Cost allocation of reactive power considering generator consumption

Reactive power plays a crucial role in maintaining voltage stability and ensuring the efficient operation of power systems. Reactive power is the primary tool for voltage control in transmission networks. Secondary regulation, implemented by Transmission System Operators (TSOs) in many power systems, relies on the injection of reactive power into network nodes. Considering the increasing generation from renewable sources and the corresponding decline of traditional fossil fuels power stations, an interesting problem is the classification of reactive power sources (using a cost or merit order) to evaluate their impact on the cost of dispatch services (specifically, the reactive reserve for secondary voltage regulation). In this paper, we review existing methods for the cost allocation of reactive power and propose a new approach for valuing reactive power based on generators efficiency variation during their under or overexcitation working phases.