Reserve Management in Restructured Power System Considering Loads Reliability

Determining the spinning reserve capacity is amongst the most important tasks of system operator to insure safe and reliable operation of power system. So far, various methods are proposed to determine reserve capacity which are based on deterministic or probabilistic criteria. Due to considering the stochastic nature of system events, probabilistic approaches are more preferable in comparison to deterministic approaches. In practice, the value of interrupted loads are not the same for all consumers and some of them like industrial ones have higher value of lost load (VOLL). Thus, consumes with higher values of lost load are willing to pay more in order to gain higher reliability levels than consumers with less VOLL. In other words, they are more concerned with their individual load point reliability. In this paper a new method is presented to optimally determine the system spinning reserve requirement in a competitive simultaneous energy and reserve market render based on cost-benefit analysis and stochastic programming technique is proposed considering different values of lost load at each bus. Including units and lines outages and their corresponding likelihoods in the objective function, regard for loading rate of the generators constraints and transmission flow constraints are the advantages of the proposed method. Simulations performed on the 14-bus IEEE test system demonstrate effectiveness of the presented approach.