EBF 483
Introduction to Electricity Markets

4.0 Introduction

PrintPrint

So far in the course, we have learned about the economic and operational differences for various types of power plant technologies. We have also learned a little physics about how electric power grids work and how power flows through electric transmission lines. Now is the time when we put the economics and physics together. The central question that we'll consider in this lesson is how an electric utility should use its fleet of power plants to meet electricity demand in the most cost-effective fashion without overloading any of its power transmission equipment. This is called the "economic dispatch" problem.

Learning Outcomes

By the end of this lesson, you should be able to:

  • Build a dispatch curve for an electric utility;
  • Solve the economic dispatch problem for two different power generation cost models, and calculate the system lambda and total cost of meeting electricity demand;
  • Determine the power flows associated with the economic dispatch on a three-node network;
  • Adjust the economic dispatch solution in the presence of transmission congestion;

Lesson Roadmap

Lesson 4 Roadmap
To Read Online course material This course web site
To Do Homework Assignment 4 Submission in Canvas

Questions?

If you have questions, please feel free to post them to the General Questions and Discussion forum in Canvas. While you are there, feel free to post your own responses if you, too, are able to help a classmate.