Strategy deviation index as a new reactive market power indicator

Reactive market power assessment is an important issue for ISOs and the regulators of the reactive power market. Due to the localized characteristics of reactive power as a technical support and its monopsonistic nature as an economic commodity, a vivid reactive market power index including market share, demand side and cost is not achieved yet. In this paper, a new reactive market power index is presented which is based on bidding strategy deviation of the GENCOs after establishing a uniform price auction reactive market. Not knowing others´ offers to ISO, each unit faces a bidding strategy problem that is solved using game theory. Considering its production costs, the unit uses the resulting strategy for its offer to ISO. A 30-bus test system is used to test the proposed method.