POWER S SY YSTEM ECONOMICS

(EKONOMIKA ELEKTROENERGETSKOG SUSTAVA)

Osijek, 2009.

POWER S SY YSTEM ECONOMICS

Lecturers: Assistant professor Damir ljivac, PhD Faculty of Electrical Engineering in Osijek Power System Department e-mail: damir.sljivac@etfos.hr Zoran Kova, MSc HEP Croatian Utility - Transmission System Operator Transmission Area of Osijek e-mail: zoran.kovac@hep.hr
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POWER S SY YSTEM ECONOMICS

Teaching assistants: Kreimir Fekete, MEng Faculty of Electrical Engineering Power System Department e-mail: kresimir.fekete@etfos.hr Danijel D ij l Topi T i, MEng ME Faculty of Electrical Engineering Po er S Power System stem Department e-mail: danijel.topic@etfos.hr Goran Kneevi, MEng Faculty of Electrical Engineering Power System Department e-mail: goran.knezevic@etfos.hr

DIE205 Power System Economics D - Master studies (cro. Diplomski studij) I - Elective course (cro. Izborni kolegij) E - Power systems (cro. Elektroenergetika) 2 - 2nd semester; ; 05 - elective course no. 05 Teaching methods: Lectures (30 hours) Problem solving (15 hours) Lab practice (15 hours) 5 ECTS credits Student assessment and examination methods: Seminars Mid-term exams Lab preparations and reports Final exam

R f References: Steven Soft: Power System Economics, J. Wiley and Sons, New York, USA, 2002 , L., , Vikovi, A.: Ekonomija j ip politika p proizvodnje j elektrine energije gj De Paoli, (Economics and Policies of Electric Energy Production), Kigen Zagreb, 2007. Udovii, B.: Elektroenergetski sustav (Power Systems), Kigen Zagreb, 2005. H. Nagel: Planiranje razdjelnih mrea (Distribution Network Planning ), H ) Graphis, Graphis Zagreb, Zagreb 1999. Goi, R.: Ekonomika u EES (Power System Economics), lectures, FESB Split, 2004./2005. j razvoja j elektroenergetskih g sistema p pomou raunara ( (Computerp V.A. Levi: Planiranje aided 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

Recommended additional references:

LECTURES 1 BASICS OF ENGINEERING ECONOMICS 1.

1.1. Fundamental terms of economics for engineers definitions, the main objectives of economic analysis, definitions analysis actualization, payback analysis, optimization in power system 1 2 Costs and revenues 1.2. 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 rates calculation, amortization schemes 1.4. Investment payback methods for economic appraisal of investments in power systems: PV - present value, FV - future value, IP - index of profitabilty, IRR - internal rate of return, PP- payback period

PV MFk (1 MARR) k
k 0

LECTURES 2. POWER CONSUMPTION MODELS

2.1. Load Duration Curve definition d fi iti of fl load dd duration ti curve, consumer categories, t i l dd load duration ti curve approximations
Variable (peak) load Pmax

Pmin Constant(basic) load

2.2. Load forecasting g factors affecting load patterns, load forecasting categories, load forecasting for the following year 2 3 Tariff model 2.3. basic principles for tariff model determining, tariff models for electricity, tariff models for electricity in Croatia
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LECTURES 3. COST COST-BENEFIT ANALYSIS OF ELECTRIC ENERGY GENERATION

3.1. Production cost calculating g methodology gy production costs, investment cost, operational and maintenance costs, payback prediction analysis of selected type of the power plant

PC

k j

I k 1 a OM k 1 a Fk 1 a H k 1 a
k k k k 1 k 1 k 1

E 1 a
k 1 k

3.2. Production costs of thermal power plant investment costs, costs production costs, costs projected overall costs (NEA/IEA methodology) methodology), rere powering, analyses of different type of the power plants: thermo, nuclear, gas turbine, combine cycle gas turbine, integrated gasification combined cycle

LECTURES 3. COST COST-BENEFIT ANALYSIS OF ELECTRIC ENERGY GENERATION

3.3. Production costs of hydro y p power plant economic analysis, production costs, , operational p and investment cost, maintenance costs, sensitivity analysis of hydro power plant production costs
Hydroplant specific investments [/kW]

3.4. Production costs of non-conventional power plants projected costs (NEA/IEA methodology) for wind farms, small and micro hydro system solar PV power plant system, plant, solar thermal power plant, CHP plants

LECTURES 4. COST COST-BENEFIT ANALYSIS OF ELECTRIC ENERGY TRAMSMISSION AND DISTRIBUTION

4.1. Optimal power flows goals of optimization, optimization of active and reactive power, power flow controlling devices, optimization limits 4.2. Cost of transmission and distribution losses transmission t i i and d di distribution t ib ti l losses, l 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 and distribution devices overhead lines, cables, transformer, switching devices optimal selection
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LECTURES 5. PROBABILISTIC COST COST-BENEFIT ANALYSIS IN ELECTRICITY MARKET

5.1. Power system reliability definitions, mathematical models of components and power system reliability, power quality, reliability indices 5.2. Electricity market and power supply electricity market participants, responsibility for reliability of supply in electricity market environment, incentive schemes 5.3. Value of lost load definition and estimation methods of VOLL, customer interruption costs CIC, customer damage functions CDF
Electricity Market

Deregulation

Regulation

Usporedba Tipskih krivulja tete potroa a (SCDF) za tip ku anstva prema paritetu kupovne mo i
100 Tipska kr rivulja tete potroaa (int$/kW)

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Hrvatska K Kanada d Danska Velika Britanija Nepal Saudijska Arabija

0 1 10 Trajanje prekida opskrbe (h) 100

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LAB WORK
20 computers 27 students 6 lab practices

TEMPUS EMSA Lab L b

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Lab Work Work, , practice 1, 1 2: LOSSES CALCULATION IN DISTRIBUTIVE NETWORK

1 L 1. Losses in i single i l sided id d fed f d distribution network 2. Losses in double sided fed distribution network

Different scenarios (replacing defined copper cables with aluminium cables)

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Lab Work Work, , practice 3, 3 4: OPTIMAL POWER FLOW IN TRANSMISSION NETWORK

PowerWorld Simulator 3 Areas, 1 Superarea Economic dispatch Optimal power flow Calculation of production costs

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Lab Work Work, , practice 5, 5 6: COST COMPARISON OF STAND ALONE POWER SYSTEM FOR REMOTE AREA OBJECT
Homer Software Wind Power Micro-hydro y system y Battery Diesel generator Converter Primary Load

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Cost comparison of different scenarios (investment, (investment production, production O&M costs)

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AUDITORIAL EXERCISES PROBLEM SOLVING

solving numerical examples 7 terms (2 hours each) demonstration and individual problem solving exam at the end of each subject bj t

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