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In order to solve urgent energy and environmental problems, it is essential to carry out high installation of distributed generation using renewable energy sources (RESs) and environmentally-friendly storage technologies. However, a high penetration of RESs usually leads to a conventional power system unreliability, instability and low power quality. Therefore, this paper proposes a reactive power control method based on the demand response (DR) program to achieve a safe, reliable and stable power system. This program does not enforce a change in the active power usage of the customer, but provides a reactive power incentive to customers who participate in the cooperative control of the distribution company (DisCo). Customers can achieve a reduction in their total energy purchase by gaining a reactive power incentive, whilst the DisCo can achieve a reduction of its total procurement of equipment and distribution losses. An optimal control schedule is calculated using the particle swarm optimization (PSO) method, and also in order to avoid over-control, a modified scheduling method that is a dual scheduling method has been adopted in this paper. The effectiveness of the proposed method was verified by numerical simulation. Then, simulation results have been analyzed by case studies.

Optimal Operation Method for Distribution Systems Considering Distributed Generators Imparted with Reactive Power Incentive