Effective Scheduling of Spinning Reserve Services and Cost of Energy in a Deregulated Power Market

Abstract

To maintain the security and reliability in the power system, spinning reserves which are one of the most important ancillary services are continuously blended during contingency in the system. Spinning reserves impart a great impact in the power system which are able to respond within a very short time to serve the load based on their bids. Congestion in the lines make the power providers to allocate spinning reserves among the capable generators and so these reserves play a crucial role of requirement and supply of power in the competitive deregulated power market. This paper discusses through a four bus system which can be applied also in higher bus systems, that the energy prices, at every nodes are analyzed by the locational marginal prices (LMPs) and the prices for the reserved generators by ancillary service marginal price (ASMPs). To ensure continuous reliability and security in the system, regional ancillary service marginal price (RASMPs) demarcated through various regions explicitly with import and export representation here, are optimized through DC Optimal Shift Factor based power flow method. Opportunity costs incurred and the most profitable generators for a certain load are also studied through price characterization.