Benedito Donizeti Bonatto

Modeling the influence of power quality on the creation of market value

This paper deals with the modeling of electric markets whenever certain imperfections pollute the supplied electrical energy. These imperfections are described in terms of a lack in power quality, and must be quantitatively introduced in the model as an additional economic factor which influences the consumption of electrical energy and its market price. In the model of a commodity market, where electrical energy is an undifferentiated good, power quality - if it exists - is considered of no consequence on the economics of such market. This is not the case in practice: imperfections have indeed a notorious influence on the trade of electrical energy and their insertion in a market model is an urgent need. The model here proposed allows the analysis of such spurious conditions and to point out the optimum values to be attained either from the point of view of the utility or the public interest expressed across the incentive regulation of the market. Several examples illustrate the application of the model on the grounds of optimum investments and quality targets.

The influence of quality on the creation of economic value in electricity markets

This paper deals with the modeling of electric markets whenever certain imperfections pollute the supplied electrical energy. These imperfections are described in terms of a lack in power quality, and must be quantitatively introduced in the model as an additional economic factor which influences the consumption of electrical energy and its market price. Therefore, the main intent of this paper is to provide a unifying perspective in regard of the following question: How much the economic performance of electricity markets is downgraded by imperfections of supply? Such a problem can only be resolved with the aid of a market model, which should be able to integrate both technological and financial features in a single analytical frame. This is precisely the type of market model which is developed in the paper: a one including imperfections along with the other sources of cost. While very simple, the market model may be used in various important studies, such as the x-factor for productivity gains, quality target calculation, disturbances mitigation by demand-side management, etc‥ An application to compute continuity standards will be developed as an example of the model usage and potentiality.

The Impact of Power Quality on the Economy of Electricity Markets

1.1 Basic concepts The main goal of this chapter is the economic valuation and prioritization of those investments which are intended to improve the power quality of the system. While most of the research work in the field of power quality was aroused by the scientific challenges to be overcome, it is fair to recognize that the practical importance of power quality hinges on the economic impact of such phenomena. Thus, economic analysis of power quality is of the outmost significance. Such analysis, according to present day corporate doctrine, implies the assessment of the changes in the market value which are produced when an ideal scenario – where electric energy is supplied without any imperfection – is disturbed by a series of distortional events, thus leading to a loss of quality. In brief, we want to relate imperfection level with market value. In a more practical line of thought, we wish to answer specific questions like this: how many equivalent dollars of market value are lost when the severity index of some type of imperfection increases – say – by one unit? Or – opposingly – how many dollars are won because of a decrease in severity? Moreover, given an intervention in the markets which diminishes the index, we seek to estimate the monetary benefit of such quality improvement. As we also know the capital needed to accomplish such intervention we can introduce in the market model and the change in value added may be subsequently calculated. Then, the relation between that change and the capital invested can be compared against a hurdle rate which functions as a yardstick for the merit of the intervention. This can be used also in order to prioritize capital investments on power quality (this rather straight way of investment prioritization, becomes more complicated when the uncertainties inlaid in the quality issues are introduced).

Voltage regulation in electric energy distribution substations

This paper presents a comparative analysis among the various methodologies of automatic voltage control in electric power distribution substations, by studying the behavior of the steady state voltage. This project was based on a real case study in which three different voltage regulation techniques (Constant Voltage, Load Line, and Line Drop Compensation (LDC)) were implemented in a substation of a Brazilian utility of electric energy distribution. Measurements were performed at various points across one of the distribution feeders belonging to this substation. The comparative study among the methodologies took into account the local regulations, in special, the chapter 8 of the Procedures of Power Distribution of the National Electric System (PRODIST). The advantages and drawbacks of each methodology discussed in this paper are grounded in practical experiments in the real system. Studies and analysis suitable for each distribution system typology and load will allow, in the near future, the use and dynamic adjustment through a control center. Also, the use of Artificial Intelligence techniques will allow, in real time, the choice of the more appropriate regulation methodology for each case, using smart grid technologies.

Impact of electricity theft on power quality

Electricity theft is responsible for economic problems for the electric utility due to revenue loss caused by electricity consumers that are not paying for it. The stealer has a tendency to consume more energy, resulting also in power quality problems. An increase in power demand to values greater than the transformer rated power can result in different quality deviations, like transformer overload, voltage unbalance and steady state voltage drop on system buses. The objective of this paper is to analyze, by using MatLab simulations and considering different grid configurations, how electricity theft results in power quality issues, specifically voltage drop in steady state. Additionally, it is shown how the steady state voltage drop can result in economic penalties for the electric utility when the proper voltage exceeds the network operational standards.

Dealing with a complex smart grid: An integrated perspective

The electrical infrastructure of the future will be much more complex than today. It will integrate traditional and sustainable energy sources, existing and new distribution networks, customers with quite different consumption patterns and a variety of smart control systems. At this moment, however, there is no comprehensive engineering model that can cope with the higher level of complexity of future electric grids. Therefore, engineers have to use traditional models to design the next generation of electrical infrastructure, which might result in undesirable consequences, such as overlooking of some important interactions between technical systems, or ignoring relevant non-technical dimensions, like social behavior of customers, or neglecting some ultimately “moral dimensions” of smart grids and interests of economically weak stakeholders. The main objective of this paper is to ask conceptual, practical, but also philosophical questions, as well as to present analyses of cases, which could assist engineers with the development of holistic planning and designs for future electric grids. This paper combines opinions and arguments on this subject from members of IEEE Working Group on Sustainable-Future Electrical Energy System Design.

Socioeconomic analysis of incentive public policies for the use of renewable energy per consumer class in Brazil

This work presents the application of an economic model of the electricity market for evaluation of social policies to encourage the use of renewable energy sources in Brazil. With this model it is possible to represent the economic flows of the regulated electricity company and the consumer, resulting in quantitative measurements of consumption, income, price and quality, items needed for the evaluation of socioeconomic policies. The employed methodology will lead to an economic macro analysis of these policies for different classes of residential consumption. As a result, it will be established a connection between the type of consumer and the best incentive policy to be adopted, in order to evaluate its ability to promote socioeconomic welfare and to encourage the effective use of renewable energy sources in microgeneration for different scenarios.

Optimum time step size and maximum simulation time in EMTP-based programs

This paper presents a general algorithm to calculate an optimal time step size and a maximum simulation time for EMTP-based programs. This is of particular importance for new users of EMTP-based programs, since the user is responsible for setting up these parameters before running a simulation case. The selection of the time step size affects the precision of the simulation. The time step size depends on the maximum frequency expected in the phenomena, which is normally unknown, a priori. A robust algorithm is presented here based on all the input data given for the circuit under simulation. The proposed calculation process is based on single-or multi-phase uncoupled or coupled circuits, with lumped or distributed parameters. Simulations are given demonstrating the effectiveness of the proposed rules. A future challenge will be the creation of a methodology capable of adapting the time step size dynamically.

Implementation of an economic model for the electricity market evaluation of public policies in smart grids

This paper presents the application of an economic model of the electricity market, representing economic flows the concessionaire and the consumer, which allows quantifying the key variables (consumption, price, income and quality) and establish a connection between the innovations made possible by the intelligent network environment (smart grids) on one hand, and parameters of social efficiency and sustainability on the other. The solution to this optimization problem leads to quantitative results for consumption, income, price or tariff for electricity and quality, items needed for evaluation of public policies, such as in the case of sustainable distributed generation incentives for low-income consumers.

Influence of load types and renewable generation in microgrids load margin

This paper addresses the influence that different type of loads and renewable distributed generation have in microgrids load margin. Considering different load types, in order to bring the system closer to a practical case, and renewable generation is fundamental given its ascension in the latest years. To validate this analyses, the IEEE 57 bus transmission system was employed. Simulations were performed for different amount of renewable generation penetration, being each scenario performed for all the different load types considered. The results indicate significant variations in microgrids load margin are greatly influenced by the load type and the share of renewable sources present in the system.