| Summary: | © 2016 Elsevier Ltd Power balance is one of the key requirements for reliable power system operation. However, factors, such as net load variability and forecast errors, impose practical limitations on matching the scheduled generation and the real-time demand. Normally, potential power imbalances are mitigated by scheduling additional generation capacity called operating reserves. However, reserves are a costly commodity and their requirements should be accurately assessed to avoid unnecessary expense. Currently, the reserve requirements are determined using a posteriori methods based upon operator's experience and established assumptions. While these assumptions are made out of a level of engineering practicality, they may not be formally true given the numerical evidence. This paper presents a formal mathematical framework for the a priori determination of three types of operating reserve requirements, namely load following, ramping and regulation. Validation of the methodology is performed by a set of extensive simulations that model the power system operations for different scenarios. This methodology is used to study the sensitivity of each type of reserve requirement to the net load and power system parameters.
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