Reactive power pricing in stressed & unstressed condition with system security in deregulated market

Pricing of reactive power and management by Independent System Operator using system security of electricity market in stressed and unstressed condition is presented here. Reactive power pricing market structure is shown here by considering security of the system. First of all, the Total Expected Payment of reactive power generation from every reactive power generator or suppliers by considering all security related to power system are formed by calculating flow of power equations and bid price of the reactive power provider. Secondly, societal advantage function is calculated by using benefits of the reactive power supply. This method of pricing crops by the selected generators by creating bidding between all the reactive power generator and by placing the selected generator into a specified zone as per requirement and calculated zonal price components, which would be a fixed contracts in between the Independent System Operator & selected source of reactive power generator.