A reserve market with reliability incentives

In this paper, reliability is explicitly valued in reserve market. The generator would get the insurance premium first from the consumers and then they have the responsibility to secure consumers´ power supply. The system reliability is determined by a probabilistic criterion where the forced outage rates (FOP) are dynamically changed by the Gencos over time. This scheme will provide incentives for the Gencos to maintain all the generators and submit accurate FOPs to decrease the load cut.