Reactive Power Compensation for Renewable Energy: Current Models and Potential Changes, Opportunities for Developers, Hosted by Strafford

Reactive power can provide generators and non-generation resources with additional revenue streams. Renewable energy counsel and developers must recognize the opportunities provided by reactive power compensation, current compensation models, and legal processes involved to obtain the revenue stream that reactive power could provide.

Reactive power helps support voltages on the transmission system to allow for the movement of real power across transmission lines. The compensation of reactive power can be employed either at load level, substation level, or at transmission level. Currently, wind and solar facilities are allowed to offer reactive power as an ancillary service into wholesale electricity markets. However, in recent years, FERC, ISOs, and RTOs are revisiting reactive power compensation models which could result in more opportunities and challenges for renewable facilities.

Renewable energy counsel and developers must familiarize themselves with current reactive compensation models and variations permitted by FERC based on a number of factors.

This panel discusses recent FERC orders and notices regarding reactive power compensation, current and potential opportunities for renewable energy facilities and developers, and key considerations and pitfalls to avoid for developers seeking additional revenue streams for reactive power compensation.