Time-space Methods for Determining Locational Reserves: A Framework for Location Based Pricing and Scheduling for Reserve Markets Annual Report

This project is exploring several options for the solution of the reserve scheduling problem that are also compatible with the idea of a deregulated reserve market structure. One of the major questions is whether it is possible to devise a cost-minimizing scheduling algorithm for the spatially distributed reserve problem that reveals the location-based shadow prices for the reserve requirements. The constraints imposed by grid security considerations should be taken into account in the procedure. If this major question is answered in the affirmative, a framework for a reserve power market based on the computed shadow prices should be derived automatically from it.