Allocation methods for reserve cost in regional power market

In zonal power market, the allocation methods of reserve cost are summarized into two kinds: allocated to users and allocated to generators. In allocation methods to users, the normal Pro-rata method is firstly introduced. According to cooperative game theory, the existing Shapley method is extended to directly allocate the reserve cost. Considering the pre-set scheme of reserve in serious outage, a novel way is presented based on equivalent utilization coefficient. In allocation methods to generators, the characteristic of allocation method with risk index is analyzed to propose a new scheme on the basis of EENS index. Case studies of a three-area system show that the allocation costs to users are different from the other ones, and the rational method should be selected according to market requirement. The allocation costs to generators are similar among the all methods, hence the practical Pro-rata method is recommended in the experience.