A novel multi-zone reactive power market settlement model: A pareto-optimization approach

This paper presents a Pareto-optimization based zonal day-ahead reactive power market settlement model named as multi-zone DA-RPMS model. Three competing objective functions such as Total Payment Function (TPF) for reactive power support services from generators/synchronous condensers, Total Real Transmission Loss (TRTL) and Voltage Stability Enhancement Index (VSEI) are optimized simultaneously by satisfying various power system operating constraints while settling the day-ahead reactive power market. The proposed multi-zone DA-RPMS model is tested and compared with single-zone DA-RPMS model on standard IEEE 24 bus reliability test system. A Hybrid Fuzzy Multi-Objective Evolutionary Algorithm (HFMOEA) approach is applied and compared with NSGA-II for solving these DA-RPMS models in competitive electricity market environment. Further, both the single-zone and multi-zone DA-RPMS models are also analyzed on the basis of market power owned by any generator/any generating company. The simulation results obtained confirm the superiority of HFMOEA in finding the better Pareto-optimal fronts in order to take better day-ahead reactive power market settlement decisions.