Bidding model-based compensation method for reactive power loss reduction leveraging energy storage inverters

The proliferation of distributed photovoltaic systems within distribution networks has led to a dual challenge of escalating line losses and inadequate reactive power regulation capabilities. This research integrates energy storage converters into the reactive power modulation landscape and formulates a trading framework to enable their active role in reducing reactive power losses. Concurrently, it proposes a bidding model-based compensation method for reactive power loss reduction leveraging energy storage inverters, anchored in the traditional principle of sequential auctions. This approach introduces a novel bidding core metric—Technical and Economic Comprehensive Index—which not only reflects the pricing of reactive power but also effectively captures the differential loss reduction effects attributable to the varying locations of reactive power compensation. A case study analysis is presented to substantiate the efficacy of the method outlined in this paper, thereby offering a decision-making foundation for the provision of reactive power compensation services within distribution networks.