Reactive power management in deregulated electricity markets - V, Mahesh
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INTRODUCTION 1.1 REACTIVE POWER AS AN ANCILLARY SERVICE Around the world, almost all electrical power systems have been changed from vertically integrated and regulated environments to the decentralized environments. Earlier, only real power was considered for payment. But in the context of open access markets, the pricing of reactive power has a major role. Reactive power is one of the ancillary services used to maintain the voltage profile through injecting or absorbing reactive power. Reactive power services play important roles as follows:

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INTRODUCTION 1.1 REACTIVE POWER AS AN ANCILLARY SERVICE Around the world, almost all electrical power systems have been changed from vertically integrated and regulated environments to the decentralized environments. Earlier, only real power was considered for payment. But in the context of open access markets, the pricing of reactive power has a major role. Reactive power is one of the ancillary services used to maintain the voltage profile through injecting or absorbing reactive power. Reactive power services play important roles as follows: