Abstract:
This paper proposes some methods for incorporating reactive power dispatch into nodal pricing and dispatch algorithms in poolbased
electricity markets. The current approach of dispatching real power using a simplified power flow model and subsequently
allocating reactive power as an ancillary service has the problem of getting suboptimal and some times infeasible solutions. However
the complete a.c. power flow formulation can lead to problems, due to non-convexity and resource limitations. This paper proposes
an improvement to the standard decoupled linear formulation approach. In the proposed method real power is dispatched first and
then reactive power is dispatched allowing small changes to real power dispatch. The results of case studies show that this method
gives similar results to the full non-linear solution for real and reactive power dispatch and prices.
