Analysis Of Reactive Power Market Based On Power Flow Tracing And Resource Value

Reactive Power Auxiliary Service (RPAS) is advanced higher demand during the course of power industry tending market. How to satisfy overall systems and customer requirement for reactive energy under the security and reliability of power system is the urgent research subject.First, reactive power market and the relevant element are introduced, and then several different frameworks on reactive power market and methods on reactive power pricing are presented and their advantage also defect is summarized. In the paper, reactive power market is divided into two parts: reactive capacity market and reactive energy market of reactive power.Reactive power capacity cost is valued based on contribution to system security and voltage reliability. In the paper, the four methods based on the evaluation of source's reactive power are analyzed. Those are Voltage Sensitivity (VS), PV curves, Back-up generation and Equivalent Reactive Compensation (ERC) methods.Considering their advantage also defect, the paper adopts the Equivalent Reactive Compensation method. Reactive power pricing and the allocation of reactive power cost is the key to the reactive energy market. There are obviously two different methods in reactive power pricing: the method based on spot price and the method based on embedded cost. The spot price of the reactive power contains rich information about the marginal operational cost of the power system. It's a good measure for computing the reactive power price on power market. However,the spot price has its inherent shortcoming of sensitive to the change of systems parameters and configurations, difficult to realize in real-time and the revenue obtained might significantly deviate from actual system cost. So the paper presents the allocation method based on modified Y-Bus Matrix. This method establishes a linear relationship between reactive sources and reactive loads by the relative coefficient of reactive power and lays theoretically a new foundation for exact allocation of reactive cost. In the paper, the reactive cost is divided into two parts: the reactive generation cost and the reactive transmission cost.The proposed methodology is tested on the IEEE-5 bus system. The test results verified the validity of the proposed concept and method.