Transaction pricing method of active-reactive power joint for MG with operational state of distribution system

As the amount of active and reactive resources managed by microgrid operator (MGO) increases, those managed by the distribution system operator (DSO) are gradually decreasing. While the reactive power supply and voltage control of the distribution system are still managed by the DSO, these responsibilities should be assigned to the MGOs to promote the utilization of reactive power resources in microgrids. This paper proposes a pricing and transaction method for active and reactive power in microgrids considering the operational state of the distribution system. First, a bi-level framework and model of active and reactive power joint transaction for MGOs are constructed based on the distribution network needs. Then, using the equilibrium problem with equilibrium constraints (EPEC) approach, the bi-level model is transformed into a single model, which is further linearized to facilitate the solution. Finally, the proposed method is analyzed and verified by the modified 33-node distribution system with four microgrids. The proposed method can make microgrids freely choose to trade active and reactive resources considering the needs of the distribution system, and improve the benefit of microgrids without damaging the benefit of DSO.