1 Coordination of Transmission and Distribution Planning and Operations to Maximise Efficiency in Future Power Systems Luís Castanheira, Graham Ault, Marílio Cardoso, Jim McDonald, J. Borges Gouveia, Zita Vale Abstract—Transmission and distribution networks have been historically planned and operated as almost two separate entities. Future power networks will provide a new framework where this practice will no longer be desirable or possible. In particular, achieving maximum efficiency in planning and operating the transmission system will require the consideration, and possible coordination and exchange, of functions, services and information across the transmission-distribution interface. In this paper the authors review current Transmission System Operator (TSO) approaches to planning and operations, present possible visions of future power networks with emphasis on the functions, services and information exchange across the transmissiondistribution boundary, and finish with a proposal for reviewing the whole concept of efficiency in future power systems. This work sets the context for research in the area of efficiency of T&D planning and operations with the objective of contributing to the sustainable development of power systems. Index Terms—Coordination, Efficiency, Operations, Planning, transmission, Distribution. I. INTRODUCTION It is a well known fact that, historically, power networks have been going through significant changes, mainly in the years since the beginning of market liberalization. Nevertheless, functional separation between transmission and distribution networks in terms of planning and operational management is still a reality across the world. Some practices L. Castanheira is with the Department of Electrical and Electronic Engineering of the Strathclyde University, Glasgow, UK and the Department of Electrical Engineering of the Enginnering School of the Polytechnical Institute of Porto, Porto, Portugal (e-mail: lcc@isep.ipp.pt ). G. Ault is with the Department of Electrical and Electronic Engineering, Strathclyde University, Glasgow, UK (e-mail: g.ault@eee.strath.ac.uk). M. Cardoso is with the Department of Electrical Engineering of the Enginnering School of the Polytechnical Institute of Porto, Porto, Portugal (email: marilio@dee.isep.ipp.pt). J. MacDonald is with the Department of Electrical and Electronic Engineering, Strathclyde University, Glasgow, UK (e-mail: j.mcdonald@eee.strath.ac.uk). J. Gouveia is with the Department of Economy, Enginnering and Management of the University of Aveiro, Aveiro, Portugal (e-mail: bgouveia@egi.ua.pt). Z. Vale is with the Department of Electrical Engineering of the Enginnering School of the Polytechnical Institute of Porto, Porto, Portugal (email : zav@dee.isep.ipp.pt). have remained unchanged for the last 50 years. New perspectives about sustainable development, network security, power quality and reliability of service are moving power networks to tackle new challenges, which presents a new context both for planning and operational management of power networks. At the same time, the concept/function of efficiency regarding planning and operations of power networks may be seen under the new perspectives referred above, possibly challenging the concepts and practices, seen today as best practice. This paper deals with these subjects, starting with a review of the present state of the art in the planning and operational practices of TSOs, followed by a statement about the future power networks context and a discussion of the concept/function of efficiency under the scope of the future power systems and transmission operations and planning. It is expected that this work will lead to further research to bring new light to the challenge of planning and operational processes for future power networks. The particular focus of this research will be in the area of efficiency of planning and operational processes. This paper will also show that the efficiency concept needs to be redefined under the future power networks framework. II. CURRENT TRANSMISSION SYSTEM PLANNING AND OPERATIONAL CRITERIA Transmission system operators have, for a long time now, been developing their own processes and criteria for planning and operations. Some reference analysis [1]-[4] on this matter allows us to understand the basic questions concerning the planning process. Traditionally, the basic requirement of a transmission network was to ensure that the outputs from the utility’s generation could be transported to the utility’s customers within specific (and often stringent) targets for security and power quality. Today, transmission systems have a much larger mission. Several years ago, transmission planning was much simpler than it is today and in turn today’s approaches to transmission planning are likely to be simpler than those required in the future. To make matters worse transmission planning today is conducted within the context of great uncertainty regarding future power system architecture, generation mixes, and end use developments. 2 For decades the electricity industry was characterized by vertically integrated utilities. In this scenario utilities could optimize investments because they owned and operated generation and transmission. Unbundling generation, transmission, distribution and retail supply has made the planning and operations challenge more complex. For example, the separation of generation and transmission has presented the problem of the congestion management as an internal and external problem. Independent System Operators and utilities are developing transmission planning processes to accommodate the needs of a rapidly evolving and increasingly fragmented electricity industry. Transmission planning must be conducted in coordination with the power generation companies and according to the location of power generating units. In addition, transmission planning must consider to a far greater extent than at present the interface with distribution. In future, transmission planning must have some important characteristics like: • • • • • • • • • Stakeholder participation throughout the planning process Broad range of alternatives considered Effects of transmission on generation market power and congestion costs Comprehensive risk assessment of transmission plan Proactive, rather than reactive Economies of scale New technologies Development of a practical and robust transmission plan Consideration of distribution system developments in transmission planning Likewise, the operation of transmission grids must pay attention to many issues such as: • • • • • • • • • Generation-demand balancing Frequency control Voltage and reactive power control Inter-area exchange Ancillary network services Analysis of network security Stability issues Safeguard measures Network reconfiguration To achieve the objective of secure and stable operation it is fundamental that information exchange is carefully managed between all entities involved and that the information is available for real-time control of networks. To this end the importance of information and communication technologies (ICT) will likely grow prolifically. Nowadays almost all electrical systems in the world have connections to other neighbouring systems, often in other countries. This means that the grid operation should be multilaterally coordinated. In the full paper the authors will explain how this can be done and what models of transmission systems are most appropriate, e.g., transmission capacity model based on power transfer distribution factors. Nevertheless there are still many questions to be solved even under the present scenario, as is the case stated in [5] where a divestment solution in transmission networks in the EU is defended, showing that the present market organization does not maximize economic efficiency. In the full paper the authors will review the current status of planning and operational practices for transmission power networks, as a basis for the novel approaches suggested for future transmission planning and operations. As will be discussed later, the issue of achieving a global efficiency in the planning and operation of future power systems will be central to these developments. III. FUTURE POWER NETWORKS FRAMEWORK Recent advances in ICT, new power generation devices and other relevant issues have been driving many important research projects in order to preview the expected changes in future power systems. In particular, the work developed under the scope of [6] and [7] relates to two of the major projects presently ongoing. At the moment it is already possible to present some common themes evident in both the future power system projects referenced above. Specifically there are several relevant aspects in these projects relating to changes in planning and operational approaches for future power networks. Among those changes, some of the most relevant ones is the possible existence of exchange of functions, information and services across the transmission-distribution interface. Some examples of this are: Demand-side participation Distributed power generation Advanced control and FACTS (and D-FACTS) Energy storage In each of these examples it is evident that broad implementation of these technologies and devices in distribution systems will necessitate the passing of information relating to their existence and status in both planning and operational time scales. Likewise, their existence in large numbers will provide the opportunity for supporting services to be provided to the transmission system from distribution connected equipment. The functional split in the planning and operation of these devices between transmission and distribution entities is a critical issue. In the full paper the authors will present a structured approach to planning and operations in future power systems with particular reference to the functions, services and information exchange between transmission and distribution networks to achieve maximum global efficiency. 3 IV. EFFICIENCY CONSIDERATIONS VI. REFERENCES [1] Concerns with efficiency have always existed side by side with power networks planning and operations and assume different aspects as we consider the planning or the operational processes. The changes that will be imposed on power networks under the future framework will also certainly impose new definitions of efficiency and new functions related to planning and operating for maximal efficiency. In particular, it is likely that, along with new definitions for efficiency, there will be a requirement for new metrics or indexes to measure efficiency. Efficiency in planning and operating power systems is commonly attributed as economic efficiency of market structures, cost efficiency of network investment, or losses related efficiency in planning or operations terms. In future, efficiency will encompass expanded definitions in these areas plus aspects of environmental efficiency in terms of carbon emissions and sustainability. In this regard, new tools will likely be required to analyse the efficiency of planning and operational options across a broad spectrum of efficiency measures. In particular, achieving global efficiency of transmission combined with distribution systems plus independent generation and load customers is a major challenge – particularly in deregulated power markets. However, even though the challenge is great, the benefits are thought to be vast, and therefore new approaches to assessing efficiency and to combining the assessment across the transmission-distribution interface are necessary. In the full paper the authors will review the present new concepts regarding network planning efficiency and operational efficiency, and the drivers necessitating change in this area. V. CONCLUSIONS This paper presents four main ideas that are inextricably linked: There is an emerging body of literature regarding possible future power system architectures This future context implies new procedures and approaches to power networks planning and operations Transmission and distribution planning and operations must be coordinated much more closely in future The concept of efficiency in power system planning and operations needs to be reviewed in the context of future power systems To this end the authors have embarked on research programmes that seek to develop new analytical techniques and concepts to address the issues discussed in this paper. The outline of these new concepts and techniques are presented in this abstract and will be presented in more detail in the full paper. [2] [3] [4] [5] [6] [7] UCPTE, "Summary of the current operating principles of the UCPTE”, http://www.ucte.org/pdf/Aboutus/Mission/Summary-English.pdf Nordel ad hoc group, "Reliability standards and system operating practices”,http://europa.eu.int/comm/energy/electricity/florence/doc/flor ence9/position_paper/nordel_reliability_2002.pdf E. Hirst and B. Kirby, “Transmission planning and the need for new capacity”, U.S. DOE National Transmission Grid Study, http://www.eh.doe.gov/ntgs/reports.html#reports REN, “Plano de Investimentos da Rede Nacional de Transporte 20042009,”, REN, www.ren.pt J. Bower, "Electricity Infrastructure & Security of Supply : Should EU Governments Invest in Transmission Capacity", in Oxford Energy Comment. March 2004, http://www.oxfordenergy.org/comment_prn.php?0403 EPRI, Intelligrid Architecture, http://www.intelligrid.info/IntelliGrid_Architecture/Overview_Guidelin es/index.htm Graham Ault, Ian Elders, Stuart Galloway, James McDonald, Matthew Leach, Efterpi Lampaditou, Jonathan Koehler, ‘Electricity Network Scenarios for 2050’, SuperGen Future Network Technologies Consortium Report EPSRC/SGFNT/TR/2005-001, July 2005. VII. BIOGRAPHIES Luís Castanheira received the B.Sc. degree in 1996 and the M.Sc. degree in 2002 from the University of Porto, Porto, Portugal. He is currently an Assistant Professor of Electrical Power Systems with the Polytechnic Institute of Porto, Porto, Portugal. He is also a PhD student with the University of Strathclyde, Glasgow, UK and his research interests include energy and sustainable development, distributed generation and future power systems Graham Ault graduated from the University of Strathclyde in 1993 with a first class honours degree in Electrical and Mechanical Engineering. He returned to the Centre for Electrical Power Engineering (now Institute for Energy and Environment) at the University of Strathclyde in 1996 to fill a PhD research post focusing on the impact of small scale generation on electricity networks. Gaining his PhD in 2000 he has expanded his research portfolio to span several aspects of distributed generation, asset management, and power system planning and development. Luís Castanheira received the B.Sc. degree in 2001 from the Polytechnic Institute of Porto , Porto, Portugal and he is currently an Assistant Professor of Electrical Power Systems with the same school. He is also a PhD student with the University of Vila Real, Vila Real, Portugal and his research interests include future power systems Jim McDonald received his BSc, MSc and PhD degrees from the University of Strathclyde. His research activities lie in the areas of: power system protection and measurement; Artificial Intelligence, renewable generation, and energy management. He has published over 200 technical papers and is coauthor of two books. He is currently Head of the Electrical and Electronic Engineering department at Strathclyde and actively involved in energy matters at national and international levels. Joaquim Borges Gouveia received the B.Sc. degree in 1973 and the Ph.D. degree in electrical engineering in 1983 from the University of Porto, Porto, Portugal. He is currently a Full Professor with the University of Aveiro, Aveiro, Portugal. His research areas include energy efficiency, innovation, and services operation management. Zita Vale received the B.Sc. degree in 1986 and the Ph.D. degree in electrical engineering in 1993 from the University of Porto, Porto, Portugal. She is currently a Coordinator Professor with the Polytechnic Institute of Porto, Porto, Portugal. Her research areas include power systems operation and control, electricity markets, decision support, and artificial intelligence.