Economic Dispatch of Reactive Power Provided by PV Inverters in Low Voltage Grids

The rise of distributed energy resources is transforming power grids, requiring new approaches for voltage control. This study examines how prosumers can provide reactive power via PV inverters to support local voltage control. While previous research has explored voltage regulation, market mechanisms, and prosumer participation individually, few studies integrate all three aspects. To address this gap, we propose a market-based reactive power provision (RPP) mechanism that financially incentivizes prosumers while ensuring cost-effectiveness for distribution system operators. Using an optimization-based control strategy, the model dynamically regulates voltage by dispatching reactive power from prosumers based on real-time grid demand. Simulations show that RPP stabilizes voltage while offering prosumers additional income and remains a competitive alternative to traditional reactive power sourcing. These findings highlight the potential of prosumer-based RPP as a cost-efficient solution for enhancing grid stability.