Course Details

Course details of EE6261
Course NoEE6261
Course TitleRestructured power systems
Course ContentIntroduction: Vertically integrated power systems, unbundling, need for deregulation, benefits of deregulation, experience of deregulation in some of the developed countries and Challenges in deregulating electric markets in developing countries. Fundamentals of Economics: Types of market: monopoly, oligopoly and perfect competition. Inverse demand curves, supply curves, market clearing price, social benefit, deadweight loss, long-run and short-run costs. Imperfect competition: Cournot model and Bertrand model. Major Component of Deregulated Electricity Markets: Independent Power Providers (IPP), Independent System Operator (ISO), Transmission System Operator (TSO), distribution companies, retailers. Market Architecture: Bilateral trading, pool trading, Day-ahead markets, spot markets and markets for ancillary services. Hedging through forward contracts, futures and options. Economical Operation of Power Systems Under Deregulation: Economic load dispatch with profit maximization. Location Marginal Price (LMP) based on optimal power flow. Unit commitment: Lagrange relaxation method, mixed integer nonlinear programming (MINLP) and binary PSO. Transmission Pricing and Congestion: Embedded methods, true cost methods based on LMP, congestion rent based on LMP, market power due to congestion, Financial Transmission Rights (FTR), congestion management, Available Transfer Capability (ATC): Concept of ATC, Calculation of ATC. Investment in Generation: Discounted future cash flows, fixed cost recovery, Value of Lost Load (VOLL), regulator price caps for price spikes, optimal installed capacity based on VOLL. Indian Power Markets: Electricity Regulation Act 2003, unbundling the electricity market, power exchanges: operation procedure, rules and regulations, ABT.
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