Reserve Capacity Allocation and Responsibility Partition Considering the Uncertain Factors in Electricity Markets

In electricity markets, ISO has to purchase the proper reserve capacity at some price for maintaining an acceptable risk level of power system. At the same time, the responsibility of each market participant must be quantified explicitly for apportioning the costs of reserves. Unlike traditional deterministic dispatch, this paper maximizes the social welfare with considering the expected surplus of the consumers and suppliers caused by selected pre-contingencies. The shed loads involuntarily as controllable variables are introduced. The optimal reserve capacity can be obtained, and the acceptable risk level of system can be calculated under this reserve setting. Based on probabilistic analysis, the impact degree of uncertain factor to the acceptable risk of system, which is the criterion of reserve responsibility partition, can be calculated. Finally, a simple example is used to show the ideas.