Risk-Aware Dimensioning and Procurement of Contingency Reserve

TL;DR

This paper introduces a risk-aware method for determining contingency reserve requirements that considers the likelihood and impact of contingencies, integrating reliability models into existing security-constrained unit commitment practices.

Contribution

It develops an iterative, risk-based approach that enhances current SCUC procedures by incorporating contingency probabilities and generator response models for more reliable reserve sizing.

Findings

Effective in reducing reserve costs while maintaining reliability

Successfully applied to the Grid Modernization Lab Consortium test system

Improves contingency reserve allocation by considering risk factors

Abstract

Current contingency reserve criteria ignore the likelihood of individual contingencies and, thus, their impact on system reliability and risk. This paper develops an iterative approach, inspired by the current security-constrained unit commitment (SCUC) practice, enabling system operators to determine risk-cognizant contingency reserve requirements and their allocation with minimal alterations to the current SCUC practice. The proposed approach uses generator and transmission system reliability models, including failure-to synchronize and adverse conditions, to compute contingency probabilities, which inform a risk-based system reliability assessment, and ensures reserve deliverability by learning the response of generators to post-contingency states within the SCUC. The effectiveness of the proposed approach is demonstrated using the Grid Modernization Lab Consortium update of the Reliability Test System.