Reliability differentiated pricing of spinning reserve

Journal Article · Tue Aug 01 04:00:00 EDT 1995 · IEEE Transactions on Power Systems

DOI:https://doi.org/10.1109/59.466535· OSTI ID:163011

Siddiqi, S N; Baughman, M L ^[1]

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1. Univ. of Texas, Austin, TX (United States). Dept. of Electrical and Computer Engineering

This paper derives the spinning reserve pricing policy implied by the reliability differentiated pricing model and illustrates the importance of such a pricing policy. The purchase of additional spinning reserve capacity at the prices derived leads to benefits for the customers, through reduced real and reactive power prices and improved reliability of the system, and for the system as a whole, through reduced societal costs and lesser investment in reinforcements for the system. The magnitudes and behavior of the optimal prices for real and reactive spinning reserve are illustrated in two case studies. One case study determines reliability differentiated prices of real and reactive power for a sample four-areas system with and without spinning reserve purchase and the optimal purchase prices for both real and reactive power spinning reserve capacities. The results of this case study show that when reliability differentiated pricing is extended to both real and reactive power reserve it leads to benefits for the customers and the system as a whole. A second case study examines the locational dependence of the optimal prices for real and reactive reserves on the operating status of equipment in the 24-bus IEEE Reliability Test System. It is concluded that even small amounts of reliable reserve capacity purchase from neighboring utilities can improve the reliability of the system and lower expected real and reactive power prices leading to gains in social welfare.

• OSTI ID: 163011
• Report Number(s): CONF-940702--
• Journal Information: IEEE Transactions on Power Systems, Journal Name: IEEE Transactions on Power Systems Journal Issue: 3 Vol. 10; ISSN 0885-8950; ISSN ITPSEG
• Country of Publication: United States
• Language: English

Related Subjects

24 POWER TRANSMISSION AND DISTRIBUTION
CAPACITY
ELECTRIC UTILITIES
PLANNING
POWER SYSTEMS
RATE STRUCTURE
RELIABILITY