Pricing the Voltage Regulation Support by Distributed Generators through Optimal Reactive Power Dispatch

The induction of alternative energy sources in the main grid can be a potential solution to the existing problems of voltage correction and losses of power in the distribution systems. An appropriate installation of the distributed generators (DG) and a suitable controller for their operation can significantly improve the quality of the power delivered to feeders. However, integration of the distributed generations into the old-fashioned unidirectional main grid is challenging, owing to the new notion of bi-directional power flow. The latter brings new tasks, which call for the optimization of the system parameters.This paper aims to build the mechanism of voltage correction required in the distribution systems. It is proposed to achieve the voltage correction by optimally controlling the DGs’ voltage setpoints vis-a-vis their amount of reactive power injection and absorption. The simulation results of the proposed methodology exhibit the apparent improvement in the main system’s parameters. To encourage customers, holding distributed generator capacity, it is proposed to offer them incentives in the form of reasonable prices for providing reactive power support.