Cluster design compatible with market for effective reactive power management

Recent progresses in the restructuring of power systems show that voltage control of large-scale power system and zonal reactive power market are an important issue because of local property of voltage and reactive power control. This paper proposes the cluster design compatible with a localized reactive power market. For the cluster design, so-called system performance-based cluster is implemented through the concept of electrical distance, and pilot voltage buses (descriptive nodes) are chosen at each cluster for effective reactive power management. And the validity of system performance-based cluster is ensured by price-based approach which yields zonal procurement of reactive power according to voltage level at each pilot bus. Eventually this may lead to the market-based clustering, grouping the region where the changes in reactive power pricing analogously respond to the variation of system operating condition. A sample case study is given to illustrate concepts and proposition