Treatment of the Reactive Power in the Deregulated Electrical Power Systems in Latin America and Spain

This paper analyzes reactive power issues in competitive electricity markets, with special attention to Latin American and Spanish markets. The paper focuses on the most relevant issues such as the connection requirements (mandatory or decided) for the different agents and the way the reactive power ancillary service is remunerated. The special case of distribution networks managers considered as transmission network customers and subject to transmission access requirements is also analyzed.