Analytical Approach to Reactive Power Dispatch and Energy Arbitrage in Distribution Systems With DERs

This work proposes an analytical approach for reactive power dispatch and energy arbitrage in grid-connected distribution systems with distributed energy resources. The comprehensive approach minimizes the operational cost of the system while incorporating the price of electricity, cost of reactive power, reactive power charge, line losses, and energy arbitrage. Mathematical programing and metaheuristic algorithms have been employed as benchmarks, and the efficacy of the analytical approach was validated on 69 and 119-bus radial distribution systems with real solar irradiance and electricity price data. The proposed approach removes the dependence on initial solutions and parameter tuning, shows superior results compared to the benchmark algorithms, and is up to 100 times faster compared to existing algorithms commonly used. It is therefore suitable for both day-ahead and real time power dispatch applications.