Analysis of interruptible electric power in deregulated power systems

Assuring appropriate levels of generation capacity adequacy at the minimum possible cost using market-based approaches is a contemporary issue attracting much attention in deregulated power systems. Introduction of interruptible electricity contracts could provide a Possible Solution to such a problem. However, theoretical frameworks for examining the impacts of these contractual arrangements on system operations have not been maturely developed. This paper presents a probabilistic production simulation based framework for modeling and analyzing interruptible electricity contracts. The interdependence between the pricing models of interruptible electric power and the operations of the whole system is addressed and solved by an iterative coordinating algorithm. The probabilistic production simulation framework allows the uncertainties inherent in both the forced outages of generators and system load demand at the contract delivery time to be taken into account. The proposed approach is capable of achieving comprehensive analysis and systematic pricing for interruptible electric power. A numerical case study is presented to illustrate the effectiveness and validity of the methodology. (C) 2006 Elsevier B.V. All rights reserved.