Optimal Reactive Power Provision of Wind Farms in Liberalized Markets - A Generation Viewpoint

This paper proposes a methodology for the optimal management of the reactive power of non-dispatchable distributed generators. The optimization problem is stated from the generation utility viewpoint, aiming to improve the revenue in the active power sale and considering a power loss allocation policy based on incremental approach. The proposed methodology permits to evaluate the impact of reactive power injection in the active locational marginal prices of each generation bus. Both pricing and power quality policies imposed by the regulatory board are considered in the formulation. This model is suitable to be applied in the real time operation of the distributed generators. The proposed strategy maximizes the individual revenue, without changes in the active power output. The model has been tested and results are discussed from an illustrative distribution test system