The Research On Reactive Power Pricing And Competition Strategy In Power Market

With the development of the Power Market, more and more researchers pay attention to the reactive power, which is a kind of ancillary service, and the method of making reactive power price. The question is focused on how to make the proper reactive power price, so that it can meet the profits of both the reactive power producers and purchaser, encourage the competition among the reactive power producers, reduce the production cost, promote the production efficiency and achieve the maximum of the society benefit.First, this paper introduces the fundamental theory of power market, presents the component part and rules of power market, gives the basic methods of price calculation, including the embedded cost method, long run marginal cost method and spot price. Combining the operation model of the power market, we give four patterns of the monopoly mode, the pool purchase competition, the open transmission mode and the retail competition mode, and discuss the development prospect of power market in China. After analyzing the part and feature of the ancillary service, we discuss the component and making price method of that, the active/frequency control, the reactive/voltage control, the reserve capacity of generator and the restoration/black start mode.We introduce the category, property of the reactive power source and thecomponent of the power market, including the generator, phase modifier, condenser, SVC, and parallel connection reactor, and discuss the reactive power balance in power market. After discussing the reactive production cost on the generator and the reactive compensation device, we go further towards the reactive pricing. The Lagrange method is used to solve the optimization method, and the usual arithmetic is introduced to calculate the reactive power price. Three modes are given to calculate the reactive price, the reactive price according to the active cost, the reactive price based on the active and reactive deregulation and the area reactive pricing. According to the reactive production cost, an OFF model method based on the minimum cost of networks is proposed.Game theory is a kind of math theory in favor of one's own when confront with two or more players to compete, that is how to analyze the whole situation, balance the advantages and disadvantages, and make a decision, when two or more players have some conflict on benefit. Considering that the proper competition strategy can make the reactive power suppliers maximize their benefits, we propose a new competition stratery model based on Game Theory, and the detailed competition stratery model based on the Cournot and Bertrand oligarch model.The feasibility of the reactive production cost of the OFF model method based on the minimum cost of networks is demonstrated by the Ward-Hale 6-bus system. Significant conclusion is drawn through the calculation of the competition stratery model the Cournot and Bertrand oligarch model.KEY WORDS: Reactive Power Price,Ancillary Service,Game Theory,Competition Strategy,Power Market...