Reactive power management in deregulated electricity markets

INTRODUCTION

1.1 REACTIVE POWER AS AN ANCILLARY SERVICE

Around the world, almost all electrical power systems have been

changed from vertically integrated and regulated environments to the decentralized

environments. Earlier, only real power was considered for payment. But in the

context of open access markets, the pricing of reactive power has a major role.

Reactive power is one of the ancillary services used to maintain the voltage

profile through injecting or absorbing reactive power. Reactive power services

play important roles as follows: