Patent ID: 7349887

Claim:
Computer readable medium containing program instructions recorded therein, which, when executed by a computer, causes the computer to implement a method for balancing energy generation and energy load in an energy imbalance market of an energy distribution system separate from a bilateral energy trading market and a dedicated regulation function of the energy distribution system, the energy distribution system including an energy distribution region subdivided into a plurality of different control areas including imbalance market participants, said method comprising: receiving from a plurality of imbalance market participants, including energy generation participants and energy consuming load participants in an energy distribution region, energy supply and energy demand requirements for imbalance energy in an energy imbalance market; and determining optimal dispatch of energy generation and energy load for each imbalance market participant for balancing generation and load imbalances in the imbalance market responsive to security constraints of at least one market participant and further responsive to one or more cost functions associated with the generation or consumption of energy over a time interval, wherein the one or more cost functions relate to a plurality of the energy generation participants and energy consuming load participants, wherein determining optimal dispatch is based on the costs of unit spinning reserve according to the relationship: ∑ t ∈ T ⁢ ⁢ ∑ unit ∈ G ⁢ ⁢ C Res t ⁡ ( Res unit t ) , wherein t is a time interval of a time period T, unit is one of a group of energy generators G, C Re s t is an operating cost function of spinning reserve costs for the time interval t, and Re g unit t is a unit spinning reserve for the time interval t; and load spinning reserve according to the relationship: ∑ t ∈ T ⁢ ⁢ ∑ load ∈ L ⁢ ⁢ C Res t ⁡ ( Res load t ) , wherein t is the time interval of time period T, load is one of the group of energy loads L, C Re s t is an operating cost function of spinning reserve costs for the time interval t, and Re g load t is a load spinning reserve for the time interval t; and generating balancing dispatch instructions responsive to the determined optimal dispatch of energy generation and energy load for each imbalance market participants for use in controlling their respective energy generation and energy load to remedy energy generation and energy load imbalances in the imbalance market other than the use of a bilateral energy trading market and a dedicated regulation function of the energy distribution system.