Linear programming based algorithm for reactive power constrained real power dispatch and pricing

This paper presents a linear programming based algorithm for dispatch and pricing in electricity markets. The proposed algorithm takes reactive power and voltage magnitude constraints into account, unlike most commonly used dispatch and pricing algorithms. A case study with IEEE 30 bus system shows that the algorithm gives very accurate answers for dispatch and prices when compared with a full nonlinear model. The paper also presents insights on the relationships between nodal prices in the presence of constraints.