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Erschienen in: Energy Systems 2/2017

08.04.2016 | Original Paper

Design of load balancing mechanism for Indian electricity markets

verfasst von: Hameed Safiullah, Gabriela Hug, Rahul Tongia

Erschienen in: Energy Systems | Ausgabe 2/2017

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Abstract

The Indian electricity market is undergoing a major transformation to combat the issues of steadily rising demand, increasing energy shortfalls, and growing renewable energy penetration. Consequently, the Central Electricity Regulatory Commission (CERC) in India has proposed the introduction of ancillary services. Among the services, frequency support ancillary service is expected to have a significant impact on the grid operation. This ancillary service would ensure that the demand and supply are balanced at all times. However, the service proposed by CERC is designed as a contingency service and not a balancing service. In this paper, an alternative load balancing mechanism that serves the balancing needs of the Indian grid is proposed and analyzed. The main contribution of this study is the estimation of the costs and impacts of this mechanism using simulations based on data from the Indian state of Karnataka. The study is intended to foster effective ancillary services policies in India. The results show that the mechanism would reduce the number of real-time emergency events, which are used to avoid grid collapse, by around 55 % at an energy purchase cost increase of 3.5 %. This work illustrates the availability of cost-effective mechanisms for load balancing in the Indian power system, and also highlights the need for alignment of system stakeholder incentives.

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Fußnoten
1
Unscheduled interchange (UI) mechanism is used in real-time to manage deviations from day-ahead schedule. It is a frequency based pricing mechanism; the penalty/compensation is based on the power system frequency. For more details, please refer to A.1.
 
2
Power pool is an electricity market design in which all market participants are required to schedule their transaction through the system operator. The system operator manages the transmission network and scheduling as well as electricity trading. Market participants with bilateral contracts enter as price takers. For more information, please refer to [66].
 
3
Energy exchanges [66] are another form of electricity market in which participation is optional. It is a platform for only trading energy; the scheduling and dispatch is managed by the transmission system operator (TSO).
 
4
The term ‘spot market’ is often used to refer to day-ahead as there is no real-time market. To avoid confusion, use of the term spot markets is avoided.
 
5
Most of the states have unbundled their power system (albeit under government control), leading to dozens of power utilities, with many states having multiple distribution companies (DISCOMS) each with distinct geographic coverage.
 
6
The official shortfall is rather low, due to a quirk in the methodology. The actual shortfall is likely several times higher. Reference: “Re-thinking Access and Electrification in India: From Wire to Service”, Rahul Tongia, Brookings India Discussion Note 01-2014.
 
7
Net demand is defined as dispatch linked net demand, which is the actual demand (demand served + load curtailment) after removing non-dispatchable supply such as wind power. Appendix A.2.3 has more details.
 
8
Shadow price represents the value of the Lagrange multiplier associated with a constraint in an optimization problem. In the context of this study, the shadow price represents the value of the next unit of electricity in the system.
 
9
This is the dispatchable diesel capacity, and excludes diesel owned by end-users for back-up power.
 
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Metadaten
Titel
Design of load balancing mechanism for Indian electricity markets
verfasst von
Hameed Safiullah
Gabriela Hug
Rahul Tongia
Publikationsdatum
08.04.2016
Verlag
Springer Berlin Heidelberg
Erschienen in
Energy Systems / Ausgabe 2/2017
Print ISSN: 1868-3967
Elektronische ISSN: 1868-3975
DOI
https://doi.org/10.1007/s12667-016-0199-3

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