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A pricing mechanism for network reactive power devices in competitive market

In this paper, a pricing mechanism is proposed for network reactive power compensation devices in competitive markets. The cost components of network devices are examined in the paper. In the proposed market, network device owners offer the prices for supplying or absorbing reactive power. The market model is settled on uniform market prices. In the study cases, the issues of market power are analyzed and some useful conclusions are obtained for the consideration of establishing a market mechanism for network reactive power devices