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Traditionally, conventional generation unit was used to provide ancillary services e.g. reactive power support, and spinning reserve. Nonetheless, with the emergence of highly penetrated distributed energy resources (DERs) systems and considering how beneficial they can be; it appears reasonable to use them as reactive power providers. Therefore, this paper introduces a new procedure for DERs to participate in the reactive power market. To do that, an algorithm is proposed to calculate the deliverable reactive power capability of DERs from distribution networks to transmission systems. Furthermore, a reactive power procurement model is introduced to consider DERs participation in the reactive power market. Finally, to show the effectiveness, and validity of this method many case studies are carried out on 33-bus distribution and CIGRE 32-bus transmission test systems

A New Procedure for Reactive Power Market Clearing Considering Distributed Energy Resources