Locational Pricing and Scheduling for an Integrated Energy-Reserve Market

It is well known that given a network that can become constrained on voltage or real power flows, reserves must also be spatially located in order to handle all credible contingencies. However, to date, there is no credible science-based method for assigning and pricing reserves in this way. Presented in this paper is a new scheduling algorithm incorporating constraints imposed by grid security considerations, which include one base case (intact system) and a list of possible contingencies (line-out, unit-lost, and load-growth) of the system. By following a cost-minimizing co-optimization procedure, both power and reserve are allocated spatially for the combined energy and reserve markets. With the Lagrange multipliers (dual variables) obtained, the scheduling algorithm also reveals the locational shadow prices for the reserve and energy requirements. Unlike other pricing and scheduling methods in use, which are usually ad-hoc and are based on engineering judgment and experience, this...

• Type: Conference
• Year: 2003
• Where: HICSS
• Authors: Jie Chen, James S. Thorp, Robert J. Thomas, Timothy Mount
• Keywords: Biometrics, Credible Contingencies, Credible Science-based Method, HICSS 2003, Scheduling Algorithm, System Sciences