Automatic voltage control system with market price employing large wind farms

The automatic voltage control (AVC) system is typically to minimize the grid loss while maintaining the voltage magnitude in an acceptable operational band. Being a market-driven power system, the power loss is normally purchased based on the market price. This paper proposes an approach for the Danish AVC system to couple the automatic voltage control (AVC) system to the market price in order to accurately assess the operational cost, where the objective is to minimize the total operational cost including the grid loss, the shunt switching cost, the transformer tap change cost and the cost of the voltage control service provided by the power plant owners. The benefit of employing the large offshore wind farms in this AVC system is investigated. The simulation based on the measurement data from the Danish electricity control center demonstrates the superiority of the proposed approach in terms of the cost minimization. The gained profit by employing the wind farms can be an argument to purchase the voltage control service provided by these wind farms.