Distributed reactive power management in multi‐agent energy systems considering voltage profile improvement

Abstract In recent years, distributed structures have been developed in distribution networks as a result of privatization as well as integration of independently operated distributed energy resources (DERs) into the grid. In this context, effective management techniques seem to be necessary to enable decentralized operation of systems that have been consisted of multiple agents. Accordingly, novel management schemes should be applied in such systems to enable the distributed reactive power management, which would finally improve voltage profile in the network. As a result, this paper develops a distributed algorithm for reactive power management in multi‐agent distribution systems with the aim of improving the voltage profile of the grid. Correspondingly, in the proposed framework, several cost functions are developed to model the effects of reactive power management on the system from the distribution system operator (DSO) as well as agents’ perspectives. Consequently, the proposed reactive power management algorithm would result in voltage profile improvement, while each agent of the system merely strives to maximize its own profits. Accordingly, the proposed scheme ensures the privacy of independent agents. Finally, the proposed scheme is applied on the modified IEEE‐37‐bus test system to investigate its effectiveness on Peer‐to‐Peer (P2P) reactive power management in multi‐agent systems.