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BUSINESS BENEFITS OF DMS SOFTWARE APPLICATION IN COMPETITIVE DISTRIBUTION

Efficiency improvment, cost reduction and revenue increase become critical and important business goals for Distribution Companies (DCs) in deregulated environment. Distribution Management System (DMS) is an important tool for reaching theese goals. DMS system, as presented in Figure1, generally comprises three functionaly integrated systems:(1)SCADA (Supervisory Control And Data Acquisition System) for remote control of distribution high (HV) and medium voltage (MV) substations and aquisition of real-time data; (2)Technical Data Base for storing and managing of technical (static) data concerning distribution facilities (substations, power lines, transformers, etc.) and (3)DMS software for dynamic managing of MV network (switching operation, monitoring, optimization and engineering analysis) based on State Estimation (quasi-real-time data).

Figure 1. Distribution Management System

DMS software encompasses the most of Power Calculations and Ancillary Tools necessary for efficient managing of distribution network: (1)Dynamic Mimic Diagram (man-machine interface) for dynamic (schematic and geographic) visualization of HV and MV distribution network and efficient monitoring of the distribution system state; (2)Dispatching Tools for network topology analyses, switching operation management, real-time and quasi-real time measurements support, different reports and archives; (3)State Estimation Tool for calculation of system variables and monitoring of system performances including load calibration, real-time measurements verification and Load-Flow calculation, it also enables quasi-real time measurements in every point of network and necessary data for other DMS software tools; (4)Operation Tools for efficient and optimal managing of incidents and contingency situations in distribution system under higher constraints including Fault Location, Supply Restoration and Under Load Switching Tools; (5)Optimization Tools for optimization of distribution system operation and planning activities regarding different technical and business objectives including Optimal Reconfiguration, Voltage-Var Control and Load Management Tools; (6)Engineering Analyses Tools for testing of network protection and equipment performances regarding safety and maintenance regulations including Relay Protection Analysis, Losses and Reliability Analysis and Fault Calculations Tools. DMS software application brings benefits in cost reduction (reduction of power and commercial losses, workforce and maintenance optimisation, investments postponement) and revenue (profit) maximisation (efficient use of facilities, less interruptions and undelivered electric energy, increasing demand by voltage control, etc).

The business benefits of DMS software application in real distribution network samples are analysed and discussed in the paper. They are demonstrated and evaluated with application of Optimal Network Reconfiguration (ONR) and Optimal Voltage Control (OVC) tools, since they have direct impact on DC’s revenue. Other DMS software tools have indirect impact on DC’s revenue and they can hardly be evaluated precisely (e.g. investment postponement). Thus, the total benefits of DMS software application are higher then in the presented examples. ONR and OVC tools are integrated in a DMS software system applied in several DCs in Yugoslavia.

The configuration of distribution network contains loops but it is radially operated, because of the more effective coordination of protection systems and other technical reasons. ONR optimization software is applied with power losses minimization objective in MV network. Based on the State Estimation and Load Flow calculation, the standard meshed network algorithm is used for opening of branches with the least power flow, until the radial configuration is reached satisfying technical constraints. Results of ONR application on several distribution networks in Yugoslavia are presented in the paper and reduction of power losses managed is between 6 and 18%. Taking into account the number and cost of switching operations and reduction of DC’s power purchase cost in some period of time (season, year), the profit of ONR strategy can be estimated. The profit is approximately 0,5% of the value of DC’s annual power purchase cost.

OVC in distribution networks is established as an optimal control of voltages and feeder losses, centralized in DC Control Center. The network voltage profile quality is quantified by the damage (inconvenience) that electric consumers sustain due to steady state voltage deviations and it is used as optimization objective together with power losses reduction. The example of OVC application in Futog network is described and discussed in the paper in details. With optimal settings of tapping boosts of MV/LV transformers (once or twice a year) and continuous (optimal) correction of MV bus (source) voltage with under-load tap changing HV/MV transformers, the better voltage quality in network is managed and following objectives are realized: (1)meeting of technical constraints; (2)minimization of consumers damage (voltage deviations) from 2 to 4 times; (3) active and reactive power losses reduction and (4)the increase of DC’s revenue for approximately 2%.

Application of ONR and OVC should be coordinated, since the results and effects of each one have direct impact on input parameters for the other one. The correct order (first application of ONR than OVC) and corresponding objectives (power losses minimization for ONR and damage minimization with power losses reduction for OVC) should be applied and such a case was tested in the example of Futog network. Improvements in network state performance indices, before and after application of ONR and OVC, are the best in coordination case. The power demand is increased for 1,4%, but in the same time consumption is increased for 2,2% with 13,3 % reduction of power losses. The DC’s revenue is increased for 3,1% in the time of peak load. DC’s revenue increase is approximately 2,5% during the season.

The profit of ONR and OVC application in distribution networks is approximately 2,5% relative to the value of DC’s annual power purchase cost. However, the total benefits of DMS software application are higher and some estimations are up to 5%. On the other side, investments in DMS software tools are relatively small. They comprise standard PC computers for several users (control center, network operation support, planning department), software and installation costs, training and integration tools with SCADA and Technical Database System. Investments are estimated on 1000$/MW of distribution network peak load or approximately 0,5% relative to the value of DC’s annual power purchase cost. The balance between investment and profit of DMS software application is presented in Figure 2.

Figure 2 The balance of investment and profit of DMS software

The business benefits and effects of DMS software application are very high. Small investments in DMS software application are very profitable, comparing with the high investments in network construction and development. DMS software will be an important tool in the race for profit in the competitive marketplace.