Aspects of Power and Risk Management in Deregulated Power Supply

This paper addresses the complex challenges of risk management and pricing in deregulated power systems and proposes regulatory solutions. In this context, a uniform framework for risk management is recommended to ensure the safe and reliable operation of the power system in a competitive market. The framework is generic and adaptable to any power market structure. The paper reviews several approaches to managing risk in the deregulated market environment and presents a systematic overview of the current risk management practices of a Distribution System Operator (DSO) as an integral part of its network planning process. The paper defines the concept of risk, examines the impact of various incentives on risk management, and discusses the simulation of power quality disturbances.