power system economics
DESCRIPTION
Lectures on Power System Economics and Cost Benefit AnalysisTRANSCRIPT
POWER SPOWER SYYSTEM ECONOMICSSTEM ECONOMICS(EKONOMIKA ELEKTROENERGETSKOG SUSTAVA)(EKONOMIKA ELEKTROENERGETSKOG SUSTAVA)
Osijek, 2009.
POWER SPOWER SYYSTEM ECONOMICSSTEM ECONOMICS
Lecturers:
Assistant professor Damir Šljivac, PhD
Faculty of Electrical Engineering in Osijek
Power System Department
e-mail: [email protected]
Zoran Kovač, MSc
HEP Croatian Utility - Transmission System Operator
Transmission Area of Osijek
e-mail: [email protected]
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POWER SPOWER SYYSTEM ECONOMICSSTEM ECONOMICSTeaching assistants:
Krešimir Fekete, MEng Goran Knežević, MEngFaculty of Electrical Engineering
Power System DepartmentFaculty of Electrical Engineering
Power System Departmente-mail: [email protected]
D ij l T ić ME
e-mail: [email protected]
Danijel Topić, MEng
Faculty of Electrical Engineering
Po er S stem DepartmentPower System Department
e-mail: [email protected]
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DIE205 Power System EconomicsDIE205 Power System Economics
D - Master studies (cro. Diplomski studij)
I - Elective course (cro. Izborni kolegij)I Elective course (cro. Izborni kolegij)
E - Power systems (cro. Elektroenergetika)
2 - 2nd semester; 05 - elective course no. 05;
Teaching methods: Student assessment and examination methods:
• Lectures (30 hours)
• Problem solving (15 hours)
methods:• Seminars• Mid-term exams
• Lab practice (15 hours) • Lab preparations and reports• Final exam
5 ECTS credits
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R fReferences:
Steven Soft: Power System Economics, J. Wiley and Sons, New York, USA, 2002
De Paoli, L., Višković, A.: Ekonomija i politika proizvodnje električne energije, , , j p p j g j(Economics and Policies of Electric Energy Production), Kigen Zagreb, 2007.
Udovičić, B.: Elektroenergetski sustav (Power Systems), Kigen Zagreb, 2005.
H Nagel: Planiranje razdjelnih mreža (Distribution Network Planning ) Graphis Zagreb H. Nagel: Planiranje razdjelnih mreža (Distribution Network Planning ), Graphis, Zagreb, 1999.
Recommended additional references:
Goić, R.: Ekonomika u EES (Power System Economics), lectures, FESB Split, 2004./2005.
V.A. Levi: Planiranje razvoja elektroenergetskih sistema pomoću računara (Computer-j j g p ( paided Power System Planning), Stylos, Novi Sad, SCG, 1998.
R. Billinton, R.N.Allan: Reliability Evaluation of Power Systems, 2nd Edition, Plenum Press, New York, USA, 1996
T. W. Berrie: Electricity Economics and Planning, Peter Peregrinus Ltd., London, UK, 1992
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1 BASICS OF ENGINEERING ECONOMICS1 BASICS OF ENGINEERING ECONOMICS
LECTURESLECTURES
1. BASICS OF ENGINEERING ECONOMICS1. BASICS OF ENGINEERING ECONOMICS1.1. Fundamental terms of economics for engineers
definitions the main objectives of economic analysisdefinitions, the main objectives of economic analysis,actualization, payback analysis, optimization in power system
1 2 Costs and revenues1.2. Costs and revenues
cost estimation, life-cycle cost, cost categories, fixed cost, variable cost, marginal cost, revenue and profit functions
1.3. Time value of money
basic terms of actualization, cash flowchart, interest ratescalculation, amortization schemes
1.4. Investment payback
methods for economic appraisal of investments in power systems:systems:
PV - present value, FV - future value, IP - index of profitabilty, IRR - internal rate of return, PP- payback period
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22 POWER CONSUMPTION MODELSPOWER CONSUMPTION MODELS
LECTURESLECTURES
2.1. Load Duration Curve
d fi iti f l d d ti t i l d d ti
22. . POWER CONSUMPTION MODELSPOWER CONSUMPTION MODELS
definition of load duration curve, consumer categories, load duration curve approximations
Pmax
Pmin
Variable (peak) load
2.2. Load forecasting
min
Constant(basic) load
g
factors affecting load patterns, load forecasting categories, load forecasting for the following year
2 3 Tariff model2.3. Tariff model
basic principles for tariff model determining, tariff models for electricity, tariff models for electricity in Croatia
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33.. COSTCOST--BENEFIT ANALYSIS OFBENEFIT ANALYSIS OFLECTURESLECTURES
3.1. Production cost calculating methodology
33. . COSTCOST BENEFIT ANALYSIS OF BENEFIT ANALYSIS OF ELECTRIC ENERGY GENERATIONELECTRIC ENERGY GENERATION
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production costs, investment cost, operational and maintenance costs, payback prediction analysis of selected type of the power plant
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3.2. Production costs of thermal power plant
investment costs production costs projected overall costs (NEA/IEA methodology) reinvestment costs, production costs, projected overall costs (NEA/IEA methodology), re-powering, analyses of different type of the power plants: thermo, nuclear, gas turbine, combine cycle gas turbine, integrated gasification combined cycle
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33.. COSTCOST--BENEFIT ANALYSIS OFBENEFIT ANALYSIS OFLECTURESLECTURES
3.3. Production costs of hydro power
33. . COSTCOST BENEFIT ANALYSIS OF BENEFIT ANALYSIS OF ELECTRIC ENERGY GENERATIONELECTRIC ENERGY GENERATION
Hydroplant specific investments [€/kW]y p
plant
economic analysis, production costs, investment cost, operational and
investments [€/kW]
, pmaintenance costs, sensitivity analysis of hydro power plant production costs
3.4. Production costs of non-conventional power plantspower plants
projected costs (NEA/IEA methodology) for wind farms, small and micro hydro system solar PV power plant solarsystem, solar PV power plant, solar thermal power plant, CHP plants
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44.. COSTCOST--BENEFIT ANALYSIS OF ELECTRIC ENERGYBENEFIT ANALYSIS OF ELECTRIC ENERGYLECTURESLECTURES
4.1. Optimal power flows
44. . COSTCOST BENEFIT ANALYSIS OF ELECTRIC ENERGY BENEFIT ANALYSIS OF ELECTRIC ENERGY TRAMSMISSION AND DISTRIBUTIONTRAMSMISSION AND DISTRIBUTION
4.1. Optimal power flows
goals of optimization, optimization of active and reactive power, power flow controlling devices, optimization limitsoptimization limits
4.2. Cost of transmission and distribution losses
t i i d di t ib ti l ltransmission and distribution losses, losses forecasting according to increasing load
4.3. Investment comparison
time value of investment money in transmission and distribution networks
4.4.Optimal selection of the transmission and4.4.Optimal selection of the transmission and distribution devices
overhead lines, cables, transformer, switching devices optimal selection
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devices optimal selection
55.. PROBABILISTIC COSTPROBABILISTIC COST--BENEFIT ANALYSIS INBENEFIT ANALYSIS INLECTURESLECTURES
5.1. Power system reliability
55. . PROBABILISTIC COSTPROBABILISTIC COST BENEFIT ANALYSIS IN BENEFIT ANALYSIS IN ELECTRICITY MARKETELECTRICITY MARKET
Electricity Market
definitions, mathematical models of components and power system reliability, power quality, reliability indices
5.2. Electricity market and power supply
RegulationRegulationDeregulationDeregulation
electricity market participants, responsibility for reliability of supply in electricity market environment, Usporedba Tipskih krivulja štete potrošača (SCDF) za tip kućanstva
prema paritetu kupovne moći100
Usporedba Tipskih krivulja štete potrošača (SCDF) za tip kućanstva prema paritetu kupovne moći
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incentive schemes
5.3. Value of lost load
definition and estimation methods of1
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VOLL, customer interruption costs CIC, customer damage functions CDF 0
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LAB WORKLAB WORK
• 20 computers20 computers
• 27 students
• 6 lab practices• 6 lab practices
TEMPUS EMSA L bTEMPUS EMSA Lab
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LabLab WorkWork practicepractice 1 2 :1 2 :LabLab WorkWork, , practicepractice 1, 2 : 1, 2 : LOSSES CALCULATION IN DISTRIBUTIVE NETWORKLOSSES CALCULATION IN DISTRIBUTIVE NETWORK
1 L i i l id d f d1. Losses in single sided fed distribution network
2. Losses in double sided feddistribution network
Different scenarios (replacing defined copper cables with aluminiumDifferent scenarios (replacing defined copper cables with aluminiumcables)
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LabLab WorkWork practicepractice 3 4 :3 4 :LabLab WorkWork, , practicepractice 3, 4 : 3, 4 : OPTIMAL POWER FLOW IN TRANSMISSION NETWORKOPTIMAL POWER FLOW IN TRANSMISSION NETWORK
• PowerWorld Simulator
• 3 Areas, 1 Superarea
• Economic dispatch
• Optimal power flow
• Calculation of production costs
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LabLab WorkWork practicepractice 5 6 :5 6 :LabLab WorkWork, , practicepractice 5, 6 : 5, 6 : COST COMPARISON OF STAND ALONE POWER SYSTEM COST COMPARISON OF STAND ALONE POWER SYSTEM FOR REMOTE AREA OBJECTFOR REMOTE AREA OBJECT
• Homer Software
• Wind Power
• Micro-hydro systemy y
• Battery
• Diesel generatorDiesel generator
• Converter
• Primary Load• Primary Load
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• Cost comparison of different scenarios (investment production• Cost comparison of different scenarios (investment, production, O&M costs)
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AUDITORIAL EXERCISESAUDITORIAL EXERCISES PROBLEM SOLVINGPROBLEM SOLVINGAUDITORIAL EXERCISES AUDITORIAL EXERCISES –– PROBLEM SOLVINGPROBLEM SOLVING
• solving numerical examples
• 7 terms (2 hours each)
• demonstration and individual problem solving
• exam at the end of each bj tsubject
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