What Is the Concept of "Reactive Power Banking" or "Reactive Power Dispatch" in a Smart Grid Context?

With the continuous advancement of smart grid construction, the refined management and efficient utilization of electric energy have become an inevitable trend in the power industry. Against this backdrop, the concept of "reactive power bank" or "reactive power dispatch", as a cutting-edge idea, is moving from theory to practice, profoundly changing our traditional understanding of reactive power. As an active participant in the field of low-voltage reactive power compensation in China, Geyue Electric hopes to discuss with you how the innovative concept of "reactive power bank" or "reactive power dispatch" will shape the future electricity ecosystem.

From Local Balancing to Global Optimization

In the traditional power distribution model, the core objective of reactive power compensation is "local balancing", which involves installing capacitor banks at the user side or on the distribution transformer side to compensate for the reactive power consumed by local inductive loads, thereby improving the power factor and avoiding penalties. However, the limitation of this "local balancing" model is that it is too isolated and static. In this case, only by making good use of "reactive power dispatch" in the smart grid environment can this limitation be broken at one stroke. "Reactive power dispatch" utilizes advanced sensing, communication and control technologies to integrate reactive power compensation devices (not only capacitors, but also inverters, SVGs, etc.) scattered at various nodes of the power grid - from the power generation side, the transmission side to the tens of thousands of user sides - into a large and controllable "resource pool". The system can issue instructions to this resource pool dynamically, just like dispatching active power, based on the real-time voltage level and reactive power demand of the entire network, achieving flexible cross-regional and cross-voltage level flow and global optimal allocation of reactive power.

The Business Model Innovation of "Reactive Power Banking"

The concept of "reactive power banking" goes further than that of "reactive power dispatch" because the concept of "reactive power banking" endows the reactive power with financial attributes, thereby establishing a completely new market mechanism. In this model, users (especially those who have installed distributed photovoltaic power, energy storage systems, or have rapid response compensation equipment) are no longer merely "consumers" of reactive power; they can become "producers" and "suppliers" of reactive power. When the power grid requires reactive power support, users can, according to the dispatch instructions, supply reactive power to the grid through the compensation equipment they possess. These free contributions will be accurately measured and recorded by the "inertial bank", and users will thereby receive corresponding economic compensation or point rewards, which is similar to storing excess reactive power in a bank and obtaining "interest". This model greatly stimulates the enthusiasm of users to participate in grid ancillary services, transforming reactive power compensation from a passive obligation to an active market behavior that can be participated in and benefited from.

The Significance and Requirements for Electricity Customers

For the majority of electricity consumers, "reactive power banking" and "reactive power dispatch" represent new opportunities and requirements. The opportunity lies in that "reactive power banking” and "reactive power dispatch" have opened up a completely new cost reduction and efficiency improvement path for electricity users. Enterprises can not only save on electricity costs by local compensation, but also "sell" reactive power services during specific periods by responding to grid dispatch, thereby obtaining additional income. The requirement is that if one wants to participate in this advanced application, electricity users must ensure that the reactive power compensation equipment on the user side has completed intelligent upgrades. Traditional capacitors and reactors with only simple switching functions are unable to handle this. The equipment used for "reactive power banking" and "reactive power dispatch" needs to have high-speed communication interfaces (such as Ethernet, 5G, etc.), capable of receiving and executing instructions from the upper-level dispatch system; the equipment needs to have a faster response speed (up to millisecond level) to cope with the rapid changes in grid conditions; at the same time, the equipment also needs to have higher reliability and more precise measurement capabilities to ensure the accuracy of reported data and executed actions.

The Intelligent Solutions of Geyue Electric

Facing the new challenges and opportunities brought by the smart grid for reactive power management, Geyue Electric has already laid out its future plans and is committed to creating a low-voltage reactive power compensation solution for customers that is oriented towards the next generation. Our intelligent reactive power compensation devices are no longer isolated electrical components; instead, they have transformed into intelligent terminals of the power grid. They are equipped with high-performance controllers and standard communication protocols, and can seamlessly connect to various energy management systems and dispatch platforms, enabling remote monitoring, data analysis, and strategy reception. Whether it is responding quickly to "reactive power dispatch" instructions or providing precise data and action support for participating in "reactive power banking" transactions, Geyue Electric's solutions can provide a solid and reliable technical foundation. We sincerely invite you to pay attention to Geyue Electric's intelligent product series. Let us use more forward-looking technologies and more comprehensive solutions to help you seize the initiative in the smart grid era, not only as an electricity manager, but also as an active participant in the future power market. Our service team and technical personnel are always waiting for your inquiries at info@gyele.com.cn.