This paper proposes a novel method for controlling photovoltaic (PV) power outputs for an optimal operation of distribution system. The proposed method maximizes the total power of PVs in a distribution system by controlling their reactive power outputs, while improving the voltage profiles of the distribution system. The method also resolves a present problem that some specific PVs tend to be deactivated due to voltage violations. Based on multi-agent architecture, the method performs an optimal power flow computation and compute the shadow prices of reactive powers to control voltage violations. Then a dynamic pricing is carried out using LMP for real and reactive powers of PVs in the distribution system. It is shown that the proposed method is effective to mitigate the voltage violation problem and maximize the total PV power generations.
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