HW4 - Long term system planning

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North Carolina State University *

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300

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Industrial Engineering

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Dec 6, 2023

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ES 300 – Homework 4 Long term system planning Note: all data needed to complete this assignment are located in the HW4 Data.xlsx file posted on Moodle. You are chief demand forecaster at the friendly neighborhood electric utility, and are trying to build a model that will predict “peak system demand” in the year 2024. To start with, you have a bunch of historical information for the past 20 years, including peak demand data and records of four other variables that might help explain how peak demand changes year-to-year. Note that 1 GW = 1000 MW. You decide to start with some exploratory analysis of the pairwise relationships between peak demand and the other variables. Year Peak Demand (GW) Economic Index Population (million) Per Capita Energy use Metric Max Average Daily Temp (F) 2004 19.34 1.10 4.00 1.30 85.46 2005 20.11 1.30 4.08 1.40 86.99 2006 19.83 1.40 4.14 1.40 86.00 2007 20.20 1.50 4.21 1.50 84.47 2008 20.47 1.80 4.27 1.50 86.99 2009 20.70 1.60 4.35 1.40 89.42 2010 20.52 2.67 4.44 1.10 89.42 2011 20.81 1.78 4.55 1.20 90.50 2012 20.20 -0.29 4.64 1.00 86.00 2013 19.78 -2.78 4.72 0.98 86.00 2014 20.81 2.53 4.79 0.98 86.99 2015 20.67 1.60 4.85 0.97 84.47 2016 20.98 2.22 4.90 0.96 86.99 2017 20.49 1.80 4.95 0.94 83.48 2018 20.85 2.00 5.00 0.94 84.56 2019 20.74 2.40 5.06 0.93 83.56
1) First, create four separate “scatter plots” of peak electricity demand versus (show them in different graphs). You must label each axis to get credit! a. Economic index b. Population c. Per capita energy use d. Maximum average daily temperature
Since no single variable is a perfect predictor of peak demand, you think it would be wise to create a model that uses information from all four variables to help predict demand. You use least squares regression to fit the following model. Y T = aw T + bx T + cy T + dz T Where, Y T = predicted peak demand in year T (in GW) w T = economic index in year T x T = population in year T y T = per capita energy use in year T z T = maximum average daily temperature in year T The “best fit” coefficients are found to be: a = 0.1758 b = 1.344 c = 0.220 d = 0.1595 With your trusty model in hand, you set out to predict future demand. The person in the cubicle next to you passes you a series of forecasts that describe the state of the world in the years 2020-2024. Here is what it says: Year Economic Index Population (million) Per Capita Consumption Metric 2020 0.90 5.15 0.90 2021 0.95 5.25 0.85 2022 1.00 5.40 0.80 2023 1.05 5.55 0.80 2024 1.10 5.75 0.78 What you don’t know is what the maximum average daily temperature will be in these future years (no one does!). You decide a reasonable way to look into this would be to use historical temperature data from 1954-2019:
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2. Look at the historical temperature data listed in the ‘HistoricalTemps’ worksheet (look at the bottom of the screen in Excel), please calculate two values: a. The median (50 th percentile) temperature. To determine this, put =MEDIAN(B:B) into any blank cell and press enter. = 86.09 b. The 90 th percentile (i.e., please estimate this as the 7 th highest temperature on record). To do this, sort the data by temperatures from largest to smallest and find the 7 th highest. = 88.52 3. Now you’re ready to use your model to predict the future. a. First calculate future electricity demand in years 2020-2024 assuming a median temperature (your answer for 2a). 2020 = 21.01 2021 = 21.14 2022 = 21.34 2023 = 21.55 2024 = 21.82 b. Next calculate future electricity demand in years 2020-24 assuming a 90 th percentile temperature (your answer for 2b). 2020 = 21.4 2021 = 21.53 2022 = 21.73 2023 = 21.94 2024 = 22.21
c. If you want to have enough generation capacity to meet 2024 peak demand under a 90 th percentile temperature, how much new capacity do you need to build (assuming today the system already has 21 GW of “firm” capacity installed). = 1.21 d. How much new capacity do you need in order to have a 15% “reserve margin” (i.e., 115% of 2024 peak demand under a 90 th percentile), assuming today the system already has 21 GW of “firm” capacity installed? = 4.544