Joint day-ahead clearing of energy, active and reactive power reserves for systems with significant RES-related uncertainty

A two-stage stochastic optimization problem is proposed in order to model a day-ahead market in which energy, as well as active and reactive power reserves are jointly scheduled, in the presence of significant uncertain wind power production. In addition, a second order conic programming based AC power flow formulation is used, in order to take into account the active and reactive power losses while maintaining computational efficiency. The energy providers are compensated both in terms of availability payments for scheduling active power reserves and energy payments for actual reserve deployment. Simulations performed on the IEEE 24-bus system are presented and the impact of reactive power requirements on energy, active power reserves and wind integration are discussed.