Abstract
Well-being analysis (WBA) encompasses deterministic and probabilistic measures to capture the comprehensive status of power system fitness with regards to ensuring adequacy. A key application is to be found in reserve allocation studies, both in the regulated and the liberalized scenarios. This paper presents a revised WBA approach applicable to the determination of reserve requirements at the Hierarchical Level I (HLI) (generation systems) of bilateral contracts market. Heuristic modification factors are proposed for a resourceful deployment of the traditional WBA. This is done with a view to overriding the odds of strict optimistic appraisals or lenient pessimistic appraisals, whose resultant implications in the planning and operation of power systems might yield insufficient contingency measures or unwarranted redundancy. Further, as in the risk management methods used in financial and insurance industries, the risk metric value-at-risk (VaR) is employed in this paper for deciding the beneficial reserve levels to be engaged by potential customers in bilateral contract markets.
Similar content being viewed by others
References
Abiri-Jahromi A, Fotuhi-Firuzabad M, Abbasi E (2007) Optimal scheduling of spinning reserve based on well-being model. IEEE Trans Power Syst 22:2048–2057
Billinton R, Allan RN (1984) Reliability evaluation of power systems. Plenum, New York
Billinton R, Fotuhi-Firuzabad M (1994) A basic framework for generating system operating health analysis. IEEE Trans Power Syst 9:1610–1617
Billinton R, Aboreshaid S, Fotuhi-Firuzabad M (1996) Conceptual framework for composite power system health analysis. In: Proceedings of the Canadian conference on electrical and computer engineering, Vancouver, Canada, pp 396–399
Dahlgren R, Liu CC, Lawarree J (2003) Risk assessment in energy trading. IEEE Trans Power Syst 18:503–511
Goel L, Song Z, Wang P (2004) Well-being analysis of spinning reserve in a bilateral power market. Electr Power Syst Res 69:37–42
Stambaugh F (1996) Risk and value at risk. Eur Manag J 14:612–621
Verma AK, Vijay Venu V (2008) Adequacy-based power system reliability studies in the deregulated environment. Int J Reliab Qual Saf Eng 15:129–141
Verma AK, Vijay Venu V (2009a) Revised well-being analysis applied to reserve adequacy studies in vertically integrated power utilities. Int J Commun Dependability Qual Manag 12:101–110
Verma AK, Vijay Venu V (2009b) A modeling paradigm for extending well-being analysis to a composite bilateral contracts market. In: Proceedings of IEEE PES power systems conference and exposition, Seattle, USA, March, pp 1–6
Wang P, Billinton R (2001) Implementation of nonuniform reliability in a deregulated power market. In: Proceedings of Canadian conference on electrical and computer engineering, Toronto, Canada, May, pp 857–861
Wang P, Billinton R (2003) Reliability assessment of a restructured power system using reliability network equivalent techniques. IEE Proc Gener Transm Distrib 150:555–560
Wang P, Billinton R (2004) Reliability assessment of a restructured power system considering the reserve agreements. IEEE Trans Power Syst 19:972–978
Wang P, Goel L (2003) Reliability-based reserve management in a bilateral power market. Electr Power Syst Res 67:185–189
Wangdee W, Billinton R (2006) Bulk electric system well-being analysis using sequential Monte Carlo simulation. IEEE Trans Power Syst 21:188–193
Zhong J, Wu FF (2006) Operating reserve value at risk. In: Proceedings of IEEE PES general meeting, Montreal, Canada, June, pp 1–6
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Vijay Venu, V., Verma, A.K. Enhanced well-being analysis and value-at-risk (VaR) dependent reserve determination in deregulated power systems. Int J Syst Assur Eng Manag 3, 24–32 (2012). https://doi.org/10.1007/s13198-011-0062-9
Received:
Revised:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s13198-011-0062-9