Risk based spinning reserve allocation in deregulated power systems

In a deregulated power system, spinning reserve can be allocated to different ancillary service providers at different locations based on the supplier bids and customer choices on the reliability levels required. Different allocations of spinning reserve are expected to create different impacts on the reliability of the physical power system. When transmission failures occur in a physical power system, the system constraints may be violated and spinning reserve may not be immediately committed to the system to serve the customers. This paper investigates the impact of transmission system failures on spinning reserve allocation. A technique is proposed to determine the locations of spinning reserve based on the minimum unit commitment risk.