A method for optimal placement of reactive sources & reactive power procurement in competitive electricity markets

In this paper, an approach to select the optimal location and proper size of the reactive power sources has been proposed, based on technical as well as economic criteria. A loss sensitivity index (LSI) has been used to initially select a possible group of buses, where the reactive support is required. Then, an optimal reactive power dispatch (ORPD) algorithm has been developed to select the buses, from this group, based on the economic criteria. An ORPD algorithm has been proposed to procure the reactive power required by the system, at given load condition. The proposed scheme of reactive source placement and reactive power procurement has been tested on IEEE 14-bus and 75-bus Indian power systems