Security of Supply and Generation Reserve Management Delegation under Extremely High Load Curtailment Cost

Abstract:

Power failures in a number of electric systems worldwide emphasize the importance of security of electric supply. Security of supply involves long term resource adequacy and medium to short term generation reserve management. Generation reserve requirements are usually determined using empirical rules considering the demand as a deterministic quantity. Ignoring randomness could lead to suboptimal decisions. The research presented here differs from that prevailing in the literature by considering the demand as a random variable following a doubly truncated normal distribution this has the advantage of allowing considering day to day and seasonal variations. In this paper two new mathematical models are presented to determine generation reserve requirements for a market in which the regulator imposes an extremely high load curtailment cost in any unmet demand and delegates the role of buying generation reserves on the generators in a secondary market. These models are helpful tools to study analytically or by numerical simulation the interactions between the two markets. A potential scope for application of the proposed models is presented for the Colombian electric market.

• Periodical: Applied Mechanics and Materials (Volumes 799-800)
• Pages: 1257-1262
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.799-800.1257
• Online since: October 2015
• Authors: Enrique B. Cedeno*
• Keywords: Colombian Electric Market, Deregulated Power Sector, Generation Reserves, Random Demand, Security of Supply

References

[1] C. Batlle and I. J. Pérez-Arriaga. Design criteria for implementing a capacity mechanism in deregulated electricity markets: Utilities Policy Vol. 16 (2008), pp.184-193.

DOI: 10.1016/j.jup.2007.10.004

[2] P. Rodilla, C. Batlle, J. Salazar and J.J. Sánchez. Modeling generation expansion in the context of a security of supply mechanism based on long-term auctions: Application to the Colombian case: Energy Policy Vol . 39 (2011), pp.176-186.

DOI: 10.1016/j.enpol.2010.09.027

[3] J. Frunt, W.L. Kling and P.P.J. van den Bosch. Classification and quantification of reserve requirements for balancing: Electr. Pow. Syst. Res. Vol. 80 (2010), p.1528–1534.

DOI: 10.1016/j.epsr.2010.06.018

[4] E. Bustamante-Cedeño and S. Arora. Sensitivity of generation reserve requirements in deregulated power systems: Electr. Pow. Syst. Res. Vol. 78 (2008), p.1946–(1952).

DOI: 10.1016/j.epsr.2008.03.025

[5] E. B. Cedeño and S. Arora. Cost impact of dynamically managing generation reserves: Int. J. Electr. Power Energy Syst. Vol. 51 (2013), pp.292-297.

DOI: 10.1016/j.ijepes.2013.02.032

[6] M. Najafi, M. Ehsan, M. Fotuhi-Firuzabad, A. Akhavein and K. Afshar. Optimal reserve capacity allocation with consideration of customer reliability requirements: Energy Vol. 35 (2010), pp.3883-3890.

DOI: 10.1016/j.energy.2010.05.044

[7] M. Rashidi-Nejad, Y. H. Song and M. H. Javidi-Dasht Bayaz. Operating reserve provision in deregulated power markets: Proc. IEEE Power Engineering Society Winter Meeting (2002), pp.1305-1310.

DOI: 10.1109/pesw.2002.985226

[8] E.B. Cedeño and S. Arora. Integrated transmission and generation planning model in a deregulated environment: Frontiers in Energy Vol. 7 (2013), pp.182-190.

DOI: 10.1007/s11708-013-0256-8

[9] E.B. Cedeño and S . Arora. Performance comparison of Transmission Network Expansion Planning under deterministic and uncertain conditions: Int. J. Electr. Power Energy Syst. Vol. 33 (2011), pp.1288-1295.

DOI: 10.1016/j.ijepes.2011.05.005

[10] Y. Chen and J. Li. Comparison of security constrained economic dispatch formulations to incorporate reliability standards on demand response resources into Midwest ISO co-optimized energy and ancillary service market: Electr. Pow. Syst. Res. Vol. 81 (2011).

DOI: 10.1016/j.epsr.2011.04.009

[11] M. T. Khasawneh, S. R. Bowling, S. Kaewkuekool and B. R. Cho. Tables of a truncated standard normal distribution: A doubly truncated case: Quality Eng. Vol. 17 (2005), pp.227-241.

DOI: 10.1081/qen-200057321

[12] M. Lienert and S. Lochner. The importance of market interdependencies in modeling energy systems –the case of the European electricity generation market: Int. J. Electr. Power Energy Syst. Vol. 34 (2012), p.99–113.

DOI: 10.1016/j.ijepes.2011.09.010

[13] F. Barrera Rey and A. García Morales. Desempeño del mercado eléctrico colombiano en épocas de niño: lecciones del 2009-10: Alcogen. 2010 (in Spanish).

[14] Gas and Energy Regulatory Commission. Cargo por confiabilidad: una visión a largo plazo: CREG, 2007. (in Spanish).

[15] C. Batlle and P. Rodilla. A critical assessment of the different approaches aimed to secure electricity generation supply: Energy Policy Vol. 38 (2010), pp.7169-7179.

DOI: 10.1016/j.enpol.2010.07.039