Abstract-Demand response is known as one of the basic components of smart grids that plays an important role in shaping load curves. In most of the prior reports on applying demand response programs, reactive power and load dependency to voltage magnitude have been ignored in distribution grids. In this paper, firstly, we show that the ignorance of the mentioned phenomena can cause a mismatch between the expected value of demand response and the experimental value. This mismatch is known as the demand response mismatch (DRM), which is dependent on some parameters such as load type, load reduction percentage, and network power factor. To overcome this problem, this paper presents a reactive power control model. In addition, a mixed integer nonlinear program is proposed to find the optimal size and location of STATCOMs and the optimal transformer tap settings that minimize the DRM. In this paper, the 16-bus U.K. generic distribution system (UKGDS) is employed to prove the capability of the presented method in DRM reduction.
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