Hybrid optimization of system adequacy management in an electricity market

System adequacy has been recognized as one of the essential properties of a power market; however, there is no research work to date specifically on integrating demand-side management, demand-side reserve market and supply-side reserve market. To ensure system adequacy and improve the performance of reserve control, the time-of-use (TOU) power price can be employed as a preventive control. Dispatching the supply-side reserve, shedding interruptible loads with low and high price compensation in the demand-side reserve market are considered as emergency or corrective controls after a system event. Based on the different technical and economic properties of the emergency and preventive controls, this paper proposes to quantitatively analyze the performance of different control schemes using an integrated system model. An optimization algorithm is applied to individual emergency controls, preventive controls and the combination of these two controls. Simulation results are presented to validate the effectiveness of the proposed method.