A method for computing the value of corrective security

This paper describes a method for computing the optimal balance between preventive and corrective security actions. This method relies on a three-stage Benders decomposition and is capable of handling the mixed integer linear nature of this problem. A number of cases studies are presented to demonstrate the effectiveness of this method and to illustrate the consequences of introducing demand side corrective actions. In particular, it is shown that using corrective actions can significantly reduce the total cost of security and that the reliability of the transmission system affects the optimal mix of preventive and corrective security. The proposed method provides a basis for negotiations between the transmission operator and potential providers of demand side corrective actions.