Pareto-efficient double auction power transactions for economic reactive power dispatch

Abstract

Pareto-efficient 12-h variable double auction bilateral power transactions have been considered here. Effect of such on the economic welfare is observed while solving the reactive power dispatch (RPD) by differential evolution with random localization technique. This has been accomplished by a combination of static and dynamic var compensators like capacitor and superconducting magnetic energy storage (SMES) considering the IEEE 57-bus network. Out of these 12-h variable power transactions, the Pareto efficient transactions which were reconciled by planed biding, have provided the maximum global welfare. The economics were ascertained by cumulating the net benefits of the market players and the reduced merchandising surplus caused by the var compensators. The combined capacitor–SMES based Pareto efficient observations on economic RPD were able to reduce 7.41% more power loss and 2.5 times improved economic benefit over the singular capacitor placement. This further achieved 0.069% profit enhancement in connection to the fundamental global welfare.