Optimal allocation of primary reserve services in energy markets

This paper presents an optimization algorithm, which provides generation economic dispatch minimizing simultaneously the cost of primary reserve services, while ensuring the secure operation of the power system in the presence of disturbances. The algorithm takes into consideration security constraints, which are extracted from the chain rules provided by decision trees. The proposed method is easy to implement in day-ahead and real-time balancing markets and is characterized from accuracy, versatility, and flexibility. Examples demonstrating application of the method on an actual power system model are presented and discussed.