With inevitable increase in numbers of distributed generation units connected within the distribution network (DN), different aspects of their impact on DN operation must be evaluated. This paper deals with the problem of reactive power generation from photovoltaic (PV) systems, connected to the DN, and technical and economic benefits that can be achieved on DN operation with its optimal generation. Detailed consideration of four existing medium voltage DNs with their time-dependent loading and PV generation profiles, allowed the evaluation of annual losses of electric energy, for different scenarios of reactive power generation. Furthermore, the resulting financial savings were assessed as well. Results show that with reactive power generation from installed PV units, meeting the actual needs of the network, losses can be significantly reduced and financial savings achieved.
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