Decentralized Voltage Support in a Competitive Energy Market

In order to facilitate the increasing amount of distributed generations and flexible loads, it is envisioned that the future power grid might operate in a more decentralized manner. To this end, this work proposes a decentralized market framework for multiple interconnected microgrids which can exchange energy and provide voltage support. In contrast to the state-of-the-art analysis, we consider both the energy and the voltage support as the commodities which can be exchanged between the microgrids. We use alternating direction method of multipliers (ADMM) as a market clearing mechanism which obtains market clearing prices for the proposed commodities, while considering the grid constraints. Moreover, the proposed mechanism promotes the operation autonomy of the involved entities by safeguarding their information privacy. We test the proposed framework on a modified 144-bus network which is partitioned into 5 microgrids.