A Frequency-Duration time (FD) and Monte Carlo based hybrid approach for the evaluation of nodal price and nodal reliability indices

Nodal price and nodal reliability indices could provide useful economic information as well as risk information about power system operation in a deregulated power system. In order to study the impact of random failures and scheduled maintenance of generating units on nodal price and nodal reliability indices, the Monte Carlo method is used to simulate the transition process of the state of the power system while the frequency-duration time (FD) method is used to analytically calculate the expected duration of the state of the power system in case of deterministic or random events. In view of the impact of load interruption in alleviating transmission congestion and restraining nodal price, a two-layer optimal model is designed to determine the nodal price and the amount of load interruption. Finally, a small but comprehensive reliability test system (RBTS), is used for illustrating the proposed approach.