Game Theoretical Approach to Novel Reactive Power Ancillary Service Market Mechanism
01 Mar 2021-IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers (IEEE))-Vol. 36, Iss: 2, pp 1298-1308
TL;DR: In this paper, a market mechanism for real-time reactive power ancillary service market based on Stackelberg game model is proposed considering voltage-apparent power coupled subsystems.
Abstract: In deregulated power systems, reactive power ancillary service through electricity market is becoming relevant where private generation companies participate in maintaining system wide bus voltage within the permissible limits. Marginal cost price (MCP) based real time reactive power ancillary service market faces several challenges due to the localized nature of reactive power. In this paper, a market mechanism for real time reactive power ancillary service market based on Stackelberg game model is proposed considering voltage-apparent power coupled subsystems. In the proposed Stackelberg game model, Independent System Operator (ISO) is considered as the leader, and GENCOs as followers. In the formulation, each GENCO is associated with a relevance factor in the partitioned subsystem so as to consider the real time voltage support requirement in the system. The market is then formulated as Mathematical Program with Equilibrium Constraints problem (MPEC). Existence of equilibrium, incentive compatibility, and individual rationality of the proposed market mechanism is then analysed in this work. The numerical examples are illustrated in PJM 5-bus system, and tested on IEEE 30- bus system, and Nordic 32 Bus-system. The mechanism induces truth-telling behavior of GENCOs, yields a non-negative profit, and the system wide bus voltage is improved.
Citations
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TL;DR: In this article , the authors provide a comprehensive overview of the characteristics and hardships of reactive power markets, focusing on market power, game theoretical approaches, Reinforcement Learning, and manipulation.
Abstract: Liberalization of the energy system sets the way towards market-based solutions for ancillary service provision. Local reactive power markets are envisioned to achieve more economically and technically efficient reactive power provision to solve voltage control problems in future distribution and transmission grids. However, market-based reactive power procurement is a difficult and yet unsolved problem. This survey provides a comprehensive overview of the characteristics and hardships of reactive power markets. That is followed by a literature overview of reactive power market design, including local markets and markets on system operator level. Further, methods how to analyse reactive power markets are discussed, focusing on market power, game theoretical approaches, Reinforcement Learning, and manipulation of reactive power markets. From this overview, trends and current research gaps are derived and some general research recommendations are given to serve as a guideline for future research in the field of reactive power markets.
20 citations
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TL;DR: In this article, a thorough review of the electricity markets worldwide with solar energy is provided, and a variety of proposed mathematical solutions to the problem are also discussed, with the focus on the uncertainty-based market operations.
Abstract: With the accelerating penetration of solar energy in energy systems, market operations concerning the solar-associated intermittency are widely discussed. How to correctly model the solar generation in the market and solve the uncertainty-based operation problems call for solutions. Unlike other renewable resources, solar power can be more easily applied to the demand side through behind-the-meter installations in a distributed manner with significant future extensibility. The corresponding operational rules in the markets are largely being revised. Over the past two decades, with the development of deregulated power markets, numerous studies related to uncertainty-based market operations tend to transform the market from a deterministic and centralized framework to a stochastic and decentralized one. As the relevant literature is most recent, this paper reviews their contributions to electricity market operations with solar integration and underlines the research directions of this topic and ongoing industry practices. A thorough review of the electricity markets worldwide with solar energy is provided. A variety of proposed mathematical solutions to the problem are also discussed.
18 citations
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TL;DR: In this paper , the impacts and challenges of electricity market on hydro-dominated power system operations are analyzed, and two kinds of suggestions are presented to overcome these difficulties for different market objects: hydropower enterprises are suggested to improve generation prediction level, reconstruct market-based operation rules, implement multiscale nested operations and bidding, strengthen collaborative bidding of different stakeholders, and analyze market demands and competitors.
16 citations
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TL;DR: The proposed methodology has been tested on modified IEEE 30-bus and IEEE 118-bus test systems and the performance of both test systems is analyzed for two studies namely, VAr dispatch without wind integration, and V Ar dispatch under wind integration.
9 citations
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TL;DR: A novel, low-cost, efficient, and user-friendly smart PQ meter that implements a novel PQ-based tariff scheme that penalizes consumers violating the PQ limits and provides incentives for a good PQ profile is presented.
Abstract: Regarding the modern power smart grid, distribution consumers and prosumers are highly concerned about power quality (PQ). In fact, they would prefer to pay higher prices for a reliable and good quality power supply. Unfortunately, utility operators still aim for reliability alone, ignoring the quality of supply voltage and current. There are no clear guidelines for monitoring, penalizing, or implementing PQ-based tariff schemes in LV distribution systems. In addition, the implementation of a PQ-based tariff requires a real-time measuring mechanism at the user end, which is very expensive and difficult to understand for a domestic consumer. This paper presents a novel, low-cost, efficient, and user-friendly smart PQ meter to overcome these issues and limitations. It is essentially a PQ analyzer with energy metering functionality, which implements a novel PQ-based tariff scheme that penalizes consumers violating the PQ limits and provides incentives for a good PQ profile. It measures as many as 28 parameters and keeps track of the PQ for both the consumer and the grid in real-time. This paper demonstrates the specifications, design, and testing of the meter and proves the validity of the concept by practical implementation. The meter is practical, feasible, and economical for implementing PQ-based tariff schemes in LV distribution systems or smart grids.
7 citations
References
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TL;DR: In this paper, the authors address two well-known problems of competitive electricity markets: (1) reactive power procurement and (2) congestion management, using social welfare maximization in pool-based competitive energy markets.
Abstract: This article addresses two well-known problems of competitive electricity markets: (1) reactive power procurement and (2) congestion management, using social welfare maximization in pool based competitive electricity markets. The social welfare function, which customarily consists of the benefit function of consumers and cost function of real power generation, is modified to include the cost function of reactive power generation. This will incorporate an economic signal regarding production and consumption of reactive power within locational marginal prices payable to the suppliers and chargeable from the consumers at different locations. The reactive power cost function of a synchronous generator is modeled using the lost opportunity to trade real power to produce required amount of reactive power. An approximate P-Q capability curve of the synchronous generator is used for this purpose. Further, the effect of incorporation of consumers' benefit bids on managing system congestion at an acceptabl...
36 citations
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16 May 2006
TL;DR: The characteristics of reactive power and voltage support are presented and a generic methods for pricing reactive power are proposed and the first is a capacity based method and the second is based on actual reactive power production.
Abstract: This paper presents the characteristics of reactive power and voltage support and proposes two generic methods for pricing reactive power. The first is a capacity based method and the second is based on actual reactive power production. A combination of both is also presented in the paper as a possible alternative. The framework for reactive power management and pricing along with the specific market rules for the California market is further presented in detail.
33 citations
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TL;DR: This article tries to solve the problems of traditional nodal pricing methods to be able to consider opportunity and availability costs for the generators to calculate reactive power price.
29 citations
"Game Theoretical Approach to Novel ..." refers methods in this paper
...The total voltage deviation (TVD) given by [19] is evaluated in all three cases of the system and is tabulated in Table IV....
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01 Jan 2007
TL;DR: In this paper, a combined reactive power market model is proposed, encompassed with regulated financial compensation of the costs for reactive power sources and value-based reactive power pricing, for evaluating reactive power service.
Abstract: Reactive power service is one of the most important ancillary services in electricity market. In this article the combined reactive power market model is proposed, encompassed with regulated financial compensation of the costs for reactive power sources and value-based reactive power pricing. The methodology of calculation of costs of generators, synchronous condensers and static reactive power sources for economical evaluation of reactive power service was created. In the investigational part the reactive power market model was applied for Lithuanian power system to determine the amount of compensation for reactive power sources.
12 citations
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TL;DR: An isoperimetric clustering based algorithm for partitioning power systems into voltage–apparent power coupled areas is proposed and it is shown that large networks can be represented as a weighted graph with number of vertices equal to number of generators in the system which is much lesser than the size of system, thereby reducing the computational effort for partitions.
Abstract: This work proposes a novel relative electrical distance measure that provides information of coupling between voltage and apparent power between two buses in power systems. Relative electrical distance measure is derived from the bus admittance matrix which can be obtained in real time using Phasor Measurement Units. Based on the relative electrical distance measure, in this work, an isoperimetric clustering based algorithm for partitioning power systems into voltage–apparent power coupled areas is proposed. The advantage of the partitioning algorithm proposed in this work is that large networks can be represented as a weighted graph with number of vertices equal to number of generators in the system which is much lesser than the size of system, thereby reducing the computational effort for partitioning. Isoperimetric clustering technique along with k-means is then applied to the graph to obtain voltage–apparent power coupled areas. Simulations carried out on New England 39-bus system and IEEE 118-bus system demonstrate the effectiveness of the proposed methodology for partitioning the system into voltage–apparent power coupled areas, subject to changes in the operating condition of the system. The quality of clustering is analysed and compared with Cheeger inequality bounds, which ensures that power system is well partitioned.
9 citations
"Game Theoretical Approach to Novel ..." refers methods in this paper
...In [11], voltage-apparent power coupling between two buses (i and j) has been derived from the bus admittance matrix of the system....
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...System is partitioned into voltage-apparent power coupled areas using isoperimetric partitioning technique [11]....
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...Thus in this work the technique proposed in [11] is adopted to partition the system into voltage-apparent power coupled areas....
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