Research Of Reactive Pricing For Unilateral Open Electricity Market

In a deregulated power system, the trade mode and bid structure of the reactive power market and the model for the reactive power pricing are significant to the reliability and security of the whole power market operation. With the development of the power market, great attention has been devoted to the mentioned field. Firstly, the history of the power market and pricing methods are described in section I. In section II, the content and characteristics of the reactive power service are summarized. Also in this section a reactive bid structure is presented. Section III proposes a possible organization of a reactive power market, a regional reactive power market established according to the distribution of the load and the reactive supply. The regional reactive power market is composed of a reactive energy market based on marginal pricing and a reactive capacity market based on a reactive regulating capacity payment. The cases in section IV, based on the market organization proposals and the reactive bid structure previously presented, performed on a five-bus system and the IEEE 14 bus system, are used to analysis the effects of active bid , voltage control and power factor on the reactive marginal price. Finally, a discussion with concluding remarks is given in section V.