Open AccessMarket pricing with single‐generator‐failure security constraints
Author(s) -
Li Chao,
Hedman Kory W.,
Zhang Muhong
Publication year - 2017
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2016.1589
Subject(s) - generator (circuit theory) , computer science , reliability engineering , engineering , physics , power (physics) , quantum mechanics
Regional transmission organisations and independent system operators include different types of security requirements to approximate system security issues. Transmission line contingencies are well handled in state‐of‐art market models with line outage distribution factors and, at the same time, the impacts of transmission line contingencies are reflected in energy prices. However, there is a lack of efficient mechanisms to handle generator contingencies and reflect the impacts of generator contingencies on energy prices. In this study, a set of security constraints to withstand single‐generator‐failure contingencies are presented and the market implications are studied. A new component of locational marginal prices, a marginal security component, which is a weighted shadow price of the security constraints, is proposed to better represent energy prices. A 3‐bus system example is given to illustrate the market implications. The results are confirmed on a 73‐bus system test case.