Towards risk-based management of critical infrastructures : enabling insights and analysis methodologies from a focused study of the bulk power grid.

This report summarizes research on a holistic analysis framework to assess and manage risks in complex infrastructures, with a specific focus on the bulk electric power grid (grid). A comprehensive model of the grid is described that can approximate the coupled dynamics of its physical, control, and market components. New realism is achieved in a power simulator extended to include relevant control features such as relays. The simulator was applied to understand failure mechanisms in the grid. Results suggest that the implementation of simple controls might significantly alter the distribution of cascade failures in power systems. The absence of cascade failures in our results raises questions about the underlying failure mechanisms responsible for widespread outages, and specifically whether these outages are due to a system effect or large-scale component degradation. Finally, a new agent-based market model for bilateral trades in the short-term bulk power market is presented and compared against industry observations