Using Advanced Metering Infrastructure Data from MV/LV Substations to Minimize Reactive Energy Supply Cost to Final Consumers

This article presents an original methodology to determine the optimal level of reactive energy transmission to low-voltage consumers supplied from MV/LV substations that guarantees the lowest total costs of reactive energy transmission through the DSO network and its generation in receiving installations within the reactive power compensation process. The average value of the optimal factor tgφ to be maintained by customers depends on the efficiency of the network, the characteristics of the load, and the market costs of energy losses due to the transmission of reactive energy through the network that are covered by the DSO and the costs of reactive energy generation in receiving installations. The results presented for real MV/LV substations operating in the Polish distribution network demonstrate the application of annual measurements of active and reactive energy consumed and generated registered by AMI systems to calculate the optimal reactive power compensation level. They can be applied to verify the permissible levels of reactive energy compensation applied by the DSOs until now within the yearly tariffs for customers.