. Finally, the paper demonstrates a case study for a large competitive electric power system.
Highlights
The Standard Market Design was proposed by the US Federal Energy Regulatory Commission (FERC) in 2002 (Joskow, 2006; ISO, 2005) by using Locational Marginal Pricing (LMP), Load Serving Entities (LSEs) and an Independent System Operator (ISO)
The LMP on each bus is normally higher for AC Optimal Power Flow Analysis Tool (OPF) than DC OPF
Compared to DC OPF, AC OPF requires more generator units to be online at a certain hour and the total operational cost obtained from AC OPF is higher than that of DC OPF, demonstrating the importance of using AC OPF for accurate Unit Commitment (UC) scheduling and optimal power dispatch evaluation in a competitive power market
Summary
The Standard Market Design was proposed by the US Federal Energy Regulatory Commission (FERC) in 2002 (Joskow, 2006; ISO, 2005) by using Locational Marginal Pricing (LMP), Load Serving Entities (LSEs) and an Independent System Operator (ISO). The conversion from (1) to (18) for the increment bidding rate function of a price-sensitive load is based on a special mechanism that makes it possible to solve the optimal power dispatch problem (13) in PowerWorld as explained below. The optimal power dispatch problem can be represented by (22), in which CstPW_LjS(h) stands for the equivalent generator cost associated with the pricesensitive load PLjS(h) and the corresponding increment bidding rate function is (18). According to (22), the optimal power dispatch problem becomes to minimize the overall generation cost of all the positive and negative generators: By this way, we can use PowerWorld OPF to solve the optimal power dispatch problem for a competitive power market, in which a generator model is used to represent a price-sensitive load. 18: Optimal power flow computation in PowerWorld 19: ci(h) ← Generator operating cost obtained from
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