Market-clearing for pricing system security based on voltage stability criteria

This paper presents a novel technique for representing system security in the operation of decentralized electricity markets, with special emphasis on voltage stability. The market-clearing algorithm is modeled as voltage stability constrained-optimal power flow (VSC-OPF) problem for providing market solutions by means of a function of complying with the required voltage stability criteria. Benders’ decomposition is applied for solving the VSC-OPF incorporating post-contingency control actions, which is motivated by the improvement of computational efficiency using parallel processing. The proposed VSC-OPF framework also takes into consideration the bilateral contract information, which is integrated into the market-clearing process and, at the same time, the optimal pricing expressions through computing local marginal prices (LMPs) with respect to ensuring voltage stability are derived. VSC-OPF is tested on the IEEE 14-bus benchmark system and the results obtained, when compared to those obtained by means of a conventional OPF, show that the proposed technique is able to improve system security while yielding better market solutions and total transaction levels.

Research highlights
► We develop a VSC-OPF based market-clearing model.
► We use a parallel processing for the computational efficiency.
► VSC-OPF also considers with privately bilateral contract information.
► Proposed technique is able to improve system security and economic efficiency.