Title :
Optimal reserve allocation and pricing
Author :
Ferrero, Roberto ; Shahidehpour, Mohammad
Author_Institution :
Provincial Regulatory Agency, San Juan, Argentina
Abstract :
Competition among service providers in restructured power systems is encouraged by optimal allocation and pricing of available reserves. We introduce a new methodology for allocating and pricing operating reserves. A modified version of the security constrained economic dispatch is formulated. Network constraints and line losses are considered in the formulation. The optimal spot price for operating reserve is calculated from the Lagrange multipliers of reserve constraints. For security purposes, the generation reserve for local contingencies is allocated separately from that used for contingencies in other control areas. An example of 3-area system is used to illustrate the proposed methodology.
Keywords :
losses; optimisation; power generation dispatch; power generation scheduling; power system economics; power system security; pricing; 3-area system; Lagrange multiplier; ancillary services; economic dispatch; line loss; network constraint; optimal pricing; optimal reserve allocation; optimal spot price; power system security; security constrained; service provider; Cost function; Frequency; Job shop scheduling; Power generation; Power generation economics; Power system analysis computing; Power system economics; Power system security; Pricing; Spinning;
Conference_Titel :
Power Engineering Society General Meeting, 2003, IEEE
Print_ISBN :
0-7803-7989-6
DOI :
10.1109/PES.2003.1271052