Optimal Supply of Reactive Power Allocation and Pricing in Deregulated Electricity Market

Abstract

In the deregulated power system, the reactive power which is one of the newlineancillary services plays a crucial role in maintaining an acceptable voltage newlineprofile and voltage stability of the system. This research work suggests a Pure newlineQ electricity market and recommends a new Single Slack Bus DC Q Flow newlinemodel (SSBDCQPF) whose accuracy in bus voltage magnitude under base newlinecase and contingency case is adequate for a pure Q electricity market and newlinewhich is non iterative and calculates the voltage magnitude solution in one newlineiteration. An DC Iterative QPF model (DCIQPF) is also suggested whose newlineresults match exactly with the solution obtained using FDPF technique. These newlinetwo methods are tested on three different systems such as quotWard and Hale 6 newlinebus system, IEEE 30 bus system and Indian Utility 119 Bus Systemquot for newlineQ = 0.1MVAr. The results show that SBDCQPF model is fast when newlinecompared to FDPF and DCIQPF model. Maximum voltage magnitude error is newlineacceptable for security analysis. newlineA unique delivery/withdrawal point for reactive power called Market newlineCenter (MC) concept is proposed for Pure Reactive Power auction market. newlineUsing MC concept, the GENCOs loss contribution has to be measured from newlinewhere they deliver power and DISCOs loss contribution has to be measured newlinefrom where they withdraw power. When GENCO and DISCO participants are newlinepresent in the same bus their loss contribution and loss factor would be newlinedifferent. The MC concept is tested on four different systems such as quotRadial newlinefive bus system, Ward and Hale 6 bus system, IEEE 30 bus system and Indian newlineUtility 119 Bus Systemquot for Q = 0.1MVAr. The test results show that loss newlineallocation by the proposed incremental loss factor method is more fair and newlinetransparent to all participants. newlineThis concept is used in Single Slack Bus DC Optimal Reactive Power newlineFlow (SSBDCOQPF) model in which losses are accounted using incremental newlineloss factors measured with reference to MC. The objective function of this newlinemodel is to minimize the cost of Q payable to GENCO w.r.t MC. The equality newlineconstraint comprises of power balance equation (Lumped linear Model) and newlineinequality constraint are bus voltage magnitudes. The bus price includes newlineix newlinecompensation for reactive power, loss price and price for violation of voltage. newlineThe test results indicates that the proposed method is more fair, equitable and newlinetransparent to all participants when compared to the existing methods. It is newlineinferred that the bus loss (total) is reduced significantly and reflected in the newlineobjective cost minimization. Also, the bus voltage violations are removed in this newlinemodel. newlineIn addition to SSBDCOQPF model a new DC Participant Based newlineDistributed Slack Reactive Power Flow model (PBDSQPF) is also proposed for newlinebase case and contingency case. Here losses are distributed to all individual newlineparticipants instead of all buses. The test results show that The maximum newlinevoltage magnitude error in percentage is acceptable for security analysis and it newlineis faster than SSBDCQPF method. newlineThis research work also proposes a new Participant Based Distributed newlineSlack Reactive Optimal Reactive Power Flow model (PBDSOQPF) for MCAS of newlineQ auction market. The equality constraint comprises only power balance newlineequation (lumped linear Model) and the inequality constraint (bus voltage newlinemagnitudes) are also incorporated in the model. The bus price includes newlinecompensation for reactive power, loss price and price for violation of voltage. newlineAlso, the bus voltage violations are removed in this model. MCAS for the newlineproposed method is fair, transparent and equitable all participants. newline