Probabilistic framework of cooperative disperse generation resources scheme for producing required reactive power through simultaneous active and reactive power markets

One of the challenges faced by electricity industry is to provide reliable, high quality and low cost ancillary services. This is particularly important in reactive power market and in order to maintain voltage profile of the network. Since the value of reactive power is more important especially in emergency situations and during the incidents such as some producing units going offline; pricing reactive power should be such that any unit receives payments of its effectiveness on maintaining the voltage profile in contingencies. Furthermore, due to the dependence of reactive power market on the energy market, any decision about reactive power market needs to go through energy market considerations and the effects of energy market on reactive power market has to be taken into account. Hence in this article, a structure is presented to implement the active and reactive power markets simultaneously. Moreover, reactive power production cost become fair by imposing a contingency situation impact on the price of reactive power. To evaluate the performance of the proposed structure, active and reactive power markets has been implemented over a 24 node IEEE network in order to investigate the performance of hereby proposed structure while considering probabilities of units getting offline. Results are discussed accordingly.