Pricing and Allocation of Spinning Reserve and Energy in Restructured Power Systems via Memetic Algorithm

• Published in: 2007 Large Engineering Systems Conference on Electric Power Engineering pp. 234 - 238
• Main Authors: Hazrati, N., Rashidi-Nejad, M., Gharaveisi, A.-A.
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.10.2007
• Subjects: Cost function; Deregulation; Electricity supply industry; memetic algorithm; opportunity costs; Power system reliability; Power system security; Power systems; Pricing; Procurement; ramp-rate; Spinning; spinning reserve allocation; Strontium; System testing
• ISBN: 9781424415823; 1424415829
• DOI: 10.1109/LESCPE.2007.4437384

In competitive electricity markets, procurement of spinning reserve (SR) as one of the most important ancillary services (AS); is the duty of transmission system operator (TSO). SR capacity allocated for satisfying reliability requirements and desired level of security in power systems causes replacing a part of deliverable energy capacity of units that must not be traded in the energy market. This paper presents SR allocation method considering ramp-rate constraints (RRC) and investigates the impact of these constraints on allocation strategy associated with clearing prices. The proposed method determines the optimal spinning reserve allocation and energy dispatched with the minimum costs via memetic algorithm (MA). A competitive day-ahead market is assumed where suppliers can offer active power for both energy supply and AS through a single-part bid scheme. The proposed method is implemented to an IEEE 57-Bus test system, while the significant results show the effectiveness of the proposed methodology.