Economic Analysis of Reactive Power Services in Deregulated Power Market Integrated with Doubly Fed Induction Generator Wind Unit

In this article, economic impact of reactive power services in pool based deregulated power market integrated with wind units is analyzed. Reactive power cost of different generators including fixed speed wind units and doubly fed induction generator based variable speed wind units is calculated using the concept of loss of real power spinning reserve cost by using loading capability curve. The proposed optimization model is validated and implemented on a modified 5-bus test system and is then extended to a larger IEEE 24-bus RTS system using GAMS 23.4 software in interfacing with MATLAB 7.0. Results reveal better financial and technical performance of DFIG based wind farms as compared to fixed speed wind farms in reactive power management.