Modern Features of Price Formation on the Reactive Power Market

Vladimir Kolibaba,Sergey Filin,Sergey Melnikov,Anatolij Kolesnikov,Konstantin Zhabin,Ona Grazyna Rakauskiene,Maksim Maksimov,V.A Golenishchev-Kutuzov

doi:10.1051/e3sconf/202128801075

Abstract

This article discusses the specific features of such a product as reactive power. The degree of reactive power compensation both in the domestic electric power industry and in most industrialized countries is clearly insufficient. The possibilities available in electric grids, at power plants and at consumers of electricity for coordinated regulation of reactive power and voltage levels are not fully used. The main factors influencing the formation of the reactive power market in the electric power industry are revealed. The proposed market is based on the organization and implementation of qualified selection of reactive power suppliers. The scheme of the price bid of reactive power suppliers, developed on the fundament of the cost structure of various types of reactive power suppliers is proposed. Rational regulation of reactive power is currently not considered as an economic problem, but it is one of the main tools for managing the efficiency of EPS. The proposed organizational mechanism of pricing for reactive power and the qualified selection of its suppliers is aimed at determining the range of suppliers of reactive power capable of meeting the demand for it with the least costs, as well as to stimulate investments in the construction of new sources of reactive power.

Highlights

In modern society, the need for energy sources and electric power consumption is constantly increasing
The electric power industry has an important role in the development of the country's economy, and there is a need to ensure the effective use of consumed electric power, maintain the quality of electricity and the required level of reliability of electric power systems (EPS)
Due to technical features in the EPS, along with active power ("beneficial" for the end consumer), reactive power (RP) is constantly generated and consumed, which is not spent on performing effective work and, in contrast to active power, cannot be converted into mechanical, thermal, light and other forms of energy

Summary

Introduction

The need for energy sources and electric power consumption is constantly increasing. The control of reactive power (RP) flows in EPS plays an important role in ensuring the minimization of losses in the transmission of electricity, the required parameters of its quality and the reliability of energy supply to consumers. There are no mechanisms aimed at attracting investments in the creation of new capacities, the formation of economic signals to market entities, encouraging them to rational consumption and distribution of RP in the EPS Due to these circumstances, studies aimed at studying the economic nature of this process, the problems of pricing and pricing strategies based on costs, competition and demand, are relevant.

Methodology

Results and Discussion

Conclusion