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Re-defining the reactive power dispatch problem in the context of competitive electricity markets

Abstract:

This study proposes a novel reactive power dispatch model that takes into account both the technical and economical aspects associated with reactive power dispatch in the context of the new operating paradigms in competitive electricity markets. The main objective of the proposed model is to minimise the total amount of dollars paid by the system operator to the generators for providing the required reactive power support. The real power generation is decoupled and assumed fixed during the reactive power dispatch procedures; however, because of the effect of reactive power on real power, a re-schedule in the real power generation is allowed within given limits. The 32-bus CIGRE benchmark system is used to illustrate the proposed reactive power dispatch technique. The developed model is generic in nature and designed to be adopted by system operators in any electricity market structure, as demonstrated by its application to Ontario's grid considering its market rules for reactive power payments. © 2010 © The Institution of Engineering and Technology.