Abstract :
This paper defines a price-based decision making process for participating in a reserve market for power systems reliability. Reserve power is a fundamentally different commodity from spot market power. It is suggested that depending on the payment mechanism in place, two different types of formulae would be used by power producers and users when participating in such markets. The paper points out that despite the imminent trend to create reserve markets, several fundamental questions concerning reliable operation must be studied.
Keywords :
"Power system reliability","Power generation","Costs","Decision making","Contracts","Stochastic processes","Power transmission lines","Maintenance","ISO","Spinning"