Market Clearing for Uncertainty, Generation Reserve, and Transmission Reserve-Part II: Case Study

In Part II of this two-part paper, we analyze the marginal prices derived in Part I of this two-part paper within a robust optimization framework. The load and generation are priced at Locational Marginal Price (LMP) while the uncertainty and generation reserve are priced at Uncertainty Marginal Price (UMP). The Financial Transmission Right (FTR) underfunding is demonstrated when there is transmission reserve. A comparison between traditional reserve price and UMP is presented. We also discuss the incentives for market participants within the new market scheme.