Sensitivity of generation reserve requirements in deregulated power systems

Since demand for power exhibits great variability the amount of firm energy to be purchased to meet real time demand based on forecasts is usually different from the realized demand for that period. The role of generation reserves is to meet the real time fluctuations of power demand. The predictable part of the demand is met through purchases of firm energy. In this paper a model is presented to determine optimal quantities of firm energy and generation reserves to meet random demands. The model is then parameterized introducing a set of factors to perform a sensitivity study. A full factorial experiment is designed to study the impact of five factors on the response variable (i.e., proportion of generation reserves on the total purchased quantity). An example consisting of 640 simulations corresponding to 25 treatment combinations evaluated over 20 randomly generated mean demands is used to identify significant factors on the response variable. Results from the experiment suggest that generation reserve requirements should be adjusted considering changes in significant factors and in the mean demand over the dispatch interval.