Abstract—This study presents a new evolutionary method for reactive power pricing based on optimal power flow. Adequate reactive power is one of the most important parameters for secure operation of power system. In restructured electricity market, power system is operated near its secure boundaries in order to maximize social welfare. So Appropriate and accurate pricing of this service, can be very considerable in this environment. The main purpose of this paper is usage of Particle Swarm Optimization method for determination active and reactive power prices produced by generators, based on Locational Marginal Price (LMP). The proposed method has been applied on IEEE 14 bus system and compared with GA.

Index Terms—Reactive power pricing, particle swarm optimization, genetic algorithm, locational marginal price,restructured power market.

M. Sedighizadeh is with Faculty of Engineering and Technology, Imam Khomeini International University, Ghazvin, Iran. (m_sedighi@sbu.ac.ir)
A. Rezazadeh and M. Seyed Yazdi are with Shahid Beheshti University,Tehran, Iran.

Cite: M. Sedighizadeh, A. Rezazadeh and M. Seyed Yazdi, "Pricing of Reactive Power Service in Deregulated Electricity Markets Based on Particle Swarm Optimization," International  Journal  of  Computer  and  Electrical
Engineering vol. 2, no. 6, pp. 960-963, 2010.