Abstract:In the traditional paradigm, large power plants provide active and reactive power required for the transmission system and the distribution network purchases grid power from it. However, with more and more distributed energy resources (DERs) connected at distribution levels, it is necessary to schedule DERs to meet their demand and participate in the electricity markets at the distribution level in the near future. This paper proposes a comprehensive operational scheduling model to be used in the distribution management system (DMS). The model aims to determine optimal decisions on active elements of the network, distributed generations (DGs), and responsive loads (RLs), seeking to minimize the day-ahead composite economic cost of the distribution network. For more detailed simulation, the composite cost includes the aspects of the operation cost, emission cost, and transmission loss cost of the network. Additionally, the DMS effectively utilizes the reactive power support capabilities of wind and solar power integrated in the distribution, which is usually neglected in previous works. The optimization procedure is formulated as a nonlinear combinatorial problem and solved with a modified differential evolution algorithm. A modified 33-bus distribution network is employed to validate the satisfactory performance of the proposed methodology.