A Reactive Power Model for a Simultaneous Real and Reactive Power Dispatch

This paper investigates the simultaneous dispatch of real power and reactive power in restructured electricity markets. In this proposed method the opportunity cost of supplying reactive power is implicitly modeled using the rating of the machine as a constraint. Fairness of reactive power supplying obligation is also ensured in the proposed model by splitting the reactive power supplied by the generator into two components with the first component being proportional to real power dispatch. The model is evaluated using the IEEE 30 bus system.