While two objectives of deregulation are to reduce service interruptions and achieve lower energy costs, deregulation has actually introduced new problems in both areas. Since the transmission network was built in the last century, mainly for the regulated power systems, with mostly local power transfers, the increased long distance power transfer introduced by free energy trading has made congestion happen more frequently. When congestion happens, service interruptions occur and higher energy costs arise. We approach the issue from the viewpoints of both planning and online operations. Accordingly, we develop a reactive online remedying method that uses Flexible AC Transmission (FACTS) devices to eliminate congestion with minimum transaction curtailment to maintain market force. We also develop a proactive preventive method for offline planning, such as in the day-ahead market, which uses FACTS devices to maximize the Total Transfer Capability so that more transactions can be scheduled without causing congestion in the system. Optimal Power Flow is used for both methods with FACTS devices treated as control variables so that they can be adjusted to the best FACTS parameters to minimize the transaction curtailment or maximize the Total Transfer Capability. We demonstrate that FACTS devices are very effective for both situations. Since the installation of FACTS devices involves heavy infrastructure investment, an effective pricing method needs to be in place to encourage this investment by guaranteeing sufficient return. This research uses a novel pricing scheme to charge for both utilizing the FACTS devices and having the FACTS devices operating at their limits. The owners of the FACTS devices will then be able to recover their investment. With the above control method and the pricing method, we can make better use of the existing transmission network and relieve congestion. However, deregulation may also degrade system reliability since the generation companies are not obligated to sell into the market and market participation is driven by market forces instead. We use the market share based short-term adequacy analysis method to address generation resource adequacy issues. The market share based method uses the market share time series for the generation companies to reflect their market behavior in the new environment. Multiple regression modeling, a tool of time series analysis, is used to model involved factors. We demonstrate how the market share based short-term adequacy analysis method can capture the adequacy problems that the traditional method cannot. In addition, it can also help to remedy the adequacy problems, which can in turn reduce service interruption and thus the energy price.

Thesis (PhD (Industrial Engineering))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: This research has its roots in Industrial Engineering, where the premise of improving and managing efficiency, effectiveness, productivity and quality is the most common and accepted source of organisational sustenance and furtherance. This dissertation, however, addresses the evolutionary and revolutionary imperatives of a new paradigm for competitive advantage – innovation. The notion of innovation is considered many things. First and foremost, however, it has become the primary differentiator of organisational competitiveness, rendering it the source of sustained long-term prosperity. What may seem ambiguous in the title of this dissertation is essentially the imperative of every organisation functioning within the competitive domain. Where organisational maturity and innovativeness were traditionally considered antonymous, the assimilation of these two seemingly contradictory notions is fundamental to the assurance of long-term organisational prosperity. Organisations are required, now more than ever, to grow and mature their innovation capability. In working towards the fulfilment of this objective, the Maturity Modelling approach was recognised for its ability to describe organisational progression in terms of innovation capability. An Innovation Capability Maturity Model, with the intention of describing generic and evolutionary plateaus of innovation capability maturity, was developed from a comprehensive literature study. This model was evaluated with an initial case study which led to a rigorous refinement initiative that included further literature study, a mapping and comparison exercise, and a detailed analysis of innovation capability themes using a Latent Dirichlet Allocation-based topic modelling approach. The consolidation of these activities and integration with the initial model resulted in the second version thereof – ICMM v2. This second version was then utilised in an additional 5 case studies that would serve to evaluate and validate the content and structure thereof, but also make a fundamental contribution to the application of the model – captured in the so called Innovation Capability Improvement Methodology. The case studies provide evidence that the content and structure of the ICMM v2, including the approach used to convey these aspects, fulfil their intended purpose by appropriately identifying the innovation capability strengths and weaknesses of the represented organisations. The ICMM v2 and accompanying methodology provides an organisation with a systematic approach for identifying organisational innovation capability strengths and weaknesses and a framework for identifying and prioritising innovation capability improvement opportunities in an organised and coordinated manner. This dissertation concludes with a few fundamental findings pertaining to innovation and a discussion of potential future collaboration and research opportunities. / AFRIKAANSE OPSOMMING: Hierdie navorsingsprojek het sy oorsprong binne die bedryfsingenieursdomain. Bedryfsingenieurswese is primêr gerig op die verbetering en bestuur van doelmatigheid, doeltreffendheid, produktiwiteit en gehalte. Dit is voorts „n vry-algemeen aanvaarde bron van organisatoriese volhoubaarheid en verbetering van maatskappye. Hierdie navorsingsverslag spreek die evolusionêre en revolusionêre vereistes van „n nuwe paradigme vir mededingendheid, naamlik innovasie, aan. Die term innovasie beteken verskillende dinge vir verskillende mense. Dit is sedert die 1930‟s intensief nagevors. Meer onlangs het innovasie ontwikkel tot „n primêre onderskeider van maatskappy-mededingendheid. Dit is vinnig besig om te ontwikkel in „n sleutelbron van volhoubare, langtermyn welvaartskepping. Die titel van hierdie proefskrif mag aanvangklik dubbelsinnig klink, maar dit beskryf eintlik die fundamentele vereistes van elke organisasie wat binne die mededingendheidsdomain funksioneer. Aanvanklik is innovasie en organisatoriese volwassenheid as teenstrydige konsepte beskou. Die versoening van hierdie twee oënskynlike teenstrydige konsepte is egter fundamenteel tot die ontwikkeling van langtermyn organisatoriese mededingendheid en gepaargaande welvaart. Mededingendheid word tans verseker deur die tempo en volhoubaarheid waarmee maatskappye hulle innovasie-vermoeë beoefen en uitbou. Die konsep van volwassenheidsmodelering is identifiseer as „n belangrike element om die innovasie volwassenheid van maatskappye volledig uit te bou, asook om organisatoriese groei in ten opsigte van innovasie-vermoeëns te beskryf. „n Eerste orde innovasie-vermoeë volwassenheidsmodel (ICMM v1) is met behulp van „n uitgebreide literatuur-ondersoek ontwikkel. Hierdie model het ten doel gehad om generiese en evolusionêre plateau‟s van innovasie-vermoeë volwassenheid te beskryf. Die aanvanklike model is geëvalueer met „n gevallestudie waarna dit drasties verfyn is, deur gebruik te maak van „n sekondêre literatuurstudie, die kartering en „n vergelykende evaluering, asook „n gedetailleerde ontleding van innovasie-vermoeë tema‟s. Dit is gedoen deur gebruik te maak van “Latent Dirichlet Allocation”-gebaseerde konsepmodellering. Hierdie aktiwiteite is gekonsolideer en geintegreer met die eerste model in „n weergawe twee, wat bekend staan as ICMM v2. Hierdie weergawe is verder ontplooi in vyf opvolg-gevallestudies wat gebruik is. Die doel hiervan was om die nuwe model te evalueer en valideer ten opsigte van die inhoud en struktuur daarvan. Voorts het die ook „n fundamentele bydra gemaak tot die toepassing van die model waartydens resulutate van die model vervat is in „n sogenaamde innovasie-vermoeë verbeterings metodologie. Die onderskeie gevallestudies het bevestig dat die inhoud en die struktuur van die ICMM v2 hulle aanvanklike doelwitte volledig bereik het deur beide die innovasie-vermoeë sterkpunte en swakpunte van die organisasies te identifiseer en uit te lig. Die ICMM v2 en gepaardgaande metodologie bied aan „n organisasie „n sistematiese benadering tot die identifisering van organisatoriese innovasie-vermoeë sterkpunte en swakpunte. Dit voorsien verder „n raamwerk vir die identifisering en prioritisering van innovasie-vermoeë verbeterings geleenthede binne maatskappye. Hierdie proefskrif word afgesluit met „n aantal fundamentele bevindings met betrekking tot innovasie en „n bespreking van toekomstige samewerking ten opsigte van navorsingsgeleenthede.