Financial analysis of reactive power procurement in pool-based deregulated power market integrated with DFIG-based wind farms

Abstract

Summary Reactive power management is one of the prime ancillary services provided by independent system operator in deregulated power market as it supports real power transfer by controlling system voltage within specified limits. In this article, financial impact of reactive power production in pool‐based deregulated power market integrated with wind farms is analyzed. Reactive power cost of different generators including fixed speed wind units and doubly fed induction generator (DFIG)‐based variable speed wind units is calculated using the concept of loss of real power spinning reserve cost. This model is then extended to incorporate reactive power cost in terms of lost opportunity cost to bid scheduled real power by using loading capability curve. The proposed model is validated and implemented on a modified five‐bus test system and is then extended to a larger IEEE 24‐bus RTS system using GAMS 23.4 software in interfacing with MATLAB 7.0. Results reveal superior financial and technical performance of DFIG wind farms as compared to fixed speed wind farms in reactive power management.

Cost-based Risk Approach for Spinning Reserve Assessment in Bulk Power Systems

“…Amirahmadi and Akbari Foroud [9] have used hybrid probabilistic and deterministic based approaches for security assessments and optimal spinning reserve allocation. Although in hybrid approaches reliability indices are directly included in the model, due to the heavy computation and complexity of these indices, it is difficult to obtain the optimal solution [10][11].…”