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Operating reserve requirements are a key component of modern power systems, and they contribute to maintaining reliable operations with minimum economic impact. No universal method exists for determining reserve requirements, thus there is a need for a thorough study and performance comparison of the different existing methodologies. Increasing penetrations of variable generation (VG) on electric power systems are posed to increase system uncertainty and variability, thus the need for additional reserve also increases. This paper presents background information on operating reserve and its relationship to VG. A consistent comparison of three methodologies to calculate regulating and flexibility reserve in systems with VG is performed.

Pumped storage hydro (PSH) plants have significant potential in providing reliability and efficiency benefits in future electric power systems. New PSH technologies, like adjustablespeed PSH, have also been introduced and can present further benefits. An understanding of these benefits on systems with high penetrations of variable generation (VG) is a primary focus. This paper will demonstrate and quantify some of the reliability and efficiency benefits afforded by pumped storage hydro plants utilizing the Flexible Energy Scheduling Tool for Integrating Variable generation (FESTIV), an integrated power system operations tool which evaluates both reliability and production costs. A description about the FESTIV tool and how it simulates PSH operations at multiple timescales will be given. Impacts of PSH on area control error, production costs, and system operation are quantified on a high VG scenario in the Balancing Area of Northern California. We also perform a study on how advanced PSH can provide a fast form of regulation to improve reliability and potentially reduce costs.

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