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The reactive power is the background power without which the active power cannot be transmitted in the power systems. In the modern power system, the reactive power pricing is considered as essential in order to maintain the voltage in the transmission line. The modern power system is the grid that functions with smart innovative technological system that provides flexibility, efficiency and availability for the users. The smart grid uses the Internet of Things (IoT) technology to identify and provides the requirement of system reactive power for reactive power pricing. The IoT based wireless communication platform significantly reduces the latency and provides better accuracy. The system requirements for reactive power are optimally dispatched by the generator and other reactive power provider using optimization algorithm like Self Balanced Differential Evolution. Here the analytics and opportunities of smart grid for reactive power service are discussed using 62 bus Indian Utility System (IUS).
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