ECE 476 POWER SYSTEM ANALYSIS Lecture 1 Alejandro D. Dominguez-Garcia aledan@ILLINOIS.EDU Material borrowed from Prof. George Gross

OUTLINE The importance of electricity The US electricity industry – past and present Electricity generation Nature of electric demand The energy supply and demand picture A brief overview of renewables

CRITICAL IMPORTANCE OF ELECTRICITY Energy is the lifeblood of modern society The importance of electricity is on the rise, e.g., electrification of transportation Efficient and environmental electricity services are key or the nation’s global competitiveness Electricity is a $247 billion plus business annually in the U.S.

U.S. ENERGY AND ELECTRICITY DEMAND 300 1980 = 100% 250 200 electricity use 150 CO2 emissions energy use 100 50 historical forecast 1980 1990 2000 2004 2010 2020 2030

Professor of Electrical Engineering, MIT A VIEW OF THE POWER GRID Fred C. Schweppe (1934-1988) Professor of Electrical Engineering, MIT US Power grid “I worked on aerospace problems for many years before converting to power systems, and, in my opinion at least, power problems are tougher in many respects. ... The number of variables [in a power system] is huge, and many types of uncertainties are present. Few if any aerospace problems yield such a challenging set of conditions.” – Fred. C. Schweppe, 1970 5

IMPACTS OF ELECTRICITY The National Academy of Engineering, the U.S.’s most prestigious collection of outstanding engineers, named electrification – the development of the vast networks of electricity that power the world – the most important of the twenty engineering achievements that have had the greatest impact on the quality of life in the twentieth century huston-no this page

IMPACTS OF ELECTRICITY Electricity ranked ahead of the automobile, airplane, safe and abundant water, electronics, computers and space exploration The widespread electrification implemented in the twentieth century gave us power for our cities, factories, farms and homes, forever changing the lives of people huston-no this page

OUTLINE The importance of electricity The US electricity industry – past and present Electricity generation Nature of electric demand The energy supply and demand picture A brief overview of renewables

THE BEGINNINGS Commercial use of electricity began in the late 1870’s with the development of arc lamps for street lighting and lighthouse illumination The first complete electric power system, comprising a generator, cable, fuse meter and loads, is considered to be Edison’s Pearl Street Station in New York in 1882 DC system with a DC generator supply 59 customers in a 1 mile radius area

1882 EDISON POSTER ON ELECTRIC LIGHTING You can find this plate in the washrooms of the Courier Café in downtown Urbana.

THE BEGINNINGS Actually, George Roe had founded in 1879 an electric company in San Francisco, which later became part of PG&E the first plant in the nation to offer central station electric service to the public two brush arc-light dynamos supplied 21 lights for service from sundown to midnight – Sundays and holidays excluded – for $ 10 per lamp per week

MAJOR DEVELOPMENTS Frank Sprague developed electrical motors in 1884; within a short time, he incorporated them into the electricity system The major limitations of DC systems became apparent by 1886: ability to deliver power over only short distances need for high voltages for longer distance transmission; such voltages were too high for generation and consumption

MAJOR DEVELOPMENTS Gaulard and Gibbs developed the transformer and AC transmission, the forerunners of the AC transmission systems in use today George Westinghouse bought U.S. rights immediately to the technological developments of Gaulard and Gibbs In 1889, the first AC transmission line in North America was put into operation between Willamette Falls and Portland – a single phase 4–kV 21–km line

MAJOR DEVELOPMENTS A major important development was Tesla’s invention of induction motors and polyphase systems Westinghouse purchased the rights to Tesla’s inventions on AC motors, generators, transformers and transmission systems Westinghouse was instrumental in the construction of the basis of today’s AC grid

MAJOR DEVELOPMENTS AC won out over DC because the ease of transformation of voltage levels thereby providing the flexibility of using different voltage levels for generation and transmission consumption the increased simplicity of AC over DC generators the increased simplicity and lower costs of AC over DC motors AC replaced DC over a very brief time period

MAJOR DEVELOPMENTS In 1893, the first three–phase transmission line in North America went into service; it was a 2.3–kV, 12–km line in Southern California Niagara Falls was connected to Buffalo – a 30–km distance – using AC since DC was not practical

TECHNOLOGICAL DEVELOPMENTS Pressures to transmit larger amounts of power over larger distances led to higher voltages early systems: 12, 44 and 66 kV (RMS line–to– line) 1922: 165 kV 1923: 220 kV 1935: 287 kV 1953: 330 kV 1965: 500 kV 1966: 735 kV (Hydro Quebec) 1969: 765 kV (American Electric Power)

TECHNOLOGICAL DEVELOPMENTS Standardization of voltage levels led to voltage classifications 115, 138, 161 and 230 kV are high voltage ( HV ) 345, 500 and 765 kV are extra high voltage ( EHV ) The development of mercury arc valves in the early 1950’s makes HVDC economical in specific cases: transmission of larger blocks of power over longer distances

TECHNOLOGICAL DEVELOPMENTS Eventually, the various frequencies in use – 25, 50, 60, 125 and 133 Hz – standardized to 60 Hz in North America; there are many parts of the world where the frequency is 50 Hz today DC becomes economic over AC for distances greater than 500 km for overhead lines 50 km for underground/submarine cables

ELECTRIC TRANSMISSION LINES IN THE U.S. Legend Cooperatives Federal Independent Transmission Companies Other Public Power Shareholder-Owned Copyright 2003 Edison Electric Institute. Source: POWERmap, © Platts, a Division of the McGraw Hill Companies. 20

THE ELECTRIC POWER SYSTEM 21

INDUSTRY STRUCTURE Brutal and inefficient competition was rife in electricity 24 central station power companies were established in Chicago between 1887 and 1893 exhaustive duplication and fierce competition led to high costs

INDUSTRY STRUCTURE Samuel Insull built a monopoly over all central station production in Chicago and is considered the father of the regulated monopoly: “exclusive franchises should be coupled with the conditions of public control, requiring all charges for services to be based on a cost plus a reasonable profit” In 1907, New York and Wisconsin set up commis– sions to regulate electricity

THE VERTICALLY INTEGRATED UTILITY INDUSTRY STRUCTURE customers customer service Customer Service distribution Distribution transmission Transmission self- generation Independent power producers generation Generation

COMPETITION IN THE GENERATION MARKET The 1978 Public Utility Regulatory Policies Act (PURPA) unleashes competition through the introduction of qualifying facilities (QFs) PURPA mandates each investor–owned utility to purchase power at avoided cost from QFs located in its service territory Implementation of PURPA was left to individual states resulting in non-uniform implementations The once fledgling private power enterprises constitute today a multibillion dollar industry whose role in the electricity business is critically important

ENERGY SOURCES OF NON UTILITY GENERATION (NUG) CAPACITY geothermal 0.7% waste 1.5% wind 1.7% hydro 2.1% natural gas 59.0% nuclear 8.3% other 3.1% coal 17.8% oil 5.7% Source :Energy Information Administration, Existing Electric Generating Units in the United States, 2005

INCREASING ROLE OF NUG billion kWh 1000 2000 3000 4000 5000 1994 1995 non-utility utility 1000 2000 3000 4000 5000 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 billion kWh Source : EIA, Net Generation by Energy Source by Type of Producer, 2006

U.S. ELECTRICITY CUSTOMERS 140 120.76 120 total consumers = 138.4 million 100 80 million consumers 60 40 16.87 20 0.73 0.001 commercial other residential industrial Source : Energy Information Administration, Form EIA-861, “Annual Electric Utility data” released November 2006

US ELECTRICITY SALES IN 2005 total sales: 3,660 million MWh residential 1,356 TWh industrial 1,275 TWh commercial 1,019 TWh other 7.5 TWh total revenues: $ 228 billion other $ 0.6 billion commer-cial $ 58 billion residential $ 128 billion industrial $ 110 billion Source : Energy Information Administration, Form EIA-861, “Annual Electric Utility data” released November 2006

U.S. ELECTRIC UTILITY INDUSTRY 2,015 2000 total number = 3,285 number of entities 884 1000 219 158 9 coope-rative investor owned publicly owned power marketer federal Source : Energy Information Administration, Form EIA-861, “Annual Electric Power Industry Report,” November 2005