Risk Decision-making for Reserve Capacity Market

Decision-making on operational reserve capacity has been guided by deterministic criteria in most of cases,or by probabilistic algorithms in a few researches.Both kinds of approaches don't consider the loss resulting from generation inadequacy and cannot coordinate different kinds of reserves.Risk is a computable quantity which can be used to integrate the security with economics into a formal decision making algorithm.Based on risk management,an optimal decision-making method is presented for reserve capacity in this paper,which coordinates various kinds of reserve resources including instantaneous and non-instantaneous generation capacities as well as interruptible loads.Simulations show that the presented method can balance the supply-demand reliably as well as cost effectively.