A method for simulation and analysis of reactive power market

This paper presents a method for the simulation and analysis of alternative reactive power market arrangements based on combined reactive power capaci ty and energy payments, The value of reactive power support, in terms of bo th capability and utilization, of each particular generator is quantified u sing a developed security constrained reactive optimal power flow. The rela tive competitiveness of participating generators is also assessed for a spe ctrum of arrangements between a reactive capacity and a reactive utilizatio n based market. Also, the conflicting objectives of the system operator, as a purchaser of reactive power service, and generators, as suppliers of the services, are analyzed.