Discussion and Proposed Modification of the Available Reactive Power Pricing Models

The analysis pointed out that the current "Measures of tariff Adjustment by Power Factor", which is based on the assessment of weighted average power factor, is difficult both in principle and assessment efforts to motivate the power companies to continue investing in reactive power after compliance, therefore, it affects the local reactive compensation of DSM, so that it\´s hard to improve the grid voltage quality and the energy loss reduction level. To this end, this paper presents a new energy measurement method. The new method assesses real-time power factor, and it can adjust the current proportion of the incentive tariff, and also expand the scope of real-time power factor assessment. So the new method can encourage self-sufficiency of reactive power for DSM more scientifically and effectively.