Fair Clearing of Reactive Power Market

In this paper, new reactive power market structure is studied and presented. In this paper, after separating active and reactive losses from each other, the reactive losses which are generated from active power flow is considered in the reactive power market. As this reactive power loss are generated by the implementation of the energy market and not related to reactive power market, they must be generated mandatory by each unit. So, the main purpose of this paper is to consider reactive losses of the active power flow without any payment to it. Hence, this study tries to improve reactive power market and create fair competition in reactive power generation through modifying the market structure. The advantage of this method is determining the mandatory region of units based on both active power output and its distance from the load. In order to stimulate the proposed method, IEEE 24 is used, and this method is compared with each the conventional reactive power market. As it will be shown, the total payment by ISO will be reduced by using this method.