Allocating usages of voltage security margin in deregulated electric markets

The restructuring of the electricity sector into competitive entities introduces new paradigms to the planners and the operators of the system. One such issue that needs to be evaluated is the decomposition of voltage security margin usage over individual energy transactions. Such a procedure would form the technical basis towards setting up voltage stability pricing strategies. This paper proposes the details of an algorithm to evaluate the voltage security responsibility, in a composite market model framework that has both spot market type and bilateral long-term type transactions. The authors have tested their algorithm on test systems and found the allocation procedure reasonable. The authors conclude by enlisting the vast potential applications that could be achieved through this novel security decomposition scheme.