Optimum VAr support procurement for maintenance of contracted transactions

Abstract

This paper models and addresses the various issues associated with reactive power procurement by an independent system operator functioning in a deregulated electricity market dominated by bilateral contracts. The reactive capability of a generator is modeled within an optimal power flow (OPF) framework. The optimum procurement of reactive power is obtained considering minimization of network losses and deviation from contracted transactions. The CIGRE 32 node network which approximately represents the Swedish system is used for the studies.