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http://dx.doi.org/10.5207/JIEIE.2006.20.5.078

Comparison of Methods for Calculating Reactive Power Service Charge and Proposing a New Method using Reactive Power Markets  

Ro, Kyoung-Soo (동국대학교 전기공학과)
Choi, Joon-Ho (전남대학교 전기공학과)
Publication Information
Journal of the Korean Institute of Illuminating and Electrical Installation Engineers / v.20, no.5, 2006 , pp. 78-84 More about this Journal
Abstract
As electric power systems have been moving from a vertically integrated structure to a deregulated environment, calculating reactive power service charges is a new challenging theme for market operators. This paper examines various methods for reactive power management adopted in some deregulated foreign and domestic markets and then proposes a new method to calculate reactive power service charges using a reactive power market. The reactive power market is operated based on bids from the generating sources and is settled on uniform prices by running reactive OPF programs after the day-ahead electricity market. The proposed method takes into account recovering not only the costs of installed capacity but also the lost opportunity costs incurred by reducing active power output to increase reactive power production. A numerical sample study is carried out to illustrate the processes and appropriateness of the proposed method.
Keywords
Reactive power market; Reactive optimal power flow; Lost opportunity cost;
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