Harmonic pricing model based on harmonic costs and harmonic current excessive penalty

Harmonic will do great harm to power grid and cause economic losses. In order to reduce such losses, the power utilities need additional investment for harmonic suppression measures. The harmonic losses and the additional investment capital together constitute the harmonic costs and they are the basis of harmonic pricing. Based on the analysis of harmonic losses and to what degree that the emitting harmonic currents exceed their limits, this paper proposes a novel harmonic pricing model, with a harmonic losses compensation price and a harmonic current excessive punitive price. An example is studied to discuss the feasibility of the pricing model.