Modification of the mandatory generation region of producers in the reactive power market by considering reactive power losses

In this paper, a new reactive power market structure is studied and presented. Active power flow by itself causes active and reactive losses. Considering such losses in the reactive power market without paying any costs is the main purpose of this paper. So, this study tries to improve reactive power market and create fair competition in reactive power generation through improving the market structure. For this aim, firstly a new allocation method for reactive power losses is presented, and contribution of each producer in reactive losses is calculated. In the next step, this share of losses is used for modification of the mandatory generation region of units and the new structure of reactive power market is proposed. Also, in this work, the cost payment function of synchronous generators is modified. In order to simulate and describe the proposed methods in the implementation of the reactive power market, IEEE 24 bus reliability test system is applied and the proposed methods are compared with each other and the conventional reactive power market structure. As will be shown, the total payment by ISO will be reduced by using the proposed methods.