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Proceedings Articleâ€ĸDOIâ€ĸ

Locational Marginal Pricing of Reactive Power in Real Time Market Considering Voltage Support Requirement

01 Dec 2019-
TL;DR: The advantage of proposed pricing scheme is that, the generators are paid based on the value of reactive power requirement in the system determined locally, thereby reducing volatility of price and chance of exercising market power.
Abstract: Among the ancillary service markets for smooth real time operation of the system, reactive power support ancillary service market is regarded as one of the most important services. In this work, the total reactive power required in the system is formulated and based on the bids received from the market participants, value for reactive power is determined. Due to localised nature of reactive power, an assessment of local reactive power requirement is more effective and hence in this work, a localised reactive power market is formulated. The objective of system operator is to minimise value of reactive power in each local market such that optimal scheduling of reactive power generation is achieved subject to system constraints and voltage support. The value function is formulated from the operation cost bids and lost opportunity cost bids (LOC) received from Generation Companies (GENCOs). From the Lagrange function, locational marginal price (LMP) is then determined. The proposed localised reactive power market is tested on IEEE 24-Bus system. It is found that the localised reactive power market maintains sufficient reserve and provide better voltage support. The advantage of proposed pricing scheme is that, the generators are paid based on the value of reactive power requirement in the system determined locally, thereby reducing volatility of price and chance of exercising market power.
Citations
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Journal Articleâ€ĸDOIâ€ĸ
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

Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article , a trading mechanism designed for ICESO and distribution system operator (DSO) interaction toward both active and reactive power is represented in the day-ahead DEM, where distribution locational marginal prices (DLMPs) for both reactive power are introduced as the market settlements.
References
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Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article, a load model, generation system, and transmission network which can be used to test or compare methods for reliability analysis of power systems is described. But the authors focus on the reliability of the power system and do not consider the transmission system.
Abstract: This report describes a load model, generation system, and transmission network which can be used to test or compare methods for reliability analysis of power systems. The objective is to define a system sufficiently broad to provide a basis for reporting on analysis methods for combined generation/transmission (composite) reliability.

2,289 citations

Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article, a reactive bid structure is proposed in the context of a reactive power market, based on the reactive power price offers and technical constraints involved in reactive power planning, a two-tier approach is developed to determine the most beneficial reactive power contracts for the ISO.
Abstract: This paper addresses the problem of reactive power procurement by an independent system operator (ISO) in deregulated electricity markets. A reactive bid structure is proposed in the context of a reactive power market. Based on the reactive power price offers and technical constraints involved in reactive power planning, a two-tier approach is developed to determine the most beneficial reactive power contracts for the ISO. The reactive capability of a generator and, therefore, the opportunity costs in providing reactive power is also included in the model. Uncertainty in reactive demand and in reactive bids of participating parties is incorporated through Monte Carlo simulations and the expected reactive power procurement plan for the ISO is hence determined. The CIGRE 32-bus network, approximately representing the Swedish system, is used for the studies.

317 citations


"Locational Marginal Pricing of Reac..." refers background in this paper

  • ...With the definition of expected payment function [10], the GENCOs are not provided payment for reactive power required for voltage support....

    [...]

Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article, an analysis of real-time pricing policies of reactive power using a modification of the OPF (optimal power flow) model is presented, followed by a case study illustrating the magnitudes and ranges that realtime prices might take on under different circumstances.
Abstract: An analysis is made of real-time pricing policies of reactive power using a modification of the OPF (optimal power flow) model. The theory of real-time pricing of reactive power is presented, followed by a case study illustrating the magnitudes and ranges that real-time prices of reactive power might take on under different circumstances. The efficiency implications of real-time pricing of reactive power are compared with traditional power factor penalties. It is concluded that real-time pricing of reactive power should develop simultaneously with that of active power for maximum economic efficiency and smooth operation of the electricity marketplace. >

291 citations


"Locational Marginal Pricing of Reac..." refers background in this paper

  • ...al [2] pioneered the concept of real time reactive power pricing based on optimal power flow....

    [...]

Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article, a localized competitive market for reactive power ancillary services at the level of individual voltage control areas is proposed, where uniform prices for various components of reactive power service are obtained for each voltage-control area.
Abstract: In this paper, we present the design of a localized competitive market for reactive power ancillary services at the level of individual voltage-control areas. The concept of electrical distance has been used to identify the different voltage-control areas within a power system. The proposed reactive power market is settled on uniform price auction, using a modified optimal power-flow model. Uniform prices for various components of reactive power service are obtained for each voltage-control area. In the study cases described in the paper, we examine whether such a localized reactive power market is more desirable than a common system-wide reactive power market.

215 citations

Journal Articleâ€ĸDOIâ€ĸ
TL;DR: In this article, the authors present research results on the development of new concepts and schemes for equitable reactive power support valuation, and verify the validity of the proposed method through sensitivity studies.
Abstract: Competitive procurement of reactive power support services is rapidly becoming a reality for deregulated electricity markets. It has resulted in a great need to quantify the value of reactive power support from var sources. This article presents research results on the development of new concepts and schemes for equitable reactive power support valuation. Performance characteristics of the proposed method are determined and practical application issues are addressed. The validity of the method is verified through sensitivity studies. This work emphasizes that the valuation of reactive power support services should be based on their contributions to system security and stability. The dynamic var is the primary concern for the reactive power valuation problem.

79 citations