Volt—VAr Optimization and Reconfiguration – Reducing Power Losses in a Droop Based Microgrid

In this paper, a MILP optimization problem is formulated to reduce network power losses of a droop - controlled islanded microgrid by the application of a day - ahead volt - VAr dispatch and network reconfiguration. The modelling also includes the steps followed in linearizing the non-linear equations. The formulation is then tested on a 33 bus system modified to function as an islanded microgrid. A realistic hourly load profile which has a mix of both residential and industrial loads is considered for case studies. Studies have been performed for both cases of constant Z and ZIP loads. A substantial reduction in power/energy loss is observed by the use of optimal volt - VAr dispatch and network reconfiguration.