Operation and Management of Power System under Restructured Environment

Abstract

Electricity Supply Industry, throughout the world, is currently undergoing restructuring and is adopting the deregulated industry structure for better utilization of the resources and for providing quality service to the consumer at economical prices. This newlinederegulated structure is envisaged to create some sort of an electricity market and newlineintroducing competition at various levels of electricity related transactions. Under this newlinestructure, a competitive market of electricity is created to enable the generators to compete with each other by availing open access to the network. This is achieved by delicensing the generation and permitting the generators to supply power to the wholesale customers of their choice by entering into bilateral agreements with or without the help of either a separate power exchange or a power pool. In such a market structure, the scheduling and dispatch of the generating units including integrated operation of the power system is to be carried out by a system operator in line with bilateral/ multilateral and pool contracts entered into by the parties for matching the supply with demand on real time basis. newlinePrior to deregulation, the provision of ancillary services was relatively simple to newlinearrange, since generation and transmission was controlled by the same entity. With the newlineadvent of deregulation it is necessary for the independent systems operator (ISO) to now newlinepurchase ancillary services from generation companies. A market structure for ancillary newlineservices differs from many other market structures in that the structure must take into account not only the economic aspects but also the security and physical requirements. As compared to the conventional monopolistic market, the operation and control of restructured electricity market poses technical challenges which are far more complex. The reasons for this complexity are many types of contractual obligations, separation of primary and ancillary services and varying models of market management. newline