Reserve capacity for failure in power market environment

In a power market environment, the first goal of the grid company is to maximize its profits, which is different from the traditional power system. The security and reliability of the power system should be subordinate to this goal. This paper proposes that, in the power market environment, the power interruption acceptable to both supply and demand sides should be regarded not as damage to secure and reliable operation, but as continuity of power supply. In this point of view, the paper proposes that the optimal failure reserve capacity (in an economic sense) in the power market environment should be determined in light of the cost of failure reserve capacity and load-shedding. The simulated results of a reliability test system shows that the method is feasible and economic.