LOSS MINIMISATION IN INDUSTRIAL POWER SYSTEM OPERATION

D. Lukman K. Walshe T.R. Blackburn

School of Electrical and Telecommunication Engineering
University of New South Wales, Kensington
Sydney, NSW 2052, Australia
E-mail : d_lukman@hotmail.com
Abstract
This paper presents a new approach to the use of load flow by proposing the incorporation of the B-
losses coefficient method to bias the operation of control devices such as OLTC, FACTS, etc inside the
traditional Newton-Raphson algorithm. In this way the choice of control settings can be determined
whilst minimising losses. It is believed that this technique will be of particular advantage to industrial
systems where the far more complex loss minimisation methods used in EHV transmission systems are
not implemented at present.
The causes, types and effects of losses are first described. Then follows an extract from a real life load
flow study to illustrate present usage. A modified technique of loss minimisation is then proposed
using modified B-losses coefficients and changes to transformer modelling in power flow software
with a view to arriving at a load flow suited to an industrial application.

1. INTRODUCTION 1950s and 1960s such as [1], which gives the

The quantification and minimization of losses is
important because it can lead to a more economic
operation of a power system. If we know how the
losses occur, we can take steps to limit the losses.
Hence, if more losses can be minimised, the power
can be consumed efficiently. Existing power
generation and transmission can be used effectively
without having to build new installations and at the
same time save the cost of losses.
Losses result from current flow in resistive materials
and magnetising energy in transformers and motors.
Other sources such as dielectric and rotational losses
are usually so small as to fall outside the scope of this
paper.
Considering losses associated with resistive material ,
three things need to be considered in order to prevent
the unnecessary losses;
• either reducing the resistance/impedance,
• or decreasing the current, or
• maximising voltages.
Magnetising losses are however minimised by
minimising line voltages (in per unit terms).
Hence, the ability to reduce the losses is an important
consideration. Several papers had been written in the
comparison of actual measured transmission loss in
an extensive power system with that calculated from
a set of constant loss coefficients for wide shifts in
load between two plants. Reference [2] discusses an
improved digital-computer method of calculating
loss-formula coefficients. This paper also discusses
B-loss coefficients and how these can be implemented
in the digital load flow calculation in power system
operation.
2. LOSSES IN POWER SYSTEMS
To determine B-loss coefficients, it is necessary to
determine the precise loss mechanisms, which occur
in the system. Traditionally, B-loss coefficients have
been applied to transmission line analysis where the
losses are predominant by only line loss determined
by I2R. Transformer losses are not significant in such
systems. The only other losses are corona, which will
occur only under foul weather conditions. However,
in industrial power systems, the losses are more
diverse and thus B-coefficients will be more
complicated to utilize.
2.1. Transmission Losses
Consider a simple three-phase radial transmission line
between two points of generating/source and
receiving/load as illustrated by Figure I.
 Figure II Radial System with One Additional
Generation to Load Bus

Losses can now be expressed by the equation:

PL = P12 B11 + 2P1 P2 B12 + P22 B22

Figure I Radial Line with One Generation and We refer to B as the loss coefficients. These will be
One Load discussed in detail in section 6.

We can deduce that the line loss is: Transmission losses become a major factor to be
2 considered when it is needed to transmit electric
P loss = 3 I R energy over long distances or in the case of relatively
where R is the resistance of the line in ohms per low load density over a vast area. The active power
phase. The current I can be obtained: losses may amount to 20 to 30 % of total generation
PG in some situations [5].
I =
( 3 )V G cos φ G 2.2. Industrial System Losses
where PG is the generated power (load power and Losses in complex industrial systems can arise from
losses) the following mechanisms:
VG is the magnitude of the generated voltage ƒ Line and cable losses
(line-to-line) ƒ Transformer losses (core and copper)
cosφG is the generator power factor ƒ Machine losses (core and copper)
ƒ Eddy current losses in metal housings, etc
Combining the above two equations, we have: ƒ Corona losses on contaminated insulators

R These are thus a complex combination of fixed (core

PL = 2
( PG2 ) and corona) and variable (I2 dependent) losses.
VG cos 2 φ G Thus PL = B0 + B1PG2
Assuming fixed generator voltage and power factor, where B0 represents fixed loss
we can write the losses as: B1 represent variable loss
PG is the generated power
P L = BP G2 Thus the calculation of B-loss coefficients is more
where in this case complex in large industrial systems, but the potential
improvements or loss reduction is likely to be greater
R if the B coefficients can be incorporated in load flow
B= 2 software.
VG cos2 φG
Losses are thus approximated as a second order 3. EFFECTS OF LOSSES
function of generation. If a second power generation
is present to supply the load as shown in Figure II, we An early method used by engineers to minimize the
can express the transmission losses as a function of cost of delivered power was by supplying power from
the two plant loadings only the most efficient plant at light loads. As load
increased, power would be supplied by the most
efficient plant until full capacity of this plant was
reached. For further increase in load, the next most
efficient plant would start to supply the additional
power and so on. This method fails to minimize the
cost because the losses in transmission from the plant
with the lower incremental cost may be so great that
economical consideration may require lowering the
load at the plant with lower incremental cost and
increasing it at the plant with higher incremental cost.

A very efficient generating unit with low incremental

operating cost may be located far from load centers.
Transmission losses associated with this unit may be
so high that the economic dispatch solution, which is
how the real power output of each controlled
generating unit is selected to meet specified demand,
requires the unit to decrease its output, while other
transmission units with higher incremental operating
costs but lower transmission losses increase their
outputs. We need to express total transmission loss
as a function of plant loadings.

Thus, losses increase the operating cost of running a

power system and determine how to operate various
generating plants. In addition to that, thermal losses
reduce the overall lifetime of the electrical
equipments. Figure III. Electrical One Line Diagram including
Train H Electrical System
4. AN INDUSTRIAL POWER SYSTEM
The electrical system has the flexibility to be
Consider the case of the electrical system in Train H controlled in either normal ordinary operation with
LNG Refinery Plant in Bontang, Borneo, Indonesia the tie breaker at MV/LV busses turned off or as a
which was commissioned in December 1999 after load-shifted operation with one of the paired
three years of Engineering Procurement Construction generators from the 13.8 kV bus switched off or shut
(EPC) where one of the authors was involved in the down putting the demand to the other generator to
power system study of the overall electrical system. supply the whole loads connected to it and letting the
The system can be used as a model for application of tie circuit breaker switched on allowing operation as a
B-coefficient losses. double-ended substation. The switching sequence is
depicted in Figure IV where the closed breakers are
The Train H electrical system is added as part of shaded and the open breakers are left unfilled.
Module II of a two module system (Module I and
Module II). The two modules are interconnected by
current limiting reactors (CLR) for fault current
limiting at a ring bus voltage of 34.5 kV. Each
module consists of four LNG trains connected to 13.8
kV substation busses. Train H LNG refinery plant
electrical system is paired with Train G and with
Train E and F pair form module II. The system has
the capability to be operated as either a modular
system when the CLR is switched off or operated as
an integrated system when the two modules are
connected through the reactor as shown in Figure III.
Generator 7 in Figure III has flexibility to be switched
between buses 30PS-4 and 30PS-5 to overcome
deficient of Module II for case study LF-int-5 and
LF-int-6, which is given in Table I.

Figure IV. Normal and Abnormal/Load Shifting

Operation
A load flow study was performed using the GE power threshold. In the instance of the bus voltage, which
system software PSLF. An interim study was falls below 97.5 % threshold even with the presence
performed to quickly confirm the ratings of major of transformer taps, boost taps can be used to make
equipment and load flow modelling. The results of a the desired improvements.
load flow study were useful in determining optimum
taps for transformers and to enable prediction of However, load shifting can result in voltage reduction
equipment overloading and excessive voltage drops, because load shifting causes the transformer to be
which may be encountered in the future and which more heavily loaded. The problem is more
increase equipment losses. Several case studies were significant if the system is operated in modular
created based on both normal and abnormal/load operation, which does not have as much power
shifting operating conditions under both modular and generation. If voltage drops occur in feeders,
integrated operation. transformer taps must be used to boost the load
voltage if the natural voltage sag results in voltages
The listing below provides all the cases having been outside acceptable range.
considered and gives the summary of the significant
outcomes/results out of the load flow study. As it can be given by the load flow case example,
more concentration was given in terms of voltage
Case Description Comments acceptance criteria rather than achieving loss
No.
LF-int-1 System normal – Acceptable operation minimization. This is a shortcoming in traditional
integrated operation load flow. Given the NR load flow, the ability to find
LF-int-2 System normal – Acceptable operation the least cost way of running an industrial power
modular operation
LF-int-3 Integrated operation Acceptable operation. Requires system would result in major improvements to both
with load shifting some tap adjustments to achieve the design and operation of such systems.
from Bus 7 to Bus 8 acceptable voltages.
LF-int-4 Integrated operation Acceptable operation. Requires
with load shifting some tap adjustments to achieve We are going to look at a different way of using load
from Bus 8 to Bus 7 acceptable voltages.
flow in industrial power systems. We know that, at
LF-int-5 Modular operation Acceptable operation. Requires
with load shifting some tap adjustments to achieve minimum load, the OLTC of a transformer would be
from Bus 7 to 8 acceptable voltages. Generation set at the minimum tap setting and at maximum load,
deficiency in Module II
the tap setting is adjusted at the maximum setting. In
Table I – Load Flow Case List and Summary
the loss minimisation technique, correct tap settings
are to be controlled by plant loadings and network
Several analyses were made and are described as
loss minimization with voltage criteria setting
follows:
boundaries for operation rather than absolutes as in
ƒ The five cases evaluated in the load flow study
traditional load flow.
indicate that the overall system design planned
for the Train H expansion is capable of supplying
the required loads at acceptable voltage level 5. LOSS MINIMIZATION
ƒ Voltage acceptance criteria (0.975 > V > 1.05 per TECHNIQUES
unit) can be easily achieved during normal
operation, but some adjustment in transformer Contemporary loss minimization techniques during
taps are required to obtain acceptable voltages the system design phase described in the literature
under load shift conditions include the use of low resistivity materials, reducing
ƒ However, load-shifting operation would not be impurities in conductor material, reducing eddy
recommended for modular operation because it currents by using lamination and transposition, the
may result in generation loss in Module 2. use of conductor with large cross sectional area,
PT Badak’s, Bontang LNG Refinery Operator, bundling the conductors in case of transmission line
system has grown to over 500 busses. Therefore, the in order to reduce the resistance/reactance.
ability to extract useful information out of the
excessive information is necessary. The total system Some other techniques relate to the reduction of
load is calculated to be 124 MW for 8 trains, or about current since the losses are proportional to I2R. The
15.5 MW per train. use of FACTS devices such as the series compensated
capacitor, upgrading of transmission line, adjusting
The results of load flow are also able to determine if the control of transformers and capacitor banks to
the voltage at particular bus has fallen below 97.5 % increase the loadability or maximum power transfer
of a line and improve power factors have been
implemented.[9] Several formulae were proposed to
calculate the power losses by looking at the patterns
of generation and loads, kWh/km, price/kWh and
RPI-X formula.[10]
However, the method which is of our interest and
under current research here is the use of B-losses
coefficient which was first proposed by E.E.George
[5] in 1943 and later perfected by G.Kron by applying
the tensor analysis method to power system. The idea
is to include the B-coefficient into the load flow
analysis, which will be described in the section 6.
6. APPLICATION OF B-LOSS
COEFFICIENT INTO POWER
SYSTEM ANALYSIS/LOAD FLOW
TECHNIQUES
Vm, Vn are voltages at bus m and n
Nkm, Nkn are current distribution factors
pfm, pfn are power factors
A number of assumptions are made for the
calculation of loss formula:
1. Assume a constant power factor at each source
2. Assume constant generator angular positions, δm
3. Assume constant generator bus voltage
magnitudes
4. Assume all load currents maintain constant ratio
to total current
Although it is valid only for certain loading
restrictions, in practice, however, this formula
produces close answers with errors only up to a few
percent. Sophisticated methods of calculating B-
coefficient do exist and are currently being used by
electricity utilities to calculate losses to determine
economical dispatch operation. [5 p. 722][7 p. 242]

In this method, the power flow is used to account for 6.1. Example of Bmn Calculation
power transmission losses in the power system. It is Consider a three-line two plant system as shown in
common practice to express the system losses in Figure II before. The following data [4] are given in
terms of active power generations only. This is per unit system:
commonly referred to as the loss formula or B- |V1| = 1.05 |V2| = 1.03 |V3| = 1.00
coefficient method. The simplest form of loss (pf)1 = 0.95 (pf)2 = 0.95 (pf)3 = 0.85
equation is called George’s formula, which is given R1D = 0.04 R2D = 0.05 R3D = 0.03
by: Using the general expression for Bmn above:
k k
0.04 0.03
PL = ∑∑ Pm Bmn Pn B11 = 2 2
+ 2 = 0.0817
m =1 n =1 (1.05) (0.95) (1) (0.85) 2
where PL is the power losses 0.05 0.03
Pm, Pn is the power generation from all B22 = 2 2
+ 2 = 0.0937
sources (1.03) (0.95) (1) (0.85) 2
The coefficients Bmn are commonly referred as the 0.03
loss coefficients with the units of reciprocal B12 = 2 = 0.0415
Watt/MWatt. The B coefficients are not truly constant (1) (0.85) 2
but vary with unit loadings. A more general formula Thus in per unit, we have the loss formula given by:
(Kron’s loss formula) is PL = 0.0817 P12 + 0.083P1P2 + 0.0937 P22
k k k
PL = K L 0 + ∑ Bm 0 Pm + ∑ ∑ Pm Bmn Pn 6.2. Economic Loading of Power Plants
m =1 m =1 n =1 This method using B-coefficient enables us to
A linear term ΣBm0Pm and a constant KL0 have been coordinate transmission loss in scheduling output of
added to the original quadratic equation. This shows each plant for maximum economy for a given load.
that losses depend on the active power generations P The total fuel cost is a function of power inputs.
only. Using Lagrangian method, minimum fuel cost FT is
obtained when ∂ℑ/∂Pn = 0 for all values of n, where:.
Bmn is known as loss coefficient and is given by a
general expression:  k 
cos (σ m − σ n ) ℑ = FT − λ  ∑ Pn − PL − PR 
B mn = ∑ N km N kn Rk
V m V n ( pf m )( pf n ) k
 n=1 
λ = multiplier
where σm, σn are phase angles of currents Im,In Pn = individual plant input to the network
PL = power loss
PR = total power received by the loads
Minimum fuel cost is obtained when the incremental
fuel cost of each plant, multiplied by its penalty
factor, is the same for all plants in the system.
dF n
Ln = λ
dP n
where Ln is the penalty factor of plant n and is given
by:
1 object of loss minimisation. This also requires
Ln =
1− ∂ P L
∂ Pn
For k plants, partial differentiation with respect to Pn
yields:
∂PL ∂ k k k
=
∂Pn ∂Pn
∑∑ P B
m =1 n =1
m mn Pn = 2∑ Pm Bmn
m =1
Economical loading of each plant is found by
assuming a value for λ. By solving equations for
several values of λ, data are found by plotting
generation at each plant against total generation.
Total received load can also be plotted against the
plant outputs to determine the net savings.
The current research is aiming to implement the B-
losses coefficient into the simulation, to extend the
traditional implementation to include shunt losses,
and to use the information as a basis for controlling
tap changers, FACTS settings, switched capacitor
banks and the like.
7. CONCLUSION
Most research focuses on the large transmission
system. Tools developed for such systems are
normally inaccessible to the operator of medium sized
industrial networks.
This research project addresses this shortcoming.
Losses increase the cost of operation of a power
system. Hence, loss minimization would be a very
advantageous goal to use to optimize the generation
and delivery of electrical power. This is particularly
the case for industrial systems, where substantial loss
reduction can be achieved by using loss minimisation
rather than voltage drop criteria in system operation.
A load flow study can be used to calculate the kW
and the kVar flows in power system, determine
operating voltage levels for selected operating
conditions, identify transformer tap settings and
minimise kW losses.
The use of B-losses coefficient in fast digital
computer power flow would be required to determine
the amount of power loss and minimise the
transmission loss, thus increasing net savings. The
research project will look at how the loss coefficient
approach can be used to manipulate transformer
OLTC, shunt capacitors, synchronous condensers,
excitation controllers and the likes of FACTS device
setting inside a Newton Raphson load flow with the
revised modelling of transformers, motors, capacitor
banks FACTS and lumped loads [10] in order to
incorporate the shunt and voltage dependency of their
losses.
8. REFERENCE
1. Kirchmayer, L.K., Stagg, G.W., Analysis of Total
and Incremental Losses in Transmission Systems,
Trans. AIEE, vol.70, pt. II, pp. 1197-1205, 1951
2. Kirchmayer, L.K, Happ, H.H., Stagg, G.W.,
Hohenstein, J.F., Direct Calculation of
Transmission Loss Formula-I, Trans. AIEE, vol.
79, pt. III, pp.962-969, 1960
3. Eaton, J.R., 1972, Electric Power Transmission
Systems, Prentice-Hall Inc., Englewood Cliffs,
New Jersey
4. El-Hawary, M.E., 1983, Electric Power Systems:
Design and Analysis, Reston Publishing
Company, Inc., A Prentice-Hall Company,
Reston, Virginia, USA
5. Glover, J.D., Sarma, M., 1994, Power System
Analysis and Design, second edition, PWS
Publishing Company, Boston, USA
6. Stevenson, W.D., 1982, Elements of Power
System Analysis, fourth edition, McGraw-Hill
Book Company, New York, USA
7. GE International Inc., 1998, Train H Expansion
Study-Interim Study Report for HCJV, LNG
Refinery Project, Bontang, Indonesia
8. B.C.G Shin, Development of the Loss
Minimization Function for Real Time Power
System Operations: A New Tool, IEEE
Transaction on Power Systems, Vol. 9, No. 4, pp.
2028-2034, November 1994
9. Cory, B.J., 1998, Electric Power Systems, John
Wiley & Sons, Sussex, England
10. Gosbell, V.J., System Load Characteristics,
1981 Residential School in Electrical Power
Systems, 1981, Lect. Nt., Vol. 1, pp. B5.1-B5.17