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Competitive procurement of reactive power support services is rapidly becoming a reality for deregulated electricity markets. It has resulted in a great need to quantify the value of reactive power support from VAr sources. This paper presents research results on the development of new concepts and schemes for equitable reactive power support valuation. Performance characteristics of the proposed method are determined and practical application issues are addressed. The validity of the method is verified through sensitivity studies. This work emphasizes that the valuation of reactive power support services should be based on their contributions to system security and stability. The dynamic VAr is the primary concern for the reactive power valuation problem.
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Xu et al. (2001) studied this question.
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