| Resumo: | This paper describes a mathematical model and the developed solution algorithm to solve an integrated active/reactive dispatch while retaining competitive aspects. The main drive for this research was the recognition that the introduction of competitive mechanisms lead to a certain extent to a decoupling between active and reactive power scheduling. Aiming at remarrying them, the developed approach includes an initial bid based uniform price active power auction run by the Market Operator, followed by a technical validity analysis run by the System Operator. If necessary, the System Operator uses adjustment bids to recover the technical feasibility of the dispatch. These bids are presented both by the demand and by generators meaning that demand can play an important role in increasing the liquidity of this specific market. This approach also includes capacitor banks and transformer taps leading to a combinatorial problem solved using Simulated Annealing. Finally, the paper includes results from a case study based on the IEEE 24 Bus Test System to illustrate the interest of this type of approaches.
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