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In this paper, we address the long-term system's requirement reserve sizingdue to the high-level of variable renewable energy (VRE) sources penetration,inside the expansion planning model. The increase in the insertion of this kindof energy source will also bring an increase in the reserve requirements. Ahigher requirement will be translated into additional costs to the system sincethe system operator will need to allocate generators for reserve purposes. TheVRE sources implicitly cause these costs, so besides the investment cost, theexpansion planning models should consider those costs on the expansion decisionprocess. The methodology proposed here aims to provide a probabilistic anddynamic evaluation of the forecast errors of VRE sources generation,translating these errors into the system's requirement reserve. This evaluationis done inside the expansion planning optimization model, treating the reserverequirement as an endogenous variable. Finally, a real case study of theMexican system is presented, so that we can analyze the results of themethodology and the impacts of considering the reserve requirement along withthe expansion planning decision.

Addressing the Time-Varying Dynamic Probabilistic Reserve Sizing Method on Generation and Transmission Investment Planning Decisions