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Operating reserve capacity requirements and pricing in deregulated markets using probabilistic techniques

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2 Author(s)
Leite da Silva, A.M. ; Dept. of Electr. Eng., Fed. Univ. of Itajuba, UNIFEI ; Alvarez, G.P.

A new probabilistic methodology to evaluate the operating reserve requirements of power systems in deregulated energy markets is presented. The main objectives are the assessment of reserve requirements for all submarkets (i.e. regulation, spinning, non-spinning and replacement), and the determination of the maximum acceptable bid prices in these submarkets and eliminating possible speculations. In order to balance reliability and costs, the proposed methodology is based on merging the loss of load cost index into the capacity bidding process for all operating reserve submarkets, thus avoiding the a priori establishment of an arbitrary risk index as a reference criterion. The results of studies using different test systems, including the IEEE-reliability test system and a configuration of the Brazilian South-Southeastern system, are presented and discussed

Published in:

Generation, Transmission & Distribution, IET  (Volume:1 ,  Issue: 3 )

Date of Publication:

May 2007

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