Abstract
In this paper, we propose an approach to determining the cost of supplying the dynamic control capacity (DCC) necessary to ensure that the system operates without stability problems over a well-defined range of demand variations and system contingencies. This approach addresses the problem of finding an economically efficient combination of controllers and reserves to provide reliability and security economically and in a technically adequate way. In particular, we discuss the cost of providing DCC as a function of system dynamic performance (DP) metrics. The choice of performance metrics is critical for deciding the installation of controllers in power systems. In this paper, we illustrate the approach using the primary control problems of transient stability and primary voltage control.
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