Study on zonal reserve model in power market

In regional electricity market, the procurement of zonal reserve deeply affects the power system security and economy. In this paper, the pricing of zonal electricity is extended to zonal reserve. The two- level model is presented according to the framework that the system operator buys the cheap reserves and then checks the feasibility of purchase scheme under the most serious outage. The model considers some important constraints, including transmission capacity limit of tie line, minimum local reserve and total reserve requirement. Solution of the model not only can form the zonal reserve price, but also can get the rational pre-set scheme in serious accidents. Furthermore, a new allocation method is suggested, i.e. the equivalent utilization ratio is formed on the basis of reserve pre-set scheme and the reserve cost is allocated on the basis of the equivalent utilization ratio. Case studies testify the validity and feasibility of this method.