A Comprehensive Toolbox for Evaluating Reactive Power Market Designs

Reactive power, currently supplied mainly by fossil power plants, requires new sources as these plants phase out to meet EU climate targets. The EU mandates market-based, transparent procurement of system services, including reactive power. Experience with market-based procurement of reactive power is very limited worldwide. This paper introduces the REMARK toolbox, a simulation-based tool to evaluate reactive power market designs in the German context. It enables network operators to compare market outcomes with alternative network investments, predict bidding behavior, and assess impacts on reactive power and spot markets. The toolbox also examines potential grid challenges, such as simultaneous actor behavior in specific areas. By offering insights into market dynamics and grid implications, the toolbox supports the efficient and stable integration of reactive power markets into future energy systems.