Optimal Reactive Power Dispatch in a Joint Active / Reactive Market Model

The participants in auction-based electricity markets need to take part in a competition way which operates based on the concept of supply and demand theory to buy or sell the electricity. However, to have a feasible market solution, reactive power services are necessary to support the transmission of power from generation to end-users. This paper presents a methodology for optimal reactive power procurement, consistent with the auction-based electricity market mechanism. The proposed reactive power market is run in subsequence of the primary electricity market, allowing active power modification in light of available transmission capacity and reactive power resources. The IEEE 30-bus test system is used to demonstrate some aspects of the reactive power market operation.