A COMPREHENSIVE MARKET-BASED SCHEME FOR VAR MANAGEMENT AND PRICING IN THE ELECTRICITY MARKETS

摘要

The present paper proposes an integrated market-basedrnapproach for pricing VAR service in the electricityrnmarket. The structure of the market composed of VARrncapacity and VAR utilization during system possiblerntransition states. The possible transition states consideredrnhere are multiple base cases and contingencies with theirrnassociated occurrence probabilities. The market is basedrnon a long-term contract, where the successful candidatesrnwill be remunerated for the provision of VAR capacity asrnwell as VAR utilization during the contracted period. Thernproblem is stated as a minimization problem so thatrnfinancial and technical issues, emphasizing voltagernsecurity issue, are regarded explicitly in a unified singlernformulation.