Summary With the increase in the number of renewable energy resources (RES) in the distribution network, the distribution system operators are facing several operational challenges to maintain network power quality and reliability. The stochastic nature of wind speed and solar irradiance may cause voltage sag and swell during high and light load conditions, respectively. Again, owing to low X/R ratio in the active distribution network, the voltage becomes more susceptible to change with the change in net real power injections in the bus, unlike high voltage networks. This article proposes an optimal framework for voltage regulation in active distribution system using the available flexibility of load reduction based on demand response programs, and reactive power injection capability of a smart inverter (SI) of the PV system, where the coordination between the two is considered. However, for adequate grid voltage support, the selection of buses for DR programs is based on voltage sensitivity analysis. This article proposes a simple and effective technique to determine the sensitivity of a DR bus on the voltage profile of the network. The decision for the optimal location for DR resource, DR magnitude, and SI reactive power is finalized using Nondominated Sorting Genetic Algorithm II (NSGA‐II) in a bid to minimize the DR procurement cost, SI ageing cost and network loss. The work also incorporated DR modeling and probabilistic model for RES generation with the consideration of uncertainty involved in both the cases. The modified IEEE 33‐bus distribution system is chosen for authenticating the suggested technique.

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