Ancillary Services Market Framework for Voltage Control in Distribution Networks with Microgrids

Abstract

In this paper, a proposal for an ancillary services (AS) market framework addressing voltage control in multi-microgrid systems is presented. This var market proposal for MV distribution systems can be adopted to involve Distributed Generation (DG) units and microgrids in AS provision. In the approach that was developed each player is given the opportunity to submit its bid to the var market and the market settlement is performed using an Optimal Power Flow (OPF) formulation in order to minimize the price of reactive power purchased by the Distribution System Operator (DSO). This market is based on var capacity use and runs daily after the scheduling of the generation units for a period of operation of one day.