Apportionment of voltage security costs in the electricity markets

The voltage security and stability of the power system is related to the factors such as reserve capacities of generation companies, redundant capacities of the transmission networks under the peak-load conditions, the var support devices and interruptible loads. Based on the total optimal economic benefits, this paper proposes a method to apportion the voltage security costs reasonably among the participants of the electricity markets according to the proportion of their investment and operation expenditure. This method provides a criterion to evaluate the voltage security costs of generation and transmission companies, and to compensate the users for the electricity interruption to keep the system voltage security. Test results show that the models and method presented can apportion voltage security costs effectively, which follow the fair trade principle of the electricity markets.