Energy Technology Expert

Optimal Load Dispatch Model for an Electricity Grid – linear programming (LP) model

An optimal load dispatch model for the Luzon, Visayas and Mindano island grids of the Philippines has been prepared by your energy technology selection and business development expert.

Using linear programming techniques, an optimal load dispatch problem has been prepared in an excel spreadsheet (xls format) which the user can modify and expand and update input data for his particular electricity grid to be analyzed.

This model is a must for regulators in order that future capacity expansion studies are optimized to minimize generation cost and therefore the cost of electricity.  Power plant developers and investors will likewise benefit from this model in order that estimates as to the desirability of a new capacity investment will be made at the drawing board before the actual power plant is constructed.  It will provide estimates on the level of dispatch a new power plant will expect given the existing power generation mix and incremental (variable) O&M costs.

Regards,

Marcial Ocampo

Energy Technology Selection and Business Development Consultant

Optimal Load Dispatch and Linear Programming Modeler

LP Model structure:

The LP model consists of the decision variables, objective function and constraints.  It could be solved using the Simplex Algorithm or automatically using the Excel Solver and other third party LP solvers and optimizers such as “What’s Best”.

Vectors (decision variables) = (hydro), (oil thermal), (oil diesel), (oil GT), (oil CCGT), (geothermal), (coal thermal), (gas CCGT), gross generation, station use, net generation

Objective function = minimize total variable cost = (incremental cost, PhP/kWhour) x (load dispatch, kW) = minimum PhP/hour

Constraints:

1) total gross generation balance (=)

2) total station use balance (=)

3) total net generation balance (=)

4) Maximum demand (>=)

5) Meet green energy portfolio standard, e.g. hydro and geothermal generation is at least 10% of demand (>=)

6) Maximum dependable capacity (<=)

7) Meet minimum take-or-pay dispatch requirement (>=)

8) Meet minimum stable load dispatch (>=)

9) Meet other special constraints

The above model is an annual average hourly dispatch model that aims to minimize the annual expenditure for variable O&M costs (fuel, lubes, running spares and other incremental costs).