Research Of Reactive Power Pricing Based On Optimal Power Flow In Electricity Market

The Ancillary Services are essential qualifications to guarantee the quality of electrical power in power system, which makes the system to operate safely and economically. At present, the question is focused on how to make an accurate and feasible method for reactive power price with the development of the electricity markets. For the moment, most of pricing methods for reactive power are reactive power spot pricing methods, which pay close attention to market efficiency. But reactive power real-time pricing methods go against recovering the investment cost of reactive power and are hard to inspire the investment to reactive power in side of capital market due to the characteristic that the investment cost of reactive power is a main part of its cost. the investment cost of reactive power is a main part of its cost. However, as the research of Ancillary Services has not received significant attention until recently, the theory on it is still not well defined, it has not reasonable pricing. The paper present the preliminary analysis and research about the reactive power costing and pricing in the electricity markets.At first, this paper concluded electricity markets and ancillary services and introduced the background of the reform of power industry, the restructuring of the power industry, current situations of electricity markets, the variety of ancillary service and its acquirement, and introduced the research actuality and the experience in reactive power pricing abroad. By introduced the reactive power market models, this paper analyzed the content and the impressed factors of reactive power service, and clarified the costing of different reactive power generators and their performances.Following that, this paper introduced the principle of established reactive power pricing and influence factors, and the methods for basic and traditional reactive power pricing. Based on the primary theory, modem interior point method of Optimal Power Flow is chosen to implement the model proposed of reactive power pricing. The function is the least of production cost of reactive power and active power, Besides the generator, phase modifier, condenser, parallel connection reactor and SVC,the method concludes the production cost of SVG, improved on functions and conditions ,which make the functions more integrity, It does well to recover reactive investment cost, and resumed the traditional methods, and inspirited the investment cost.Then, this paper discussed the applications of OPF in electricity market.The methods to solve OPF are discussed. Path Following interior point method due to its good calculation performance is chosen to implement the model proposed in this paper.The arithmetic is a good method in optimized electric system which has rapid speed and rapidly convergence.Lastly, the 6-bus system and the 14-bus IEEE standard system are given to verify the proposed model and algorithm correction and effectiveness.