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Background: Foreign scientists have been trying to develop an optimal pricing mechanism for system services of reactive power regulation for over 30 years. However, they have not yet created an efficient pricing method for such services. There is a large variety of opinions about the methods and ways of purchasing and paying for reactive power in scientific publications and research works. The mechanism currently used at the Russian system service market for paying for reactive power regulation services does not solve the main problems of local reactive power regulation but only performs the functions of reactive power compensation in the power system regions with an insufficient supply of reactive power. The existing economic mechanisms motivate neither producers, nor consumers, nor infrastructure organizations of the wholesale market to implement modern technical tools improving economic efficiency and reliability of power systems. All this makes it urgent to develop a suitable pricing mechanism for reactive power regulation services. Materials and methods: The study is based on the works of Russian and foreign scholars and experts in economy, power engineering, modeling, as well as on regulatory legal acts of the Russian Federation in the field of operation of wholesale and retail electricity and capacity markets. The study employed analytical methods, methods of economic and logic analysis, electricity market modeling, and data classification and grouping methods.  «Вестник ИГЭУ» Вып. 2 2017 г.  ФГБОУВПО «Ивановский государственный энергетический университет имени В.И. Ленина» 69 Results: The research has shown that it is necessary to improve the pricing methods for reactive power regulation system services. Power generator costs associated with reactive power regulation have been analyzed. The authors have proved the importance of dividing the costs into active and reactive ones and suggested a technique of their calculation. They have also reviewed the existing methods of payment for reactive power regulation services and developed recommendations for creating a market mechanism of optimal pricing of reactive power regulation system services in Russia. Conclusions: There is a large potential of system service quality and reliability stimulation which is currently not used to its full in Russia. Creating and implementation of a proper pricing mechanism for reactive power regulation services in power systems aim to stimulate the development of new reactive power generation facilities, which will improve the reliability and economic efficiency of the Unified Power System of Russia.

Development of an optimal pricing mechanism for system services of reactive power regulation