To fully tap the abilities of renewables in reactive power optimization, this paper develops a detailed model for the power regulation capabilities of wind turbines and photovoltaic units and studies their impact on the power system’s operation. First, the power system model with renewables integration is established using AC power flow. The wind turbines and photovoltaic units are modeled in detail according to their topologies and operating characteristics, and then further simplified according to the feasible region. An improved DC power flow model is adopted to handle the non-linear characteristics of the power system. On this basis, a multi-objective reactive power optimization model is constructed to minimize the power generation cost, wind and solar power curtailment, and voltage offset. Finally, comparisons between two types of models in different scenarios are designed. Numerical simulations demonstrate that the participation of renewables in reactive power regulation can improve the operational economy and voltage stability of power systems.