Valuation of dynamic reactive power support services for transmission access

Competitive procurement of reactive power support services is rapidly becom ing a reality for deregulated electricity markets. It has resulted in a gre at need to quantify the value of reactive power support from var sources. T his paper presents research results on the development of new concepts and schemes for equitable reactive power support valuation. Performance charact eristics of the proposed method are determined and practical application is sues are addressed. The validity of the method is verified through sensitiv ity studies. This work emphasizes that the valuation of reactive power supp ort services should be based on their contributions to system security and stability. The dynamic var is the primary concern for the reactive power va luation problem.