OPTIMAL REACTIVE POWER ALLOCATION AND SETTLEMENT IN DEREGULATED POWER MARKET

This paper proposes a new optimal Q flow (OQF) method for market clearing and settlement of pure reactive power market to overcome the variability of loss price due to change in marginal bus. A lumped linear model is proposed for fast convergence. The power balance equality constraint and voltage inequality constraints are incorporated in the OQF method. In this method a unique reference for delivery/withdrawal point for reactive power called Market Center is proposed to share the total transmission loss equitably between the GENCO and DISCO participants in a transparent manner for pure Q Market using incremental loss factor method. The objective function is to minimize the cost of the reactive power payable to GENCOs with respect to market center. The compensation received by GENCO participants and Locational Marginal Price to be paid by DISCO participants are derived for a single sided auction market.