The idea behind open power markets is that the consumer
should be able to purchase power from the cheapest, most
efficient or least polluting source. Reality, however, is not quite
there yet. Insufficient capacity on the network often requires
efficient plants to be run at reduced capacity forcing the
customer to buy power from less efficient sources closer by.
The solution lies in a combination of new transmission corridors
and better and more efficient use of existing ones through the
adoption of new technologies. ABB Review takes a tour.
Power to
be efficient
Transmission and distribution technologies
are the key to increased energy efficiency
Enrique Santacana, Tammy Zucco, Xiaoming Feng,
Jiuping Pan, Mirrasoul Mousavi, Le Tang
The electrical energy generated by power plants is delivered to the
end users hundreds to thousands of
miles away via a network of intercon-
nected transmission and distribution
wires 1 2 3 . Key components on
this network include transmission
towers, conductors/cables, transform-
ers, circuit breakers, capacitors/reac-
tors, HVDC/FACTS devices, and moni-
toring, protection, and control devic-
es. In general, the network that deliv-
ers energy over long distances from
power plants to substations near
population centers and operates at
high voltages is called the bulk power
transmission network. The distribution
system delivers energy from the sub-
station to end users over shorter dis-
tances, is less interconnected and
operates at lower voltages. The trans-
mission and distribution (T&D) system
is designed to ensure reliable, secure,
and economic operation of energy
delivery, subject to load demand and
system constraints.
The blackouts of recent
years provide testimony to
the lack of sufficient reli-
ability and optimization
capability in T&D systems
on all continents.
A T&D system can be designed to
provide three levels of services 4 :
The first level of service provides the
minimum level of connectivity and
energy transfer capability under nor-
mal operation conditions. This is the
most basic service. If this service fails
to live up to its requirements, eco-
nomic development of the areas
served is compromised.
The second level of service allows
for secure and reliable service to
consumers in the event of plausible
component failures. It requires redun-
dant paths between power plants and
consumers and thus a higher level of
redundance in T&D capability.
The third level of services enables the
optimization of geographically distrib-
uted and diverse energy resources to
achieve maximum social and econom-
14 ABB Review 2/2007
Energy efficient grids
15ABB Review 2/2007
under-investment in network expan-
sion and modernization, current T&D
infrastructure in the United States of-
ten forestalls such measures 5 .
Transmission congestion
issues in the United States
Transmission congestion
occurs when flows of elec-
tricity across a line or piece
of equipment must be
curtailed to keep the flow
levels under the limits re-
quired, either by physical
capacity or by system opera-
tional security restrictions.
Power purchasers always
look for the least expensive
source of energy available to
transmit across the grid to
the load centers. When a
transmission constraint limits
the amount of energy that
can be transferred safely to
a load center from the most
desirable source, the grid operator
must find an alternative and more
expensive (or less efficient) source
of generation to meet the system
demand. An industry survey in 2003
examined the six operating ISOs1)
in the United States including New
England, New York, PJM2), Midwest,
Texas, and California [1]. This survey
found that the total congestion costs
experienced by the six ISOs for the
four-year period from 1999 to 2002
totaled approximately $4.8 billion.
Public data available from the RTO-
administered3) energy markets have
North America 14-Aug-03
London 28-Aug-03
Denmark/Sweden 23-Sep-03
Italy 28-Sep-03
Greece 12-Jul-04
Australia 14-Mar-05
Moscow 25-May-05
European blackout 4-Nov-06
Victoria, Australia 17-Jan-07
South Africa 18-Jan-07
Colombia 26-Apr-07
Factbox Significant power outages in recent
years
ic welfare. This can include
optimizing the utilization of
the various power plants to
reduce the greenhouse gases
that may contribute to global
warming, and maximizing the
overall economic efficiency of
meeting the energy demand
through market-based energy
transactions. Such optimiza-
tions are simply not possible
without sufficient T&D capa-
bilities beyond the level re-
quired by the second level of
service.
Unfortunately, most T&D
systems in the world today
achieve only the second level
and partially the third level
service. The blackouts of recent years
Factbox provide ample testimony to the
lack of sufficient reliability and opti-
mization capability in T&D systems on
all continents.
As is illustrated in the following sec-
tion, a well built T&D system also af-
fects the level of energy efficiency in
power delivery.
Inadequate T&D hinders
energy efficiency: An example from
North America
Sufficient transmission and distribu-
tion capacities are an essential prereq-
uisite for the efficient operation of
electric power systems through the
optimization of generation resources
and loss minimization in the energy
delivery system. Due to significant
Energy efficient grids
Power to be efficient
2 Power plant locations in the United States
(source: US Department of Energy)
Gas
Coal
Hydroelectric
Oil
Nuclear
3 Transmission grid in the United States
(source: US Department of Energy)
Eastern
Interconnection
Texas
Interconnection
Western
Interconnection
230,000 volts
345,000 volts
500,000 volts
765,000 volts
High-voltage direct current
Footnotes
1) ISO: Independent System Operator
2) PJM: Pennsylvania New Jersey Maryland Intercon-
nection
3) RTO: Regional Transmission Organization
1 Transmission and Distribution systems connect the power plants to
the end users (source: www.howstuffworks.com)
Power substation
High voltage
transmission lines
Transmission
substation
Power plant
Transformer
Transformer drum
Power poles
16 ABB Review 2/2007
shown increased congestion costs
over time. A more recent study has
indicated that, based on the reported
congestion costs for New York ISO
and PJM from 2001 to 2005, the total
congestion costs are nearly $ 1 billion
per year in New York and more than
$ 2 billion per year in PJM [2]. Trans-
mission congestion also calls for fre-
quent transmission load relief actions
6 . When demands are very high and
local generation is limited, grid opera-
tors may have to curtail service to
consumers in some areas to protect
the reliability of the grid.
HVDC transmission is more
efficient for long distance
bulk power transfer when
using overhead lines. HVDC
systems can carry 2–5
times the capacity of an AC
line of similar voltage.
Electricity losses in T&D systems
Transporting power from the genera-
tion source to the load always in-
volves some losses. These losses add
to the total electrical load and so
require additional generation, hence
wasted resources. Overall, the losses
in transmission and distribution sys-
tems account for 6 to 7.5 percent of
the total electric energy produced [3].
Typical losses are about 3.5 percent
in the transmission system and about
4.5 percent in the distribution system.
Losses vary greatly in terms of net-
work configuration, generator loca-
tions and outputs, and customer
locations and demands. In
particular, losses during
heavy loading periods or
on heavily loaded lines are
often much higher than un-
der average or light loading
conditions. This is because a
quadratic relationship be-
tween losses and line flows
can be assumed for most
devices of power delivery
systems. The annual mone-
tary impact of T&D losses is
estimated at over $ 21 billion
(based on the average
national retail price of elec-
tricity and the total T&D
losses in 2005 [3]).
In recent years, T&D losses in the
United States have been marked by an
increasing trend, mainly due to in-
creased power transactions and ineffi-
cient T&D system operations 8 .
Technologies to improve efficiency in
transmission and distribution systems
Technology options for improving
efficiency of transmission and distri-
bution systems may be classified into
the following three categories:
technologies for expanding trans-
mission capacity to enable optimal
deployment and use of generation
resources
technologies for optimizing trans-
mission and distribution system
design and operations to reduce
overall energy losses
new industry standards for energy
efficiency power apparatus
Expanding transmission capacity to
enable optimal deployment and use of
generation resources
There are three major technology op-
tions that permit transmission capacity
to be augmented: building new lines –
AC or DC, upgrading existing lines,
and utilizing existing lines closer to
the thermal limits.
Constructing new lines
There are two technological options
for new lines: high voltage AC (HVAC)
and high voltage DC (HVDC). Ther-
mal constraints typically limit trans-
mission capacities of HVAC lines to
400 MW for 230 kV, 1100 MW for
345 kV, 2300 MW for 500 kV and about
7000 MW for 765 kV. However, in ad-
dition to these thermal constraints, the
capability of AC transmission systems
is also limited by voltage constraints,
stability constraints and system oper-
ating constraints. As such, the power
handing capability of long HVAC
transmission lines is usually lower
than these values.
HVDC
HVDC transmission is more efficient
for long distance bulk power transfer
(eg over 600–1000 km) when using
overhead lines 9 . HVDC systems can
carry 2–5 times the capacity of an AC
line of similar voltage 7 . The environ-
mental impact of HVDC is more favor-
able than AC lines because less land
is needed for the right-of-way4). HVDC
transmission has been widely used to
interconnect AC systems in situations
where AC ties would not be feasible
on account of system stability prob-
lems or different nominal frequencies
of the two systems. In addition, HVDC
transmission is also used for underwa-
ter cables longer than 50 km where
HVAC transmission is impractical be-
cause of the high capacitances of the
cable (otherwise intermediate
compensation stations would
be required). A recent devel-
opment in HVDC transmission
utilizes a compact voltage
source converter with IGBT5)
technology permitting an im-
proved quality of supply in
AC power networks. The
technology uses small and
5 Transmission investment is falling behind electricity demand growth
(source: EEI)
Transmission Investment Electricity Retail Sales
1975 1978 1981 1984 1987 1990 1993 1996 1999
m
ill
io
n
$
20
01
/y
ea
r
$7.000
$6.000
$5.000
$4.000
$3.000
$2.000
$1.000
$0
m
ill
io
n
ki
lo
w
at
t-
ho
ur
s
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
+67 billion kWh/year
-$103 million/year
Energy efficient grids
Power to be efficient
4 The three levels of services provided by
transmission and distribution systems
B
es
t
B
et
te
r
B
as
ic
T & D capability
Current
status
Desired
status
Meeting
basic
connectivity
need
Meeting
system
security
need
Meeting
optimization
& energy
efficienty need
Enabling capability
Footnotes
4) See also “Light and invisible, Under-
ground transmission with HVDC Light”,
Dag Ravemark, Bo Normark, ABB
Review 4/2005 pp 25–29.
5) IGBT: Integrated Gate Bipolar Transistor
(a power electronic switching device).
17ABB Review 2/2007
low profile converter stations and un-
derground cable transmission – reduc-
ing environmental impact. This tech-
nology, which is called HVDC LightTM,
opens up new possibilities for im-
proving the quality of supply in AC
power networks with rapid and inde-
pendent control of active and reactive
power, emergency power support and
black start possibility.
Efficiency of HVDC
Losses in an HVDC system include
line losses and losses in the AC to DC
converters. The losses in the converter
terminals are approximately 1.0 to
1.5 percent of the transmitted power.
This is low compared to the line loss-
es, which are a function of conductor
resistance and current. Since no reac-
tive power is transmitted in DC lines,
line losses are lower for DC than for
AC. In practically all cases, the total
HVDC transmission losses are lower
than the AC losses for the same power
transfer 7 .
Obstacles to new lines
One significant barrier to line con-
struction, whether AC or DC, is the
cost allocation controversy. Lines fre-
quently cross regions in which the lo-
cal benefits are questionable. Should
these costs be socialized or should
they be allocated directly to the bene-
factors only? This remains an area of
disagreement in politics and society.
Even if a line has financial support,
the issue of permitting and siting can
become a long, arduous process that
many utilities struggle with for years.
By the time permission is finally
granted, the requirements may have
changed and additional studies be
needed.
Upgrading existing lines
There are three ways to upgrade the
capacity of existing lines: raise the
voltage, increase the size and/or num-
ber of conductors per phase, or use
high-temperature conductor materials.
Increasing a line’s voltage reduces the
current required to move the same
power. An upgrade from, 230 kV to
the next voltage level of 345 kV for
example, increases a line’s capacity
from about 400 MW to 1100 MW.
A high-temperature
conductor is capable of
transmitting two to three
times more current than
conventional power lines
of the same diameter
without increasing
structure loads.
Reconductoring
Since a conductors’ resistance is ap-
proximately inversely proportional to
its cross-section, increasing this cross
section or adding parallel conductors
increases the line’s current-carrying
capacity. For instance, A 230 kV line
can be increased from 400 MW to
1100 MW by adding new, larger and
bundled conductors.
Recent technological development in
the area of high-temperature conduc-
tors provides an effective way of miti-
gating thermally constrained bottle-
necks for short- and medium-length
lines. A high-temperature conductor is
capable of transmitting two to three
times more current than conventional
power lines (ie, aluminum-steel rein-
forced conductors – ACSR) of the
same diameter without increasing
structure loads.
For both of the above options (raising
voltage or reconductoring), the same
right-of-way is used and new land use
is normally not required. However,
because of the increased weight of
the new conductors or increased insu-
lation requirements, the towers may
need to be strengthened or rebuilt.
The major substation equipment, such
as transformers and circuit breakers
may also need to be changed.
New lines or upgrades?
The issue of constructing new lines
versus upgrading existing corridors is
6 Transmission loading relief (TLR) incidents are on the increase
(source: NERC)
nu
m
be
r
of
lo
gs
year
Total number of TLRs per year
3000
2500
2000
1500
1000
500
0
1997 1998 1999 2000 2001 2002 2003 2004 2005
Energy efficient grids
Power to be efficient
8 Transmission and distribution losses in the USA, 2001–2005
(source: EIA)
T&D losses in US, 2001–2005
300
250
200
150
100
50
0
2001 2002 2003 2004 2005
8
6
4
2
0
T&D losses (billion kWh)
T&D losses (% of total use)
7 HVDC lines have lower transmission losses
over long distances than HVAC lines
150
transmission
distance (km)
terminals
HVDC ±400kV
1620 mm3
1200 mm3
AC 2x400kV
Losses (MW)
100
50
500 1000
18 ABB Review 2/2007
certainly not determined by technical
questions alone. As mentioned earlier,
the process of obtaining permission to
build a line takes many years in the
U.S., and there is no guarantee of suc-
cess. However, the DOE6) recently is-
sued two draft designations for na-
tional interest electricity transmission
corridors as part of the implementa-
tion of the EPACT 20057). This is in-
tended to simplify the permit-granting
process in order to speed up the con-
struction of large lines in the most
critically congested areas.
Make full use of transmission capacity
In many cases, transmission lines are
operated well below their thermal
loading capacity due to voltage con-
straints, stability constraints, or system
operating constraints. Several technolo-
gies are available and are being ap-
plied to improve the utilization of the
transmission capacity. The phase-angle
regulator (PAR) is the device most of-
ten used to remove thermal constraints
associated with “parallel path flow” or
“loop flow” problems. Series capacitor
compensation is another commonly
used technology for increasing transfer
capability of long-distance HVAC trans-
mission lines. A family of devices
based on power electronics technolo-
gy, often referred to as FACTS devices
(Flexible AC Transmission System)8)
can be used to enable better utilization
of lines and cables and other associat-
ed equipment such as transformers 10 .
The simplest of these devices are the
thyristor controlled capacitor and reac-
tor banks (SVC) that have been widely
used to provide quick reactive power
compensation at critical locations in
the transmission grid. Another com-
monly used device is thyristor-con-
trolled series capacitors (TCSC) that
can provide reactive compensation as
well as damping of power system os-
cillations. More sophisticated use of
power electronics is employed in what
is called static synchronous compensa-
tors (STATCOM). This device can ab-
sorb and deliver reactive power to the
system based on the variations of the
system voltage fluctuations. The most
sophisticated of these devices is the
Unified Power Flow Controller (UPFC).
The UPFC can regulate both real and
reactive power in a line, allowing for
rapid voltage support and power flow
control. It is estimated that FACTS
devices can boost the transmission
capacity of lines now limited by volt-
age or stability considerations by as
much as 20 to 40 percent.
Potential benefits of building
and operating unconstrained
transmission grids
Reduce the prices for electricity
The operation of unconstrained trans-
mission grids provides cost effective
generators access to the load and so
increases the efficiency of the electric
power market. The operation of an
unconstrained transmission grid has
the potential advantage that it may
permit full use of the regional load
shape diversity that may result from
weather condition differences and
time zone differences. As a result, effi-
cient generation resources can be dis-
patched at full capacity for more
hours, permitting the usage of less
economic resources to be reduced.
Losses vary greatly
in terms of network
con figuration, generator
locations and outputs,
and customer locations
and demands.
Improve system reliability
Unconstrained transmission grids will
potentially improve overall system re-
liability. At the given level of capacity
Energy efficient grids
Power to be efficient
11 Distribution transformers account for
a considerable part of total transmission
and distribution losses. New materials help
reduce these losses
9 An HVDC station: HVDC is seeing increasing use in bulk transmission
over long distances and other applications
10 FACTS equipmen
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