Design of Reactive Power Reserve Market by Incorporating Excitation System Response Improvement Methods

This paper proposes reactive power reserve (RPR) market in order to use whole capability of synchronous generators to enhance network stability. Maintaining the network stability and encouraging the generation companies to involve in stability maintaining are the major concerns of independent system operator in deregulated electricity market. The quantity and quality of RPR, which is supplied by generators, have an important role in network stability especially voltage and transient stability. Generation companies can improve the operation of generators for providing required RPR, also they can improve RPR quality by installing new equipment and using some efficient methods. The proposed RPR market satisfies the required motivation for generation companies in order to install new equipment and use efficient methods. This market increases quantity and improves quality of RPR, which is supplied by generators; therefore, it improves network stability. In addition, the proposed RPR market uses RPR management in order to provide required voltage stability margin. In this paper IEEE 14-buses test system is used to illustrate effectiveness of methods and equipment, which affect RPR of generators, on network stability and examine performance of the proposed RPR market model. Results show that RPR market not only improves voltage stability, but also decreases operation cost.