Design of reactive power and reactive power reserve market

Maintaining network stability and encouraging generation companies (GenCos) to participate in maintaining stability are major concerns of independent system operators in deregulated electricity markets. This study proposes joint reactive power (RP) and RP reserve (RPR) market in order to use full capacity of synchronous generators to enhance network stability. This market maximises system voltage stability by minimising RP cost and considering the effect of quality and quantity of RPR on network stability. Quantity and quality of RPR, which is supplied by generators, have an important role in network and especially voltage stability. GenCos can improve operation of generators to provide required RPR. Furthermore, by installing new equipment and using some efficient methods they can improve RPR quality. The proposed joint market encourages GenCos to install new equipment and use efficient methods. In this study, IEEE 30-bus and 118-bus systems are used to demonstrate performance of the proposed market model.