Optimizing the spinning reserve requirements using a cost/benefit analysis

Spinning reserve (SR) is one of the most important resources used by system operators to respond to unforeseen events such as generation outages and sudden load changes. While keeping large amounts of generation in reserve protects the power system against the generation deficits that might arise from different contingencies, and thus reduces the probability of having to resort to load shedding, this reserve provision is costly. Traditional unit commitment (UC) formulations use deterministic criteria, such as the capacity of the largest online generator to set the SR requirements. Other UC formulations adjust this requirement based on probabilistic criteria but require iterative processes or approximate calculations of the level of risk associated with the provision of reserve. This paper describes an offline method for setting the SR requirements based on the cost of its provision and the benefit derived from its availability.