Distribution factors for reactive power in the presence of bilateral transactions

The twin factors of limited investment in electric transmission systems and the overexploitation of electrical resources results in an increase in the need for reactive power to support system voltage profile and to supply loads. It is reasonable to expect that generators and compensators, heavily involved in reactive support on a voluntary basis, will be remunerated for their service by market transactions. This remuneration will depend on the network topology, i.e. of buyers, sellers and reactive injection locations, on the active power exchanged and the reactive power required by loads. All these aspects are taken into account in developing a methodology based on circuit considerations. Using this approach, at a given system operating point characterised by a predefined set of transactions, reactive responsibilities can be formulated as the sum of two terms: one strictly related to transactions and the other dependent on electric network parameters. Test results demonstrate the efficacy of the proposed methodology in sharing reactive power responsibilities in a fair way among market participants.