Optimizing nonutility generating facility reactive power export and import capability

As new merchant power plants and nonutility generating facilities (NUGs) are added to the utility grid system, their overall generating capability becomes significant to independent system operators (ISO). These facilities deliver real power (MW) to the utility grid as-well-as having the capability to export and import reactive power (MVAr). In the deregulated environment, NUGs are being connected to the grid (dispatched) for both real and reactive power generation capabilities. The parameters that define the ability of a NUG to generate and deliver real power are well known. However, the various factors that affect the ability of a NUG to export or import MVAr are less obvious. This paper presents a case study in the optimization of a NUG's ability to export and import MVARs to an ISO interconnection point.