|dc.description.abstract||One of the main objectives of deregulating the electric power industry is to introduce
competition in the electricity business and prevent monopolies. The introduction of
deregulation has, however, led to confusions in the areas of transmission network loss
sharing and the responsibility of generation of reactive power. Because, under
deregulation, the business and economic decisions in a power system are made by each
individual vendor/utility in a decentralized manner. Each power producing entity
operates on the principle of profit maximization by optimizing its production cost of
real power, reactive power and the spinning reserve margin.
Two methods have been developed to determine a generator's share of transmission loss
in a deregulated power system. They are: the Incremental Load Flow Approach (ILFA)
and the Marginal Transmission Loss Approach (MTLA). The ILFA employs an
iterative load flow technique. The MTLA finds the transmission loss share of a
generator by utilizing the marginal rate of transmission loss. Both methods are very
straightforward and can be implemented by an electric utility or an Independent System
Operator (ISO) with little difficulty. Results obtained from both approaches agree well.
The details of the two methods along with some numerical examples have been
presented in this thesis.
The profit maximization objectives of any generating entity or an IPP not only depends
on transmission loss allocation but also on the production levels of real power, reactive
power and spinning reserve. A model for profit maximization by a generating entity or
an IPP who is interested to sell both real and reactive power is developed and presented
in this thesis. In many jurisdictions, a power producer has the option for selling spinning
reserve in addition to real and reactive power. A profit maximization model based on
the forecasted market price of real power, reactive power and spinning reserve has been
developed and presented in this thesis. The model would help a producer to decide the
production levels of these three commodities in order to realize the maximum profit.
Zero profit conditions have been considered along with the profit maximization model
to determine the minimum acceptable price vectors of these three commodities. A small
test network and the IEEE 24-Bus Reliability Test System (RTS) have been utilized to
conduct studies and illustrate the concepts with numerical examples.||en_US