Power System Security and Short-Term Electricity Market Equilibrium

This paper looks at the important couplings that tie short-term electricity market equilibrium to the enforcement of power system security requirements. We first address the equilibrium implications of embedding security constraints in these markets-in the form of explicit constraints specifying the minimal levels of operating reserves. Second, we assess the equilibrium properties for more general contingency-driven security-constrained market-clearing formulations, which specify implicitly the levels of operating reserves. We finally concentrate our attention on proposed security-constrained market-clearing formulations for which the power system operator accounts for the uncertainty in the demand as well as in the generator and line random availabilities