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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

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    Reactive Power Management and Pricing Policies in DeregulatedPower System: A Global Perspective

    mit Saraswat# s is Saini# /ay 0*mar Sa enaDepartment o' E e tri a Engineering# a * ty o' Engineering# Daya 3ag Ed* ationa Instit*te# gra-

    28211$# 4ttar Prades # India.e 5 6 1- ,2-28$122" E-mai 5 amitsaras9gmai . om

    Abstracte present paper address t e need 'or rea tive power management and its pri ing in dereg* ated power systems

    nowadays. Di''erent rea tive power s*pport e:*ipments di''er in t eir osts and operating ara teristi s. se e tion o' an appropriate rea tive power pri ing s eme is an important iss*e 'or re overing rea tive servi eosts and providing signa s to *sers to ontro t eir rea tive power ons*mption. ;any nations ave s* ess'* y'ramed and imp emented rea tive power pri ing po i ies. ose pri ing po i ies a ong wit some proposa s 'orIndian states are a so dis *ssed ere.Keywords: s# in verti a y integrated power *ti ity str* t*re# t e responsi3i ity o' generation#transmission and distri3*tion o' e e tri energy was entra i?ed at one organi?ation. n i ary servi es s* asrea tive power s*pport were a so an integra part o' t e e e tri ity s*pp y and not separated.

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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

    ,"

    ig*re 1. Syn rono*s Cenerator &apa3i ity &*rve

    It is ne essary to manage rea tive power and ontro vo tage d*e to 'o owing reasons5 Bot *stomer and power-system e:*ipment are designed to operate *s*a y wit in a range o' t e

    nomina vo tage. t ow vo tages# many types o' e:*ipment per'orm poor yF ig t 3* 3s provide essi *mination# ind* tion motors an over eat and 3e damaged# and some e e troni e:*ipment wi notoperate at a . Aig vo tages an damage e:*ipment and s orten t eir i'etimes.

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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

    ,

    $. Reactive Power Support Devices and %&eir 'ocations s*''i ient rea tive power s*pport need to 3e provided in t e system in order to maintain t e power ' ow imitson transmission ines and vo tage imits at 3*s 3ars. so# sin e it is not desira3 e to transport rea tive powerover t e networ=# it s o* d 3e pro *red at di''erent o ations in t e system depending *pon per eived demand

    ondition# mi o' oad and avai a3i ity o' rea tive s*pport devi es.

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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

    ,,

    2. Reactive support sc&emes and pricing mec&anisms5.1. England and Wales(UK)e Nationa Crid &ompany(NC&)# i=e t e ISO# arranges t e tenders o' rea tive s*pport servi es. e

    generator 3id rea tive power s*pport in *des apa ity (pri e per ;! r and :*antity on o''er) and *ti i?ation

    (;! r- pri e *rve) omponents. e 3idder t at is se e ted is paid 'or 3ot t e apa ity and *ti i?ationomponents t ro*g ann*a 3i atera ontra ts wit NC&.e Crid &ode p a es a minim*m o3 igation on a generating *nits# wit a power generating apa ity more t an$ ; # to provide a 3asi (mandatory) rea tive power servi e. In order to re eive payment 'or t is servi e# t egenerators m*st enter into a Default Payment mechanism (DPM) or a tendering system. e tendering systemonsist o' eit er an Obligatory eacti!e po"er #er!ice (O P#) or an $nhanced eacti!e Po"er #er!ice($ P#)% s an in entive 'or generators to enter t e tendering system# t e DPM ratio o' apa3i ity to *ti i?ationwas introd* e as 8$52$ in 1 7@ 8 w en t e s eme was started and was t em modi'ied in rementa y to $51$$*p to t e pri 2$$$. ternative y# t e generators an tender spe i'i pri es 'or apa3i ity and *ti i?ation witregards to O P# or $ P#% e ro*nds 'or tenders ave 3een e d every si mont s sin e 1 7 and t e ninttender ro*nd was 'or ontra ts e''e tive 'rom 1 pri # 2$$2. e tenders are 'or s*pp ying a rea tive servi e 'or a

    period o' twe ve mont s or more.e ost o' providing rea tive power servi es is *rrent y re overed 3y Nationa Crid via *se o' system arge

    in t e 3a an ing me anism. e ost o'

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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

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    'o ows5 Generators: vai a3i ity 6 &ompensation 'ee. #ynchronous *ompensators: vai a3i ity 6 Ena3 ing 'ee.

    vai a3i ity 'ee is re ated to t e s*pp ier>s readiness in providing t e servi e. &ompensation 'ee is re ated toopport*nity ost to a s*pp ier. Ena3 ing 'ee is re ated to t e start-*p o' t e servi e 3y a s*pp ier. e NE;;&Omandates t at generators provide rea tive power in t e power 'a tor range o' $. agging to $. % eading. I' agenerator operates in a power 'a tor 3eyond t is range t en it wi 3e ompensated 'inan ia y 3ased on t e ostopport*nity ost.5.5. &ndia

    ording to t e &E

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    Innovative Systems Design and Engineering www.iiste.org ISSN 2222-1727 (Paper) ISSN 2222-2871 (On ine)!o ."# No.7# 2$1% - Nationa &on'eren e on Emerging rends in E e tri a # Instr*mentation + &omm*ni ation Engineering

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    3. onclusionIn t is paper# a'ter ig ig ting t e ara teristi s and need o' rea tive power# t e dis *ssion is 'o *sed onvario*s power s*pport devi es *sed 'or rea tive power management and overview o' vario*s rea tive power

    pri ing me anism. e ave tried to investigate ow rea tive power s*pport over t e system is managed a ong

    wit some proposa s in t e vario*s dereg* ated power systems. is varies 'rom one o*ntry (or state) to anot erin t e way power ontra ts are 'ramed# or payment me anism is devised or t e power system is operated. InIndia# most o' t e rea tive powers pri ing s emes proposed are 3ased on pena ty 'a tor 3ased arges.

    Re#erencesOrder No. " o' 2$1$# C*/rat E e tri ity