A novel strategy of pricing for steady-state security in deregulated environment

Security in power systems refers to the ability of the system to withstand imminent disturbances (contingencies). Maintaining security is an issue that must be addressed at the system level. Although the power industry is undergoing restructuring process worldwide, pricing for security is one of problems remaining unresolved. As risk assessment technology has been developed very quickly, with the application of both it and economical theory, the paper suggests an approach to solve the above problem. Therefore, the security of power systems, risk assessment and economical theory are combined to give a mathematical model for security price in the new deregulated environment to trade-off technology and economy.