Competitive procurement of dynamic reactive power support service for transmission access

Competitive procurement of reactive power support services is rapidly becoming a reality for deregulated electricity markets. This has resulted in a great need to quantify the value and to compensate the service of reactive power support. This paper presents preliminary research results on the development of concepts and schemes for equitable reactive power support valuation. The work emphasizes that the valuation of reactive power support services must be based on their contributions to system security and stability. The dynamic VAr support is of much greater importance in the value assessment. The paper uses a simple system to demonstrate and define the problem, and introduces the concept of value curves. A solution method is proposed along with preliminary case study results.