Method of adequacy optimization of electric power systems under market conditions

Abstract

We suggest a new approach to optimization of the adequacy of electric power system under market conditions which involve competition of various interests of market agents. This feature makes unsuitable of traditional methods for optimization of the adequacy of electric power system. The reliability analysis of the variants of development of electric power system is carried out on the base of the Monte Carlo method. The profit of generating companies is calculated by the obtained reliability indexes which characterize some variant of electric power system development. The investigated variant of development of electric power system is effective if all generating companies choose a sufficient level of reliability that satisfies the consumer. The results of experimental research are presented in the paper.

Generation adequacy of electric power systems in market price setting

“…Table 2 shows the results of computations for the variants of the development of the electric power system with N = 10000. If we compare the obtained results of experimental research with results for the monopolistic price setting [14] then we can see that electricity prices with payment for reliability electricity supply below and social welfare above in the oligopoly case than monopoly case. At the same time the best variant of development of the electric power system coincide in both cases.…”

“…It was interesting to compare results of experimental research with monopolistic and oligopolistic price setting. The model of the adequacy optimization under monopoly conditions was earlier described by us in [14]. For experimental research in this article and in the article [14] we used the same parameters in demand and supply functions, identical distribution laws of the random values, which we will present below.…”