Haytham Ibrahim

Student ID: 20669035

Power Systems Operation

ECE 666 – Winter 2017

Assignment no.1
 ECE666: Power Systems Operation: Winter 2017
Assignment-1
Last Date of Submission- Friday, 10th February, 2017, 4:30 PM

Answers can be hand-written and submitted on paper; or be a scanned pdf / MSWord

file submitted on-line in the Assignment Solution Drop-Box, on LEARN.

1. The cost functions for three thermal generators, in $/h, are given as follows:
C1 (P1 ) = 0.004 P12 + 7.2 P1 + 350
C2 (P2 ) = 0.0025P22 + 7.3P2 + 500
C3 (P3 ) = 0.003P32 + 6.74 P3 + 600
where P1, P2 and P3 are in MW. The generator limits in MW as follows:
100 ≤ P1 ≤ 400; 150 ≤ P2 ≤ 600; 50 ≤ P3 ≤ 300
The total system load is 975 MW. Neglecting line losses, find the optimal economic
dispatch, the system marginal cost and the incremental cost of generation of the
three generators.

2. The cost functions, in $/h, for two 800 MW thermal generators are given as follows:
C1 (P1 ) = 0.004 P12 + 6 P1 + 400
C2 (P2 ) = αP22 + βP2 + 500
where P1 and P2 are in MW. It is given that the system marginal cost is 8 $/MWh
when the demand is 550 MW, and 10 $/MWh when demand is 1300 MW. Find the
cost coefficients α and β of the second generator.

3. The fuel cost functions for three thermal generators, in $/h, are given as follows:
C1 (P1 ) = 500 + 5.3P1; C 2 (P2 ) = 500 + 5.5 P2 ; C3 (P3 ) = 500 + 5.8 P3 ;
where 𝑃𝑃1 , 𝑃𝑃2 , and 𝑃𝑃3 are in MW. The total load is 800 MW. The generator limits in
MW are as follows:
200 ≤ P1 ≤ 450; 150 ≤ P2 ≤ 350; 100 ≤ P3 ≤ 225;
Neglecting line losses, find the optimal dispatch and the system marginal cost.

4. A system comprising two generating units, has the following incremental cost
functions:
dC1 dC 2
= 0.008PG1 + 8 ; and = 0.012 PG 2 + 9
dPG1 dPG 2
The system is operating on economic dispatch with PG1 = PG2 = 500 MW. It is known
that the incremental loss factor of Generator-2 is 0.2. Find the Penalty Factor of
Generator-1.

5. Consider three utilities A, B, C with demands PDA = 425 MW, PDB = 320 MW and
PDC = 400 MW, respectively. The composite cost characteristic and generation limits
of each utility are given as follows:
𝐶𝐶𝐴𝐴 (𝑃𝑃𝐴𝐴 ) = 2.546𝑃𝑃𝐴𝐴2 + 23.45𝑃𝑃𝐴𝐴 + 4 $/ℎ𝑟𝑟 150 𝑀𝑀𝑀𝑀 ≤ 𝑃𝑃𝐴𝐴 ≤ 700 𝑀𝑀𝑀𝑀
𝐶𝐶𝐵𝐵 (𝑃𝑃𝐵𝐵 ) = 18.54𝑃𝑃𝐵𝐵2 + 78.43𝑃𝑃𝐵𝐵 + 3 $/ℎ𝑟𝑟 100 𝑀𝑀𝑀𝑀 ≤ 𝑃𝑃𝐵𝐵 ≤ 500 𝑀𝑀𝑀𝑀
2
𝐶𝐶𝐶𝐶 (𝑃𝑃𝐶𝐶 ) = 5.354𝑃𝑃𝐶𝐶 + 54.34𝑃𝑃𝐶𝐶 + 9 $/ℎ𝑟𝑟 200 𝑀𝑀𝑀𝑀 ≤ 𝑃𝑃𝐶𝐶 ≤ 600 𝑀𝑀𝑀𝑀
a. If the three utilities operate independently to meet their own demand, find their
respective cost and marginal cost of generation.
 b. Now, let the three utilities coordinate their dispatch to operate as a power pool,
and minimize the total aggregated cost. Assuming that inter-utility transmission
constraints are not considered, find the following:
i) Total pool cost, pool marginal cost, and the cost to each utility
individually.
ii) Pool savings achieved, as compared to independent operation (case-a).
iii) Optimal dispatch of each utility.
iv) The optimal transactions between the utilities in pool operation.

6. Consider two generators whose cost characteristic and generation limits are given:
C1 (P1 ) = 0.00253P12 + 3.19 P1 + 850 $ / hr; 100MW ≤ P1 ≤ 850MW
C2 (P2 ) = 0.00325P22 + 5.11P2 + 1687 $ / hr 100MW ≤ P2 ≤ 600MW
The total system loss can be expressed as follows:
PLoss ( P1 , P2 ) = 11× 10 −5 P12 + 6 × 10 −5 P22 , MW
Given that the system demand is 1200 MW, find the optimal generation schedule
that minimizes the total generation cost while meeting the total system demand and
losses. (Note: Solve the coordination equations. A fair degree of accuracy is
desired.)

7. Two thermal generators supply power to a load. Their respective incremental

generation costs are given as follows:
dC1 ( P1 ) dC 2 ( P2 )
= 0.00643P1 + 3.37 $ / MWh = 0.00364 P2 + 7.19 $ / MWh
dP1 dP2
The transmission loss is given by,
PLoss ( P1 , P2 ) = 0.00011P12 + 0.00006 P22 + 0.0045 P1 P2 MW
The two generators are dispatched optimally, to minimize the total system cost, and
the system marginal cost thus obtained, is 30 $/MWh. Find the optimal dispatch of
the two generators.

8. Jack and Jill are two system dispatch colleagues in the same electric utility- the
Ideal Waterloo Power Company, which has lossless lines and three generating units.
At a certain hour, Jack claims that the system is on economic dispatch. In the next
few minutes Jill observes the set of data representing incremental changes in
generator MW outputs and total production cost rates, as given below:

∆Ct ∆Pg1 ∆Pg2 ∆Pg3

($/hr)
0 1 1 -2
30 1 1 1
-20 -3 1 1

After seeing the third reading Jill says, “Jack you are wrong.” Is Jill correct in saying
that Jack is wrong? How does she arrive at that conclusion from the information
given?

9. Consider two electric utilities whose composite CO2 emission characteristics, Ei(Pi),
and the total generating capacity limits are provided below.
 Utility Emission Characteristics Limits
1 E1 ( P1 ) = 25 + 3.5 P1 + 0.0275 P12 kg / hr 50 MW ≤ P1 ≤ 650 MW

2 E 2 ( P2 ) = 48 + 6.2 P2 + 0.065 P22 kg / hr , 30 MW ≤ P2 ≤ 400 MW

Utility-1 has a system demand of 575 MW and Utility-2 demand is 325 MW. Find the
optimal generation schedule that minimizes the total system emissions while
satisfying all generation limits. Hence find the value of system λ and explain its
significance.
Also find the total reduction in system emissions because of joint dispatch, as
compared to the system emissions when the two utilities operate independently.

10. A power utility comprising a hydro and a thermal generating unit supplies the
system demand of 200 MW, which remains constant over a week (168 hours). The
thermal unit cost characteristic and capacity limit is as follows:
CTH ( PTH ) = 0.04 PTH
2
+ 11PTH + 100 $/h 30MW ≤ PTH ≤ 200MW
The total hydro energy available over the week is 28,000 MWh. The hydro unit’s
water discharge rate and capacity limit is as follows:
qH (PH ) = 300 + 25 ⋅ PH + 0.0075PH
2 acre - ft/h 0 MW ≤ PH ≤ 250 MW
Find the number of hours the thermal unit should operate if the operator is
seeking to minimize the operating cost over the week.
a. Find the total volume of water discharged from the reservoir over the week.
b. If the total water available for draw-down is reduced by 5%, how many extra
hours should the thermal unit operate?

11. The system load is supplied by a hydro and a steam generator whose characteristics
are given below:
Steam system: C ( PS ) = 0.0027 PS2 + 9 PS + 200 $/h; 30 MW ≤ PS ≤ 400 MW

Hydro plant: q(PH ) = 5.64 PH + 180 acre − ft / hr ; 0 MW ≤ PH ≤ 600 MW

The system load profile is given below:
Hour 1 – Hour 4: 725 MW
Hour 5 – Hour 8: 615 MW
The hydro reservoir is limited to a total drawdown capacity of 25,000 acre-ft over
the 8-hour period. Inflow to the reservoir is to be neglected.
a. A hydro-thermal generation schedule is to be drawn up so as to minimize
the total cost. Formulate the appropriate Lagrangian function and develop
the KKT conditions for the optimum.
b. Using an iterative procedure, determine the optimal dispatch for the
above system.
11
12. Solve Question-10 using the following hydro generator characteristic:
q H (PH ) = 300 + 25 ⋅ PH + 0.0075PH2 acre - ft/h 0 MW ≤ PH ≤ 600 MW
The hydro reservoir is limited to a total drawdown capacity of 75,000 acre-ft over
the 8-hour period. Inflow to the reservoir is neglected.

Note: Use an iterative approach, as discussed in lecture. Present three

iterations of the outer loop.
Suggestion: Use starting guess of λ1=λ2=40 $/MWh, γ = 0.35 $/acre-ft.
Problem 1: 
0.004 7.2 350, 100 400 
0.0025 7.3 500, 150 600 
0.003 6.74 600, 50 300 
975  
 
First, we form the Lagrangian: 

 
 
Conditions for optimality (KKT conditions) are: 
 

0 0.008 ∗ 7.2 0 … 1  
 

0 0.005 ∗ 7.3 0 … 2  
 

0 0.006 ∗ 6.74 0 … 3  
 

0 975 0 … 4  
 
Equations (1) & (2) give: 
 
0.008 ∗ 0.005 ∗ 0.1 … 5  
 
Equations (2) & (3) give: 
 
0.005 ∗ 0.006 ∗ 0.56 … 6  
 
Solving equations (4), (5) & (6) using Cramer’s rule: 
 
975 1 1
0.1 0.005 0
0.56 0.005 0.006 233.4746
1 1 1
0.008 0.005 0
0 0.005 0.006

1 
 
 1 975 1
0.008 0.1 0
0 0.56 0.006 353.5593  
1 1 1
0.008 0.005 0
0 0.005 0.006
 
1 1 975
0.008 0.005 0.1
0 0.005 0.56 387.9661  
1 1 1
0.008 0.005 0
0 0.005 0.006
 
From equation (1), we get:  9.0678 $/  
 
We can see that:  , hence this solution is not accepted. 
 
We put  300  and form the new Lagrangian as follows: 
 
300  
 

Carrying out the same procedure above we get the following equations: 
 

0 0.008 ∗ 7.2 0 … 7  
 

0 0.005 ∗ 7.3 0 … 8  
 

0 0.006 ∗ 6.74 0 … 9  
 

0 975 0 … 10  
 

Manipulating these equations as above, we get: 
 

. , . , , . $/  
 

Checking for generator no.3, the incremental cost is: 
 

. ∗ . . $/  
 

Which is the requirement for optimality.  
 

We  can  also  get  the  incremental  cost  for  generators  no.1  and  2  (the  same  as  the  system 
marginal cost  ) as follows: 
 

. $/  

2 
 
Problem 2: 
0.004 6 400 
500 
 
Forming the Lagrangian as follows: 
 
 
 
Assuming generators are operating on optimal economic dispatch, conditions for optimality 
(KKT conditions) are: 
 

0 0.008 ∗ 6 0 … 1  
 

0 2 ∗ 0 … 2  
 
For  550  and  8 $/ : 
 
From equation (1) we get:  250 . Hence,  300  and hence equation (2) 
becomes: 
 
600 8 … 3  
 
For  1300  and  10 $/ : 
 
From equation (1) we get:  500 . Hence,  800  and hence equation (2) 
becomes: 
 
1600 10 … 4  
 
Solving equations (3) & (4) simultaneously, we get: 
 
.  
.  
 
 
 
 
 
 
 
 
 
 

3 
 
Problem 3: 
5.3 500, 200 450 
5.5 500, 150 350 
5.8 500, 100 225 
800  
 
First, we form the Lagrangian: 
 
 
 
Conditions for optimality (KKT conditions) are: 
 

0 5.3 0 … 1  
 

0 5.5 0 … 2  
 

0 5.8 0 … 3  
 

0 800 0 … 4  
 
From equations (1), (2) and (3), we get three different values of  . Hence, these equations 
cannot lead to a solution. 
 
Considering the first‐order cost functions given, we get that generator no.1 is the cheapest 
generator while generator no.3 is the most expensive. Hence, we will assume generator no.1 
is  providing  maximum  power  ( 450   and  generator  no.3  is  providing 
minimum power ( 100 . So, the Lagrangian becomes: 
 
 
 
And the KKT conditions become: 
 
0 5.3 0 … 5  
 

0 5.5 0 … 6  
 

0 5.8 0 … 7  

4 
 
  

0 800 0 … 8  
 
Manipulating these equations, we get: 
 
, , , . $/  
 
Checking incremental cost of generator no.1: 
 
5.3 $/  
 
Checking incremental cost of generator no.3: 
 
5.8 $/  
 
Which is the requirement for optimality.  
 
For generator no.2 incremental cost is the same as system marginal cost: 
 
5.5 $/  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

5 
 
Problem 4: 

0.008 ∗ 8 
 
0.012 ∗ 9 
 
500  
 
0.2 
 
For economic dispatch condition, the following applies: 
 
∗ ∗  
 
So,  
 
1
∗ 12 ∗ 15 
1
 
Hence, we get: 
 
.  
 
 
 
 
 
 

6 
 
Problem 5: 
2.546 23.45 4, 150 700 
 
18.54 78.43 3, 100 500 
 
5.354 54.34 9, 200 600 
 
425 , 320 , 400  
 
a. If the utilities are operating independently to supply their respective demands: 
 
. $/  
 
. $/  
 
$/  
 
. $/  
 
. $/  
 
. $/  
 
3271823.1 $/  
 
b. If  the  utilities  coordinate  together  to  operate  as  a  power  pool  to  minimize  the  total 
aggregated cost, then the problem becomes: 
 

 
Subject to:     1145  
 
And 150 700, 100 500, 200 600 
 
i. We form the Lagrangian as follows: 
 
 
 
 

7 
 
 KKT conditions will be: 

0 5.092 ∗ 23.45 0 … 1  
 

0 37.08 ∗ 78.43 0 … 2  
 
0 10.708 ∗ 54.34 0 … 3  
 
0 1145 0 … 4  
 
From equations (1) & (2), we get: 
 
5.092 ∗ 37.08 ∗ 54.98 … 5  
 
From equations (2) & (3), we get: 
 
37.08 ∗ 10.708 ∗ 24.09 … 6  
 
Solving equations (4), (5) & (6) using Cramer’s rule: 
 
1145 1 1
54.98 37.08 0
24.09 37.08 10.708 712.6283  
1 1 1
5.092 37.08 0
0 37.08 10.708
 
1 1145 1
5.092 54.98 0
0 24.09 10.708 96.3787  
1 1 1
5.092 37.08 0
0 37.08 10.708
 
1 1 1145
5.092 37.08 54.98
0 37.08 24.09 335.993  
1 1 1
5.092 37.08 0
0 37.08 10.708
 
We can see that:   and    hence this solution is not accepted. 

8 
 
 Hence,  we  put  700   and    100 .  We  form  the  new 
Lagrangian as follows: 
 
 
 
Carrying out the same procedure above we get the following equations: 
 

0 5.092 ∗ 23.45 0 … 7  
 

0 37.08 ∗ 78.43 0 … 8  
 

0 10.708 ∗ 54.34 0 … 9  
 

0 1145 0 … 10  
 
Manipulating these equations as above, we get: 
 

, , , . $/  
 

Checking for utility‐A, the incremental cost is: 
 

. ∗ . . $/  
 
 
Checking for utility‐B, the incremental cost is: 
 

. ∗ . . $/  
 
Which is the requirement for optimality. 
 

We can also get the incremental cost for utility‐C (the same as the pool marginal cost  ) 
as follows: 
 

. ∗ . . $/  
 
$/  
 
$/  
 
. $/  
 
. $/  
 
 

9 
 
 ii.  
 
. $/  
 
iii. Optimal dispatch of each utility is calculated in part b‐I above: 
 
, ,  
 
iv. The sketch below shows the optimal transactions between the utilities in pool operation: 
 
 
 
 
 
 

  Utility‐A  Utility‐B 
 
PAB = 220 MW
 
PA = 700 MW  PB = 100 MW 
 

 
PDA = 425 MW    PAC = 55 MW 
PDB = 320 MW 
 

  Utility‐C

  PC = 345 MW
  PDC = 400 MW 

10 
 
 Problem 6: 
0.00253 3.19 850, 100 850 
0.00325 5.11 1687, 100 600 
, 11 ∗ 10 6 ∗ 10  
1200  
The iterative procedure to find the optimal dispatch that minimizes generation cost is as follows: 

1. We start with initial guess for  and  . From the cost functions given, we can see that 
generator no.2 is more expensive than generator no.1.Hence, our initial guess will be 
700  and  500 . 
2. Penalty factors are calculated based on the assumed   and   where:  
1
, 1, 2 
1
3. We calculate the losses. 
4. We calculate the required generation to supply the demand and the losses where: 
 
5. We solve the coordination equations with the demand supply balance equation to get the new 
values for   and   (two equations solved simultaneously): 

∗ ∗  
And, 
 
6. Repeat steps 2 to 5 till a fair degree of accuracy is reached. 

Applying the above procedure, the following table is constructed: 

Iteration  P1  P2  Ploss  P’D  P1new  P2new  λ 

PF1  PF2 
number  (MW)  (MW)  (MW)  (MW)  (MW)  (MW)  ($/MWh) 
1  700  500  1.182  1.0638  68.9  1268.9  809.5385  459.3615  8.6124 
2  809.5385  459.3615  1.2167  1.0583  84.75  1284.75  795.091  489.659  8.7763 
3  795.091  489.659  1.212  1.0624  83.925  1283.925  799.862  484.063  8.7716 
4  799.862  484.063  1.2135  1.0617  84.435  1284.435  798.8563  485.5787  8.7763 
5  798.8563  485.5787  1.2132  1.0619  84.3461  1284.3461  799.1024  485.2437  8.7756 
6  799.1024  485.2437  1.2133  1.0618  84.37  1284.37  798.9962  485.3738  8.7757 
7  798.9962  485.3738  1.2133  1.0618  84.36  1284.36  798.991  485.37  8.7757 
8  798.991  485.37               
 

Hence,  . , .  

11 
 
Problem 7: 

0.00643 3.37 

0.00364 7.19 

0.00011 0.00006 0.0045  

30 $/  
For optimal dispatch, the following equations apply: 

∗ ∗  
Where: 
1 1
 
1 0.00022 0.0045
1
And, 
1 1
 
1 0.00012 0.0045
1
So, 
0.00643 3.37
30 … 1  
1 0.00022 0.0045
 
And, 
 
0.00364 7.19
30 … 2  
1 0.00012 0.0045
 

Solving equations (1) & (2) simultaneously, we get: 
.  

.  
 

12 
 
Problem 8: 
Reading no.  ΔCt ($/hr) ΔP1 ΔP2 ΔP3
1  0  1 1 ‐2
2  30  1 1 1
3  ‐20  ‐3 1 1
 

For any equal fractions: 
If: 

 then: 

… 1  

For optimal dispatch, the following applies: 

Considering small changes in generators output powers (within minutes), then: 
∆ ∆ ∆
, ,  
∆ ∆ ∆
Hence, the condition of optimality becomes: 
∆ ∆ ∆
 
∆ ∆ ∆
And using equation (1), the following applied for optimal economic dispatch condition: 
∆ ∆ ∆ ∆
 
∆ ∆ ∆ ∆
1. For data set no.(1): 
 

∆ 0     and     ∆ 0, hence: 
 
∆ 0
 
∆ 0
 
Which is an undefined value. We cannot determine the system marginal cost ( ). 
 

13 
 
 2. For data set no.(2): 
 

∆ 30     and     ∆ 3, hence: 
 

∆
10 
∆
 
Which is equal to the system marginal cost ( ). 
 
3. However, for data set no.(3): 
 

∆ 20     and     ∆ 1, hence: 
 
∆
20 
∆
 
So, from points 2 and 3, the system is not operating at a constant incremental cost within 
few minutes. Therefore, system is not on economic dispatch. Jill was correct to say that 
Jack is wrong. 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 

14 
 
Problem 9: 
0.0275 3.5 25, 50 650 
0.065 6.2 48, 30 400 
575  
325  
When utilities are on a joint operation, the total emissions minimization problem becomes: 

Subject to: 

575 325 900  and 

50 650, 30 400 
Hence, we form the Lagrangian as follows: 
 
 
Conditions for optimality (KKT conditions) are: 
 

0 0.055 3.5 0 … 1  
 

0 0.13 6.2 0 … 2  
 

0 900 0 … 3  
 
From equations (1) & (2), we get: 
 
0.055 0.13 2.7 … 4  
 
Solving equation (3) &(4) simultaneously, we get: 
 
. , .  
 
And hence we can get the marginal emission: 
 
. /  
 
 is the marginal emission which means the change in the system emissions (objective 
function) due to a change by 1 unit (here 1 MW) in the demand. 

15 
 
 In this case (joint operation), the emissions can be calculated using the values of   and   
obtained and we get: 
 

  . /  

If the utilities are operating independently, then: 
 

575   and  325   and  we  can  calculate  the  total  emissions 
then: 
 
. /  
Hence, the total reduction in system emissions because of the joint dispatch is: 
 

∆ . /  
 

  Independent operation  Joint operation 
Utility‐1 generation   (MW)  575  647.027 
Utility‐2 generation   (MW)  325  252.973 
Total emissions   (kg/hr)  20058.3125  19578.432 
Emission reduction due to 
479.8805 
joint operation ∆  (kg/hr) 
 
 
 
 
 
 
 
 
 
 
 
 

16 
 
Problem 10: 
0.04 11 100, 30 200 
0.0075 25 300, 0 250 
28000 ,   200  for one week. 
The condition for optimum (to minimize the operating cost) is that the thermal unit should 
operate at a constant incremental cost for each interval which means that: 
∗
  at all intervals, and: 

∗
 

Where:  100 and  0.04 from the second‐order thermal unit cost characteristics 

above. Hence: 
∗
 
Also, 
∗
200 ∗ 168 28000 5600 ∗  
Hence, 
 
a. The water discharge when hydro unit is operating with the thermal unit is: 
 

0.0075 ∗ 200 50 25 ∗ 200 50 300 4218.75 . /  

 

When only the hydro unit is operating, the water discharge is: 
 

0.0075 ∗ 200 25 ∗ 200 300 5600 . /  

 

Hence, the total water volume discharged over the week is: 
 
∗ ∗ .  
  
b. The new water volume is: 
0.95 ∗ 746795 . … 1   
 
With the same optimal thermal power obtained above (and hence same   and   
calculated above), this new water volume can be expressed as follows: 
 
∗ 168 ∗ … 2  
 
Where:   is the new time that the thermal unit has to operate for. 

17 
 
 Solving equations (1) & (2) for  , we get: 
 
140.456  
 
So, the thermal unit will have to operate for additional 28.456 hours. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

18 
 
Problem 11: 
0.0027 9 200, 30 400 
5.64 180, 0 600 
25000 .   over 8‐hour load period. 
725 , 1 4
 
615 , 5 8
a. The problem is formulated as follows: 

. 4∗ 4∗  

Subject to:   725 … 1   during hour 1‐4. 

and  615 … 2   during hour 5‐8. 
and, 

. 4 ∗ 5.64 180 4 ∗ 5.64 180 25000 … 3  

We form the Lagrangian as follows: 
∗ ∗
∗ . ∗ .  
The KKT conditions for optimality are developed as follows: 

0 ∗ . ∗ … 4  

0 ∗ . ∗ … 5  

0 . … 6  

0 . … 7  

 
 
 

19 
 
 b.  iterative method is used to solve equations (1) to (7) starting with: 
2 $/ . , the following table can be constructed: 
 
Error in 
             
 
($/(acre.ft))  ($/MWh)  ($/MWh) (MW)  (MW)  (MW)  (MW) 
(acre.ft) 
2  45.12  45.12  422.222 422.222 302.778 192.778  ‐12380.267 
1.8  40.608  40.608  213.333 213.333 511.667 401.667  ‐2955.2 
1.75  39.48  39.48  161.111 161.111 563.889 453.889  ‐598.933 
1.74  39.2544  39.2544  150.667 150.667 574.333 464.333  ‐127.68 
1.737  39.18672  39.18672 147.533 147.533 577.467 467.467  13.696 
1.7373  39.1935  39.1935  147.847 147.847 577.153 467.153  ‐0.4416 
 
Where:  
4 ∗ 5.64 180 4 ∗ 5.64 180 25000  
 
When we get a negative value in discharge error, then this means that we are on the 
expensive side of shadow price of water (water is underutilized). Hence, we decrease  . 
 
Hence, the optimal dispatch is: 
 
.  
 
.  
 
.  
 
.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

20 
 
Problem 12: 
0.0027 9 200, 30 400 
0.0075 25 300, 0 600 
75000 .   over 8‐hour load period. 
725 , 1 4
 
615 , 5 8
a. The problem is formulated as follows: 

. 4∗ 4∗  

Subject to:   725 … 1   during hour 1‐4. 

and  615 … 2   during hour 5‐8. 
and, 

. 4 ∗ 0.0075 25 300 4 ∗ 0.0075 25 300 75000 … 3  

We form the Lagrangian as follows: 
∗ ∗
∗ . ∗ .  

The KKT conditions for optimality are developed as follows: 

0 ∗ . ∗ … 4  

0 ∗ . ∗ … 5  

0 . … 6  

0 . … 7  

 
 
 

21 
 
 b.  iterative method is used to solve equations (1) to (7) starting with: 
0.35 $/ .   and  40 $/ ,  the  table  in  the  next  page  can  be 
constructed: 
 
Where:  
4 ∗ 0.0075 25 300 4 ∗ 0.0075 25 300 75000  
 
When we get a negative value in discharge error, then this means that we are on the 
expensive side of shadow price of water (water is underutilized). Hence, we decrease   
and vice versa. 
 
Hence, the optimal dispatch is: 
 
.  
 
.  
 
.  
 
.  

22 
 
  iterative method: 

i=1  i=2 
 
($/(acre.ft))             
($/MWh)  (MW)  (MW)  (MW)  ($/MWh)  (MW)  (MW)  (MW) 
40  185.185 238.095 ‐301.72 
42  277.778 333.333 ‐113.889 
44  370.37  428.571 73.942   
43  324.074 380.952 ‐19.974 
0.35  43.2  333.333 390.476 ‐1.19 
40  185.185 238.095  ‐191.72 
 
42  277.778 333.333  ‐3.889 
. .  
43.2  333.333 333.333 ‐58.333 
44  370.37  370.37  15.741   
43.8  361.111 361.111 ‐2.778 
0.36  42  277.778 277.778  ‐59.444 
  42.7  310.185 310.185  5.37 
42.65  307.87  307.87  0.741 
. .  
43.8  361.111 349.91  ‐13.981 
43.9  365.741 354.512 ‐4.7473   
43.93  367.13  355.893 ‐1.9772 
0.362  42.65  307.87  296.96  ‐10.1683 
 
42.75  312.5  301.565  ‐0.935 
. .  
 

23