Development of a Real-Time Pricing Mechanism for the Integration of Active and Reactive Power Transactions in Deregulated Power Systems to Enhance Ancillary Services

The modern power system is undergoing a transformation towards a smart and competitive grid, where various stakeholders, including generating companies, power retailers, and strategically responsive consumers, actively participate in its daily operations.

The Power System Operator assumes the responsibility of overseeing these operations and procuring essential services through market mechanisms. While real-time pricing of active power at wholesale and retail levels has become a well-established and efficient energy management approach, the procurement of reactive power through real-time market mechanisms remains underdeveloped, despite its pivotal role in maintaining system parameters within permissible limits. In deregulated power systems, ancillary services are acquired via market operations, elevating the significance of reactive power markets in grid management.

The primary advantages associated with reactive power support in ancillary service market operations are as follows. First, the economic Incentives through the encouragement for stakeholders to invest in reactive power sources, stimulating economic viability. Second, a compensation mechanism for individual generators involved in providing supplementary voltage support, offsetting the associated reactive power costs. Finally, the optimal Reactive Power scheduling that facilitating system operators in effectively scheduling reactive power to ensure safe and secure grid operation. Therefore, the focus of this research proposal lies in the development of a real-time pricing mechanism that can seamlessly integrate active and reactive power transactions, while considering voltage stability margins.

Such a mechanism holds promise for enhancing system operation in the context of a smart and deregulated power system by incorporating forecasting techniques and appropriate energy storage solutions. The proposed mechanism aims to maximize social benefit in economic efficiency while incorporating technical efficiency factors such as voltage stability margins and spinning reserve constraints into its price signals. The effectiveness of the real-time pricing mechanism will be evaluated based on criteria encompassing market stability, volatility, and the extent of market power exercised by participants.

Griffith University funds both domestic and international PhD candidates on a competitive basis and is one of few institutions to offer both a tuition fee waiver and a living stipend.

Funding Notes

To be eligible and competitive for a Griffith University Postgraduate Research Scholarship (domestic; View Website) or a Griffith University International Postgraduate Research Scholarship (international applicants; View Website) you need to have First Class Honours or equivalent research experience.

First-author peer-reviewed publications in international journals are advantageous.

Top-ranked candidates will be selected from among applicants to proceed to a formal PhD and scholarship application through Griffith University, with the support of the prospective supervisory team.

Applications can be received and processed year-round for our four intakes. Click here for key dates.