Reactive Power Management and Pricing Policies in Deregulated Power System: A Global Perspective

Abstract

The present paper address the need for reactive power management and its pricing in deregulated power systems nowadays. Different reactive power support equipments differ in their costs and operating characteristics. A selection of an appropriate reactive power pricing scheme is an important issue for recovering reactive service costs and providing signals to users to control their reactive power consumption. Many nations have successfully framed and implemented reactive power pricing policies. Those pricing policies along with some proposals for Indian states are also discussed here.

Keywords: Reactive power management, reactive power pricing policies, reactive power market