Maximum Loss Reduction by Optimal Placement of Capacitor on Radial Distribution System

Abstract

Transfer of electric energy from the source of generation to the customer via the transmission and distribution networks is accompanied by losses. The majority of these losses occur on the distribution system. It is widely recognized that placement of shunt capacitors on the distribution system can lead to a reduction in power losses. Reduction of I2R loss in distribution systems is very essential to improve the overall efficiency of power delivery. The I2R loss can be separated into two parts based on the active and reactive components of branch currents. This thesis work presents a method of minimizing the loss associated with the reactive component of branch currents by placing shunt capacitors. This method first determines a sequence of nodes to be compensated by capacitors. The size of the optimal capacitor at the compensated nodes is then determined by optimizing the loss saving equation with respect to the capacitor currents. The performance of the proposed method was investigated on distribution systems consisting of 28 buses and it was found that a significant loss saving can be achieved by placing optimal capacitors in the system.