A Model to Remarry the Active/Reactive Power Dispatches in Competitive Environment and Active/Reactive Marginal Prices Computation

This paper describes a mathematical formulation for the active/reactive dispatch in electricity markets, including a number of issues present in market models used in several countries. Traditional market approaches are implemented considering a sequence of activities namely in terms of active power dispatch and ancillary services. However, these two problems are coupled in the sense that dispatching reactive power is not independent from the active power scheduling of generators. The proposed model admits that it is known the purely economic pool dispatch together with bilateral contracts and then it aims at dispatching reactive resources considering voltage and branch limit constraints and constraints reflecting the alternator capability curve. As a sub-result, this formulation also outputs nodal active and reactive marginal prices that can be useful to build tariff schemes. Finally, the paper includes a case study based on the IEEE 30 bus/41 branch system to illustrate the obtained results and their interest for electricity markets