Reactive power procurement model in electricity markets based on normalized effective reactive power reserve

Abstract

SUMMARYAs one of the important security criteria, power system operators closely monitor reactive power reserve in voltage control areas (VCAs) of their system to ensure voltage security and to prevent voltage collapse. Therefore, from a system/market operator perspective, proper management of reactive power reserve must be considered in reactive power procurement stage. This paper proposes a long‐term procurement model to meet reactive power reserve requirements in competitive electricity markets considering both economical and technical issues. The model would be of interest to system/market operators since it is based on a new indicator referred to as normalized effective reactive power reserve (NERPR) as a more meaningful signal compared to other physical/economical indicators. The proposed framework for reactive power procurement determines accepted bids by minimizing the associated procurement cost while maximizing NERPR in each VCA of the system. Physical constraints such as generator capability curves and voltage security are taken into account in the formulation. Also, a population‐based algorithm is introduced here to solve the mixed integer non‐linear programming (MINLP) problem resulted from the procurement model. An algorithm is proposed to change the MINLP problem to series of NLP sub‐problems. The CIGRE 32‐bus test system is used to test the feasibility of the proposed procurement model. Copyright © 2013 John Wiley & Sons, Ltd.

Generator reactive power pricing for practical utility system using power flow tracing method

“…The DE is used to obtain the solution for the 62 bus IUS. The objective of ORPD problem is the minimization of real power losses as shown in (5). The generator voltages, tap settings of transformer and reactive power of shunt devices are considered as control variables.…”

“…Equality constraints The power balance equation represents the equality constraints [8] and it states that power system generation should meet the demand and losses. Inequality constraints The inequality constraints of power generation [5] are expressed in (6) & (7).…”

“…The revenue gained by the reactive power seller based on spot pricing does not recover the production cost [4]. Javad Saebi et al have used zonal pricing method to contracted generator for providing the reactive power [5]. Mala De et al have calculated the generator reactive power price using cost functions and a power flow tracing method [6].…”

Two new frameworks for reactive power market considering reactive losses

“…Being close to consumption time and, consequently, making more precise predictions about generation and consumption volumes and better allocation of reactive power are the advantages of the day‐ahead market. In contrast, in other works, the reactive power market has been seasonally implemented. Long‐term market implementation solves the problem of creating market power, but cannot precisely predict grid status at consumption time.…”

Coupled active and reactive market in smart distribution system considering renewable distributed energy resources and demand response programs

“…So far, many researches have been done to establish a reactive power market at the wholesale level in which the conventional power plants support the reactive power ancillary service . But few studies have been reported about running the reactive power market with DGs at the distribution level.…”