Towards reactive power markets. Part 1: reactive power allocation

Abstract

Although real power is the main traded commodity in electricity markets, reactive power plays a crucial role in power systems reliability and security. In competitive electricity markets, no market participant wants to subsidise others in any way. Market participants utilise the network in different ways to maximise their profits. It means that their effects on the system, such as losses, can also be different. The development of a fair and accurate loss allocation scheme for real and reactive power is significant in avoiding cross subsidies and to have the correct charge for each participant. A new method is introduced to allocate real and reactive power losses in bilateral markets. The basic idea of the method assumes that transactions have their own effects on the system as well as their interactive effects with each other. Each transaction share of losses is based on its contribution to the system current flows. The proposed method determines these currents contributions and adjusts them, due to system nonlinearity, using the introduced current adjustment factors (CAFs). Unlike other approaches, the proposed method can effectively and easily allocate both real and reactive power losses simultaneously, which saves time and effort. It also determines the contribution of each transaction to every branch on the system. In addition, a new index, voltage participation index (VPI), is proposed to measure reactive power supports participation. This index is based on modified Y-bus matrix method proposed previously. The CAF method and VPI are illustrated using a simple three-bus system. Then they are verified on many systems, but due to space limit, only the results of IEEE 14- and IEEE 300-bus systems are presented. Results illustrate consistency with expectation. Part 2 will address the issue of how to price reactive power based on the technique developed in Part 1

Assessing the Future Trends of Reactive Power Demand of Distribution Networks

“…Most of the work in this area focuses on the operational and market perspectives (e.g., control of distribution voltages [5]- [6], provision of services from distribution to transmission [7], [8]). There is very limited documentation investigating the decline in reactive power demand of distribution networks, i.e., at the transmission-distribution (T-D) interfaces.…”

Reactive Power Market-Management Considering Uncertainties of Load and Power of Wind Powerhouses

“…Due to simultaneous transmission of active and reactive powers in lines, however, the precise amount of participation of each unit is difficult to determine and, to some extents, is subjective [4][5][6][7]. Reactive power costs include explicit and implicit costs.…”

Hybrid Genetic Algorithm-Support Vector Machine Technique for Power Tracing in Deregulated Power Systems

“…In the last decades, several power flow tracing algorithms have been proposed in literature mainly from physical flow approach (Bialek & Tam, 1996;Wu et al, 2000;Sulaiman et al, 2008;Pantos et al, 2005) and circuit theory approach (Teng, 2005;Wen-Chen et al, 2004;Mustafa et al, 2008a;Lo & Alturki, 2006). The concept of proportional sharing principle has been proposed by (Bialek & Tam, 1996).…”

“…The uses of circuit theory in power tracing have been introduced in (Teng, 2005;Wen-Chen et al, 2004;Mustafa et al, 2008a;Lo & Alturki, 2006). In (Teng, 2005), a method that applies superposition theorem to trace the power flow and loss in deregulated system has been proposed.…”

“…However, there are some conditions where the tracing at certain lines or loads could be greater than the power produced by its generation. In (Lo & Alturki, 2006), partitioned Y-bus is applied to design a voltage participation index (VPI) together with the concept of current adjustment factors (CAF) for the reactive power tracing algorithm. CAF is the transformation of complex matrix coefficients for adjustment of non-linearity of the network due to real and imaginary factor interactions.…”