Reactive Power Pricing in a Deregulated Competitive Electricity Market using Invasive Weed Optimization Algorithm

In this paper, reactive power pricing in a Deregulated electricity market is formulated. A proper pricing mechanism promises that the producers will participate with enough incentive as well as the consumers to utilize as much electric energy as required. The Cost of generation involves capital cost, production cost and opportunity cost. Opportunity cost is the cost that evolves when the generator is forced to produce the reactive power beyond its prescribed limits i.e it loses its opportunity to sell real power as it increases reactive power production by decreasing real power. Cost of generation depends on real power loss. In this paper, Invasive Weed Optimization Algorithm(IWOA) is employed in reducing the Cost and it is worked on IEEE 30 Bus system and IEEE 57 Bus system using MATLAB with MATPOWER tool. The simulated result shows reduction of cost.