An alternative method for the reliability differentiated transmission pricing

Abstract

The reliability of power systems covers all aspects of the ability of the system to satisfy the customer requirements concerning the continuity of supply. The underlying concept is that the transmission reliability margin (TRM) must be secured for the overall system to survive the sudden and unanticipated occurrence of any possible disturbance that may be represented by the mostly common index-forced outage rate. In this regard, this paper explores the probabilistic approach to the calculating of all market participants' contributions to the TRM by taking into account the forced outage rate of each circuit across the entire network. With these reliability contributions, we can allocate the reliability cost to the users in a more reasonable way. Finally, the proposed method is applied to a 3-bus test system, which is very comprehensive and self-explanatory. (C) 2003 Elsevier Science B.V. All rights reserved.