A method for simulation and analysis of reactive power market

This paper presents a method for the simulation and analysis of alternative reactive power market arrangements based on combined reactive power capacity and energy payments. The value of reactive power support, in terms of both capability and utilization, of each particular generator is quantified using a developed security constrained reactive optimal power flow. The relative competitiveness of participating generators is also assessed for a spectrum of arrangements between a reactive capacity and a reactive utilization based market. Also, the conflicting objectives of the system operator, as a purchaser of reactive power service, and generators, as suppliers of the services, are analyzed.