Unit 5 PT 1

Power System Planning
Basics and Requirements

Power System Planning
There are three main consideration for power
system planning:
•Economy
•Reliability
•Security
Economy
For the economic development of industries, regions and countries:
• The supply of electricity – as for other sources of energy
• At competitive unit price
• In sufficient quantity and quality
• With safe and reliable supply through reliable equipment, system structures
and devices
The planning of supply systems must take into account different boundary
conditions, which are
• Regional and structural consideration that in many cases have a
considerable
• Impact on the technical design.
• The degree of capital investment in electric utilities takes the top position in
terms of monetary and in terms of long – term return of assets
• Hence each investment decision requires careful planning and investigation
Reliability
The reliability of the supply is determined by :
• The quality of the equipment
• Careful planning
• Detailed knowledge of power systems
• A consistent use of relevant standards and norms (IEC, national standards)
• The mode of system operation must conform to the conditions specified by
standards, including the planning process, manufacturing of equipment and
commissioning.
Further more:
• As faults in equipment cannot be totally excluded because of technical or
human failure, likewise the equipment and installations cannot be designed
to withstand any kind of fault: accordingly, the effects of faults must be
limited.
• Violation of or damage to other equipment must be prevented in order to
ensure undisturbed system operation and reliable and safe supply to the
consumers.
Security
• The security of the electrical power supply
implies strict adherence to the condition
specified in standards, norms and regulations
concerning the prevention of accidents.
• In low - voltage systems the protection of
individuals is seen of primary importance
• At higher voltage levels the protection of
equipment and installations must also be
considered.
Restrictions in Power System Planning
• Legal
• Political
• Social Restrictions
Restrictions in Power System Planning
• Legal requirements
• Technical standards
• Political issues
• Financial constraints
• Social parameters
• Political parameters
• Environmental parameters
Impact on Planning
A strong influence on the
• System structure
• The design
• The rating of equipment
• Cost of equipment
• Investment of energy
• Cost of energy
Arenas
Planning is done in several arenas, distinguished by the planning horizon and
by the types of options under consideration. These arenas include
• Long-term vs. short-term planning: Economists distinguish these by whether

capital investment options are considered. For engineers, long-term planning
has a distant horizon (perhaps 30 years for generation and half of that for
transmission). Short-term planning considers about 5 years. Operations
planning is for as short as a few hours and is not treated here.
• Generation vs. transmission vs. least-cost planning: Generation and

transmission planning focus on supply options. Least-cost planning includes
demand-side options for limiting or shaping load.
• Products and services: Some entities provide power (kW) and energy (kWh).
Others plan the transmission system. Others provide for auxiliary services
(voltage and power control, electrical reserves, etc.). Still others plan for
diversified services like conservation and load management.
Planning Entities
Planners generally are trained as engineers, economists, civil
servants, businessmen, or mathematicians. They do power
system planning for the following entities:
• Vertically integrated utilities owning generation,
transmission, and distribution systems.
• Transmission companies, independent system operators
(ISO), and regional transmission organizations(RTO).
Transmission companies own transmission assets; the
latter do not, but may have some responsibility for their
planning.
• Pools or combinations of vertically integrated utilities
Planning Entities
Other organizations do planning studies and
higher-level power sector planning. A step
removed from the operation and management
of the power system, their interest is in seeing
that it meets society’s goals:
• Various levels of government.
• International development banks.
Planning Entities
Still other organizations do power system planning studies, but
without system responsibility. They wish to understand the market for
various services and how they might compete in it—its economics and
technical requirements for entry.
• Independent power producers (IPP) or nonutility generators (NUG):
These include qualifying facilities (QF as defined by the U.S. Public
Utilities Regulatory Policy Act of 1978) and exempt wholesale
generators (EWG as defined by the U.S. Energy Policy Act of 1992).
• Large industrial users.
• Commercial middlemen who buy and sell electrical energy services.
• Investors.
Areas Required Regulations
• Concession delivery regulations
• Market guidelines for domestic electricity supply
• Electrical power industry laws
• Energy taxation
• Laws supporting or promoting “ green - energy ”
• Environmental aspects
• Safety and security aspects
• Right - of - way for overhead - line and cable routing.
Impacts of Regulations
• Generating plants will be operated in merit order, that is, the generator
with lowest production cost will be operated in preference to operating
generation with the highest efficiency.
• Criteria of profitability must be re-evaluated in the light of laws

supporting “ green - energy. ”
• Reduced revenues from energy sales will lead to a decrease in the

investments, personnel and maintenance costs, with consequences of
reduced availability and reliability.
• Increasing the proportion of “ green - energy ” generation plants that

have low availability leads to an increase in the running reserve of
conventional power stations, with consequences of reduced efficiency of
these plants and thus higher costs.
• Reduction of investment for the construction of new power stations leads to a
decrease in reserve capabilities and thus to a decrease in the reliability of the
power supply.
• Expenditures for coordination during normal operation and during emergency

conditions are increased with rising numbers of market participants, with the
consequence of an increased risk of failures.
• Power systems of today are planned for the generation of electrical energy in
central locations by large power stations with transmission systems to the load
centers. A change of the production structure, for example, by increase of “
green - energy ” production plants and development of small co – generation
plants, mainly installed in distribution systems, requires high additional
investment for the extension of the power system, resulting in rises in energy
prices as well as reduced usage of existing plants.
• The power system structure up to now has been determined by connections of the
load centers with the locations of power stations, which were selected on the basis of
the availability of primary energy (e.g. lignite coal), the presence of cooling water (e.g.
for nuclear power stations) or hydrological conditions (e.g. for hydro power stations).
The construction of offshore wind energy parks requires substantial investment in
new transmission lines to transmit the generated energy to the load centers.
• Increase of “ green - energy ” production plants, in particular photovoltaic, wind

energy and fuel - cells, reduces the quality of the power supply ( “ Power quality ” )
due to the increased requirement for power electronics.
• The long periods for planning and investment of power stations and high voltage
transmission systems do not allow for fast and radical changes. Decisions on a
different development, for example, away from nuclear power generation towards “
green - energy ” production, are to a certain extent irreversible if these decisions are
not based on technical and economic background and detailed knowledge but are
predominantly politically and ideologically motivated.
Features of Power System Planning
• Load forecast for the power system under consideration for a
period of several years
• Energy forecast in the long term
• Standardization, availability, exchangeability and
compatibility of equipment
• Standardized rated parameters of equipment
• Restrictions on system operation
• Feasibility with regard to technical, financial and time aspects
• Political acceptance
• Ecological and environmental compatibility.
Features of power System Planning
• The information database of the existing power system
with respect to geographical, topological and electrical
parameters
• Information about rights-of-way, right of possession
and space requirements for substations and line routes
• Information about investment and operational costs of
installations
• Information about the costs of losses
• Knowledge of norms, standards and regulations.
Need for Planning
• Demand from customers for supply of higher load, or
connection of new production plants in industry
• Demand for higher short - circuit power to cover requirements
of power quality at the connection point (point of common
coupling)
• Construction of large buildings, such as shopping centers,
office buildings or department stores
• Planning of industrial areas or extension of production
processes in industry with requirement of additional power
• Planning of new residential areas
• General increase in electricity demand.
Power system Planning Process
Steps of Planning
• Basic Planning
• System Development Planning
• Project Planning
Basic Planning
For all voltage levels the fundamental system concepts are
defined:
• Standardization of equipment
• Neutral earthing concepts
• Nominal voltages
• Basics of power system operation.
For basic planning:
• The planning horizon is up to 10 years in low - voltage
systems
• Exceed 20 years in high - voltage transmission systems.
System Development Planning
• Detailed planning of the system topology is carried out based on the load
forecast.
• Alternative concepts are analysed technically by load-flow calculations,
short - circuit analysis and stability computations.
• Cost estimates are also carried out.
• Disturbance and operational statistics are evaluated and locations for
installations are determined.
• The main parameters of equipment, such as cross – section of overhead
lines and cables, short-circuit impedance of transformers are defined.
For system development planning:
• The planning horizon is approximately five years in a low - voltage system
• Up to 10 years for a high - voltage transmission system.
Project Planning
The projects defined in the system development planning stage are
implemented. Typical tasks of the project engineering are:
• The connection types of new customers,

• Connection of new substations to the power system
• Restructuring measures,
• Evaluation of information on system loading
• Preparation of tender documents
• Evaluation of offers, supervising construction contracts, cost calculation and
cost control.
Project planning covers a time range of:

• One year in the low - voltage system
• Up to four years in the high - voltage system.
Steps of Planning
Technical Instruments for Power System
Planning
• The load- flow analysis (also named power - flow calculation)
• Short - circuit current calculations
• Calculation of programs are as exact as the main parameters of the
equipment If those data are not available, the parameters must be
determined by calculation.
• The permissible thermal loading of equipment under steady - state
conditions and under emergency conditions
• The investigation of the static and transient stability (in case of HVAC
and Industrial Plants )
• The insulation of equipment
• Earthing of neutrals
• Electromagnetic fields in the vicinity of overhead lines and
installations
Economic instruments
In addition to the technical investigations following important economic
consideration are also necessary for power system planning:
• Questions of economy
• Loss evaluation
• System optimization
Hence,
• The extension of distribution systems (urban supply areas), requires a large number
of investigations to cover all possible alternatives regarding technical and cost -
related criteria. The analysis of all alternative concepts for distribution systems is
carried out by using suitable programs with search and optimization strategies.
• Optimization strategies in high-voltage transmission systems are normally not
applicable because of restrictions, since rights of way for overhead lines and cables
as well as locations of substations cannot be freely chosen.
Security & Reliability Instruments of
Planning
• The conceptual design of network protection schemes determines the
secure and reliable supply of the consumers with electricity.
• Network protection schemes must recognize incorrect and
inadmissible operating conditions clearly and separate the faulty
equipment rapidly, safely and selectively from the power system.
• An expansion of the fault onto other equipment and system operation
has to be avoided.
• The fundamental design of protection systems must be determined.
• The parameters of voltage and current transformers and transducers
must be defined
• The settings of the protective devices must be determined.
• The analysis of the protection concept represents a substantial task for
the analysis of disturbances.

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Unit 5 PT 1

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Power System Planning

Basics and Requirements

• Long-term vs. short-term planning: Economists distinguish these by whether

• Generation vs. transmission vs. least-cost planning: Generation and

• Criteria of profitability must be re-evaluated in the light of laws

• Reduced revenues from energy sales will lead to a decrease in the

• Increasing the proportion of “ green - energy ” generation plants that

• Expenditures for coordination during normal operation and during emergency

• Increase of “ green - energy ” production plants, in particular photovoltaic, wind

• The connection types of new customers,

Project planning covers a time range of:

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