A PSO-based Approach to Determine the Market Clearing Price by Considering System Losses and Reactive Power Constraints in a Pool Market

Abstract

The deregulation of electricity has led to significant transformations in the market structure and policies governing the industry. The primary responsibility of a power system operator in this market is to establish the Market Clearing Price (MCP). The MCP is established by evaluating the incremental bids submitted by generators in various markets. But the quadratic bid functions have more information about the price structure and are more realistic. The Independent System Operator (ISO) determines the clearing price by analyzing the bids submitted. Conventional methods do not provide an accurate calculation of MCP for the spot market. This may lead to poor allocation of generation. This paper uses the basic Particle Swarm Optimization technique to maximize the generator bid function. By calculating MCP, the optimum generation with least cost is determined. Losses in the system with reactive power constraints are considered while the loads are kept in-elastic. The result of the proposed technique is compared with the classical approach. IEEE 9 bus system is taken to illustrate the proposed model.

Keywords

• particle swarm optimization (pso)
• pool market
• market clearing price (mcp)
• inelastic
• optimal power flow (opf)