Recently, the awareness of the severe consequences of greenhouse gases on the environment has escalated. This has encouraged the world to reduce the usage of fossil fuels for power generation and increase the use of cleaner sources, such as solar energy and wind energy. However, the conventional power system itself was designed as a passive power system, in which power generation is centralised, and power flows from substations towards the loads. Decentralised renewable energy sources, also called distributed generators, were introduced to create an active power system in which power generation can occur anywhere in the power system. Decentralised power generation creates challenges for the conventional power system, such as voltage fluctuations, high voltage magnitudes, reverse power flow, and low power factor. In this paper, an adaptive control system that coordinates different distributed generators for voltage regulation and power factor correction is introduced and designed. The control system will decrease the total reactive power that flows in the transmission network through a reactive power exchange between distributed generators. Therefore, power factor will improve, power system losses will reduce, and the total apparent power on lines will reduce, giving more room to active power to flow. The results obtained showed that the control system is effective in regulating voltage and improving the power factor when multiple distributed generators are connected.