Electricity market modelling with photovoltaic active and reactive power generation

Renewable energy systems are increasingly employed all over the world in order to provide alternative sources of electricity production and reduce CO2 emissions from conventional power plants. However, as the density of renewable systems increases, certain issues arise that need to be addressed. In particular, for photovoltaic (PV) systems connected to the grid, one parameter of importance is the variation of the PV power output with respect to the intensity of solar irradiance. This paper investigates the impact of the active and reactive power injected to the grid by PV systems, on the electricity market equilibrium, using the linear Supply Function Equilibrium (SFE) model. Numerical results for a 5-bus and the IEEE 57-bus systems, which are based on real PV output performance data collected from an experimental PV park, show the effects on the electricity market equilibrium outcome.