Optimal market settlements incorporating voltage stability

This study aims at investigating the changes in power market transaction levels when taking into account the voltage stability consideration in the market settlement scheme. The study is based on a security constrained optimal power flow (SC-OPF) framework for a combined bilateral-and-pool electricity market. An IEEE 30-bus test system is used in the study. It is found that the voltage security constraints could help independent market operators to include a sufficient margin for allowable power transactions to ensure the system security while maximizing the social welfare. In that case, the power systems will be operating with a larger security margin. It is, however, important to note that the social welfare is compromised with the increased security margin.