Marginal Cost-Based Reactive Power Reinforcement Using Dynamic and Static Compensators

The main philosophy of this article is to develop customer-persuaded electric power tariff scheme, based on the composition of additionally required services. Ancillary services may be categorized into desirable and essential electric power market services and so independent system operator (ISO) looks into the rights of all the utilities involved in the electric power market for getting the most acceptable rate of electrical energy in favor of all. Reactive power compensation, one of the 12 ancillary services underlined by North American Electric Reliability Council (NREC) along with Electric Power Research Institute (EPRI), is necessarily important to attend the voltage profile at load terminals. STATCOM, a dynamic compensator, has more advanced technologies over a fixed capacitor (FC), which is a static compensator; however, its involvement results in more financial burden to utilities. This article reinforces an adequate reactive power compensation scheme, for attending static and dynamic load disturbances, using ISE criterion-based proposed current-controlled STATCOM with FC in a grid-tied system. The composition of reactive power supplied by static and dynamic compensation is optimized using marginal cost, based on base and peak reactive power demand concept, keeping in mind the system frequency regulation. The results in terms of compensation scheme are compared for step changes in three load conditions and with and without static reactive power compensators.