Real-time pricing method of reactive power for voltage control ancillary services considering economic rationality

It is an important issue to maintain voltage profile in distribution systems with a large number of distributed generators. To solve this problem, reactive power control of the distributed generator connected via a power conditioning system is effective. However, there is a possibility that the reactive power control leads to curtailment of active power output when capacity of the power conditioning system is not enough. Therefore, it is needed to compensate the economic disadvantage of the control collaborators in order to realize the cooperative voltage control method using the reactive power control. Hence, the authors developed a new real-time pricing method of reactive power supposing that all owners of the distributed generators behave based on economic rationality.