Short term reactive power dispatch using a novel pricing structure for synchronous condenser

In present day restructured power market reactive power support is gaining considerably much importance. The ever increasing demand from consumer side forced the system operators (SO) to operate the transmission system with higher loading and lesser margins that have resulted into frequent stability problems. Because of indispensable need of reactive power for system security, the researchers worldwide are always looking for its judicious management to ensure sufficient reactive power support for stressed power system operation. This paper presents a method for reactive power cost allocation which aims to calculate cost that will be paid to generators and other reactive power providers as the revenue for supplying reactive power. The proposed method presents a new pricing method for synchronous condenser. The Reactive power dispatch problem is implemented using optimal power flow (OPF) which is solved using Artificial Bee Colony (ABC) algorithm. The method is realized in IEEE 14-bus and IEEE 30-bus test systems.