Abstract
In the cost based pool market in Korea, there is no compensation of reactive power because the fuel cost for reactive power is relatively low compared to that of active power. However, the change of energy paradigm in the future, such as widespread integration of distributed renewable energy source, will prevent the system operator from mandating the reactive power supply without any compensation. Thus, in this study, we propose the reference voltage of the 345 kV transmission system that minimizes the reactive power supply. This is closely related to the economic dispatch of reactive power aiming at minimizing the compensation cost for the reactive power service. In order to verify the effectiveness of the proposed reference voltage, the simulations are performed using the IEEE 14 bus system and the KEPCO real networks. The simulation results show that a voltage lower than the current reference value is recommended to reduce the reactive power supply and also suggest that the current voltage specification for the 345 kV system needs to be reviewed.
