Market-Based Volt-Var Optimization and Its Applications on Bottom-Up Load Modeling Method

Due to the visibility and controllability features of the latest distribution networks, there are potentials to model customer loads through a component-based approach more accurately. The electricity markets started in recent years enable trading and exchanges of electricity among traditional power stations and prosumers. It provides a possibility to improve the optimality of classical volt-var optimization (VVO) schemes. In this paper, a tri-level bottom-up load model and a market-based volt-var optimization (mVVO) model are proposed. The energy-to-voltage (ETV) parameter is proposed in our load model as a substitute for the widely used load-to-voltage (LTV) parameter to reflect long-term load characteristics. The mVVO model using ETV parameters aims to combine the optimal voltage regulation strategies and electricity purchase strategies from wholesale and retail markets for maximum cost saving. The case studies based on real load data of Hong Kong show that by coordinating the voltage regulation methods with market behaviors, utilities can reach a higher level of cost saving, in addition to energy saving.