Abstract: Ancillary services are support services which are
essential for humanizing and enhancing the reliability and security of
the electric power system. Reactive power ancillary service is one of
the important ancillary services in a restructured electricity market
which determines the cost of supplying ancillary services and finding
of how this cost would change with respect to operating decisions.
This paper presents a new formation that can be used to minimize the
Independent System Operator (ISO)’s total payment for reactive
power ancillary service. The modified power flow tracing algorithm
estimates the availability of reserve reactive power for ancillary
service. In order to find optimum reactive power dispatch,
Biogeography based optimization method (BPO) is proposed. Market
Reactive Clearing Price (MRCP) is then estimated and it encourages
generator companies (GENCOs) to participate in an ancillary service.
Finally, optimal weighting factor and real time utilization factor of
reactive power give the minimum ISO’s total payment. The
effectiveness of proposed design is verified using IEEE 30 bus
system.
Abstract: Restructuring of Electricity supply industry introduced many issues such as transmission pricing, transmission loss allocation and congestion management. Many methodologies and algorithms were proposed for addressing these issues. In this paper a power flow tracing based method is proposed which involves Matrices methodology for the transmission usage and loss allocation for generators and demands. This method provides loss allocation in a direct way because all the computation is previously done for usage allocation. The proposed method is simple and easy to implement in a large power system. Further it is less computational because it requires matrix inversion only a single time. After usage and loss allocation cooperative game theory is applied to results for finding efficient economic signals. Nucleolus and Shapely value approach is used for optimal allocation of results. Results are shown for the IEEE 6 bus system and IEEE 14 bus system.