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Multi-settlement simulation of reserve procurement using stochastic optimal power flow

This paper presents a dynamic reserve determination method that can be applied to operations in order to facilitate renewable integration. The method is applied to a realistic system model and incorporates a multiple settlement process that includes a day-ahead unit commitment cycle, an hour-ahead cycle, and a real-time 5-minute cycle. By inserting dynamic reserve determination in the hour-ahead cycle, the reserve requirements were dynamically procured to mitigate forecast errors in the renewable generation. The study demonstrates the use of a dynamic reserve procurement step that is practical for deployment in existing business processes and presents an example of new operating policies that can be used to integrate renewable integration at lower cost while maintaining system reliability.