Impact on nodal pricing with different generators' reactive power cost models in pool based electricity markets

In this paper, the impact on nodal price determination of real and reactive power considering different reactive power price cost calculation methods for generator reactive power has been presented. The impact of FACTS controllers has also been considered taking their cost function into account. The comparison of fuel costs, reactive power cost, and cost of FACTS devices, and their impact on nodal price determination has been presented for different cases of reactive power cost models. The effectiveness of the proposed approach has been tested on IEEE 24-bus Reliability Test System (RTS).

[1]  Marcos J. Rider,et al.  Application of a nonlinear reactive power pricing model for competitive electric markets , 2004 .

[2]  M. E. El-Hawary,et al.  A summary of algorithms in reactive power pricing , 1999 .

[3]  Jose Luiz Rezende Pereira,et al.  Flexible AC transmission system devices: allocation and transmission pricing , 1999 .

[4]  N. H. Dandachi,et al.  OPF for reactive pricing studies on the NGC system , 1995 .

[5]  M. L. Baughman,et al.  Real-time pricing of reactive power: theory and case study results , 1991, IEEE Power Engineering Review.

[6]  S. N. Siddiqi,et al.  Reliability differentiated pricing of spinning reserve , 1995 .

[7]  J. W. Lamont,et al.  Cost analysis of reactive power support , 1999 .

[8]  F. Schweppe,et al.  WRATES: A Tool for Evaluating the Marginal Cost of Wheeling , 1989, IEEE Power Engineering Review.

[9]  Michael A. Einhorn,et al.  Electricity transmission pricing and technology , 1996 .

[10]  J. Stonham,et al.  Decomposition model and interior point methods for optimal spot pricing of electricity in deregulation environments , 2000 .

[11]  Marcos J. Rider,et al.  Reactive power pricing in deregulated electrical markets using a methodology based on the theory of marginal costs , 2001, LESCOPE 01. 2001 Large Engineering Systems Conference on Power Engineering. Conference Proceedings. Theme: Powering Beyond 2001 (Cat. No.01ex490).

[12]  Marija D. Ilic,et al.  Unbundling of transmission and ancillary services. I. Technical issues , 1997 .

[13]  Yi Hu,et al.  Engineering foundations for the determination of security costs , 1991 .

[14]  Jong-keun Park,et al.  Optimal real time pricing of real and reactive powers , 1998 .

[15]  S. C. Srivastava,et al.  Impact of FACTS devices on transmission pricing in a de-regulated electricity market , 2000, DRPT2000. International Conference on Electric Utility Deregulation and Restructuring and Power Technologies. Proceedings (Cat. No.00EX382).

[16]  A. Kumar,et al.  Effect of optimally located FACTS devices on active and reactive power price in deregulated electricity markets , 2006, 2006 IEEE Power India Conference.

[17]  V.M. Dona,et al.  Reactive power pricing in competitive electric markets using the transmission losses function , 2001, 2001 IEEE Porto Power Tech Proceedings (Cat. No.01EX502).

[18]  M. L. Baughman,et al.  Advanced pricing in electrical systems. II. Implications , 1997 .

[19]  J. Barquin Gil,et al.  Reactive power pricing: a conceptual framework for remuneration and charging procedures , 2000 .

[20]  H. A. Othman,et al.  Evaluating transmission congestion constraints in system planning , 1997 .

[21]  G. B. Shrestha,et al.  Effects of series compensation on spot price power markets , 2005 .

[22]  Jyoti K. Parikh,et al.  Optimal reactive power planning and its spot-pricing: an integrated approach , 1995 .

[23]  Michael C. Ferris,et al.  MATLAB and GAMS: Interfacing Optimization and Visualization Software , 1999 .

[24]  Michael C. Caramanis,et al.  System security control and optimal pricing of electricity , 1987 .

[25]  A. El-Keib,et al.  Calculating short-run marginal costs of active and reactive power production , 1997 .

[26]  M. Irving,et al.  A Cost Allocation and Pricing Method for Reactive Power Service in the New Deregulated Electricity Market Environment , 2005, 2005 IEEE/PES Transmission & Distribution Conference & Exposition: Asia and Pacific.

[27]  Shangyou Hao,et al.  Reactive power pricing and management , 1997 .

[28]  L. Willis,et al.  Computing the cost of unbundled services [power transmission] , 1996 .