Vertical and horizontal scope economies in the regulated US electricity power industry

This paper investigates vertical economies between generation and distribution of electric power, and horizontal economies between different types of power generation in the U.S. electric utility industry. Our quadratic cost function model includes three generation output measures (hydro, nuclear and fossil fuels), which allows us to analyze the effect that generation mix has on vertical economies. Our results provide (sample mean) estimates of vertical economies of 8.1% and horizontal economies of 5.4%. An extensive sensitivity analysis is used to show how the scope measures vary across alternative model specifications and firm types. © 2012 Blackwell Publishing Ltd and the Editorial Board of The Journal of Industrial Economics.

Measuring economies of horizontal and vertical integration in the US electric power industry:how costly is unbundling?

This research employs econometric analysis on a cross section of American electricity companies in order to study the cost implications associated with unbundling the operations of integrated companies into vertically and/or horizontally separated companies. Focusing on the representative sample average firm, we find that complete horizontal and vertical disintegration resulting in the creation of separate nuclear, conventional, and hydro electric generation companies as well as a separate firm distributing power to final consumers, results in a statistically significant 13.5 percent increase in costs. Maintaining a horizontally integrated generator producing nuclear, conventional, and hydro electric generation while imposing vertical separation by creating a stand alone distribution company, results in a lower but still substantial and statistically significant cost penalty amounting to an 8.1 % increase in costs relative to a fully integrated structure. As these results imply that a vertically separated but horizontally integrated generation firm would need to reduce the costs of generation by 11% just to recoup the cost increases associated with vertical separation, even the costs associated with just vertical unbundling are quite substantial. Our paper is also the first academic paper we are aware of that systematically considers the impact of generation mix on vertical, horizontal, and overall scope economies. As a result, we are able to demonstrate that the estimated cost of unbundling in the electricity sector is substantially influenced by generation mix. Thus, for example, we find evidence of strong vertical integration economies between nuclear and conventional generation, but little evidence for vertical integration benefits between hydro generation and the distribution of power. In contrast, we find strong evidence suggesting the presence of substantial horizontal integration economies associated with the joint production of hydro generation with nuclear and/or conventional fossil fuel generation. These results are significant because they indicate that the cost of unbundling the electricity sector will differ substantially in different systems, meaning that a blanket regulatory policy with regard to the appropriateness of vertical and horizontal unbundling is likely to be inappropriate.

Power industry restructuring and eco-efficiency changes:a new slacks-based model in Malmquist-Luenberger Index measurement

Measuring variations in efficiency and its extension, eco-efficiency, during a restructuring period in different industries has always been a point of interest for regulators and policy makers. This paper assesses the impacts of restructuring of procurement in the Iranian power industry on the performance of power plants. We introduce a new slacks-based model for Malmquist-Luenberger (ML) Index measurement and apply it to the power plants to calculate the efficiency, eco-efficiency, and technological changes over the 8-year period (2003-2010) of restructuring in the power industry. The results reveal that although the restructuring had different effects on the individual power plants, the overall growth in the eco-efficiency of the sector was mainly due to advances in pure technology. We also assess the correlation between efficiency and eco-efficiency of the power plants, which indicates a close relationship between these two steps, thus lending support to the incorporation of environmental factors in efficiency analysis. © 2014 Elsevier Ltd.

Wind power forecasts using Gaussian processes and numerical weather prediction

Since wind at the earth's surface has an intrinsically complex and stochastic nature, accurate wind power forecasts are necessary for the safe and economic use of wind energy. In this paper, we investigated a combination of numeric and probabilistic models: a Gaussian process (GP) combined with a numerical weather prediction (NWP) model was applied to wind-power forecasting up to one day ahead. First, the wind-speed data from NWP was corrected by a GP, then, as there is always a defined limit on power generated in a wind turbine due to the turbine controlling strategy, wind power forecasts were realized by modeling the relationship between the corrected wind speed and power output using a censored GP. To validate the proposed approach, three real-world datasets were used for model training and testing. The empirical results were compared with several classical wind forecast models, and based on the mean absolute error (MAE), the proposed model provides around 9% to 14% improvement in forecasting accuracy compared to an artificial neural network (ANN) model, and nearly 17% improvement on a third dataset which is from a newly-built wind farm for which there is a limited amount of training data. © 2013 IEEE.

Short-term wind power forecasting using Gaussian processes

Since wind has an intrinsically complex and stochastic nature, accurate wind power forecasts are necessary for the safety and economics of wind energy utilization. In this paper, we investigate a combination of numeric and probabilistic models: one-day-ahead wind power forecasts were made with Gaussian Processes (GPs) applied to the outputs of a Numerical Weather Prediction (NWP) model. Firstly the wind speed data from NWP was corrected by a GP. Then, as there is always a defined limit on power generated in a wind turbine due the turbine controlling strategy, a Censored GP was used to model the relationship between the corrected wind speed and power output. To validate the proposed approach, two real world datasets were used for model construction and testing. The simulation results were compared with the persistence method and Artificial Neural Networks (ANNs); the proposed model achieves about 11% improvement in forecasting accuracy (Mean Absolute Error) compared to the ANN model on one dataset, and nearly 5% improvement on another.

Permanent magnet synchronous generator based wind power generation system fault protection schemes

The PMSG-based wind power generation system protection is presented in this paper. For large-scale systems, a voltagesource converter rectifier is included. Protection circuits for this topology are studied with simulation results for cable permanent fault conditions. These electrical protection methods are all in terms of dumping redundant energy resulting from disrupted path of power delivery. Pitch control of large-scale wind turbines are considered for effectively reducing rotor shaft overspeed. Detailed analysis and calculation of damping power and resistances are presented. Simulation results including fault overcurrent, DC-link overvoltage and wind turbine overspeed are shown to illustrate the system responses under different protection schemes to compare their application and effectiveness.

Design of a modular, high step-up ratio DC–DC converter for HVDC applications integrating offshore wind power

High-power and high-voltage gain dc-dc converters are key to high-voltage direct current (HVDC) power transmission for offshore wind power. This paper presents an isolated ultra-high step-up dc-dc converter in matrix transformer configuration. A flyback-forward converter is adopted as the power cell and the secondary side matrix connection is introduced to increase the power level and to improve fault tolerance. Because of the modular structure of the converter, the stress on the switching devices is decreased and so is the transformer size. The proposed topology can be operated in column interleaved modes, row interleaved modes, and hybrid working modes in order to deal with the varying energy from the wind farm. Furthermore, fault-tolerant operation is also realized in several fault scenarios. A 400-W dc-dc converter with four cells is developed and experimentally tested to validate the proposed technique, which can be applied to high-power high-voltage dc power transmission.

Constant V/Hz control based on DSP for open winding doubly-fed wind power generator

A DSP implementation of Space Vector PWM (SVPWM) using constant V/Hz control for the open winding doubly-fed generator is proposed. This control of SVPWM modulation mode and open winding structure combination has the high voltage utilization ratio, greatly improves the control precision of the system, and reduces the stator winding output current distortion rate, though the complexity of the system is increased. This paper describes the basic principle of SVPWM and discusses the particularity of SVPWM waveform generated by hybrid vector under the condition of open winding. This method is applied to a state of doubly-fed wind power generator. The experimental verification shows that this control method can make the output voltage amplitude of the doubly-fed induction generator be 380V and the frequency be 50Hz by using of TMS32028335 chip based on constant V/Hz control of symmetric SVPWM modulation wave.

Direct power control with common mode voltage elimination for open-winding brushless doubly-fed wind power generators

In this paper, a new open-winding control strategy is proposed for a brushless doubly-fed reluctance generator (BDFRG) applicable for wind turbines. The BDFRG control winding is fed via a dual two-level three-phase converter using a single dc bus. Direct power control based on maximum power point tracking with common mode voltage elimination is designed, which not only the active and reactive power is decoupled, but the reliability and redundancy are all improved greatly by increasing the switching modes of operation, while DC-link voltage and rating of power devices decreased by 50% comparing to the traditional three-level converter systems. Consequently its effectiveness is evaluated by simulation tests based on a 42-kW prototype generator.

Performance comparison of direct power control for brushless doubly-fed wind power generator with different control winding structure

A novel open-winding brushless doubly-fed generator (BDFG) system with two two-level bidirectional converters is proposed. This topology is equivalent to a three-level bidirectional converter connected to the typical BDFG, but solves the unbalanced-voltage-division problem of DC capacitor in the three-level converter, and has lower converter capacity, more flexible control mode, and better fault-tolerant ability. The direct power control (DPC) based on the twelve sections is adopted to implement the power tracking of the open-winding BDFG system, which is compared with the typical BDFG DPC system based on the six and twelve sections to verify the advantages of the proposed scheme.

A coordinated control scheme for power demand changes in a PMSG based multi-terminal DC wind farm

Although maximum power point tracking (MPPT) is crucial in the design of a wind power generation system, the necessary control strategies should also be considered for conditions that require a power reduction, called de-loading in this paper. A coordinated control scheme for a proposed current source converter (CSC) based DC wind energy conversion system is presented in this paper. This scheme combines coordinated control of the pitch angle, a DC load dumping chopper and the DC/DC converter, to quickly achieve wind farm de-loading. MATLAB/Simulink simulations and experiments are used to validate the purpose and effectiveness of the control scheme, both at the same power level. © 2013 IEEE.

Protection schemes for meshed VSC-HVDC transmission systems for large-scale offshore wind farms

This chapter discusses network protection of high-voltage direct current (HVDC) transmission systems for large-scale offshore wind farms where the HVDC system utilizes voltage-source converters. The multi-terminal HVDC network topology and protection allocation and configuration are discussed with DC circuit breaker and protection relay configurations studied for different fault conditions. A detailed protection scheme is designed with a solution that does not require relay communication. Advanced understanding of protection system design and operation is necessary for reliable and safe operation of the meshed HVDC system under fault conditions. Meshed-HVDC systems are important as they will be used to interconnect large-scale offshore wind generation projects. Offshore wind generation is growing rapidly and offers a means of securing energy supply and addressing emissions targets whilst minimising community impacts. There are ambitious plans concerning such projects in Europe and in the Asia-Pacific region which will all require a reliable yet economic system to generate, collect, and transmit electrical power from renewable resources. Collective offshore wind farms are efficient and have potential as a significant low-carbon energy source. However, this requires a reliable collection and transmission system. Offshore wind power generation is a relatively new area and lacks systematic analysis of faults and associated operational experience to enhance further development. Appropriate fault protection schemes are required and this chapter highlights the process of developing and assessing such schemes. The chapter illustrates the basic meshed topology, identifies the need for distance evaluation, and appropriate cable models, then details the design and operation of the protection scheme with simulation results used to illustrate operation. © Springer Science+Business Media Singapore 2014.

Eco-efficiency considering the issue of heterogeneity among power plants

One of the main objectives in restructuring power industry is enhancing the efficiency of power facilities. However, power generation industry, which plays a key role in the power industry, has a noticeable share in emission amongst all other emission-generating sectors. In this study, we have developed some new Data Envelopment Analysis models to find efficient power plants based on less fuel consumption, combusting less polluting fuel types, and incorporating emission factors in order to measure the ecological efficiency trend. We then applied these models to measuring eco-efficiency during an eight-year period of power industry restructuring in Iran. Results reveal that there has been a significant improvement in eco-efficiency, cost efficiency and allocative efficiency of the power plants during the restructuring period. It is also shown that despite the hydro power plants look eco-efficient; the combined cycle ones have been more allocative efficient than the other power generation technologies used in Iran.

The detection and identification of extraneous metals in material conveyance systems

The aim of this work was to design and build an equipment which can detect ferrous and non-ferrous objects in conveyed commodities, discriminate between them and locate the object along the belt and on the width of the belt. The magnetic induction mechanism was used as a means of achieving the objectives of this research. In order to choose the appropriate geometry and size of the induction field source, the field distributions of different source geometries and sizes were studied in detail. From these investigations it was found the square loop geometry is the most appropriate as a field generating source for the purpose of this project. The phenomena of field distribution in the conductors was also investigated. An equipment was designed and built at the preliminary stages of thework based on a flux-gate magnetometer with the ability to detect only ferrous objects.The instrument was designed such that it could be used to detect ferrous objects in the coal conveyors of power stations. The advantages of employing this detector in the power industry over the present ferrous metal electromagnetic separators were also considered. The objectives of this project culminated in the design and construction of a ferrous and non-ferrous detector with the ability to discriminate between ferrous and non-ferrous metals and to locate the objects on the conveying system. An experimental study was carried out to test the performance of the equipment in the detection of ferrous and non-ferrous objects of a given size carried on the conveyor belt. The ability of the equipment to discriminate between the types of metals and to locate the object on the belt was also evaluated experimentally. The benefits which can be gained from the industrial implementations of the equipment were considered. Further topics which may be investigated as an extension of this work are given.