Chronological simulation in the evaluation of capacity requirements

This work presents a new methodology for the calculation of the payment of system reward capacity. The remuneration of reward capacity offered by the system is being under discussion, mainly owing to increase the competition in electrical sector, which may cause a negative influence on reliability supply. In this methodology the British model has been adapted in order to accommodate the value of reward capacity of hydro plants. In addition the composite generation-transmission reliability is also considered. Finally, different ways in which both generation and distribution agents can pay or receive for the operative reward capacity are discussed. The main objective is to try to reduce as much as possible the existing variation in these payments in the period of a year.