Financial compensation analysis for voltage deviation in power generation market

The enterprises managing power network are obligatory to ensure a financial quantity item for ancillary services, so as to protect the legal rights of the market participants. This paper, with its focus on the voltage deviation, develops a financial compensation mechanism, on the basis of voltage operation theory. The new approach is capable of handling various issues related to voltage management in deregulated power systems, for both the reactive and active power of generators and the reactive power of compensation equipment are incorporated into the objective function of the OPF problem. The test results of simulation and the practical operation demonstrate convincingly that the new method is applicable and hence, will enhance significantly the reliability, security, economic and fair trading of the power market.