Radial System Reconfiguration to Minimize Operating Costs in Markets

Abstract

The operating cost of a radial distribution system may be minimized by reducing the amount of real power and reactive power drawn from the transmission system. Presently, real power is being priced through a market clearing scheme all over North America. Reactive power is an ancillary service and its supply would be priced appropriately in the near future through a clearing market structure. A recent US Federal Energy Regulatory Commission staff report [1] has initiated a discussion on the formulation of a reactive power market. When such a market is designed and operated, large customers (distribution corporations) will have to purchase reactive power along with real power from the transmission corporation through an independent system operator. Envisaging such a prospect, this paper proposes a new method of reconfiguring radial systems considering costs of real and reactive power while maintaining an appropriate voltage profile and level of reliable power supply. The proposed method is tested on sample test systems and reported.