Research on procurement strategy of reactive power as auxiliary service in power markets

Abstract

For reactive power as a kind of auxiliary service in power markets, based on analysis to generators' operation limits and production cost of reactive power, this paper proposes a segmented bidding model of generators' reactive power generation. The proposed model ensures generation companies to compensate "loss of opportunity cost" by the generator generating amount of reactive power instead of active power, also suitable for independent system operator (ISO) procuring enough reactive power to meet the demand of reactive power and voltage support by power systems. From the viewpoint of ISO, this paper provides a dispatching reactive power model, based on optimal power flow, which are minimized both the cost of procuring reactive power as auxiliary service and the losses of active power. The proposed model is solved by genetic algorithm to obtain the best procurement strategy of reactive power as auxiliary service. Lastly, some numerical tests are given to verify the proposed model and algorithm correction and effectiveness.