Abstract
Reactive power, one of ancillary service in market, has a profound effect on the security of system because it affects voltages throughout the system. Many famous major outages have been ultimately traced to problems with insufficient reactive support. Although the costs of reactive provided by transmission and distribution facilities can be recovered through traditional cost-of-service ratemaking mechanisms, the means by which generators can recover their costs of reactive is not so clear. Thus, this paper examines the concept of reactive power's own compensation and charges sequentially which is somewhat symmetrical to the compensation problem. Also, since actually the question of resolving several important policy issues concerning market participants' obligations to provide or pay for reactive is the key of unbundling reactive power problem, it would be instructive for this paper to analyze the potential reactive investment opportunity presented in both operating a merchant plant and charging consumers for direct reactive consumption according to certain market regulations in the deregulated wholesale market for electricity.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.