Generator VAr valuation based on MW shipment considerations in power markets

This paper presents a reactive power valuation method with regarding to its effect on realization of MW transactions. The security constraint optimization model in which the objective function is maximization of transactions is solved by genetic algorithm approach. The proposed scheme allocates a specific amount of MW transactions to each dynamic reactive power source. An index is introduced to derive VAr value from the calculated optimal parameters of power network. This index represents the system-wide effect of MVAr sources on MW transactions implementations. Application of proposed method has been illustrated using IEEE 30 and 14 bus test systems. Results are discussed and compared in different conditions of the system.