36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the (2003)
Big Island, Hawaii
Jan. 6, 2003 to Jan. 9, 2003
Jie Chen , Cornell University
James S. Thorp , Cornell University
Robert J. Thomas , Cornell University
Timothy D. Mount , Cornell University
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 proposed formulation is likely to perform better in restructured markets when market power is a potential problem. An illustrative example of a modified IEEE 30-bus system is used to introduce concepts and present results.
J. Chen, R. J. Thomas, T. D. Mount and J. S. Thorp, "Locational Pricing and Scheduling for an Integrated Energy-Reserve Market," 36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the(HICSS), Big Island, Hawaii, 2003, pp. 54a.