Reserve management in bilateral power market for composite system with load forecast uncertainty

This paper presents an efficient model for the composite generation and transmission system to manage the system reserve in a bilateral power market. To have a more accurate assessment of customer load point reliability, outages of generation and transmission system are considered incorporating load forecast uncertainty. Inclusion of transmission system reliability is employed by computing the transmission line outages at each load point using conditional probability approach. The reliability model for each market player considering reserve agreement with other market players are determined by network equivalent techniques. Customers can decide their power suppliers based on their reliability requirements and prices for different reserve contract. The proposed model is validated on IEEE RTS 6 bus system and South Indian (Tamilnadu) 86 bus system.