Algorithmic approaches to reducing risk in power system operation

This paper identifies and describes algorithms of interest for reducing risk in power system operation. Risk is the probability of an event multiplied by the cost of the event´s consequences. For a power system, the primary consequence is failure of the system to meet demand. Risk reduction is examined from three perspectives: protection, reduced consequences, and improved operation. In particular we examine distributed algorithms from a risk perspective. This work provides direction for algorithm R&D in the area of risk reduction and indicates underlying principles of algorithm utilization for distributed system operation. Our prior work identified a framework for distributed operation and described the framework tasks, but did not identify suitable algorithms, properties, and metrics. This paper addresses this need by pointing out algorithms of particular interest for power system operation and relating these to risk. Unifying principles for distributed power system operation are indicated. Future work will demonstrate functioning instantiations of the most relevant algorithms in a power system context.