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Power System Economic and Market Operations
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Table of Contents

1 Introduction

2 Economic operation in power systems

2.1 Introduction of power system operation

2.2 Development of economic operation

2.3 Incentives of economic operation

3 Power generation costs

3.1 Load cycles

3.2 Costs for power generations

3.3 Generation planning

3.4 Summary

4 Economic dispatch

4.1 Introduction

4.2 The problem of economic dispatch

4.3 Economic dispatch problem considering losses

4.4 Economic dispatch with piecewise linear cost functions

4.5 Summary

5 Optimal power flow

5.1 Introduction

5.2 Power flow formulations

5.3 Optimal power flow modeling

5.4 DC optimal power flow

5.5 Security-constrained optimal power flow

5.6 Examples

5.7 Modified optimal power flow models for power system operations

5.8 Optimal power flow and unit commitment

6 Unit commitment

6.1 Introduction

6.2 Illustrative example of unit commitment

6.3 Mathematical model of unit commitment problem

6.4 Solution algorithms for unit commitment problem

6.5 Summary

7 Electricity market overview

7.1 Traditional power industry

7.2 Deregulation of power industry

7.3 Power deregulation in different countries

7.4 Electricity retail markets

7.5 Overview of electricity market operation

7.6 Summary

8 Electricity market pricing models

8.1 Introduction

8.2 Nodal price-based market model

8.3 Locational marginal price

8.4 Examples for locational marginal price calculation and market clearing

8.5 Market settlement

8.6 Uniform zonal price-based market model

8.7 Nodal pricing versus zonal pricing

8.8 Summary

9 Congestion management and transmission tariff

9.1 Introduction

9.2 Congestion management

9.3 Transmission right

9.4 Transmission tariff

9.5 Congestion revenue

9.6 Summary

10 Ancillary service markets

10.1 Introduction

10.2 Classifications of ancillary services

10.3 Frequency regulation services

10.4 Reserve service market

10.5 Reactive power as an ancillary service

10.6 Summary

11 Electricity financial market and its risk management

11.1 Risks in the electricity market

11.2 Risk management in the electricity market

11.3 Electricity derivatives

11.4 Summary

12 Low carbon power system operation

12.1 Introduction

12.2 Emission dispatch model

12.3 Emission reduction policies for power sectors

12.4 Impacts of CO2 prices on power system dispatch

12.5 Impacts of emission trading on generation scheduling and electricity prices

12.6 Discussions on low carbon market mechanisms

12.7 Summary

About the Author

Dr. Jin Zhong received her B.Sc. degree from Tsinghua University, Beijing, China, and her Ph.D. degree from Chalmers University of Technology, Gothenburg, Sweden. At present, she is with the Department of Electrical and Electronic Engineering at the University of Hong Kong. Her areas of interest are power system operation, electricity market, ancillary services, power system optimization, smart grid, and renewable energy integration.

Reviews

"It covers a wide range of interesting topics, which could be very useful for understanding the main phenomena ruling power systems economy (such as Optimal Power Flow analysis and unit Commitments). It addresses topics widely treated in the literature, hence it is important to outline its distinctive features compared to other similar books. The book is well structured and well balanced."
- Alfredo Vaccaro, University of Sannio, Italy

"This book focuses on mathematical models in the software guiding the operation of electric power systems for both vertically integrated and market-based systems. It provides readers with full grasp of constraints imposed by the complexity of power system operation, as well as modeling limitation. Such understanding helps possible future improvements in engineering design and operating guidelines when technology further advances.
Numerical examples in the book are very useful in illuminating the principles, as well as the way they are applied in practice.
The comprehensive coverage and clear exposition of topics make this book an excellent textbook for students and a handy reference for practicing engineers."
- Felix Wu, University of California, Berkeley, USA

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