Operational Impacts of Operating Reserve Demand Curves on Production Cost and Reliability

The electric power industry landscape is continually evolving. As emerging technologies such as wind, solar, electric vehicles, and energy storage systems become more cost-effective and present in the system, traditional power system operating strategies will need to be reevaluated. The presence of wind and solar generation (commonly referred to as variable generation) may result in an increase in the variability and uncertainty of the net load profile. One mechanism to mitigate this is to schedule and dispatch additional operating reserves. These operating reserves aim to ensure that there is enough capacity online in the system to account for the increased variability and uncertainty occurring at finer temporal resolutions. A new operating reserve strategy, referred to as flexibility reserve, has been introduced in some regions. A similar implementation is explored in this paper, and its implications on power system operations are analyzed.