Reactive power service cost allocation using aumann-shapley method

There is a general consensus that there should be a separate reactive power market to manage the provision of reactive power in a deregulated power system. Owing to the importance of such a reactive power service for system reliability and its complexity, a significant degree of obligation and centralised control are needed in this market. A centrally-managed reactive power market model is adopted in which the system operator, taking into account the technical feasibility and economic efficiency, procures the required reactive service from the competitive reactive power suppliers and the incurred cost is fully allocated to all users. A reactive power optimum power flow is used as a tool for the procurement and dispatching of reactive power services. As the reactive power can be consumed directly or consumed indirectly, accompanied by the transportation of real power, difficulties arise in the cost allocation process, especially in a pool-bilateral coexisting real power energy market. A reactive power cost allocation scheme using the Aumann-Shapley method is proposed to tackle this challenge. A modified IEEE 14-bus system is used to demonstrate the validity of the proposed methodology.