Agent Simulation-Based Market Clearing Model for Reactive Auxiliary Services

Reactive power is local and needs to be consumed locally; therefore, this paper investigates a sub-regional local market for reactive auxiliary services, where the power trading agency is responsible for receiving and aggregating the operating cost bids and opportunity loss bids from power generating companies. The power dispatch agency aims to minimize each local market's reactive power procurement costs, thereby minimizing reactive power generation subject to system constraints and voltage support. In this paper, a sub-regional reactive auxiliary services market clearing model with distributed energy participation is proposed and tested on an IEEE 24 bus system with each region as a node. The results show that the reactive market mechanism provided in this paper can incentivize extensive participation of new energy units and maintain sufficient reactive reserves and that the market power of individual units can be controlled within reasonable limits.