Reactive power pricing in deregulated electricity market (original) (raw)

In the restructuring power industry, establishing an equitable and effective reactive power market with consideration of the voltage security problem is very important to provide a reliable restructured power system. The objective of this paper is to review some of the algorithms that have been proposed for pricing reactive power and present a programming method to solve the optimization problem and obtain reactive power marginal price accordingly. The production cost of reactive power into the objective function of the optimal power flow problem is included. The results from different case studies show the effects of various factors on reactive power marginal price.