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Reactive power service is one of the key ancillary services and the trading in it is becoming a reality for deregulated electricity markets. With deregulation of electricity sector each electric power service in the power system should be economically valued and the fair rules for evaluation and compensation need to be established. This has generated a need to quantify the value and to compensate the service of reactive power support. In this book, quadratic opportunity cost function for reactive power has been derived in terms of real power cost parameters and day-ahead data of energy market...