Fundamental results on the marginal valuation of coordinated preventive and corrective security

This paper introduces several fundamental results on the marginal valuation of coordinated preventive and corrective security actions. These results indicate that the likelihood of contingencies as well as the relative marginal costs of their associated preventive and corrective security actions are determining factors when it comes to handling contingencies in a fashion that is economic and technically sound. This is a timely analysis in light of the ever greater spectrum of uncertainties in power system operation as energy trading activity and the large-scale integration of non-dispatchable renewable generation become more important. The results are general and can be applied to any power system and any type of power system resource used in enforcing power system security.