Remuneration and charging procedures for competitive procurement of reactive power capacity (original) (raw)

A Competitive Market Structure for Reactive Power Procurement

2000

This paper first proposes a competitive market structure for reactive power procurement and then develops a methodology for incorporating voltage stability problems into the model. The owners of electric transactions should participate in this competitive framework and submit their own firmness bids in ($/MW) to the Independent System/Market Operator (ISO- IMO). ISO clears the market for reactive energy regarding the

A Procurement Market Model for Reactive Power Services Considering System Security

IEEE Transactions on Power Systems, 2008

This paper proposes a two-level framework for the operation of a competitive market for reactive power ancillary services. It is argued that the first-level, i.e. reactive power procurement, be on a seasonal basis while the second-level, i.e. reactive power dispatch, be close to real-time operation. To this effect, a reactive power procurement market model is proposed here taking into consideration system security aspects. This procurement procedure is based on a two-step optimization model. First, the marginal benefits of reactive power supply from each provider with respect to system security are obtained by solving an optimal power flow (OPF) that maximizes system loadability subject to transmission security constraints imposed by voltage limits, thermal limits and stability limits. Second, the selected set of generators is then determined by solving an OPFbased auction to maximize a societal advantage function comprising generators' offers and their corresponding marginal benefits with respect to system security, considering all transmission system constraints. The proposed procedure yields the selected set of generators and zonal price components, which would form the basis for seasonal contracts between the system operator and the selected reactive power service providers.

Reactive power pricing in deregulated electricity market

IET Conference Publications, 2009

In the restructuring power industry, establishing an equitable and effective reactive power market with consideration of the voltage security problem is very important to provide a reliable restructured power system. The objective of this paper is to review some of the algorithms that have been proposed for pricing reactive power and present a programming method to solve the optimization problem and obtain reactive power marginal price accordingly. The production cost of reactive power into the objective function of the optimal power flow problem is included. The results from different case studies show the effects of various factors on reactive power marginal price.

Reactive Power Pricing Issues in Restructuring Power System

International Journal of Advance Engineering and Research Development, 2015

Voltage control is an inherent part of power system operation. Due to the tight coupling between reactive power and voltage magnitude, reactive support is the means used to ma intain the desired voltage profile. The reactive power is treated as a service whose purpose is to support system reliability and security. Reactive power is an important support service in the current power market. Power producers or generators have the o pportunity to offer this service to make a profit so reactive power pricing is necessary in electricity markets. A review of the important issues of reactive power support, cost analysis, reactive power pricing is shown in this paper. An IEEE-14 bus system is used for the Optimal Power Flow using MAT power.

EFFECT OF REACTIVE POWER VALUATION OF GENERATORS IN DEREGULATED ELECTRICITY MARKETS

In a deregulated electricity market, Independent System Operator (ISO) meet contracted transaction in secure manner for reactive power provision. It is differently done in deregulated electricity market of different countries .In the paper, a reactive power procurement market model is proposed along with reactive power valuation. Reactive power valuation is concerned with social and technical aspects of generators .It is discussed with IEEE-24 bus results.

A new framework for reactive power market considering power system security

This paper presents a new framework for the day-ahead reactive power market based on the uniform auction price. Voltage stability and security have been considered in the proposed framework. Total Payment Function (TPF) is suggested as the objective function of the Optimal Power Flow (OPF) used to clear the reactive power market. Overload, voltage drop and voltage stability margin (VSM) are included in the constraints of the OPF. Another advantage of the proposed method is the exclusion of Lost Opportunity Cost (LOC) concerns from the reactive power market. The effectiveness of the proposed reactive power market is studied based on the CIGRÉ-32 bus test system.

A new approach for cost allocation and reactive power pricing in a deregulated environment

Electrical Engineering, 2009

Power industry has been facing restructuring problems during the past decade. Appropriate management of reactive power is very essential for supporting power system security. Reactive power has dominant effects on real energy transfer. Furthermore, it can support the secure operation of the system as an ancillary service. However, most researches have been focused on active power as the main good transacted in electricity markets. On the other hand, while reactive power production cost is highly dependent on real power output, it is mainly confined to local consumption. As a result, to avoid market power and to maintain the secure operation of the system, a fair cost allocation method seems to be very essential. Appropriate pricing of reactive power as an ancillary service has been a challenging problem during the past decade. However, most methods proposed so far for reactive power pricing are essentially based on empirical approximations. In this paper, a new method for reactive power cost allocation is proposed. The method is based on calculation of the accurate cost which will be imposed on generators due to supporting reactive power. The proposed method is fair, accurate and realistic and it can be formulated very easily. Furthermore, a new approach based on tracing algorithm is proposed for pricing of reactive power which considers the cost of both active and reactive losses allocated to each generator. Application of the proposed method on IEEE 9-bus standard network confirms its validity and effectiveness.

Combinational pricing method for active and reactive power in power system

This paper proposes a price mechanism with one price assigned for each level of bundled real and reactive power. The better allocation under this pricing method raises system efficiency via better allocation of the reactive power reserves, neglected in the traditional pricing approach. Pricing reactive power separately is not very practical since its cost is highly dependent on real power output. Equilibrium allocation of the bundled pricing is simulated on the simple 3-bus system power auction and compared with free reactive power optimal power flow solution. The efficiency of this approach is shown in the general case, and tested on the 30-bus IEEE network with piecewise linear cost functions of the generators.

A novel approach for evaluating market power in reactive power markets

European Transactions on Electrical Power, 2011

One of the main concerns for any power markets is whether individual participants can increase their profit by withholding capacity or bidding away from the marginal cost of providing the products. To address this concern, some tools and techniques for identifying and detecting dominant and must-run suppliers are required. Market power problems are more intricate in reactive power markets than those in other markets due to the specific properties of this ancillary service. This paper introduces a new structural index which takes into account reactive demand level, transmission network constraints, output limits, and circumstances of other suppliers. The proposed measure (reactive must procurement (RMP)) is a must-run index-based method which calculates the minimum reactive power capacity which must be procured by a reactive source (whether in generation or absorption mode) to supply reactive requirements of system. To illustrate the simplicity, practicality, and usefulness of introduced measure, the proposed index is applied to the IEEE 57bus test system. method, centralized or decentralized ancillary services control, and the type of providers (e.g., loads are likely to prefer bilateral contracts) . Each method of ancillary services provision has some advantages and disadvantages. For instance, procurement of ancillary services by establishment of spot markets or tendering process facilitates new participants' entrance to ancillary services market, increases social welfare, and makes market more transparent. On the other hand, spot markets or tendering processes give more rooms for dominant players to abuse market situation and exert market power. Moreover, the risk of providing adequate resources for satisfying total demand increases by spot markets or tendering process.