Nodal pricing with different reactive power cost models in hybrid electricity markets

In this paper, the nodal price for real and reactive power considering different reactive power price cost calculation methods for generator reactive power has been presented. The impact of FACTS controllers has also been considered taking their cost function into account. The comparison of fuel costs, reactive power cost, and cost of FACTS devices, and their impact on nodal price determination has been presented for different cases with reactive power cost models for determining reactive cost component for generators. The impact of SVC has also been considered on nodal price of real and reactive power. Mixed integer non-linear programming approach has been formulated for solution. The proposed approach has been tested on IEEE 24-bus Reliability Test System (RTS) for hybrid market model.