Real and Reactive Power Pricing with Hydro Condenser in Pool Based Electricity Market Model

In this paper, the cost characteristics of reactive power support by the generator is determined. A non-linear optimization problem formulation is proposed to compute both real and reactive power nodal prices for pool electricity market model with hydro condenser reactive support. The marginal prices at each node have been determined for both real and reactive power considering the minimization of fuel cost, reactive power cost, and cost of condenser. Three methods are used to determine the reactive power cost are Method1, Method2, and Method3, and from these three methods Method3 is taken as a proposed method and the marginal cost comparison have been provided considering the hydro generator as condenser in the system. The results have been determined for IEEE 24 bus test system.