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Incentive mechanism for decentralized reactive power management through solar inverters

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  • Siddiqui, Naureen
  • Paliwal, Priyanka

Abstract

This study examines the role of solar inverters in Reactive Power Management (RPM), positioning them as flexible alternatives to conventional devices in distribution networks. The performance of Active-Reactive Power Injection (ARPI) mode is compared to Active Power Injection (API) mode. To promote ARPI adoption, the study introduces VAR-Based Incentives (VBI), proposing financial and policy mechanisms. Two RPM strategies—Sunshine Hour RPM and Continuous RPM—are assessed. A cost-benefit analysis is conducted on the Raipura feeder (District Panna, Madhya Pradesh) with 1 MW solar plant. Profit % is estimated for the Solar Power Producers (SPPs) highlighting financial viability of providing reactive power support. The findings offer valuable insights for utilities and policymakers to strengthen grid stability, optimize resources, and support renewable energy integration.

Suggested Citation

  • Siddiqui, Naureen & Paliwal, Priyanka, 2025. "Incentive mechanism for decentralized reactive power management through solar inverters," Renewable Energy, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:renene:v:255:y:2025:i:c:s0960148125015319
    DOI: 10.1016/j.renene.2025.123867
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    References listed on IDEAS

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    1. Saša Vlahinić & Dubravko Franković & Vitomir Komen & Anamarija Antonić, 2019. "Reactive Power Compensation with PV Inverters for System Loss Reduction," Energies, MDPI, vol. 12(21), pages 1-17, October.
    2. Kirstin Beyer & Robert Beckmann & Stefan Geißendörfer & Karsten von Maydell & Carsten Agert, 2021. "Adaptive Online-Learning Volt-Var Control for Smart Inverters Using Deep Reinforcement Learning," Energies, MDPI, vol. 14(7), pages 1-11, April.
    3. Mohsina Nazir & Arjun Tyagi & V. V. Tyagi & Krishan Kumar & Ram Krishan, 2022. "A Review on Reactive Power Capability of Distributed Solar PV Inverter in Distribution Systems," International Journal of Social Ecology and Sustainable Development (IJSESD), IGI Global Scientific Publishing, vol. 13(2), pages 1-10, March.
    4. Manuel Flota-Bañuelos & María Espinosa-Trujillo & José Cruz-Chan & Tariq Kamal, 2023. "Experimental Study of an Inverter Control for Reactive Power Compensation in a Grid-Connected Solar Photovoltaic System Using Sliding Mode Control," Energies, MDPI, vol. 16(2), pages 1-26, January.
    5. Muhammed Sait Aydin & Sahban W. Alnaser & Sereen Z. Althaher, 2022. "Using OLTC-Fitted Distribution Transformer to Increase Residential PV Hosting Capacity: Decentralized Voltage Management Approach," Energies, MDPI, vol. 15(13), pages 1-19, July.
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    1. Kol, Sinem & Poyrazoglu, Gokturk & Yilmaz, Hasan, 2026. "Reactive power market design for unutilized grid-forming assets to address power factor penalties in Turkiye," Utilities Policy, Elsevier, vol. 98(C).

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