The development of power quality markets

Power quality (PQ) issues in electricity distribution systems are regarded from an economical perspective, starting from parallels in environmental economics. In order to create incentives to efficiently achieve required levels of PQ, an emission permit/right trading system for the different PQ phenomena, each with a different market, is presented. Its implementation and functioning are explained. This system allows the stimulation of the installation of mitigating devices at the customer site or in the grid and makes it possible to tailor the needs of individual customers, who will become more aware of PQ.