Power System Deregulation

Restructuring of electric power system started taking place at the end of the 20th century. Restructuring also required a change in the con-ventional perception of the electric power system as a natural mono-poly to a competitive open market system. The restructuring, widely known as deregulation, involves many technically complicated issues ranging from system planning and operation to commercial and mar-ket areas. The introduction of deregulation has, however, led to con-fusions in the areas of transmission network loss sharing and the responsibility of generation of reactive power. This book provides a load flow based loss allocation technique supported by mathematical proof. Each power producing entity ope-rates on the principle of profit maximization by optimizing its produc-tion cost of real power, reactive power and the spinning reserve mar-gin. A profit maximization model based on the forecasted market price of real power, reactive power and spinning reserve has been developed and presented in this book. The model would help a pro-ducer to decide the production levels of these three commodities in order to realize the maximum profit.