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Two Level Structure for Reactive Power in Deregulated Electricity Markets

The main objective of this Paper is to propose an two level structure for reactive power in deregulated electricity markets.Considering the various issues associated with the existing policies and practices for reactive power management and payment mechanisms, a competitive two level reactive power management structure is proposed. This structure is based on the separation of reactive power management into two distinct time-frames, i.e. a reactive power procurement stage carried out on a seasonal basis, and a reactive power dispatch stage that determines the reactive power levels in "real-time".