Electric network security setup in electricity market environment

Electricity markets are being restructured to become more competitive and efficient. Traditionally, power systems were tightly controlled by vertically integrated utilities. Now a system operator must depend on voluntary participation by numerous suppliers for energy and reserves. The author discusses the problems encountered in power system security and reliability including centralized planning and adequacy of power systems, ancillary services and operation reserve, system operating and transmission capacity reserve problems. Establishing electric network security setup is not a merely technique problem. To solve the problem it not only needs to seek compromise between security and economy, but also to coordinate benefits among market participants. These issues are analyzed and the challenges that may be faced in future study on power network security in the market environment are presented.