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 methodology for reactive power structure is proposed which the reactive losses are considered in reactive power market. Therefore, this study attempts to improve the reactive power market and promote fair competition in reactive power generation by 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 and the proposed methods were applied. As will be shown, the total payment by ISO will be reduced by using the proposed methods.