Hadi Zibandeh - Mazandaran Regional Electric Company

In power markets, the system operator is responsible for networksecurity. Reactive power is important for system security andcompensation, but no one is still responsible for the cost of this servicebecause the commodity traded in the electricity markets is still the onlyactive power. In this article, it is believed that participants whoparticipate in loss reduction will be rewarded with less loss allocationrather than negative allocation. Doing so avoids the possibility of crosssubsidization.At the same time, by allocating small losses, there is anincentive to reduce losses. This article first introduces reactive powercost allocation. Then, the proposed current mode adjustment method,shingles selection, proposed voltage participation index, three-bussystem case study and IEEE 14-bus system case study are thecomponents of the article. Conclusions and suggestions are given at theend. This project proposes a competitive reactive power market thatdetermines the share of each contract in reactive and reactive powerlosses using the flow adjustment coefficient method. The project alsohelps present real power markets, where active power is still the maincommodity traded. The proposed methods and indicators are in linewith intuitive expectations. This result is obtained by case studies ontest systems.

Reactive Power , Current Adjustment Factor , Cost allocation