Reactive Power Market Design for Distribution Networks With High Photovoltaic Penetration

Voltage violation problems caused by high photovoltaic (PV) penetration in distribution systems can be mitigated if PVs are properly operated by the distribution system operator (DSO). However, PV resources are usually reluctant to provide reactive power support due to the absence of an incentive mechanism. Here, we design a reactive power market mechanism to unlock the potential of PV resources to provide reactive power support. We then develop an iterative algorithm to calculate the Nash equilibrium of the proposed market. The market concentration is further quantified to demonstrate its applicability in different power distribution systems. Case studies show that the proposed market can be applied to large power distribution systems with multiple PV resources.