G.R. Yousefi, H. Seifi, D. Shirmohammadi, "A New Algorithm for Reactive Power Management and Pricing in an Open Access Environment", ETEP Journal, John Wiley & Sons, Vol. 18, 2008, pp. 109-126.

Abstract:
In deregulated electricity markets, reactive power is one of the ancillary services that is provided by the Independent System Operator (ISO). In this paper we propose a new algorithm to ‘tune’ reactive power resources with the objectives of minimizing active power losses and optimizing system voltage profile and stability. In our solution, we assume that reactive power resources are either owned by or are under long-term contracts with the ISO. The optimization problem is solved as an Extended Multi-objective Optimal Power Flow (EMOPF) problem using Lexico Graphic Method (LGM). Thereafter, using the concept of Fair Resource Allocation (FRA), the cost of reactive power is allocated to existing transactions. The application of the algorithm to a test system is also presented. Copyright © 2007 John Wiley & Sons, Ltd.

Keywords:
reactive power management;ancillary services;reactive power pricing;voltage profile;voltage stability;deregulated electricity markets;open access