TVAC-PSO based optimal reactive power dispatch for reactive power cost allocation under deregulated environment

This paper proposes a comprehensive model for reactive power pricing in an ancillary services market. Reactive power dispatch is based on expected payment function bidding structure and reactive power zonal market. Reactive power providers receive payment at zonal market clearing prices. Optimal power dispatch is solved by time-varying acceleration coefficients particle swarm optimization (TVAC-PSO). The cost charge to consumers consists of cost of unused capacity, direct reactive consumption, and voltage control. Two methods of cost allocation are employed: tracing and sensitivity methods. The test system is the modified IEEE 30-bus system. Cost of unused capacity is an important component of reactive power production cost. Reactive loads pay less if they are located in reactive power surplus area e.g. high line charging. Tracing method is found be superior to sensitivity method.