Dispatching Reactive Power Considering All Providers in Competitive Electricity Markets

This paper proposes a level playing field for the supply of reactive power ancillary services, wherein not only synchronous generators, but other providers of reactive power are also paid for their services. An Optimal Power Flow (OPF)-based reactive power dispatch model is proposed based on the reactive power payment mechanisms existent in Ontario. Novel cost models are proposed for Static VAR Compensators (SVCs) and Static Synchronous Compensators (STATCOMs) and included in the dispatch model. The proposed methodology is tested on a dispatch model of Ontario power grid, and the results show that the proposed technique can significantly reduce the cost of reactive power dispatch while maintaining system security.