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.

Mobile communication in power distribution application

This paper investigates how to interface the wireless application protocol (WAP) architecture to the SCADA system running distributed network protocol (DNP) in a power process plant. DNP is a well-developed protocol to be applied in the supervisory control and data acquisition (SCADA) system but the system control centre and remote terminal units (RTUs) are presently connected through a local area network. The conditions in a process plant are harsh and the site is remote. Resources for data communication are difficult to obtain under these conditions, thus, a wireless channel communication through a mobile phone is practical and efficient in a process plant environment. The mobile communication industries and the public have a strong interest in the WAP technology application in mobile phone networks and the WAP application programming interface (API) in power industry applications is one area that requires extensive investigation.

Advances in vegetation management for power line corridor monitoring using aerial remote sensing techniques

This paper presents a comprehensive discussion of vegetation management approaches in power line corridors based on aerial remote sensing techniques. We address three issues 1) strategies for risk management in power line corridors, 2) selection of suitable platforms and sensor suite for data collection and 3) the progress in automated data processing techniques for vegetation management. We present initial results from a series of experiments and, challenges and lessons learnt from our project.

Real-time power line extraction from unmanned aerial system video images

In this paper a real-time vision based power line extraction solution is investigated for active UAV guidance. The line extraction algorithm starts from ridge points detected by steerable filters. A collinear line segments fitting algorithm is followed up by considering global and local information together with multiple collinear measurements. GPU boosted algorithm implementation is also investigated in the experiment. The experimental result shows that the proposed algorithm outperforms two baseline line detection algorithms and is able to fitting long collinear line segments. The low computational cost of the algorithm make suitable for real-time applications.

The evolution of offshore wind power in the United Kingdom

In the United Kingdom wind power is recognised as the main source of renewable energy to achieve the European Union 2020 renewable energy targets. Currently over 50% of renewable power is generated from onshore wind with a large number of offshore wind projects in development. Recently the government has re-iterated its commitment to offshore wind power and has announced that offshore wind subsidies are to increase from £135/MWh to £140/MWh until 2019. This paper provides a detailed overview of the offshore wind power industry in the United Kingdom in terms of market growth, policy development and offshore wind farm costs. The paper clearly shows that the United Kingdom is the world leader for installed offshore wind power capacity as pro-active policies and procedures have made it the most attractive location to develop offshore wind farm arrays. The key finding is that the United Kingdom has the potential to continue to lead the world in offshore wind power as it has over 48 GW of offshore wind power projects at different stages of operation and development. The growth of offshore wind power in the United Kingdom has seen offshore wind farm costs rise and level off at approximately £3 million/MW, which are higher than onshore wind costs at £1.5–2 million/MW. Considering the recent increase in offshore wind power subsidies and plans for 48 GW of offshore wind power could see more offshore wind power becoming increasingly financially competitive with onshore wind power. Therefore offshore wind power is likely to become a significant source of electricity in the United Kingdom beyond 2020.

Asset Tracking in Critical Power Communications Infrastructures using Passive Techniques

Active network scanning injects traffic into a network and observes responses to draw conclusions about the network. Passive network analysis works by looking at network meta data or by analyzing traffic as it traverses a fixed point on the network. It may be infeasible or inappropriate to scan critical infrastructure networks. Techniques exist to uniquely map assets without resorting to active scanning. In many cases, it is possible to characterize and identify network nodes by passively analyzing traffic flows. These techniques are considered in particular with respect to their application to power industry critical infrastructure.

Reinforcement Learning Approaches to Power System Scheduling

One major component of power system operation is generation scheduling. The objective of the work is to develop efficient control strategies to the power scheduling problems through Reinforcement Learning approaches. The three important active power scheduling problems are Unit Commitment, Economic Dispatch and Automatic Generation Control. Numerical solution methods proposed for solution of power scheduling are insufficient in handling large and complex systems. Soft Computing methods like Simulated Annealing, Evolutionary Programming etc., are efficient in handling complex cost functions, but find limitation in handling stochastic data existing in a practical system. Also the learning steps are to be repeated for each load demand which increases the computation time.Reinforcement Learning (RL) is a method of learning through interactions with environment. The main advantage of this approach is it does not require a precise mathematical formulation. It can learn either by interacting with the environment or interacting with a simulation model. Several optimization and control problems have been solved through Reinforcement Learning approach. The application of Reinforcement Learning in the field of Power system has been a few. The objective is to introduce and extend Reinforcement Learning approaches for the active power scheduling problems in an implementable manner. The main objectives can be enumerated as:(i) Evolve Reinforcement Learning based solutions to the Unit Commitment Problem.(ii) Find suitable solution strategies through Reinforcement Learning approach for Economic Dispatch. (iii) Extend the Reinforcement Learning solution to Automatic Generation Control with a different perspective. (iv) Check the suitability of the scheduling solutions to one of the existing power systems.First part of the thesis is concerned with the Reinforcement Learning approach to Unit Commitment problem. Unit Commitment Problem is formulated as a multi stage decision process. Q learning solution is developed to obtain the optimwn commitment schedule. Method of state aggregation is used to formulate an efficient solution considering the minimwn up time I down time constraints. The performance of the algorithms are evaluated for different systems and compared with other stochastic methods like Genetic Algorithm.Second stage of the work is concerned with solving Economic Dispatch problem. A simple and straight forward decision making strategy is first proposed in the Learning Automata algorithm. Then to solve the scheduling task of systems with large number of generating units, the problem is formulated as a multi stage decision making task. The solution obtained is extended in order to incorporate the transmission losses in the system. To make the Reinforcement Learning solution more efficient and to handle continuous state space, a fimction approximation strategy is proposed. The performance of the developed algorithms are tested for several standard test cases. Proposed method is compared with other recent methods like Partition Approach Algorithm, Simulated Annealing etc.As the final step of implementing the active power control loops in power system, Automatic Generation Control is also taken into consideration.Reinforcement Learning has already been applied to solve Automatic Generation Control loop. The RL solution is extended to take up the approach of common frequency for all the interconnected areas, more similar to practical systems. Performance of the RL controller is also compared with that of the conventional integral controller.In order to prove the suitability of the proposed methods to practical systems, second plant ofNeyveli Thennal Power Station (NTPS IT) is taken for case study. The perfonnance of the Reinforcement Learning solution is found to be better than the other existing methods, which provide the promising step towards RL based control schemes for practical power industry.Reinforcement Learning is applied to solve the scheduling problems in the power industry and found to give satisfactory perfonnance. Proposed solution provides a scope for getting more profit as the economic schedule is obtained instantaneously. Since Reinforcement Learning method can take the stochastic cost data obtained time to time from a plant, it gives an implementable method. As a further step, with suitable methods to interface with on line data, economic scheduling can be achieved instantaneously in a generation control center. Also power scheduling of systems with different sources such as hydro, thermal etc. can be looked into and Reinforcement Learning solutions can be achieved.

Solar aided power generation from coal fired power stations: THERMSOLV software

Although the thermodynamic advantages of using solar energy to replace the bleed off steam in the regeneration system of Rankine cycle coal fired power stations has been proven theoretically, the practical techno/economic feasibility of the concept has yet to be confirmed relative to real power station applications. To investigate this concept further, a computer modelling software “THERMSOLV” was developed by Deakin University researchers, together with the support of the Victorian power industry and Australian Research Council (ARC). This newly developed software simulates the steam cycle to assess the techno/economic merit of the solar aided concept for various power station structures, locations and local electricity market conditions. Two case studies, one in Victoria Australia and one in Yunnan Province, China, have been carried out to show the application of the software. This paper reports the structure and functions of the software, and the results of the two case studies.

A medium-temperature solar thermal power system and its efficiency optimisation

This paper firstly expounds that the reheat-regenerative Rankine power cycle is a suitable cycle for the parabolic trough collector, a popular kind of collector in the power industry. In a thermal power cycle, the higher the temperature at which heat is supplied, the higher the efficiency of the cycle. On the other hand, for a given kind of collector at the same exiting temperature, the higher the temperature of the fluid entering the collector, the lower the efficiency of the collector. With the same exiting temperature of the solar field and the same temperature differences at the hottest end of the superheater/reheater and at the pinch points in the heat exchangers (e.g., the boiler) in the cycle, the efficiencies of the system are subject to the temperature of the fluid entering the collector or the saturation temperature at the boiler. This paper also investigates the optimal thermal and exergetic efficiencies for the combined system of the power cycle and collector. To make most advantage of the collector, the exiting fluid is supposed to be at the maximum temperature the collector can harvest. Hence, the thermal and exergetic efficiencies of the system are related to the saturation temperature at the boiler here.

Utilising solar energy within conventional coal fired power stations

Although the thermodynamic advantages of using solar energy to replace the bled off steam in the regeneration system of Rankine cycle coal fired power stations has been proven theoretically, the practical techno/economic feasibility of the concept has yet to be confirmed relative to real power station applications. To investigate this concept further, computer modelling software “THERMSOLV” was specifically developed for this project at Deakin University, together with the support of the Victorian power industry and Australian Research Council (ARC). This newly developed software simulates the steam cycle to assess the techno/economic merit of the solar aided concept for various power station structures, locations and local electricity market conditions. Two case studies, one in Victoria Australia and one in Yunnan Province, China, have been carried out with the software. Chapter one of this thesis defines the aims and scope of this study. Chapter two details the literature search in the related areas for this study. The thermodynamic concept of solar aid power generation technology has been described in chapter three. In addition, thermodynamic analysis i.e. exergy/availability has been described in this chapter. The “Thermosolv” software developed in this study is detailed in chapter four with its structure, functions and operation manual included. In chapter five the outcomes of two case studies using the “Thermosolv” software are presented, with discussions and conclusions about the study in chapters 6 and 7 respectfully. The relevant recommendations are then made in chapter eight.

Incorporation of a hybrid cooling system in water cooled power stations to reduce water and energy consumptions

Water shortage is a major problem facing the power industry in many nations around the world. The largest consumer of water in most power plants is the wet cooling tower. To assist water and energy saving for thermal power stations using conventional evaporative wet cooling towers, a hybrid cooling system is proposed in this paper. The hybrid cooling system may consists of all or some of an air pre-cooler, heat pump, heat exchangers, and adsorption chillers together with the existing cooling tower. The hybrid cooling system described in the paper, consisting of a metal hydride heat pump operating in conjunction with the existing wet cooling tower, is capable of achieving water saving by reducing the temperature of warm water entering the cooling tower. Cooler inlet water temperatures effectively reduce the cooling load on existing towers. This will ultimately reduce the amount of water lost to the air by evaporation whilst still achieving the same cooling output. At the same time, the low grade waste energy upgraded by the metal hydride heat pump, in the process of cooling the water, can be used to replace the bleed of steam for the lower stage feed heaters which will increase overall cycle efficiency.

Entry on the Brazilian renewable power market: a case study

Conferências internacionais sobre o clima, bem como crescente conscientização sobre as questões de sustentabilidade lançaram luz sobre o papel fundamental que as energias renováveis poderiam desempenhar na transição energética. Ao contrário de combustíveis fósseis, elas podem ser regeneradas em um curto período de tempo e, por conseguinte, espera-se que sejam uma parte da solução para reduzir o aquecimento global. O Brasil sempre teve um forte setor hidrelétrico, mas agora está na vanguarda em relação a todas as outras fontes de energias alternativas, como energia eólica, biomassa o energia solar. Estas indústrias são uma promessa para um futuro próspero, graças ao potencial natural do país, bem como uma legislação de apoio, e estão atraindo muitas empresas locais e internacionais. Este estudo tem como objetivo preencher uma lacuna na literatura analisando o exemplo de uma empresa estrangeira que entra no mercado da energia renovável no Brasil. Baseando-se na literatura como um fundo conceptual, um único estudo de caso têm sido realizados para delinear todos os aspectos do processo de entrada. Neste desenvolvimento, relações causais entre as orientações estratégicas e a evolução do negócio foram identificadas. Esta pesquisa traz uma contribuição para as discussões acadêmicas sobre as dinâmicas de entrada no setor de energia renovável através de evidências do mercado brasileiro.