DISTRIBUTED REACTIVE POWER MANAGEMENT

IN MULTI-AGENT ENERGY SYSTEMS

Pre- Project (EEP401) report submitted in partial fulfillment of

requirements for the award of the degree of

Bachelor of Technology in Electrical Engineering

By
DAMODAR KUMAWAT ( 2020BELE070 )
NIKHIL SAINI ( 2020BELE072 )
PRASHANT MEENA ( 2020BELE112 )

Under the guidance

of
Dr. Pankaj Kumar

Department of Electrical Engineering

National of Institute of Technology Srinagar
Jammu & Kashmir – 190006 (India)

1
 Approval Sheet

This dissertation entitled “DISTRIBUTED REACTIVE POWER

MANAGEMENT IN MULTI-AGENT ENERGY SYSTEMS” under my
guidance and supervision is approved for the pre-project work. It is further
certified that the work presented in this dissertation has not been submitted
elsewhere for the award of the any degree.

Examiners
__________________
__________________
__________________

Supervisor
Dr. Pankaj Kumar
Assistant Professor
Department of Electrical Engineering

Date: ________
Place: NIT Srinagar

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 ABSTRACT

In recent years, distributed structures have been developed in

distribution networks as a result of privatization as well as integration of
independently operated distributed energy resources (DERs) into the grid. In
this context, effective management techniques seem to be necessary to enable
decentralized operation of systems that have been consisted of multiple agents.

Accordingly, novel management schemes should be applied in such

systems to enable the distributed reactive power management, which would
finally improve voltage profile in the network. As a result, need to be develop
some algoritham for reactive power management in multi-agent distribution
systems with the aim of improving the voltage profile of the grid.

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 CHAPTERS

Abstract
1.Introduction
1.1 Motivation
2. Literature Review
2.1 Objective
3. Methodology
3.1 System modeling
3.2 Mathematical modelling of cost functions
4. IEEE 37 Bus test system
4.1 IEEE 37 Node Test Feeder
4.2 MATLAB
5. Conclusion and Future work
6. References

4
 INTRODUCTION

Distributed energy systems are becoming increasingly prevalent,

leading to the need for effective management techniques in multi-agent
structures within distribution networks. This project proposes a novel
framework for distributed peer-to-peer (P2P) reactive power trading in multi-
agent distribution systems. The framework aims to improve the voltage profile
of the grid in a decentralized manner, considering the preferences and
constraints of independent system agents. The proposed framework includes a
step-wise algorithm for running the P2P reactive power trading, taking into
account the security and distributed nature of the system.

MOTIVATION:
Nowadays, the challenge of exhausting fossil fuel resources as well as
the tendency to avoid carbon emissions due to environmental concerns have
caused the distributed energy resources (DERs) to increasingly thrive in the
system. This huge growth of DERs in both variety and quantity aspects has
caused consumers of a distribution system to gradually become prosumers (i.e.
consumers who could also produce energy due to their own DERs), which could
challenge the operation of the distribution networks. Distribution systems with
high penetration of DERs, storage systems, and load demands would have to
deal with a huge amount of information exchanges and analysis in the
management process.

The modern distribution networks could be modelled in a multi-agent

way, where each agent of the system is assumed to manage its respective
resources independently. Accordingly, this structure aims to address the privacy
concerns in the system and operate the system in an efficient way.

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 High penetration of DERs in the distribution system could also cause
voltage deviations in the system owing to overconsumption / overgeneration by
local resources. That is why an efficient methodology should be deployed in the
distribution systems in order to efficiently regulate the voltage magnitudes.

In this regard, formulating a new methodology in order to ensure voltage

regulation after clearing the day-ahead active power market process seems to
be necessary in the power grid. This could be done using a suitable reactive
power market framework. As mentioned in, local markets for reactive power
trade, technically and economically, are more efficient to tackle voltage
problems in power systems. Also, in addition to increment of converter-
equipped DERs as well as development of information and communication
technology (ICT), nowadays, there is a huge tendency to liberalization and
expansion of local market procedures in order for enhancing efficiency and
decreasing total costs.

Therefore, designing a well-suited framework for running a reactive

power market in a decentralized way is of a high importance, which is aimed to
be achieved here.

6
 LITERATURE REVIEW

As discussed previous studies in the context of the P2P implementation

in distribution systems have merely considered the active power management.
However, Investigating the P2P reactive power management has been missed
in previous research works. Moreover, with regards to a separate mechanism is
required in energy systems to treat the pricing and management of the reactive
power scheduling in the system.
Accordingly, this project aims to study the P2P management of reactive
power in distribution systems with the aim of improving the voltage regulation
of the system considering the limitations and associated costs. It is noteworthy
that the active power management based on the P2P context merely affects the
power consumption/generation of two entities that involves in the power
transaction. In other words, the reactive power transactions would affect the
voltage regulations of other nodes of the grid, which should be taken into
account in the developed P2P scheme. That is why the procedure for reactive
power management is completely novel compared with the previously
developed P2P schemes for active power management in distribution systems.
The developed P2P scheme facilitates the reactive power management
in distribution systems, while addressing the privacy concerns of independent
agents. Moreover, a cost modelling is developed to model the voltage
preferences of each agent. The cost terms incentivize the system agents to
address the announced constraints by the DSO while optimizing their reactive
power injections in the proposed P2P scheme. Moreover, several constraints are
developed with regards to the structure of the proposed P2P reactive power
algorithm to improve its convergence

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OBJECTIVE:

In order to facilitate implementing the reactive power modelled voltage

profile preferences of agents and DSO utilizing cost functions. In this case, the
agents connected to each node of the grid would be responsible for
compensating the cost associated with the violation of the announced
acceptable voltage range by DSO. Moreover, agents would consider their own
preferences for their voltage prolife as a utility function. Based on these points,
agents would be incentivized to purchase reactive power from other agents of
the grid with the aim of addressing the preferred voltage profiles. It is
noteworthy that purchasing reactive power means to paying the agent to change
its reactive power injection.

Accordingly, as changing the reactive power injection by each agent

would result in changing the voltage profile of other agents, the buyer agent has
to address the cost associated with changing the voltage profile of other agents
while purchasing reactive power from the seller agent. Based upon these points,
this project will propose a mathematical step-wise algorithm to run the reactive
power trading scheme to improve the voltage profile of the multi-agent
distribution system in a decentralized manner.

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 METHODOLOGY

SYSTEM MODELING:
This work aims to form a distributed step-wise P2P reactive power
trading framework, which eventually leads to the voltage profile
improvement in the network. In this regard, it is assumed that the active
power market is cleared and so the reactive power in the system should be
locally managed in an efficient way to regulate the network voltages. Here,
as shown in Figure, a multi-agent distribution system with a distributed P2P
trading structure is considered, in which agents can directly communicate
with each other to trade reactive power.
In the proposed P2P framework, DSO is responsible for the
management of the P2P trading to check out the network’s situation and
assure the system’s reliable operation. In the proposed scheme, the DSO
would announce a voltage limitation to agents and penalize the agents in case
of violating the limitations. In other words, in the P2P trading, the agents
would participate in the market to exchange reactive power based on their
preferences voltage magnitude as well as the announced limitations by the
DSO. Note that this approach considers the voltage deviations caused by
reactive power exchanges in the system and penalize the agents based on their
impacts on the voltage deviations. It is noteworthy that, in the proposed mode,
every agent has a utility function that presents its preferred voltage
magnitudes; that is, the voltage ranges that are proper for the operation of the
agent’s resources. Accordingly, the utility function models the utility earned
by the agent based upon its bus voltage magnitudes.
It is noteworthy that in the proposed structure, the agent is an entity
who is connected to the distribution grid and participates in various affairs of
the power system such as taking part in the P2P reactive power management
procedure.

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10
MODELLING OF COST FUNCTIONS:
In the proposed framework, every agent has four different types of costs;
that is, penalty costs announced by the DSO, utility function associated with its
respective bus voltage magnitude, cost of transaction with other agents, and cost
associated with changing the voltage magnitude of other agents. The goal of
this section is to elaborate upon them and model the total cost function for each
agent.

1. MODELLING THE DSO’S PENALTY COST FOR AGENTS:

In this model, it is assumed that the DSO’s goal is to keep the
magnitudes of bus voltages in the legal range of [Vlb, Vub]. As a result, it would
penalize the agents that violate the announced legal range of voltage magnitude.
It is noteworthy that DSO would not have direct control over the scheduling of
agents; that is why the developed penalty model would enable the DSO to
regulate the voltage profile of the network without compromising the security
of system agents.

2. MODELLING THE UTILITY OF AGENTS ACCORDING TO

THEIR BUS VOLTAGE:
Based on the resources managed by each agent, the agent would prefer
specific voltage magnitudes. In other words, it would earn more utility as its
bus voltage magnitude approaches its desired amount indicated by V n,0; while
it may receive less utility as its voltage magnitude deviates from V n,0.
Therefore, it seems to be required to consider a suitable utility
function to model the desired voltage magnitude from each agent perspective .

3. MODELLING THE COST OF REACTIVE POWER

PURCHASING:

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 Purchasing reactive power from an agent is defined as a request to
change its reactive power injection to the grid. In this regard, a buyer should
pay the seller to incentivize changing its reactive power injection.

4. MODELLING THE COST OF VOLTAGE MAGNITUDE

CHANGING:
The bus voltage magnitudes in a power system are drastically dependent
on the reactive power injections in the network. Therefore, purchasing reactive
power from an agent could result in voltage deviations of other agents.
Therefore, the buyer agent should pay other agents to compensate for their
voltage deviation.

MODELLING AGENTS’ OVERALL COST FUNCTIONS:

Based upon the previous discussions, each agent should consider

different kinds of costs to optimize its behavior in the P2P reactive power
scheme. In this regard, the overall cost function of agent n is modelled as
follows:
Cnagent= CnDSO− Un+ CnQ+ Cn
Cnagent: Overall cost function of agent n

CnDSO: Cost that agent n will pay for the DSO if its voltage level is
not in the legal range

− U n: Utility function with agent respective voltage profile

C nQ : Cost that agent n should pay for the other agents if the agent
is going to buy some reactive power from other agents

C nV : Cost that the buyer should pay to other agents for changing
their voltage magnitudes
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 IEEE 37 BUS TEST SYSTEM

IEEE 37 Node Test Feeder:

799
724
722
712 707
701
742 713 704
720
705 702
714
706
729 744 727
703
718
725

728
730

732 708
709
731

736
733 775

710 734
740

735
737 738 711 741

Figure: IEEE 37 Node Test Feeder

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 Transformer Data

kVA kV-high kV-low R-% X-%

Substation: 2,500 230 D 4.8 D 2 8
XFM -1 500 4.8 D 0.480 D 0.09 1.81

In this proposed P2P reactive power trading algorithm will be applied

on the Standard IEEE 37-bus test system shown in Figure in order to investigate
its performance in Basic load flow in a multi-agent structure. The simulation
has been conducted with MATLAB in a machine with 8GB RAM and i5-
1135G7 @ 2.40GHz processor. It is assumed that there are 36 agents in the test
system. In this regard, each agent is considered to be connected to each node of
the test system.

MATLAB WORK:

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OBTAINED BUS VOLTAGES ON BASIC LOAD FLOW:

Figure : Obtianed p.u voltage of all three phases

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 CONCLUSION & FUTURE WORK

In this study, it is noteworthy that previous works all dealt with P2P
structure for trading; however, they did not consider any framework for reactive
power management. As a result, it is good practice to utilize the benefits of P2P
structure in a reactive power market by designing an appropriate framework for
reactive power trade to improve the network’s voltage profile, which is aimed
to be done here.
Correspondingly, in this framework, several cost functions are
developed according to model the effects of reactive power management on the
system from the distribution system operator (DSO) as well as agents’
perspectives.
For future, this scheme will be applied on the Standard IEEE-37-bus test
system to investigate its effectiveness on Peer-to-Peer (P2P) reactive power
management in multi-agent systems in future and expanded network i.e. IEEE-
123 bus system.

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 REFERENCES

1. Tofighi-Milani, M., Fattaheian-Dehkordi, S., Fotuhi-Firuzabad, M.,

Lehtonen, M.: Distributed reactive power management in multi-agent
energy systems considering voltage profile improvement. IET Gener.
Transm. Distrib. 17, 4891–4906 (2023).
https://doi.org/10.1049/gtd2.13005

2. Tushar, W., et al.: A motivational theoretic approach for peer-to-peer

energy trading in the smart grid. Appl. Energy 243, 10–20 (2019)
https://doi.org/10.1016/j.apenergy.2019.03.111

3. M. Bazrafshan and N. Gatsis, "Comprehensive Modeling of Three-

Phase Distribution Systems via the Bus Admittance Matrix," in IEEE
Transactions on Power Systems, vol. 33, no. 2, pp. 2015-2029, March
2018.
https://doi.org/10.1109/TPWRS.2017.2728618

4. [Online] Available:
https://drive.google.com/file/d/1V3gVr0iO37YpAcoTXTzV0nSVYNp
0YY97/view?usp=sharing

5. IEEE PES Test Feeder (IEEE-37 bus test system):

https://cmte.ieee.org/pes-testfeeders/wp-
content/uploads/sites/167/2017/08/feeder37.zip

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