Reliability and price risk assessment of a restructured power system with hybrid market structure

In a restructured power system with hybrid market structure, generation companies and customers trade electricity and reserve either through a centralized power pool or by bilateral contracts based on their price and reliability offers and requirements. This results in difficulty in price and reliability management of such power systems. This paper presents techniques to evaluate both reliabilities and prices for the pool and bilateral customers in a hybrid power market. In these techniques, reliability and price models for the power pool and bilateral suppliers have been developed using reliability network equivalents to easily include various agreements among market participants. Customer responses to prices are modeled using customer damage functions. The reliability and price problems with and without considering agreements are formulated using improved optimal power flow techniques based on these models. The correlation between reliabilities and prices has been considered in the techniques. The modified IEEE Reliability Test System has been analyzed to illustrate the proposed techniques.