ABSTRACT
Dynamic reactive power supported by generators and other sources has a significant role, particularly when the system condition is taking the system toward a voltage collapse point. The importance of using the system voltage signal, i.e. V syst, is critically examined. The pricing equation includes the V syst in a bid to encourage critical sources as required by the prevailing situation to support voltage stability. The amount of pricing value for a source automatically shows the sensitive location for reactive power source, and thus the high value of pricing encourages the service provider to inject more reactive power. Different cases are created to show the dynamic nature of pricing that depends on the variation in benefit value and V syst. The locational effect of VAR source on the voltage stability of the system is incorporated in pricing by the real-time variation of V syst with reactive power generation from any source.
