Economic Dispatch is the process used to determine the most efficient way of using the available generation and transmission resources to meet the desired electrical load. The objective of Economic Dispatch is to minimize the cost of providing electricity while meeting various constraints on the system. Economic Dispatch functions to maximize profit and minimize production costs generated from all available generators and power plants. By using the Economic Dispatch method, the government can maximize revenue and reduce production costs. Principles of economic dispatch
The principle of customer satisfaction.
Equality of opportunity cost.
Efficient allocation principle.
Minimum transaction fees.
Types of economic dispatch methods The types of economic dispatch methods are as follows:
Solow method.
Genetic Algorithm Method.
Particle Swarm Optimization Method.
Firefly Algorithm method.
Economic dispatch decision-making techniques
Technical criteria, namely considering aspects of optimal power and electric current.
Economic criteria, namely considering aspects of production costs and maintenance costs.
Social criteria, namely considering the security and resilience aspects of the electric power system.
Concepts and examples of the use of economic dispatch
An example of its use in practice is when there are several power plants operating simultaneously, then economic dispatch will determine how many areas of power (kWh) will be supplied to each generator. Thus, the electricity manager can minimize production costs and increase efficiency. The following is an illustration of the use of economic dispatch in the case of a power plant that has four gas turbine engines (TGM): a. The power plant provides 2,000 MW of power and there are four TGMs each with an efficiency of 85%. b. Economic dispatch will determine how many areas of power (kWh) will be supplied to each TGM, so that the power plant can minimize production costs and increase efficiency.
From the example above, it can be seen that economic dispatch will make a decision to supply power of 1,500 kWh to TGM 1, 500 kWh to TGM 2, and the remaining 500 kWh to be supplied to TGM 3 and 4. So, economic dispatch is carried out through mathematical calculations that related to various things such as: engine capacity, network voltage, value added energy, and others. With economic dispatch, it is hoped that better and more efficient power management can be produced. For example, suppose there is a steam power plant that has a capacity of 20 MW and a peak load of 17 MW. With economic dispatch, it is expected to be able to choose the most efficient propulsion engine to supply power to the source.
Economic Dispatch is an effort made to minimize the costs incurred in producing electricity. So all methods used to reduce the operational costs of power plants are categorized as economic dispatch. Economic dispatch is an important thing in a country’s energy governance because it is related to:
Electricity production efficiency
Reduce economic operating costs
Improving economic competitiveness
Efficiency of Electricity Production In fact, if we see economic dispatch as only a stand-alone subject, this is the internal agenda of the power plant manager (PLN in Indonesia). In the internal realm of electricity resource management, economic dispatch is seen as an effort to minimize operational costs in generating electricity, which in turn will increase the profit margins of electricity supply and management companies. The focus of economic dispatch itself is how to save on fuel costs. For example, in a steam power plant, it is necessary to find methods and ways to save the use of coal, for example. So with the same use of coal, efforts must be made to produce more electricity, or vice versa, how to reduce coal to produce the same amount of electricity.
There will be two benefits at the same time from economic dispatch for the electricity supply company. The first is that the operating costs for fuel will be reduced which means increased profits. The second is the reduction of the problem of pollution from the use of fuel so that it can contribute to preventing the greenhouse effect which is a hot issue these days. In the electricity industry, actually the most perfect form of economic dispatch is the use of natural forces as a source of electricity, such as solar power or wind power.
Unfortunately, however, the investment costs for both types of generators are so high that for the time being, in most countries of the world, economic dispatch in fuel economy is preferred in the short term. 2.Reducing Economic Operational Costs If we view economic dispatch as an integral part of a country’s economy as a whole, then economic dispatch will also affect the operating costs of a country’s economy. For example, if an economic dispatch could reduce the use of fuel by 10% in generating electricity, two possibilities could occur:
Lower fuel requirements, this will be very helpful for countries that still need power generation fuel from the import market. This is because this will reduce the amount of fuel imports, which means saving the country’s foreign exchange.
The cost of electricity production will be lower, and this can reduce electricity prices. Thus, electricity users, especially small and large industry players, will enjoy lower production operational costs as well.
Improving Economic Competitiveness In point 2 that I discussed earlier, one possibility of a successful economic dispatch is to reduce the cost of electricity production to a lower level. In the long term, this will also increase the economic competitiveness of a country. You see, the low cost of electricity production will reduce the cost of electricity and this will have an impact on the reduction in the cost of production of various industrial products. Yes, because industry players will spend more efficient electricity operating costs. This can indirectly reduce the selling price of the product and make the selling price of the product more competitive.
Of course this will facilitate competition in trade, especially if the country is export-oriented. You see, cheaper product prices will be easier to win global competition. In the long term, economic dispatch that can “spread” into this aspect will play a very important role in increasing the economic growth of a country.
