Energy Storage System (ESS) is a promising solution to suppress the peak-valley difference of residential distribution networks (RDN) with high penetration of distributed photovoltaic generations. Meanwhile, it can also provide certain power quality compensations to RDN due to the flexible adjusting ability of its converter interface. To make full use of this feature, this paper investigates the optimal power quality compensation of the ESS. This is achieved by formulating and solving an optimal power flow (OPF) problem, the objectives of which are to minimize the power loss, harmonic distortion, and voltage unbalance of the network. Noticeably, the established model includes the neutral line and inter-phase loads; thus, it is unified and can be easily extended to networks with different structures. However, the coupling between different phases and the inclusion of harmonic variables significantly increase the complexity of the OPF problem. To address this issue, the optimization model is further transformed into a convex quadratic constrained quadratic program (QCQP) by replacing power flow equations with current injection equations. As a result, the problem can be solved by the primal-dual interior-point method (PDIPM) with guaranteed convergence and computational efficiency. An iterative solution method is further proposed to improve the accuracy of the solution. Finally, the proposed method is verified using a three-phase three-wire 25-node distribution network and a three-phase four-wire 162-node distribution network in North America.
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