Cost Analysis Method for Estimating Dynamic Reserve Considering Uncertainties in Supply and Demand

• Main Authors: Kyung-bin Kwon, Hyeongon Park, Jae-Kun Lyu, Jong-Keun Park
• Format: Article
• Language: English
• Published: MDPI AG 2016-10-01
• Series: Energies
• Subjects: dynamic reserve; unit commitment; reliability; wind power generation; cost analysis; power system operation; uncertainty; generation outage
• Online Access: http://www.mdpi.com/1996-1073/9/10/845

The use of appropriate hourly reserve margins can maintain power system security by balancing supply and demand in the presence of errors in the forecast demand, generation outages, or errors in the forecast of wind power generation. Because the cost of unit commitment increases with larger reserve margins, cost analysis to determine the most economical reserve margin is an important issue in power system operation. Here, we define the “short-term reliability of balance” and describe a method to determine the reserve margin based on the short-term reliability of balance. We describe a case study, in which we calculate the reserve margin using this method with various standards of short-term reliability of balance. A cost analysis is then performed to determine the most economic standard, and a comparison between our method and a conventional method is carried out. The results show that our method with an economic short-term reliability of balance enables more reliable and efficient operation of the power system. Moreover, with an hourly reserve margin, we show that an increase in wind power generation can result in a significant decrease in the operating cost, which makes wind power generation economically viable.