A framework to implement supply and demand side contingency management in reliability assessment of restructured power systems

This paper presents a framework to implement supply and demand side contingency management in the reliability assessment of hybrid power markets. A model for the independent system operator (ISO) to coordinate reserve and load curtailment bids for contingency states is introduced to balance reliability worth and reliability cost. The load curtailments and generation re-dispatch for a contingency state are determined based on minimizing the market interruption cost using an optimization technique. A nonsequential Monte Carlo simulation technique based on this framework has been proposed to evaluate the customer reliability of restructured power systems with the hybrid market model. The modified IEEE Reliability Test System (RTS) is used to illustrate the proposed technique.