(SEM_VII ) THEORY EXAMINATION 2022-23 SUBJECT NAME -DEREGULATED POWER SYSTEM

SECTION A (2 Marks Each)

(a) Effects of Deregulation

Deregulation increases competition, improves efficiency, reduces electricity prices, encourages private investment, and provides consumers with multiple supplier choices.

(b) Unbundling of Electricity Rates

Unbundling means separating electricity charges into generation, transmission, distribution, and retail components to increase transparency.

(c) Independent System Operator (ISO)

ISO is an independent authority that operates and manages the power system to ensure fair, reliable, and non-discriminatory access to the grid.

(d) Competitive Bidding

Competitive bidding is a process where power producers submit price bids to supply electricity, and the lowest qualified bidder is selected.

(e) Active Power Demand Contribution

It represents the share of active power demanded by a load or customer in the total system demand.

(f) Wheeling Cost for a Generator

Wheeling cost is the charge paid by a generator for using transmission and distribution networks to deliver power to consumers.

(g) Ancillary Services

Ancillary services are support services required to maintain system reliability, such as frequency control, voltage control, and reserves.

(h) Objectives of Ancillary Services

The objectives are to maintain system stability, ensure power quality, manage contingencies, and balance supply and demand.

(i) Reliability Cost

Reliability cost is the cost incurred to maintain adequate power system reliability and avoid outages.

(j) Regulation of the Market

Market regulation ensures fair competition, prevents monopolies, protects consumers, and maintains system reliability.

SECTION B (10 Marks Each – Any Three)

(a) Advantages and Disadvantages of Deregulation with Example

Deregulation promotes competition, lowers electricity prices, improves efficiency, and encourages innovation. However, it may cause market volatility, price manipulation, and reliability issues if not properly regulated.
For example, in many countries, deregulation allowed multiple power producers to compete, resulting in reduced consumer tariffs but required strong regulatory oversight.

(b) Operational Planning Activities of ISO

ISO performs generation scheduling, load forecasting, transmission planning, congestion management, system security analysis, and coordination of ancillary services to ensure reliable operation of the power system.

(c) Principle and Objectives of Wheeling

Wheeling allows electricity to be transmitted through a common network from generator to consumer. Its objectives are open access, competition, efficient utilization of the grid, and reduced electricity cost.

(d) Ancillary Services Management in Various Countries

Different countries manage ancillary services through market-based mechanisms or regulated procurement. Services like frequency regulation and spinning reserves are procured competitively in advanced power markets.

(e) Transmission and Distribution Reliability

Reliability in T&D systems ensures uninterrupted power supply. It involves maintenance planning, redundancy, real-time monitoring, and contingency management.

SECTION C (10 Marks Each)

Q3

(a) Energy Deregulation: Cost Saving and Environmental Benefits

Energy deregulation saves money by promoting competition and efficient pricing. It encourages renewable energy adoption, reduces emissions, and improves service quality. Consumers can switch suppliers through a regulated change-over process.

(b) Components of Unbundled Electric Bill

An unbundled bill includes generation charges, transmission charges, distribution charges, system operation charges, ancillary service charges, and taxes.

Q4

(a) ISO’s Role and Responsibilities

ISO handles operations planning, generation scheduling, dispatch of generation resources, grid security, congestion management, and system reliability.

(b) Deregulation Models

Pool model involves centralized market clearing.
Pool and bilateral trade model allows direct contracts along with pool trading.
Multilateral trade model supports multiple bilateral contracts among participants.

Q5

(a) Ancillary Services and Reactive Power Management

Ancillary services include spinning reserve, voltage control, and black start services. Reactive power management ensures voltage stability in deregulated markets.

(b) Security Management in Deregulated Environment

Security management includes contingency analysis, load shedding, reserve management, and real-time monitoring to avoid blackouts.

Q6

(a) Short Notes

Spinning Reserve: Online reserve capacity that responds instantly.
Non-Spinning Reserve: Offline reserve activated during emergencies.
Load Following: Adjusting generation to match load variations.

(b) Reactive Power Management

Reactive power management maintains voltage stability using generators, capacitors, and FACTS devices in deregulated markets.

Q7

(a) Factors Affecting Reliability

Equipment failure, load variation, weather conditions, maintenance quality, and system design affect reliability.

(b) Methods to Determine Reliability

Reliability is determined using analytical methods, simulation techniques, and indices like SAIFI, SAIDI, and LOLE.