Reactive power pricing using cloud service considering wind energy

This paper proposes a transparent and reliable method between the suppliers and consumers for optimal reactive power pricing. The electric power suppliers compute the optimal reactive power using optimal reactive power dispatch problem by considering nodal voltage stability index ‘I’ as one of the constraints. The computed optimal reactive power of the generator is included in the reactive power pricing. The pricing method to the suppliers based on the opportunity cost method is presented and a detailed analysis using 62 bus Indian utility system has been carried out by considering diverse cases. In this proposed pricing method, the services of the cloud technology have been used to provide transparent pricing based on the demands of the consumers. The power demands at the consumers’ site is calculated without the human involvement using the Internet of Things and the same is uploaded in the cloud. In reactive power pricing, the system operator acts as a mediator between the suppliers and consumers. Based on the demand and availability of power, the system operator provides the cost for the service to the consumer through cloud.