| The research work presented in this thesis proposes the incorporation of the reactive power market into the day-ahead electricity market in order to compensate generation companies (GENCOs) and independent power producers (IPPs) for providing any additional reactive power support, which varies on an hourly basis based on the load demand, transmission network configuration, and any contingencies that might occur. This proposal would minimize the total payment burden on the independent system operator (ISO), which is related to the reactive power dispatch. The proposed model achieves the main objective of an ISO in a competitive electricity market, which is to provide the required reactive power support from generators at minimum cost while ensuring the secure operation of the power system. In this research, the reactive power price is the bidding-based price that is submitted by the GENCOs and IPPs to the ISOs during the day-ahead market. The proposal takes into the account both the technical and economic aspects associated with the active power and reactive power dispatch in the context of the new operating paradigms in competitive electricity markets. In this research, the Security Constrained Unit Commitment (SCUC) based on AC power flow modeling is considered as the drive engine for clearing the day-ahead electricity market based on the amount of information provided by the market participants. This proposed framework would provide appropriate reactive power support from service providers at minimum cost, while ensuring the secure and reliable operation of the electrical power system. Also, the PQ capability curves of the generating units are modeled to ensure the practically of the SCUC solutions that are obtained. This proposal would be an essential step toward a fair electricity market while increasing the security of the power system and reducing transmission congestions. This proposal would pave the road for various renewable energy resources since the penetration of renewable energy resources would impact the commitment of the generating units and the available reactive power reserve margin and security of the network. In addition, incorporating the reactive power market into the day-ahead market would provide a clear signal for optimal private investment in the reactive power capacity. |
