Reactive power optimisation with voltage stability consideration in power market systems

A method is presented which incorporates the voltage collapse problem, to optimise reactive power support in power market systems. Voltages and reactive power support are inextricably linked and the role of reactive power support is to maintain a proper voltage profile. In an open electricity market reactive power support is an ancillary service for real power transportation. The cost and price analysis of such support needs to be established for the market to function properly. Cost analysis and voltage stability analysis are integrated using an optimal power flow formulation, which is solved using the sequential quadratic programming method. The proposed methodology is tested on the IEEE 14-bus system.