Reliability Evaluation of Power System Considering Time of Use Electricity Pricing

This paper proposes an analytical method that incorporates the time of use (TOU) strategy into the reliability evaluation of power system. The TOU electricity price strategy enables the savings of electricity cost, but its impact on power system reliability has not been thoroughly studied. The proposed method constructs a peak-flat-valley period partition model and develops an equal step length iteration algorithm to obtain the optimal period partition. A price-based demand response is modeled to calculate the hourly load using an apportionment method. Using the particle swarm optimization algorithm, a TOU-based optimization model with a penalty is constructed to find the optimal electricity price. Then, an analytical “electricity price–reliability” model is developed to evaluate the reliability of the power system considering TOU. The effectiveness of the proposed method is investigated through the case study on the Roy Billinton test system and reliability test system.