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uAn Integrated Competitive-Approach for the Remuneration of VAR Producers in an Open-Access Environment v

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Qassim UniversityiƒTƒEƒWƒAƒ‰ƒrƒAjuŽtC

El-Said El-Sayed El-Araby@Ž

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The provision of the reactive power service from the generators and synchronous condensers has been realized and become a reality in most of the current electricity markets. It is considered one of the most critical services that must be adequately ?procured in order to securely support real power transfer across the network.

Recently, establishing an appropriate pricing scheme for fairly compensate the VAR service providers has become quite active research topic in power system restructuring.

In this lecture, an integrated market-based scheme which considers both of VAR capacity and VAR utilization payments for pricing the dynamic VAR sources will be presented.

?A unified single formulation that incorporate financial issue in terms of VAR service payment and technical issues considering system transition states, emphasizing voltage security issue is introduced. The objective function, which is the sum of expected VAR@@@@@ capacity payment, VAR utilization payment and operating costs during system operation,is assessed probabilistically under possible power system transition sates.
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