Co-Optimization of Output and Reserve with Significant Penetration of Renewables
Co-optimization of output and reserve is necessary in order to provide maximum benefit to both consumers and producers. Once renewable generation sources like wind or solar begin to make up a large proportion of the generation mix, this co-optimization becomes much more difficult since the output of renewable sources is not well-known in advance. In this paper, a uniform reliability level is used as a constraint in the process of output and reserve. The proposed model is tested on the modified 5-bus PJM system. The co-optimization is performed by sequential quadratic programming techniques. The results show that the co-optimization results are strongly related to the uncertainties of wind power, the reliability level of the system, and the reliability of generators when wind makes up a significant portion of the generation mix.