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A Review of Capacitor Placement Techniques on Distribution Feeders

J.C. Carlisle A.A. El-Keib D. Boyd K. Nolan


Department of Electrical Engineering Alabama Power Company
University of Alabama Birmingham, A1 35291-0715
Tuscaloosa, A1 35487-0286

Abstract
discrete capacitor sizes, ( 5 ) a radial feeder with no
Optimal sizing and placement of shunt capacitors on laterals. The most commonly used assumption considers
distribution feeders has received considerable attention capacitors to affect only the reactive current component.
from researchers for many years. This paper presents an Some of the proposed methods base the cost savings only
extensive review of the different solution methods found on reduction in peak power losses, while others consider
in the literature and is intended as a guide for those both peak power and energy loss reductions. Some
interested in the problem or intending to do additional methods consider only fixed capacitors while others
research in the area. The assumptions made and a brief consider both fmed and switched capacitors. Of the
description of the solution methods are presented. methods which apply switched capacitors, there may be
limitations as to the switching times.
Introduction
Review of existing solution approaches
Transfer of electric energy from the source of
generation to the customer via the transmission and Neagle and Samson [2] assume the load is uniformly
distribution networks is accompanied by losses. The distributed along the feeder. They consider only peak
majority of these losses occur on the distribution system. kilowatt loss savings with fixed capacitors and ignore the
It is widely recognized that placement of shunt capacitors cost of capacitors. Curves are presented which show the
on the distribution system can lead to a reduction in reduction in losses as a function of capacitor size and
power losses. Increased competition in the industry has distance of capacitor from the substation. Where two
created a renewed interest in improving efficiency by banks are to be installed, they consider equally sized
reducing these losses. An overview of methods previously banks or one bank to be twice the size of the other. For
considered for placement of capacitors is presented in this installation of three or four banks, equally sized
paper. No attempt is made here to verify any of the claims capacitors were assumed.
made by the authors, or to determine the effectiveness of Cook [3] also addresses application of fixed capacitors
the methods described. A companion paper [l] describes to a uniformly distributed load. However, instead of
the general techniques in more detail and provides considering reduction of peak power losses, savings are
additional insight into the problem. based on energy loss reduction considering a time-varying
load. This analysis is extended in [4]to include switched
Problem formulation capacitors. Savings are calculated based on reduction of
both peak power losses and energy losses. An algorithm is
The problem, in general, is to determine the optimal presented to calculate capacitor locations and savings as
number, location, sizes, and switching times for total compensation is varied from 0.05 to 1.0 per unit of
capacitors to be installed on a distribution feeder to feeder reactive load. The number of capacitors is varied
maximize cost savings subject to operating constraints. from one to four, assuming equally sized banks. A second
Due to the complexity of the problem, the proposed algorithm sizes and locates a fixed bank and a switched
solution methods introduce one or more of the following bank as total compensation is varied from 0.05 to 1.0 per
simplifying assumptions: (1) a uniform feeder, (2) unit. The optimal switching time is determined by
constant voltage profile, (3) linear capacitor cost, (4)non- considering several switching times. In [5], Cook

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0-8186-7873-9197$10.00 0 1997 IEEE
describes an incorrect method for calculating loss distribution by introducing the concept of the normalized
reduction often used in the literature. The correct method reactive current distribution function. The objective
is also presented. function used consists of the peak power loss reduction,
Maxwell [6] addresses the effects of capacitors on energy loss reduction, and a linear cost of capacitors.
reduction in kVA input, kW demand, and energy losses. Constant voltage is assumed and only fixed capacitors are
The algorithm presented is not based on an optimization considered. The necessary conditions for optimality are
procedure, but is an aid in calculating savings due to used to determine optimal capacitor locations and sizes.
placement of capacitors. This results in the decomposition of the problem into two
Schmill [7] extends the work of Cook. Equations are subproblems. The first subproblem solves for capacitor
given for sizing and placement of n capacitors on a locations given sizes, while the second subproblem solves
uniform feeder with a uniformly distributed load. The for sizes given locations. The overall solution process
necessary conditions for optimal sizing and placement of begins by choosing the number of capacitors to be
one or two capacitors on a feeder with discrete loads and installed. The two problems are solved sequentially using
non-uniform resistance are presented. An iterative their “Equal Area Criterion” to guide the interaction
approach is suggested to solve the problem. between them. This process continues until convergence
Chang [8-111 assumes a feeder with a uniform load is achieved.
and a concentrated end load. Accounting for both peak In [17], Grainger, Lee, Byrd, and Clinard modify [16]
power losses and energy losses, he determines the optimal to determine capacitor sizes by solving a set of linear
location of a fixed capacitor and the resulting savings, equations representing the necessary conditions
given the capacitor size. The optimal solution is corresponding to the optimal sizes. Again, to determine
determined by considering each of the available capacitor the optimal locations and sizes, the two subproblems are
sizes. solved sequentially in an iterative manner until
Duran [12] proposes a dynamic programming convergence is reached. The paper also presents results of
approach to find the number, locations, and sizes of fixed a sensitivity analysis to determine the effect on savings of
capacitor banks on a feeder with discrete loads. choosing the nearest standard size capacitors to those
Algorithms are presented for the special cases of no calculated. In addition, a sensitivity analysis of cost with
capacitor cost, capacitor cost proportional to installed respect to small changes in location was also included.
capacity, and cost proportional to installed capacity plus a In [ 181, Lee and Grainger extended the methodology in
fixed cost per capacitor bank. Alvarez and Molina [13] [16] to consider both switched and fixed capacitors. The
also use dynamic programming. However, they propose proposed approach uses the load duration curve to account
an approach to reduce the number of possible states to be for the time variation of the reactive load. Optimal sizes,
considered in order to reduce the solution time. locations, and switching time are determined for a given
Szabados and Burgess [14] address the problem of number of fixed and switched capacitors, assuming
inductive interference with communication circuits caused capacitors are switched simultaneously. The problem is
by the addition of shunt capacitors to an unbalanced decomposed into 3 subproblems: (1) given locations and
distribution system. Procedures for applying capacitors switching time, determine optimal sizes, (2) given sizes
while minimizing this interference are given. and locations, determine optimal switching time, and (3)
Bae [15] assumes a uniformly distributed load along given sizes and switching time, determine locations. The
the feeder, a constant voltage profile, and capacitors of three subproblems are solved alternatively until
equal size. Capacitors are first optimally located for a convergence is obtained. As in the case of finding sizes
fixed load level. The methodology is extended to and locations, the switching time is determined using the
determine the optimal capacitor locations for all load necessary conditions for an optimal solution. It is
levels up to the fixed level, without accounting for the suggested by the authors that several initial conditions
time duration of each load level. Finally, an algorithm is could be chosen, and the global solution selected from
presented for determination of the optimum compensation among the local optimals. Different capacitor costs are
level for a load with typical yearly characteristics. In all used for fixed and switched banks, but both costs are
cases, energy loss reduction as a result of fixed capacitors linear functions of size with no fixed charge. When using
only is considered and capacitor cost is ignored. this algorithm, it is necessary to specify the number of
Grainger and Lee [16] propose a methodology which fixed and switched capacitors to be used and their relative
considers non-uniform feeders and non-uniform loads. It placement with respect to each other along the feeder.
transforms a feeder with different wire sizes into an In [ 191, Grainger and Lee extended [ 161 to incorporate
equivalent uniform feeder (or the normalized equivalent the effect of voltage variation along the feeder. An outer
feeder). It also accounts for non-uniform reactive load loop is added in which the load and capacitor currents are

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adjusted based on the voltages obtained from a load flow Grainger, Civanlar, and Lee [23] assume continuous
solution. The inner loop contains the two subproblems as control of capacitor output. The problem is divided into
before. After convergence of the inner loop, it is necessary an optimal design subproblem and an optimal control
to check for convergence of the outer loop. subproblem. Sizes are rounded to the nearest standard
In [201, Grainger, Lee, and El-Keib extend 1181 to size and voltage variations are not considered. The
allow for different switching times for different capacitor authors suggest the use of lookup tables to implement
banks. This is done by assigning the capacitors to switching on a seasonal or daily load profile. The
different “groups” such that the capacitors in each group equation needed for solving for the location of capacitors
are switched together. The relative switching times of the is not given.
groups and the relative placement of the individual In [24], Grainger, Civanlar, Clinard, and Gale are
capacitors along the feeder must be specified. A procedure concemed only with control, assuming capacitors are
is presented for determining the switching times for already placed. The cases of equal tap sizes and tap size
capacitors which have been already placed. It should be dependent on capacitor size are addressed. The first case
noted that [ 16-20] do not consider laterals. is solved directly, while the second uses a branch-and-
Ponnavaikko and Rao [21] include the effect of load bound technique. Both problems begin with the
growth and energy cost increase into the objective continuous control problem. In [25], they include design
function and solve the problem using the Method of Local and control problems assuming capacitors are
Variations. In this procedure, the capacitor at each bus is continuously controlled. Balanced loads which are
a state variable. The procedure starts with any solution varying conformally are assumed. The authors introduce
which satisfies all voltage constraints. A check is made to the V-P model which they claim obviates the need for a
determine if additional savings will result from increasing load-flow solution while allowing inclusion of the effects
the size of the capacitor at a bus by a discrete amount, of voltage variation on the design and control phases of
which is determined by the minimum available capacitor an optimal capacitor compensation scheme.
size. If so, the capacitor is set to the new size. Otherwise, In [26], Grainger, El-Keib, and Lee extend [16,19] to
a check is made to see if a decrease in size will result in include unbalanced feeders, In [27], El-Keib, Grainger,
an increase in savings. If so, the capacitor size at the bus Clinard, and Gale further extend this work to include
is decreased, otherwise no change is made and the method switched capacitors and laterals.
proceeds to the next bus. An iteration is complete when Kaplan [28] presents a heuristic approach which is
all buses have been checked. Convergence is reached claimed to make none of the simplifying assumption used
when all state variables remain unchanged throughout an in much of the earlier work. The approach first
entire iteration. determines the “best” locations and types (fixed or
Fawzi, El-Sobki, and Abdel-Halim [22] propose an switched) for the smallest available standard capacitor
approach which considers two distinct optimization size. After placement of these initial capacitors, an
problems depending on whether the kVA released by the attempt is made to improve savings by the addition of
capacitor is used to feed additional loads through the larger banks or by combination of smaller banks into
same feeder or a different feeder. They consider placing a larger units.
single capacitor on a uniform feeder. First, the Iyer, Ramachandran, and Hariharan [29] formulate the
optimization problem is formulated for a constant feeder problem as a mixed integer linear programming problem,
load. Because of the complexity of the problem, a number which is decomposed into two smaller subproblems. The
of special cases were considered. These are (1) neglecting first is a pure integer programming problem with b i i
cost of energy losses, (2) maximum energy loss reduction, variables, while the second is a linear programming
(3) optimum solution based on released kVA with problem.
adjustment for energy losses, and (4) optimum solution Salama, Chikhani, and Hackam [30] assume a fixed
based on the cost of energy losses against the cost of load condition and a uniform feeder. A concentrated load
capacitors. Each case simplifies the problem of at the end of the feeder is dealt with separately. They
determining capacitor size and location. The second transform a non-uniform feeder into an equivalent
optimization problem is then formulated assuming an uniform feeder using the “base resistance” technique. The
increase in feeder load due to the released kVA. Here it is example feeder used satisfies the conditions of a
assumed that the maximum saving obtained depends on uniformly distributed load. The proposed solution
the amount of load which can be added due to the released algorithm determines capacitor sizes and locations, given
kVA. The capacitor size, therefore, is dependent on the the number of capacitors and considering all capacitors to
voltage drop on the feeder at maximum load and the be of the same size. The objective function does not
voltage increase along the feeder at light loads. include energy loss reduction and a linear capacitor cost is

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assumed. Capacitor sizes are rounded to the nearest cost is approximated by a linear function and a fixed
available size and energy losses are then calculated. Re- charge. The solution method is decomposed into levels.
location of existing capacitors after a load growth and The top level, called the “master problem”, is an integer
inclusion of released thermal capacity into the savings programming problem which determines the number and
calculation are also addressed. The paper includes a location of capacitors. The bottom level, called the “slave
simplified equation for calculation of voltage along the problem”, is used to determine the sizes of the capacitors.
equivalent uniform feeder once the capacitors have been The slave problem is further decomposed into smaller
placed. In [311, the authors extend this paper to consider a problems referred to as base problems. These base
time-varying load. problems are solved by an algorithm developed for a
Grainger and Civanlar [32,33] propose a solution special capacitor placement problem called the “sizing
approach to the problem of determining voltage regulator problem”. The sizing problem is solved using an
placement and control setting as well as capacitor algorithm based on a Phase I - Phase I1 feasible directions
placement. This approach is based on decoupling the approach, the details of which are presented in [39].
overall problem into two subproblems, assuming that the Finally, a heuristic procedure determines whether the
voltage regulators hold the bus voltages relatively capacitors are of the fixed or switched type.
constant. Lateral and sublateral branches are considered. Ertem [40] proposes a quadratic programming
A closed-form solution is given for the’problem of approach in which a quadratic objective function and
capacitor sizing once the locations are known. The non- linear bus voltage and line loading constraints are used.
linear cost of capacitors is incorporated. The claim is The programming problem is solved using Beale’s
made that regardless of system size, the computational algorithm. An iterative optimization procedure is
effort required is a function only of the number of necessary, with bus voltages and angles updated between
capacitors. The proposed algorithm initially assumes all iterations by running a load flow program.
capacitors are switched. After the sizes and locations are Santoso and Tan [41] divide the distribution system
determined, the switching times are determined. During into several smaller subsystems, each of which is
this procedure, it may be determined from the switching optimized. “Interaction” variables are updated and the
times that some of the capacitors should be fixed. process is repeated until the absolute value in savings
In [34], Rao and Radhakrishna summarize the results between iterations is small. Capacitor cost is a
of their investigation of the compensation of rural Indian differentiable function of size. The subsystem problems
feeders which have poor voltage profiles. They propose a are solved by a gradient search method.
two-level compensation scheme which incorporates both Chiang, Wang, Cockings, and Shin [42] modify the
shunt and series capacitors. formulation of [38] to treat capacitor cost as a step-like
Bishop and Lee [35] describe an algorithm which function and capacitor sizes as discrete variables. The
starts with the 2/3 rule, then tries all combination of user- formulation allows the switched capacitors to be switched
specified (or fewer) locations. Constraints are placed on as a block or in several consecutive steps as load varies.
power factor at each bus and the user is permitted to The proposed solution method is based on the simulated
specify the minimum and maximum size of the capacitor annealing optimization technique. The method is further
allowed at any location. Their paper does not include extended to unbalanced systems by Chiang, Wang, Tong,
details of the algorithm. and Darling in [43,44].
Rinker and Rembert [36] claim the biggest problem in Baghzouz and Ertem [45] present an algorithm for
placing capacitors is a lack of data concerning the optimizing shunt capacitor sizes on radial distribution
reactive current profile along the feeder. They address lines with distorted voltages, such that the R M S voltages
acquisition and treatment of data which is used to and their total harmonic distortion lie within prescribed
determine the size and placement of both fixed and limits. A heuristic algorithm based on the Method of
switched capacitors. The method used to size and locate Local Variations is employed. Since only a local optimal
capacitors is attributed to Grainger and Lee. It is assumed solution is guaranteed, it is suggested that several runs
switched capacitors are switched ”ON” whenever the load with different initial solutions be made to identify other
reaches 1/2 the capacitor rating. local optimal solutions.
Ertem and Tudor [37] use the Method of Approximate Augugliaro, Dusonchet, and Mangione [46] use
Programming. This method uses the first order terms of a nonlinear programming for optimization of the number,
Taylor series expansion of both the objective function and size, location, and switching-on times of both fixed and
constraints to construct a linear program. switched capacitors. The model incorporates constraints
Baran and Wu [38] formulate the problem as a non- on the voltage rise at each bus. Implementation consists of
linear, mixed integer programming problem. Capacitor a combination of Fortran and MINOS/Augmented (a

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general-purpose projected augmented Lagrangian code). Yang, Huang, and Huang [58] use a Tabu Search in
Once the solution is obtained, capacitor sizes are chosen which the search is biased toward solutions with a better
as the nearest standard size. In [47], these authors, along objective function, while special features of the algorithm
with Morana, consider on-line control of switched prevent the solution from being trapped at a local
capacitors in addition to the design problem. optimum solution.
Salama and Chikhani [48] attempt to formulate the Jiang and Baldick [59] present an algorithm which
problem in a simple manner, without the use of a combines the control of capacitors with switch
sophisticatedoptimization technique. Laterals are handled reconfiguration to minimize losses. Simulated annealing
by first treating each lateral as a separate feeder. The is used to optimize the switch configuration while a
shunt capacitor location and size is then determined to discrete optimization algorithm is used to determine the
reduce peak power and energy losses. If the savings for optimal capacitor control.
the lateral is zero or negative, no capacitor is placed on Shao, Rao, and Zhang in [60] propose an expert
that lateral. After determining whether capacitors should system solution approach that is based on a heuristic
be placed on each lateral, the optimum size and location graph search method using an evaluation function. It uses
for all the capacitors is determined using the methods the power loss sensitivity vector to guide the search
presented in [3 11. procedure. In [61], Santoso and Tan, proposed a two-
Lehtonen [49] follows a procedure similar to [18], stage Artificial Neural Network (ANN) to solve the
where the problem is broken into smaller subproblems. problem of real-time control of multitap capacitors
Given the number of capacitors to be installed, initial considering a non-conforming load profile. Gu and Rizy
locations are chosen. The first subproblem determines the [62], proposed an ANN to control shunt capacitors and
sizes and switching times using an iterative process. The voltage regulators.
second subproblem attempts to relocate the capacitors one Ng and Salama [63], have proposed a solution
by one without changing the control times. The two approach to the capacitor placement problem based on
subproblems are repeated successively until convergence fuzzy sets theory. Using this approach, the authors
is reached. attempted to account for uncertainty in the parameters of
Ajjarapu and Albanna [50], Boone and Chiang [51], the problem. They model these parameters by possibility
and Sundhararajan and Pahwa [52], propose the use of a distribution functions. Chin [MI, uses a fuzzy dynamic
genetic algorithm for placement and sizing of fixed programming model to express real power loss, voltage
capacitors. deviation, and harmonic distortion in fuzzy set notation.
Bengiamin, Swain, and Holcomb [53-551 focus on Bortignon and El-Hawary [65] have also presented a
extending [16] to include laterals. The laterals are review of capacitor placement techniques.
considered in a process referred to as “zoning” in which
the feeder is separated into sections or “zones” based on Conclusion
the position of load transfer switches. Compensation of
each zone is accomplished by treating the zone as a The capacitor placement problem is quite complex.
separate feeder. Compensation on the main feeder is then Researchers have used a wide variety of methods in an
performed while accounting for the loads and any attempt to solve the problem. This paper presents an
capacitors placed on the laterals. overview of these methods. It is clear from the existing
Roytelman, Wee, and Lugtu [56] focus on real-time literature that several issues associated with both the
control of capacitors and voltage regulators. The design and control problems need to be addressed.
algorithm is based on the “oriented discrete coordinate
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