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In this paper provision of voltage control ancillary service through the establishment of a localized competitive reactive power market is proposed. Autonomous voltage control zones with sufficient reactive power sources are formed using electrical distance method. One reactive power market is corresponding to one voltage control zone. The proposed methodology is ensuring two kinds of payment to dynamic reactive power sources, for the availability and for the utilization. Based on the offers of reactive power producers the optimal power flow problem is solved respecting power system economic criteria and security constraints. The result of optimization algorithm is reactive power dispatch. Using of network compensation devices is maximized to ensure enough dynamic reactive power reserves in case of future system disturbances and to reduce the system operator's payment for voltage control ancillary service.
ancillary services; voltage control; reactive power management; optimal power flow
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