Research On Reactive Power Pricing In Electricity Market

With the deep development of reform to electricity market, reactive power service and pricing become more important However, as the research has not received significant attention until recently, there still has not been the mature theory. The paper presents the preliminary analysis and research about the reactive power costing and pricing in the electricity markets.Firstly, the paper concludes electricity market and ancillary services which including the contents and the way of obtain reactive power service and the development of foreign market The meaning and state of reactive power pricing are also discussed.The Secondly, according particular analysis of the cost of reactive power, the cost is divided into three part: investment cost, opportunity cost and losses cost And the model of calculate generator's reactive power cost is suggested. The reactive power source in different place has different contribution to the system, so the paper presents a method based on power flow calculation. It can reflect the relationship between reactive power output and system voltage directly. It is propitious to get reactive power on the spotThen, from the system's point of view, the paper proposed a compromise function which a combination of the function minimize reactive power cost and the function minimize active losses. The proved interior method is used to solve the function. After particular analysis of the features and cost of reactive power, the paper presents the synthesized reactive pricing method. The synthesized reactive pricing method which added the resource value into pricing function can infect the reactive power price and evaluate the resource value of reactive power initiatively.In the end, the 14-bus and 30-bus IEEE standard systems are used in the studies to show the effectiveness and the practicability of the proposed method.