The power system is the largest man-made physical network in the world. Performing analysis of a large bulk system is computationally complex, especially when the study involves engineering, economic and environmental considerations. For instance, running a unit-commitment (UC) over a large system involves a huge number of constraints and integer variables. One way to reduce the computational expense is to perform the analysis on a small equivalent (reduced) model instead on the original (full) model.

The research reported here focuses on improving the network reduction methods so that the calculated results obtained from the reduced model better approximate the performance of the original model. An optimization-based Ward reduction (OP-Ward) and two new generator placement methods in network reduction are introduced and numerical test results on large systems provide proof of concept.

In addition to dc-type reductions (ignoring reactive power, resistance elements in the network, etc.), the new methods applicable to ac domain are introduced. For conventional reduction methods (Ward-type methods, REI-type methods), eliminating external generator buses (PV buses) is a tough problem, because it is difficult to accurately approximate the external reactive support in the reduced model. Recently, the holomorphic embedding (HE) based load-flow method (HELM) was proposed, which theoretically guarantees convergence given that the power flow equations are structure in accordance with Stahl’s theory requirements. In this work, a holomorphic embedding based network reduction (HE reduction) method is proposed which takes advantage of the HELM technique. Test results shows that the HE reduction method can approximate the original system performance very accurately even when the operating condition changes.

Power generation in remote isolated places is a tough problem. Presently, a common source for remote generation is diesel. However, diesel generation is costly and environmental unfriendly. It is promising to replace the diesel generation with some clean and economical generation sources. The concept of renewable generation offers a solution to remote generation. This thesis focuses on evaluation of renewable generation penetration in the remote isolated grid. A small town named Coober Pedy in South Australia is set as an example. The first task is to build the stochastic models of solar irradiation and wind speed based on the local historical data. With the stochastic models, generation fluctuations and generation planning are further discussed. Fluctuation analysis gives an evaluation of storage unit size and costs. Generation planning aims at finding the relationships between penetration level and costs under constraint of energy sufficiency. The results of this study provide the best penetration level that makes the minimum energy costs. In the case of Coober Pedy, cases of wind and photovoltaic penetrations are studied. The additional renewable sources and suspended diesel generation change the electricity costs. Results show that in remote isolated grid, compared to diesel generation, renewable generation can lower the energy costs.