Simulation of Bilateral Contracts in Multi Area Hydrothermal System under Open Market System

This paper presents the method in designing the concept of Load Frequency control (LFC) of hydrothermal systemunder Open Market scenario. Open transmission access and evolving of more socialized companies for generation, transmission and distribution generally affects the formulation of LFC problem. To accommodate new constraints associated with territorial of the traditional LFC, two area system has been modified to take into account the role of LFC in open market system. So the traditional LFC two-area system has been modified to take into account the effect of bilateral contracts on the dynamics. The concept of Disco Participation Matrix to simulate these bilateral contracts has been employed and reflected in the two-area block diagram. The proposed system is tested for a two area hydrothermal system. Simulation results show that the bilateral contracts are implemented in the system