Abstract
Developing an accurate and feasible method for reactive power pricing is important in the electricity market. In conventional optimal power flow models the production cost of reactive power was ignored. In this study, the production cost of reactive power was comprised into the objective function of the OPF problem. Then, using ant colony search algorithm, the optimal problem was solved. The IEEE 14-bus system has been used for application of the method. The results from several study cases show clearly the effects of various factors on reactive power price.
Highlights
The traditional regulated and monopoly structure of power industry throughout the world is eroding into an open-access and competitive environment. planning and operation of the utilities are based on the economic principles of open-access markets
To address the above mentioned needs, in present study, both active and reactive power production costs of generators and capital cost of capacitors are considered in the objective function of OPF problem
A new method based on the ant colony algorithms and advanced sequential quadratic programming is employed to solve the OPF problem
Summary
The traditional regulated and monopoly structure of power industry throughout the world is eroding into an open-access and competitive environment. Planning and operation of the utilities are based on the economic principles of open-access markets In this new environment electric markets are essentially competitive. Berg et al.[3] pointed out the limitations of a reactive power price policy based on power factor penalties and suggested the use of economic principles based on marginal theory[4]. In a competitive electric market the generators may provide the necessary reactive power compensation if they are remunerated by the service but taking into account the loss of opportunity in the commercialization of active power[12]. To address the above mentioned needs, in present study, both active and reactive power production costs of generators and capital cost of capacitors are considered in the objective function of OPF problem.
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