Reactive Power Contribution and Pricing for Restructured Power Industry

Abstract

Competitive trend towards restructuring and unbundling of transmission services has resulted in the need renteto discover the impact of a particular generator to load. This paper initially presents the analysis of three diffreactive power valuation methods namely, Modified Ybus, Virtual flow approach and Modified Power flow tracing tocompute the reactive power output from a particular generator to particular load. Among these methods, themodified power flow electricity tracing method is identified as the best because of its various features. Secondly,based on this Method, the opportunity cost for practical system is determined. Hence, this method can be useful inproviding additional insight into power system operation and can be used to modify existing tariffs of charging forreactive power transmission loss and reactive power transmission services. Simulation and comparison results areshown by taking IEEE 30 bus system as test system.