JOINT OPTIMIZATION OF ENERGY, SPINNING RESERVE DISPATCH, AND PRICING OF SPINNING RESERVE IN A COMPETITIVE ELECTRICITY MARKET

Abstract

Power system security is an important aspect of properly designed restructured electricity market.Ancillary services are indispensable for real-time secure operation of power system. Spinning reserve is themost important ancillary service which could be acquired in a power system. Setting the price of spinningreserve is not easy because the procurement of spinning reserve cannot be decoupled from the procurement of energy. The efficient rationing and pricing of spinning reserve is an important problem dealt in competitive
electricity markets. Since the same generating capacity supply energy and reserves, it is advantageous to have the scheduling of energy coordinating with the reserves. This paper proposes an algorithm for joint optimization of energy and spinning reserve, and for the pricing of spinning reserve. The proposed scheme’s validity have tested by using IEEE 9-bus test system