PPT-© 2011 D. Kirschen and the University of Washington

1 Participating in Electricity Markets Perspective Generator Consumer Retailer Operator of a pumpedhydro plant 2011 D Kirschen and the University of Washington 2 Participating in Electricity Markets. Daniel Kirschen. © 2011 D. Kirschen and the University of Washington. 1. Economic dispatch. Objective: . minimize . the cost of generation. Constraints. Equality constraint: load generation balance. 1. Participating in Electricity . Markets. Perspective. Generator. Consumer. Retailer. Operator of a pumped-hydro plant. © 2011 D. Kirschen and the University of Washington. 2. Participating in . Electricity Markets. © 2011 Daniel Kirschen and University of Washington. 1. Motivation. Method of Lagrange multipliers. Very useful insight into solutions. Analytical solution practical only for small problems. Direct application not practical for real-life problems because these problems are too large. (Part 2). Daniel Kirschen. Optimization . with . inequality constraints. Objective function. Equality constraints. Inequality constraints. © 2011 D. Kirschen and University of Washington. 2. Example: Economic Dispatch. (Part 1). Daniel Kirschen. Economic . d. ispatch problem. Several generating units serving the load. What share of the load should each generating unit produce?. Consider the limits of the generating units. and . Ancillary Services. © 2011 D. Kirschen and the University of Washington. 1. Introduction. Participants in electricity . markets rely on the power system infrastructure. All participants, but especially consumers, . Daniel Kirschen. 1. © 2011 D. Kirschen and the University of Washington. Perspectives. The investor’s perspective. Will a new plant generate enough profit from the sale of energy to justify the investment?. of Electricity Markets. Daniel . Kirschen. Differences between electricity and other commodities. Electricity is inextricably linked with a physical delivery system. Physical delivery system operates much faster than any market. and . Ancillary Services. © 2011 D. Kirschen and the University of Washington. 1. Introduction. Participants in electricity . markets rely on the power system infrastructure. All participants, but especially consumers, . on Electricity Markets. © 2011 D. Kirschen and the University of Washington. 1. Introduction. No longer assume that all generators and loads are connected to the same bus. Need to consider:. Congestion, constraints on flows. Daniel Kirschen. Close Professor of Electrical Engineering. University . of . Washington. © 2011 D. Kirschen and the University of Washington. 1. Outline. A bit of background. The power flow problem. Daniel Kirschen. 1. © 2011 D. Kirschen and the University of Washington. Perspectives. The investor’s perspective. Will a new plant generate enough profit from the sale of energy to justify the investment?. © 2011 D. Kirschen and the University of Washington. 1. Let us go to the market.... © 2011 D. Kirschen and the University of Washington. 2. Opportunity for buyers and sellers to:. compare prices. estimate demand. 1. Motivation. Method of Lagrange multipliers. Very useful insight into solutions. Analytical solution practical only for small problems. Direct application not practical for real-life problems because these problems are too large.