Development of a multi‐objective framework for the separate active and reactive power market clearing with index‐based vision

Abstract

Summary In this paper, a new multi‐objective power market clearing framework with index‐based vision is proposed in order to flexibly cover various aspects of the power market, simultaneously. Separate clearing constraints and a weighting strategy are also implemented along with the proposed clearing framework aiming at considering the importance of the power market and network‐based indices. Also, a number of applicable indices are integrated into the objective functions. These indices which help with improving the quality of the power market clearing are to control on the market total cost, market profitability rate, discrimination among market players, dispersion in the net surplus and revenue among market players, players participation tendency in the power market, and the market power potential. Moreover, voltage stability constraints have been introduced to improve the proposed framework. The proposed framework is used to clear the separate reactive power market (SRPM) as a case study and is tested on 24‐bus IEEE reliability test system (RTS). The problem is solved by a non‐dominated sorting genetic algorithm (NSGA‐II). The results evidence that the proposed market clearing framework significantly improves the performance of the power market clearing.

Reactive Power Markets: A Review

“…They propose a custom pricing scheme that incorporates the market participants' profits in the optimization, which results in higher incentives compared to PAB and higher efficiency compared to uniform pricing. In [59], the same authors propose a multi-objective optimization with arbitrary objective functions, which enables grid operators to choose their own preferences for their local reactive power market. Jay and Swarup [56] propose a market clearing where providers are not only paid by their EPF but also by their value for grid operation.…”

“…However, grid operators that implement a local reactive power market want to choose their own objective function based on their own specific demands. Consequently, reactive power market designs should be modular to allow for exchangeable and grid-specific objective functions [59].…”

A study of coupled incentive-based clearing mechanisms in electricity markets considering uncertainty risk

“…Literature [12] proposes an independent reactive power market clearing method aimed at improving the quality of reactive power compensation and confirms that the method is feasible in improving the quality of reactive power compensation by testing the efficiency and robustness of the clearing method on a 24-bus IEEE RTS system. Literature [13] developed a new framework for multi-objective power market clearing that is based on an indicator perspective and considers the power market and network. The performance of power market clearing has been significantly improved by this framework after analyzing real case studies and 24-bus IEEE reliability tests.…”