Research on operation reserve capacity in power market environment

In power market environment, the first goal of suppliers and consumers is to maximize their profits, respectively. It is a key problem to determine a reasonable reserve capacity that directly influences the price of electricity energy. However, the price is fluctuating with the change of load, so it is necessary for a rational consumer to determine the price of interruption. In this paper, elastic interruptible load is considered as a part of operation reserves. Methods of operational research are used to determine operation reserve capacity. Based on system operation reserve costs, compensation costs of load shedding, and history records of reserve capacity probability, optimal storage theory is used to establish a mathematic model which is solved by decision matrix. The proposed approach is applied to a six-bus test system to testify it feasible and economic. The results show that the approach provides a winnable frame for both suppliers and demanders.