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Zonal reactive power market model with implementation of optimal voltage scheduling is described in this paper. Proposed model is characterized by splitting the power system or a control area of an interconnected power system into autonomous voltage zones with sufficient reactive power reserves. Zones are selected using electrical distance method. In every zone a short-term auction based reactive power market is established. Based on the generator's cost functions for reactive power production/consumption the optimal power flow problem is solved respecting the economic criteria and power system security constraints. The result of optimization algorithm is optimal voltage plan. Minimization of transmission losses is respected in second optimization step where final dispatching decision is made according to active and reactive energy prices and planned power system conditions.
reactive power market; voltage control; optimal power flow
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