Local Market for TSO and DSO Reactive Power Provision Using DSO Grid Resources

Fábio Retorta, João Aguiar, Igor Rezende, José Villar and Bernardo Silva
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Fábio Retorta: INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal
João Aguiar: INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal
Igor Rezende: INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal
José Villar: INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal
Bernardo Silva: INESC TEC—Institute for Systems and Computer Engineering, Technology and Science, 4200-465 Porto, Portugal

Energies, 2020, vol. 13, issue 13, 1-19

Abstract: This paper proposes a near to real-time local market to provide reactive power to the transmission system operator (TSO), using the resources connected to a distribution grid managed by a distribution system operator (DSO). The TSO publishes a requested reactive power profile at the TSO-DSO interface for each time-interval of the next delivery period, so that market agents (managing resources of the distribution grid) can prepare and send their bids accordingly. DSO resources are the first to be mobilized, and the remaining residual reactive power is supplied by the reactive power flexibility offered in the local reactive market. Complex bids (with non-curtailability conditions) are supported to provide flexible ways of bidding fewer flexible assets (such as capacitor banks). An alternating current (AC) optimal power flow (OPF) is used to clear the bids by maximizing the social welfare to supply the TSO required reactive power profile, subject to the DSO grid constraints. A rolling window mechanism allows a continuous dispatching of reactive power, and the possibility of adapting assigned schedules to real time constraints. A simplified TSO-DSO cost assignment of the flexible reactive power used is proposed to share for settlement purposes.

Keywords: reactive power market; local market; distributed generation; TSO-DSO coordination; ancillary services (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
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