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In an open way in transmission system, the costs of each additional service will be unblocked. This method proposes a straight forward allocation of the cost of reactive power purchased by contract or from a bidding market.
This method uses basic circuit theory and partitions the Y-bus matrix to decompose the voltage of the load buses with a view to calculating the reactive power sharing. This method is derived from the system equations without any assumptions, i.e., loss less transmission line.
Keywords: Ancillary service, cost allocation, reactive power
Project code: EEPS 0100
Requirements: MATLAB Programming