Reliability-Aware Probabilistic Reserve Procurement
Current reserve procurement approaches ignore the stochastic nature of reserve asset availability itself and thus limit the type and volume of reserve offers. This paper develops a reliability-aware probabilistic approach that allows renewable generators to offer reserve capacity with reliability attributes. Offers with low reliability are priced at lower levels. The original non-convex market clearing problem is approximated by a MILP reformulation. The proposed probabilistic reserve
... t allows restricted reserve providers to enter the market, thereby increases liquidity and has the potential to lower procurement costs in power systems with high shares of variable renewable energy sources.