Modern Features of Price Formation on the Reactive Power Market

¹ Ivanovo Power Engineering Institute, 153003, Rabfakovskaya Street, 34, Ivanovo, Russian Federation
² Branch of JSC “SO UES” ODU Center, 109074, Kitaygorodsky Lane, 7, block 3, Moscow, Russian Federation
³ Plekhanov Russian University of Economics, Department of Management, 117997, Stremyanny Lane, 36, Moscow, Russian Federation
⁴ Mykolas Romeris University, Ateities st. 20, LT-08303 Vilnius, Lithuania

Abstract

This article discusses the specific features of such a product as reactive power. The degree of reactive power compensation both in the domestic electric power industry and in most industrialized countries is clearly insufficient. The possibilities available in electric grids, at power plants and at consumers of electricity for coordinated regulation of reactive power and voltage levels are not fully used. The main factors influencing the formation of the reactive power market in the electric power industry are revealed. The proposed market is based on the organization and implementation of qualified selection of reactive power suppliers. The scheme of the price bid of reactive power suppliers, developed on the fundament of the cost structure of various types of reactive power suppliers is proposed. Rational regulation of reactive power is currently not considered as an economic problem, but it is one of the main tools for managing the efficiency of EPS. The proposed organizational mechanism of pricing for reactive power and the qualified selection of its suppliers is aimed at determining the range of suppliers of reactive power capable of meeting the demand for it with the least costs, as well as to stimulate investments in the construction of new sources of reactive power.