Assessing the operating reserves and costs with considering customer choice and wind power uncertainty in pool-based power market

Providing the customers electrical energy with acceptable quality and level of continuity is of great importance in power systems. This paper proposes a new method to determine the optimal operating reserves and allocate the reserve costs. In the proposed method, the operating reserves are determined with considering the uncertainties of network, wind power and electrical load. Modeling the uncertainty has been done by a two-stage stochastic programming. The customer choice is considered to determine the required operating reserves. For fairly allocating the reserve costs between Genco's and customers, the desired demand factor (DF) of customers and system standard demand factor have been defined. In addition, a flexible value of loss load (VOLL) based on reliability requirement is introduced. Also, the customers with different desired level of reliability can be classified. Finally, the good performance of the proposed method is illustrated using the 3-buses test system, the Roy Billinton Test System (RBTS), and the test system of IEEE-RTS. (C) 2014 Elsevier Ltd. All rights reserved.