Impacts of Power Industry Restructuring, Urbanization on

Power System Planning, Operation and Economics

Bahirdar University

Institute of technology

School of Computing and Electrical

Engineering

Power system planning and operation

Prepared by:

Tekalign Tesfaye

Submitted to Tassew Tadiwose (PHD)

Abstract

The electric utility industry is undergoing unprecedented changes in its structure worldwide.

With the advent of an open market environment and competition in the industry, and

restructuring of the industry into separate generation, transmission, and distribution entities,

new issues in power system operation and planning are inevitable. One of the major

consequences of this new electric utility environment is the greater emphasis on reliability and

secure operation of the power system. This study examines the impact of restructuring and

urbanization on power system planning, operation and economics.

Introduction

The electricity system is a critical infrastructure; its continued and reliable functioning is

essential to the nation’s economy and citizens’ way of life. The interconnection of the networks

comprising the critical infrastructure is an ongoing evolutionary process, governed more by the

“invisible hand” than any conscious act of design. As a result, the interdependency of these

networks is not completely understood, nor are the

resulting opportunities and vulnerabilities.

Power system planning determines which generation options fit within the framework of power

supply policies set by governments. This essentially means a balance between power supply

reliability and cost that denies the optimum expansion of generation capacity.

Traditional electric power systems are designed on the premise of power production in central

generating stations and its delivery to the points of end use via transmission and distribution

systems.

In recent years, many countries have deregulated their electric power industries at

various levels. The conventional vertically-integrated power utility structure, consisting

of generation, transmission, and distribution segments, was unbundled to functionally

separate entities. In restructured power systems, generation and distribution services are provided

by independent generation and distribution companies, respectively, while electricity

transmission systems with open access are overseen by independent transmission operators or

regional transmission organizations this type of division helps the various company to properly

manage their growing loads and their industry.

Effect of Power Industry restructuring on power system planning and

operation

The main distinctions of the industry are long-distant electricity transmission, unevenly allocated

energy resources as well as electricity generation and consumption over vast territory. And this

far located load of power system has great effect and main role in the newly expanding power

system plan and operation so unless their effect precisely studied and their effect on the national

grid should be known and the performance analysis should be done before these crucial loads are

being made part of the system.

The main objective of power system planning is to achieve the least costly design with

Acceptable system reliability. For this purpose, long-term reliability evaluation is usually

Executed to assist long-range system planning in the following aspects:

1. The determination of whether the system has sufficient capacity to meet system load

demands,

2. Development of a suitable transmission network to transfer generated energy to customer load

points,

3. Comparative evaluation of expansion plans, and

4.Review of maintenance schedules .

Power system operating conditions are subject to changes such as load uncertainty,

i.e., the load may be different from that assumed in design studies, and unplanned

component outages. To deliver electricity with acceptable quality to customers at

minimum cost and to prevent cascading sequences after possible disturbances, short-term

reliability prediction that assists operators in day-to-day operating decisions is needed.

These decisions include determining short-term operating reserves and maintenance

schedules, adding additional control aids and short lead-time equipment, and utilizing

special protection systems. Over the past decade, the increased demands placed on the

transmission system in response to industry restructuring and market-related needs are causing

the grid to be operated closer to its reliability limits more of the time. The demand for electricity

continued to grow, but transmission additions have not kept pace. The uncertainty associated

with transmission financing and cost recovery and the impediments to siting and

Building new transmission facilities have resulted in a general slow-down in

construction of new transmission.

When we come to our country the problem is also facing many our growing regional industry

and growing company and large scale research and development should be carried out in order to

know pattern of power industry restructuring and expensive planning should be performed in

order to construct an efficient and reliable power system that could withstand the effect of this

growing and unfamiliar load expansion in the area.

Effect of urbanization on power system planning and operation

As stated in industry restructuring part urbanization also play crucial role in power system

planning and operation this is because urbanization increase the amount of load the existing

power system can carry and it is clear that as urbanization become fast the load also grow fast

and will be difficult to feed with the existing system and needs compressive study and research

on the area to construct more secure and reliable system.

The effect of urbanization should be included in planning stage of power system for system be

secure and reliable for the growth of loads in various section of control area .

Conclusion

As stated above industry restructuring and urbanization on power system planning and operation

any company whether governmental or nongovernmental should study the effect of industry

restructuring and urbanization in planning stage before building huge system and as from the

discussion this will be more simple and easy if the tasks of providing electricity is divided in

various level like In restructured power systems, generation and distribution services are

provided by independent generation and distribution companies, respectively, while electricity

transmission systems with open access are overseen by independent transmission operators or

regional transmission organizations this type of division helps the various company to properly

manage their growing loads and their industry.