Impact on nodal pricing with different generators' reactive power cost models in pool based electricity markets

In this paper, the impact on nodal price determination of real and reactive power considering different reactive power price cost calculation methods for generator reactive power has been presented. The impact of FACTS controllers has also been considered taking their cost function into account. The comparison of fuel costs, reactive power cost, and cost of FACTS devices, and their impact on nodal price determination has been presented for different cases of reactive power cost models. The effectiveness of the proposed approach has been tested on IEEE 24-bus Reliability Test System (RTS).