An Integrated Electric Power Supply Reliability Differential Pricing Model under the Liberalized Market Environment

Abstract

With the liberalization of electric market, the customers may have different reliability requirements, which generates different reliability costs to the grid company, that means they should afford different reliability price. An integrated electric power supply reliability differential pricing model was presented considering both the reserve costs and distribution and transmission investment costs. Firstly, the relationship of the system reliability levels with the reserve capacities purchased was analyzed. Secondly, an optimal model for scheduling reserve capacities between generation units and Interruptible Loads on the purpose of minimum reliability costs is presented, in which not only the direct purchase fees are considered, but also the indirect marginal transmission and distribution costs are considered. Finally, the algorithm for sharing the reliability costs is given out, from which the customerspsila electric power supply reliability price relating to these reliability requirements and electricity usage voltage level can be obtained. At the end of this paper, an example proved the feasibility of the model constructed.