Evaluation of the marginal outage costs of generating systems for the purposes of spot pricing

This paper describes a methodology based on quantitative power system reliability evaluation for calculating the marginal outage costs of generating systems. The proposed method involves the calculation of the incremental expected unserved energy at a given operating reserve level and lead time and the multiplication of this value by the interrupted energy assessment rate of the system. The method is illustrated in this paper by calculating the marginal outage cost profile of the IEEE-Reliability Test System and by examining the effect of various modelling assumptions on that profile