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Reliability level evaluation on the customer side for bilateral contract market

This paper presents a reliability level evaluation scheme for customers to assess their outage risk. A bilateral contract model is proposed to express power suppliers as generators with forced outage rates. Outage related cost consisting of potential outage risks and estimated outage cost with weighting coefficients is also proposed as an index of the reliability on the customer side. By using this index, customers reliability level can be evaluate as the cost concerning to outage. Appropriate reliability level reflecting the characteristic of customers is obtained through setting procedure of weighting coefficients of the proposed outage related cost. Several numerical examples demonstrate the effectiveness of the proposed approach.