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I. INTRODUCTION
N power systems, it is very important to maintain a certain amount of operating reserve capacity to avoid power
shortage due to generator random outages, load fluctuations, etc.
In most research and practices, the amount of operating reserve
capacity is determined by dispatch rules that require operating
reserve is greater than the capacity of the largest generator and a
fraction of the peak load. Although this approach is easy to implement, it cannot maximize the social welfare of the operating
reserve in an unbundled power market.
In power markets, the operating reserve capacity is a commodity like electricity. How to purchase operating reserve as
well as electricity is a hot topic on which many researchers are
working. A model on coordinated scheduling of reserves, contracts, and supplemental energy is proposed in [1]. The suggestion that all reserve markets are cleared together is given in
[2]. A price-based adaptive requirement model of spinning reserve based on the Lagrange relaxation approach is presented in
[3]. Combining the reliability calculation with the unit commitment (UC), paper [4] brings forward a novel model on optimal
scheduling of the spinning reserve. In this research, system operators are supposed to buy predetermined reserve capacity. We
argue that operating reserve capacity should be optimized in the
power market circumstance according to benefits and cost analysis. Obviously, the more expensive the operating reserve capacity, the less operating reserve capacity should be purchased;
the bigger the interrupted energy assessment rate (or the value
Manuscript received October 9, 2003; revised July 21, 2004. This work was
supported by the National Science Foundation of China under Key Project
59937150. Paper no. TPWRS-006342003.
J. Wang and X. Wang are with Xian Jiaotong University,
Xian, Shaanxi 710049, China (e-mail: jxwang@mailst.xjtu.edu.cn;
xfwang@mail.xjtu.edu.cn).
Y. Wu is with Texas A&M University, College Station, TX 77843-3128 USA
(e-mail: wuyang@ee.tamu.edu).
Digital Object Identifier 10.1109/TPWRS.2004.841232
of lost load), the more operating reserve capacity should be purchased. Thus, the proper operating reserve capacity varies with
its cost and the benefit. We call this varied operating reserve capacity flexible reserve. A novel model of flexible reserve and
relative algorithm is discussed in the paper.
The reserve benefit can be evaluated by reduction of Energy
Expectation Not Served (EENS). EENS is a very important and
widely used reliability index in power system planning, which
can be calculated by a reliability evaluation or probabilistic production simulation algorithm [5]. Reserve cost depends on the
payment mode. There are two kinds of payment modes: the uniform-price mode and the pay-as-bid (PAB) mode. Generators
are paid by uniform market-clearing prices in the uniform-price
mode and paid by bid prices in the PAB mode. Reference [6]
points out that the principle of the uniform price is the equal
bidding price criteria and the principle of the pay as bid originates from the equal incremental cost criteria. The comparison
of the two payment modes has been discussed in [7][10]. This
paper proposes the flexible reserve model based on both payment modes. The comparison of the two modes in operating reserve market is given in the case study.
The structure of this paper is as follows: Section II proposes
a clearing model of the operating reserve market. In Section
III, a very efficient algorithm to solve the above model is suggested. The algorithm is demonstrated by a standard test system
in Section IV. Section V contains some conclusions and the emphasis of further research.
II. CLEARING MODEL OF FLEXIBLE OPERATING RESERVE
As mentioned before, a clearing model of an operating reserve market should optimize reserve capacity as well as clear
the market. First, we introduce the model of the flexible operating reserve market.
A. Flexible Operating Reserve Model
Without predetermined reserve capacity, the most important
aspect of the flexible reserve is to find out the optimal operating
reserve capacity that maximizes the social benefit or minimizes the social cost . The objective can be, respectively, expressed as
(1a)
(1b)
where
(2a)
or
(2b)
is the EENS before purchasing operating reserve,
Here,
and
is the systems EENS after purchasing operating
is the Interrupted Energy
reserve capacity . Coefficient
Assessment Rates (IEAR) in North America or Value of Lost
Load (VOLL) in the U.K. VOLL/IEAR varies with different
customer categories, usage time, etc. [11]. In this paper, since
outages due to shortage of generation capacity affect the system
as a whole, it is assumed to be the same for all customers at all
times. As IEAR is an approximate value, the benefit of the operating reserve is difficult to be evaluated accurately. The precision of (2) would be improved with further research on the
IEAR.
in (1a) and (1b) depends on different
The cost function
payment modes. Suppose the bid price of unit is
and the
.
repreclearing price of operating reserve market is
sents the set of selected reserve units. According to PAB mode,
can be expressed as
the purchase cost
(1b). Taking the partial derivative of (1b), we obtain the necessary condition of optimal reserve capacity
(7)
Because
is not a continuous variable in the purchasing
process, we use the difference equation to replace the above
equation
(3)
(8)
The purchase cost on uniform-price mode
can be defined
or
(9)
as
(4)
The constraints include
(5)
(6)
where
maximum reserve capacity of unit ;
minimum reserve capacity of unit ;
required time of the operating reserve;
ramp speed of unit (in Megawatts per minute).
Equation (5) is the operating reserve capacity constraint of
unit . The ramp speed is considered in (6) to ensure that the
operating reserve capacity can hold on in required time (for
for spinning and nonspinning reserve is ten
example,
minutes).
It must be pointed out that the model above is based on market
structure in which the operating reserve market is independent
from other markets and is cleared right after the energy market.
The correlation among hours in the unit commitment problem
has been solved in the energy market. Hence, in the operating
reserve market, there is no correlation among hours.
B. Condition of Optimal Reserve Capacity
The same condition of optimal reserve capacity can be deduced from (1a) and (1b). The following deduction is based on
where
is the incremental cost of
, and
is the
EENS change that is usually a negative due to increasing oper. Whether or not to purchase
can be deating reserve
termined by (9). When the following inequality holds for increasing
or
(10)
purchasing
is favorable, because the benefit due to decreasing interruption loss
is larger than
of
. Otherwise, one should stop purchasing
the cost
.
The principle of clearing operating reserve capacity under the
PAB mode can be illustrated by Fig. 1. First, we sort the bidding
prices reported by suppliers into a merit order, assuming
Therefore, purchasing
is favorable. Next, we will determine
should be purchased. At this point, the system already has
if
. If purchasing , the reserve becomes
reserve
Evaluating system reliability under the condition of reserve ca, we obtain the EENS of the system
. Thus,
pacity
is
the benefit of
purchasing
is favorable.
Continuing this process until
(13)
Fig. 6.
Fig. 9.
should be required. This adjustment can be automatically realized in the presented model. The required spinning reserve capacities are shown in Fig. 8 for different FORs of the generators.
Comparing with traditional dispatch, the proposed operating
reserve model is more flexible because the information about
the generators robustness can be used in determining optimal
operating reserve capacity. The system with less-robust generators should buy more capacity and vice versa. This will optimize
the usage of our resources.
Furthermore, flexible reserve can also reduce the market
power on the basis of the bidding information in the market.
Consider the worst case when all independent power producers
(IPPs) raise bidding prices together. Under traditional dispatch
rules, all the predetermined reserve capacity should be bought.
In the flexible reserve model, the market could buy less capacity
as countermeasures against rising prices. In order to explain this
effect on the spinning reserve market, Fig. 9 gives the clearing
capacity of spinning reserve as a function of markup rates.
From Fig. 9, we can see that the higher the bidding price,
the less spinning reserve capacity the market should buy. In
TABLE I
U100 ENERGY BID
TABLE II
SPINNING RESERVE CAPACITY DURING PEAK LOAD OF AREA 1
TABLE III
SPINNING RESERVE BID
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Jianxue Wang received the B.S. and M.S. degrees in electrical engineering from
Xian Jiaotong University, Xian, China, in 1999 and 2002, respectively. Currently, he is pursuing the Ph.D. degree at Xian Jiaotong University.
His major research interests include power market and system reliability.
Xifan Wang (SM86) received the B.S. degree from Xian Jiaotong University,
Xian, China, in 1957.
He is a Professor in the Department of the Electrical Power Engineering at
Xian Jiaotong University. His major research fields include power market, reliability evaluation, generation planning, system contingence analysis, and stability analysis.
Yang Wu (S05) received the B.S. and M.S. degrees in electrical engineering
from Xian Jiaotong University, Xian, China, in 1999 and 2002, respectively.
Currently, he is pursuing the Ph.D. degree at Texas A&M University, College
Station, TX.
His major research interests include protective relaying and substation
automation.