Bi-Level Reserve Requirement Optimization Based on Reserve Channel in Mixed Market

To reflect the bilateral transaction's uncertain impact on the grid, the effective reserve and the reserve channel margin are defined. And reserve capacity is modeled based on stochastic simulation and bi-level programming considering the congestion risk, which the reserve services are regarded as object of study in the open power market environment. The upper optimization level is to maximize the reserve service of electric utility while the lower optimization level is to minimize the purchase cost. A bi-level optimization algorithm based on Monte-Carlo and particle swarm optimization is designed according to the random characteristics of the proposed model. The case study demonstrates that the reserve channel analysis can guarantee the power supply reliability, and demonstrates the reasonability and validity of the model and algorithm.