ANovel SCUC Model Considering Area Control Errors and Resulting Penalties

The traditional Security Constrained Unit Com-mitment (SCUC) model focuses on minimizing the total cost of electricity generation while ensuring system security and reliability. However, this model does not consider the possibility that Independent System Operators (ISOs) can intentionally allow for area control errors (ACE) to reduce energy purchase costs. This article incorporates ACE and its associated penalties into the SCUC model. Given specific penalty prices, the model can reflect the impact of considering ACE on an ISOs' power pur-chasing decisions. Experimental results show that when penalty prices are relatively low, ISOs are more profitable by generating ACE and paying penalties than by purchasing electricity from other ISOs or purchasing demand response from flexible loads. Therefore a high-enough penalty price is necessary to ensure system reliability.