A market for power system resilience provision

As the frequency and damage of extreme events have gradually increased in recent years, the resources for resilience enhancement (referred to as resilience resources) in the power system have become inadequate and the willingness of customers to pay for enhancing resilience has increased, while to enhance resilience calls for large expenses. However, existing literature mainly focuses on the resilience evaluation and enhancement strategy, without devising a value-driven market to provide transparent price signals for revealing explicitly the value, and optimizing the allocation and provision, as well as incentivizing the investment of resilience resources. Thus, this paper devises a market for power system resilience provision (referred to as resilience market), which is cleared ahead of the occurrence of extreme events with considering expected future failure scenarios. Customers bid the retained load price, which is also taken as load recovery priority during extreme events. With customers' bids, the resilience market is cleared to optimize the allocation and provision of resilience resources, determine the resilience price and give the settlement rules for the resilience resources and customers. The resilience resources receiving revenues in the resilience market should guarantee the availability during extreme events, while the customers paying fees acquire an insurance with enjoying priorities in load recovery when extreme events occur. Results of the case study show that the resilience price can effectively reflect the marginal value in retaining loads at each node, help to optimize the allocation and provision of resilience resources as well as achieving the reasonable cost distribution related to resilience enhancement among customers. Moreover, the resilience market could guide and incentivize market entities to invest in enhancing resilience.