In the distributed generation environment, existing standards impose limits on the allowable feeder voltage variation. These agreements must limit the power penetration level. If the penetration level increases it leads to increased or decreased feeder voltage and causes reverse current flow in the feeder. In order to mitigate this problem we need reactive power support to the feeder. By the use of conventional capacitor or inductor banks we cannot achieve full range of voltage control (voltage regulation).this work proposes a novel scheme containing auxiliary voltage source converter with fuzzy logic controller that enables the smooth tracking of reactive power according to the load requirement. The proposed system configuration can conveniently retrofitted into the existing system with in PV station itself and reliving the utility from additional voltage support burden. This in turn increases the PV penetration level in the feeder. The corresponding modelling, analysis and control design along with MATLAB Simulink results are discussed.
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