New Structure of Reactive Power Market by Considering Reactive Power Losses

In this paper, a new reactive power market structure is studied and presented. Active power flow by itself causes active and reactive losses. Considering such losses after active power market clearing and in the reactive power market procedure without paying any costs is the main purpose of this paper. For this purpose, new methodologies for reactive power structure are proposed which the reactive losses are considered before market closing. Hence, this study tries to improve reactive power market and create fair competition in reactive power generation through improving the market structure. Also, in this work, the cost payment function of synchronous generators, which has an important influence on reactive power market, is modified. In order to stimulate and describe the proposed methods in the implementation of reactive power market, Cigre 32 bus test system is applied and the proposed methods. As will be shown, the total payment by ISO will be reduced by using the proposed methods.