A New Framework for Reactive Power Dispatch in Electricity Markets

Abstract

This study proposes a reactive power dispatch model within the context of electricity markets considering both technical and economical issues. The model utilizes a new metric introduced here for reactive power reserve management in voltage control areas. Besides minimizing total reactive power payments, the objective function manages for an optimum reserve in each voltage control area. The proposed reactive power dispatch model is decoupled from active power dispatch and the generators' active power is assumed fixed during the procedure. The relation between active power and reactive power of a synchronous generator is also included in the model by considering the generators’ capability curves. The CIGRE 32-bus test system is used to demonstrate the feasibility and aspects of the proposed model.