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A Tariff for Reactive Power

Chris Tufon, Fangxing Li

2026enreactive powervoltage regulationinvertersdistributed generationtariffspower systems

Abstract

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This paper describes a suggested tariff or payment for the local supply of reactive power from distributed energy resources. The objective is to assess the ability of four sample customers to supply dynamic reactive power for local voltage regulation and estimate the cost of this supply. The methodology involves estimating the power system savings from the local supply of reactive power for a hypothetical circuit and calculating the economic feasibility of utilizing new inverters for voltage regulation. Results indicate that it is economically viable for customers to supply reactive power for local voltage regulation when new inverters with a power factor of 0.8 are installed. These inverters can regulate voltage according to a schedule provided by the utility and are commonly used in conjunction with technologies such as photovoltaic systems, fuel cells, microturbines, and adjustable-speed motor drives, enhancing the reliability and efficiency of the distribution system. The study ultimately proposes a sample tariff based on the findings.

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Cite This Work

@article{d1caeccc-319e-4815-a18b-e63df42f4244,
  title={A Tariff for Reactive Power},
  author={Chris Tufon and Fangxing Li},
  year={2026},
  language={en}
}
TY  - JOUR
TI  - A Tariff for Reactive Power
AU  - Chris Tufon
AU  - Fangxing Li
PY  - 2026
LA  - en
ER  -

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