class 1 economic systems for electric power planning n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Class 1 Economic systems for electric power planning PowerPoint Presentation
Download Presentation
Class 1 Economic systems for electric power planning

Loading in 2 Seconds...

play fullscreen
1 / 16

Class 1 Economic systems for electric power planning - PowerPoint PPT Presentation


  • 125 Views
  • Uploaded on

Class 1 Economic systems for electric power planning. Professors Jim McCalley and Leigh Tesfatsion. WEBSITES. Dr. McCalley’s : http://home.eng.iastate.edu/~ JDM/ee458_2011/ee458schedule.htm. Dr. Tesfatsion’s : h ttp :// www2.econ.iastate.edu/classes/econ458/tesfatsion/Home458Team.htm.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Class 1 Economic systems for electric power planning' - colum


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
class 1 economic systems for electric power planning

Class 1Economic systems for electric power planning

Professors Jim McCalley and

Leigh Tesfatsion

slide2

WEBSITES

Dr. McCalley’s: http://home.eng.iastate.edu/~JDM/ee458_2011/ee458schedule.htm

Dr. Tesfatsion’s: http://www2.econ.iastate.edu/classes/econ458/tesfatsion/Home458Team.htm

  • General rule: Use the site of the instructor giving the lectures.
  • Comments:
  • Links on each will take you to the other.
  • Generally consistent although differences exist and reflect the different orientations of the instructors.
  • Different orientations of instructors reflect economic /engineering requirements of electricity markets 
slide3

Assignments for this week

Read Paper on JDM website linked by the name of “California Crisis Explained.” Complete HW1 (also on JDM website) to turn in on Friday 8/26.

Read notes on JDM website linked by “Market Summary ,” called “Overview of Electricity Markets.”

Read chapter 1 in Textbook.

Read “Notes on cost curves” from JDM website.

slide4

What this course is about

The electric industry and ….

Its characteristics before,

but mainly its characteristics after

Before, and after what?

slide5

What happened?

Deregulation

Privatization

Vertical disaggregation

Functional unbundling

Introduced markets

Brought competition

slide6

When did this happen?

Well, sort of, actually, it all started much earlier…

slide7

What was it before?

  • A monopolistic, and regulated, industry
  • In any given region, there is only one organization from which to buy.
  • Other organizations are blocked.
  • Reasons for giving monopoly status can vary, but in the electric industry, the main reason was…

Economies of scale…

when average cost of production, $/MWhr, decreases as generation plant gets larger.

slide8

Economies of scale

$40/MWhr

$50/MWhr

Four 250 MW Plants

1000 MW Plant

And this drove all thinking in the electric industry from 1900 until the early 1960’s.

And then what happened?

slide9

Three things

Smaller plants began to look more economic . Why?

  • Large plants takes years to build, often must be located far away, and create havoc when they outage. Smaller plants
    • are built more quickly and their construction costs are consequently subject to less economic uncertainty;
    • can be located more closely to load centers, an attribute that avoids transmission, decreases system losses, & is advantageous for system security;
    • are generally more reliable, and less consequential when they do outage.
  • Combined cycle units, attractive because of high efficiency, have to account for design complexities due to coupling between CTs & HRSGs driven by waste heat from the CTs, and so tend to be lower in rating.
  • Cogeneration facilities, attractive because of high efficiency, typically have lower ratings as a result of their interdependency with the industrial steam processes supported by them.
  • Plants fueled by renewable energy sources (biomass, wind, solar, and independent hydro), attractive because of their low operating expenses and environmental appeal, also tend to have lower ratings.
slide10

Three things

  • Reaganomics – and public approval of less tax, less government, less regulation and being competitive.
  • Fred Schweppe:
    • F. Schweppe, “Power Systems 2000,” IEEE Spectrum, Vol. 15, No. 7, July 1978.
    • F. Schweppe, R. Tabors, J. Kirtley, H. Outhred, F. Pickel, and A. Cox, “Homeostatic Utility Control,” IEEE Trans. Pwr. App. And Sys., Vol. PAS-99, No. 3, May/June 1980.
    • M. Caramanis, R. Bohn, and F. Schweppe, Optimal spot pricing: practice & theory, IEEE Transactions on Power Apparatus and Systems, Vol. PAS-101, No. 9 September 1982.
    • F. Schweppe, M. Caramanis, R. Tabors, R. Bohn, “Spot Pricing of Electricity,” Kluwer, 1988.
slide12

But what do these mean?

Vertical disaggregation

Functional unbundling

slide13

Transmission and

System Operator

G

G

G

G

G

G

G

G

Vertically Integrated Utility

1900-199?

slide14

Transmission and

System Operator

G

G

G

G

G

G

G

G

G

G

G

G

Independent

System

Operator

G

Transmission

Operator

Transmission

Operator

Transmission

Operator

G

Today

G

G

Vertically Integrated Utility

1900-199?

slide16

Which leads to the course objectives

  • characterize existing electric industry structure and market systems;
  • solve linear programming and integer programming problems using commercial optimization software packages;
  • use the two basic electric energy market computational tools: security constrained optimal power flow and security constrained unit commitment;
  • determine electricity and transmission prices, how they affect the transmission expansion of electric power systems;
  • be conversant with transmission and resource planning tools and procedures used by today’s industry.