not possible (Stones, 2003). Poor power quality can have large detrimental
effects on industrial processes and in the commercial sector, with substantial
costs associated with machine downtime, clean-up costs, product quality and
equipment failure. Since this is a subject of specialist interest, however, it is not
included for further discussion here.
Security of power supply and planning margins
Historically, in the development of national electricity supply industries, the
planning process has sought to ensure that sufficient spare generation capacity is
available, over and above that needed to meet the maximum peak load demand,
in order to account for contingencies. To do so requires having sufficient spare
capacity in order to meet not only expected generating plant outages for repair
and maintenance, but also unexpected events causing breakdown of plant and,
thus, non-availability of generating capacity.
This practice ensures that security of power supplies, as measured by loss-
of-load probabilities, stays within the historic norms. It is also central to the
determination of conventional generating plant capacity requirements where
substantial variable renewable generation capacity is added to a system.
With variable renewable power supplies added to the system, all analyses
show that wind generation plant, for example, can contribute to the security
of supply to a certain extent, despite the arbitrary nature of the prevailing wind
speeds. There is a suggested reliable capacity credit factor, determined by using
known existing conventional plant reliability statistics combined with simu-
lated wind turbine output based on measured meteorological office wind speed
data. This capacity credit factor is simply an indication of the amount of exist-
ing conventional base-load capacity that could be displaced for various levels
of wind penetration without degrading the overall system reliability standards.
It is, therefore, also an important indication of the acceptable decrease in
conventional capacity in the planning margin.
Before privatization of the UK electricity supply industry in 1989, the
Central Electricity Generating Board (CEGB) used a planning margin of 24 per
cent to provide generation security when planning the need for future genera-
tion installed capacity. After privatization, under the initial electricity ‘pool’
trading arrangements, which in the UK preceded the New Electricity Trading
Arrangements (NETA), capacity payments were paid with regard to available
generation capacity. These capacity payments, which were a function of loss of
load probability (LOLP), were intended to provide a signal of capacity require-
ments. Under NETA – and now its successor, the British Electricity Trading
and Transmission Arrangements (BETTA) – the plant capacity margins are
currently determined solely by market forces.
The present planning margin in the UK advocated by the National Grid is
now around 19 to 20 per cent at times of peak load, based on known conven-
tional plant outage rates and the short construction times required by
combined-cycle gas turbine (CCGT) stations. This margin equates to approxi-
mately 11.5GW, or a generator availability of about 71GW, at the time of peak
load during the period of 1 July 2005 to 30 June 2006.
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