STOCHASTIC ALLOCATION OF OPERATING RESERVES VIA DC-OPF WITH ENDOGENOUS EPNS RESTRICTION AND BENDERS DECOMPOSITION

Operating reserve allocation in power systems is traditionally addressed by deterministic rules (N-1, percentage of load) that ignore network topology and the stochastic nature of equipment failures. We propose a two-stage stochastic DC optimal power flow (DC-OPF) framework that jointly optimizes generation dispatch and locational reserves through an endogenous Expected Power Not Supplied (EPNS) constraint, with a penalized slack absorbing physically infeasible reliability targets. The recourse function evaluates expected load shedding under generator-failure scenarios via Sample Average Approximation (SAA), and the resulting program is solved by Benders Decomposition with parallelized slave subproblems.