Improvement of the simultaneous active and reactive power markets pricing and structure

Reactive power markets have received special attention in recent years due to the importance of reactive power for maintaining network stability and freeing up the capacity of transmission lines. Hence, this study tries to improve this market and encourage fair competence in reactive electrical power generation through improving the unit pricing process. On the other hand, simultaneous active and reactive power markets are implemented by this study in order to account for energy market and reactive power market interactions. A new structure for paying lost opportunity costs to reactive power producers is presented here which is aimed for improving this market. Additionally, considering local nature of reactive power, the new method of holding simultaneous market using regional reactive power is proposed and pertaining results are compared with separate, non-local market. Finally, the effect of increments in prices proposed by effective units in reactive power market on implementation costs have been compared with separate and simultaneous markets, in order to investigate efficiency of active and reactive simultaneous markets.