A reactive power market for the future grid

As pressures to decarbonize the electricity grid increase, edge is witnessing a rapid adoption of distributed and renewable generation. result, traditional methods for reactive power management compensation may become ineffective. Current state-of-art compensation, which rely primarily on capacity payments, exclude generation (DG). We propose an alternative: market at distribution level designed meet needs decentralized decarbonized grids. The proposed uses variable payments compensate DGs equipped with smart inverters, increased spatial temporal granularity, through distribution-level Locational Marginal Price (d-LMP). validate our case study US New England modified IEEE-123 bus, while varying DG penetration from 5% 160%. Results show that can accommodate such large penetration, stable revenue streams. leverage considerable flexibility afforded by inverter-based resources over 40% load when operating in factor range 0.6 1.0. participating earn up 11% their total payments. Finally, corresponding daily d-LMPs determined were observed exhibit limited volatility.