To attract more investments for developing smart transmission networks and increasing their flexibility and efficiency, recently policies have been suggested which provide finical incentives in transmission network investment. One of these policies is price biding for incremental transmission capacity and transmission elements in power markets. According to Federal Electricity Regulatory Committee, flowgate bidding is defined as allowing a line’s flow to exceed its rated capacity for a short period of time for a set penalty, i.e., price. This paper concentrates on the development of a comprehensive model for flowgate bidding and Dispatchable Transmission Services (DTSs) in stochastic joint energy and reserve market. In this paper a stochastic joint energy and reserve market with DTS are proposed to minimize the cost of supplying load and reliability expenses.
