In traditional power systems, besides the conventional power plants that provide the necessary reactive power in transmission system, the shunt capacitors along with the tap changers of transformers are also employed in distribution networks. In future years, because of the high number of distributed resources integrated into the distribution networks, it will be essential to schedule complete active-reactive power at distribution level. In this research work, an economic framework based on the active-reactive power bids has been developed for complete active-reactive power dispatch scheduling of smart distribution networks. The economical complete active-reactive power scheduling approach suggested in this study motivates distributed energy resources (DERs) to cooperate in both active power markets and the Volt/Var control scheme. To this end, using DER's reactive power capability, a generic framework of reactive power offers for DERs is extracted. A 22-bus distribution test system is implemented to verify the impressiveness of the suggested active-reactive power scheduling approach.
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