A coordination scheme for operating a residential photovoltaic-based village power grid

In order to form a collaborative operation between village power grid and the end users, a two-stage management strategy is proposed where residential photovoltaic power systems have been linked to the distribution network in a rural area. At stage one, a regulation method considering active and reactive power is formed with a purpose of maintaining power grid within a security domain in operation; at stage two, to maximize the benefits of both the grid and its costumers, a "grid-user" interactive strategy is established so as to allow both the grid and users have opportunities and privileges equally. At the second stage, the power grid takes economics as an objective while delivering the extra benefits to the user as an incentive reward to improve the costumers income while avoiding extra resource investment to reach the same purpose. The test results show that the proposed strategy can effectively ensure the security of the network while improving the economy of the network operator and users.