Practices of reactive power management and compensation

Reactive power management is essential for reliable power system operation, and also affects economic efficiency of real power dispatch. Proper compensation for providing reactive power and reactive power capability ensures an adequate, reliable and efficient supply of reactive power, and encourages sufficient investment on producing reactive power. This panel will review the reactive power management and compensation mechanism from ISOspsila role; and discuss current practices based on their impact on system operation and their economic incentives.