A Nodal Pricing Approach for Reactive Power in Distribution Networks

Author(s)

Cerbantes, Marcel Chuma ; Sanches Mantovani, Jose Roberto ; Fernandez-Blanco, Ricardo ; Ortega-Vazquez, Miguel A. ; IEEE

• Document type: Journal article
• Source: 2017 IEEE PES INNOVATIVE SMART GRID TECHNOLOGIES CONFERENCE - LATIN AMERICA (ISGT LATIN AMERICA); v. N/A, p. 6-pg., 2017-01-01.

Abstract

Electricity tariffs are traditionally associated with the cost of active power, whereas reactive power prices are neglected. However, the efficiency and power quality of distribution systems increase if reactive power rates are explicitly modeled. This paper proposes a practical, simple, and transparent reactive power pricing mechanism based on the change of apparent power due to reactive power injection. The resulting prices depend on the reactive power injection and thus they may be different at each bus. Fair payment and economically attractive remuneration schemes for reactive power utilization are implemented in order to maintain a desired power factor. Numerical results on a 69-bus distribution system illustrate the effectiveness of the proposed pricing approach. (AU)

• FAPESP's process: 15/21972-6 - Optimization of the operation and planning in transmission and distribution systems
• Grantee: Rubén Augusto Romero Lázaro
• Support Opportunities: Research Projects - Thematic Grants
• FAPESP's process: 14/22314-0 - Market modeling and establishment of rules for active and reactive power trade in distribution systems
• Grantee: Marcel Chuma Cerbantes
• Support Opportunities: Scholarships abroad - Research Internship - Doctorate
• FAPESP's process: 13/13070-7 - Development of a computational tool for operation planning of distribution electric power systems with distributed generators
• Grantee: Marcel Chuma Cerbantes
• Support Opportunities: Scholarships in Brazil - Doctorate