A stochastic framework for reactive power procurement market, based on nodal price model

A new modified nodal pricing method is presented in this paper to calculate reactive power price. This article tries to solve the problems of traditional nodal pricing methods to be able to consider opportunity and availability costs for the generators. A modified model of generators reactive power production cost has been used in OPF objective function considering normal and contingency conditions. Availability cost would be estimated considering the volume of network demand from the generators in contingency states through probability calculations. This cost would be paid to all the units that possibly will needed to produce reactive power in contingency states. Purvey of required availability of generation units to deal with emergency conditions, encouraging providers to invest in critical areas in the network and fair distribution of reactive power production costs over several producers are some advantages of the proposed method. The proposed method is tested on IEEE 24 bus RTS and is compared with the uniform pricing method.

► A new modified nodal pricing method is presented to calculate reactive power price.
► In this methods opportunity and availability costs for the generators are considered.
► Availability cost is estimated considering necessitated reactive demand in all states.
► Availability cost is estimated through probability calculations.
► A modified model of generators reactive power production cost has been used.