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Abstract—This paper proposes the planning method for capac- switched capacitors, is considered, replacement can be deferred,
itor installation in a distribution system to reduce the installation which is extremely important under limited budget conditions.
costs and minimize the loss of electrical energy. The expected life- Extensive research has been conducted on the problem of op-
time of devices with moving parts depends on the total number
of operations, which affects the replacement period and replace- timal capacitor allocation. Initially, the voltage-independent re-
ment decisions for aging equipment under a limited budget. In active current model was widely used in the formulation and
this paper, the expected device lifetimes are included in the for- was solved using analytical methods [1]–[3].
mulation, and the optimal operation status of the devices is deter- Later, a general formulation was applied to balance invest-
mined using a genetic algorithm. The optimal numbers and loca- ment costs, the cost of energy or power losses, as well as con-
tions for capacitor installation are determined based on the optimal
operation status. Simulation results in a 69-bus distribution system straints such as voltage limits, budget limits, and the number
show that the proposed technique performs better than conven- of fixed or switched capacitors. Many applications use iterative
tional methods. methods [4]–[11] in which optimization is not used, but the best
Index Terms—Distribution system, genetic algorithm, operation option can be selected by evaluating a limited number of candi-
cost, planning, shunt capacitor, under-load tap changer. dates while maintaining the constraints. More recently, attention
has focused on the use of optimization techniques [12]–[29].
Approaches include mixed-integer nonlinear programming [12]
I. INTRODUCTION and graph theory [15], [16]. With more extensive constraints, the
optimal capacitor allocation problem can be solved using tabu-
S HUNT capacitors are installed for a variety of reasons in
industrial, distribution, and transmission systems. Fixed or
switched shunt capacitors are mainly used to reduce resistive
search algorithms [13], [14], simulated annealing [17], [18], and
genetic algorithms (GAs) [19]–[29].
power losses and to control the level of voltage supplied to The main objective considered in this paper is the reduction of
the customer. This is achieved by reducing or eliminating the installation costs and real power losses, which is similar to that
voltage drop in the system caused by inductive or reactive loads. of other research. However, the effect of device lifetime on the
Interest has been increasing in identifying the type, size, and lo- switching operation of devices such as ULTC transformers or
cation of shunt capacitors using optimization techniques. Such switched capacitors is added in the objective function as a func-
techniques systematically attempt to balance two types of utility tion of the annual number of operations of the device. The annu-
costs in the planning, operation, and design process: the cost of alized installation costs depend on the device lifetimes, which
capital investment and maintenance and the cost of power or en- comprise a function of the total number of operations.
ergy losses. Candidate buses for installing capacitors are determined
The utilization and aging of power system equipment is an using sensitivity analysis [8], [9], [17], [20], and annual load
emergent issue with the restructuring and privatization of utili- forecasts are approximated in several sections for planning
ties, regulators, and other market participants. A compromise is purposes. Then, the optimal operation of all devices for each
required between overloading and underutilization; overloading section is determined by a GA. The number of capacitors to
increases the loss of life and the probability of premature failure, be installed is calculated based on this optimal operation. This
while underutilization is considered a redundancy or a waste. In reduces both the total annual cost of installation for the devices
the planning process, if the lifetime of equipment with moving and the real power losses. The proposed method was imple-
parts, such as under-load tap changer (ULTC) transformers or mented on a 69-bus radial distribution system and compared to
the conventional method.
Manuscript received December 12, 2007; revised August 25, 2008. Current
version published January 21, 2009. This work was supported by a grant from
the Center for Applied Superconductivity Technology of the 21st Century Fron-
II. PROBLEM FORMULATION
tier R&D Program funded by the Ministry of Education, Science, and Tech-
nology, Republic of Korea. Paper no. TPWRS-00931-2007.
The main objective of the capacitor allocation problem is to
J.-Y. Park is with the Electric Power Research Division, Korea Electrotech- minimize installation costs and energy losses. However, the life-
nology Research Institute (KERI), Changwon, Korea (e-mail: drago@snu.ac. times of capacitors and tap changers, as well as their annualized
kr).
J.-M. Sohn is with the LS Industrial System, Anyang, Korea (e-mail:
installation costs, vary with the number of operations. There-
jmsohn@plaza.snu.kr). fore, considering the operation of each device is reasonable in
J.-K. Park is with the School of Electrical Engineering, Seoul National Uni- calculating the installation costs of devices for efficient plan-
versity, Seoul, Korea. ning. This paper formulates an objective function that considers
Color versions of one or more of the figures in this paper are available online
at http://ieeexplore.ieee.org. the lifetime of each device as a practical measure to reduce total
Digital Object Identifier 10.1109/TPWRS.2008.2009489 installation costs.
0885-8950/$25.00 © 2009 IEEE
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PARK et al.: OPTIMAL CAPACITOR ALLOCATION IN A DISTRIBUTION SYSTEM CONSIDERING OPERATION COSTS 463
then
(8)
Hence
(9)
(4) (12)
(13)
The sensitivity of the real power losses in the system with
respect to the nodal reactive power is given by where and are the numbers of fixed and switched capac-
itors, respectively, installed on bus . The number of installed
(5) capacitors is used to calculate the installation costs.
With and , the number of operations for each device can
Taking the partial derivatives of with respect to and also be inferred by the periodicity of the load change during a
gives day. The load level changes from in Fig. 1(b) to
passing through , and then changes again to
(6) during a day. The operation status of each load level changes
accordingly, as shown in Fig. 2. Based on this assumption, the
number of daily operations of each device is computed by
(7)
(14)
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464 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 24, NO. 1, FEBRUARY 2009
(18)
Fig. 2. Change of operation status during a day. The present values of (17) and (18) should be the same, so
that the annualized cost, is
(19)
where
(20)
(17)
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PARK et al.: OPTIMAL CAPACITOR ALLOCATION IN A DISTRIBUTION SYSTEM CONSIDERING OPERATION COSTS 465
TABLE I
.. .. .. PRICES OF CAPACITORS AND ULTC
. . .
(24)
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466 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 24, NO. 1, FEBRUARY 2009
TABLE IV
PLANNING BY THE CONVENTIONAL METHOD (CASE1)
TABLE VI
DETAILED DATA FOR ANNUALIZED COSTS FOR TWO CASES
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PARK et al.: OPTIMAL CAPACITOR ALLOCATION IN A DISTRIBUTION SYSTEM CONSIDERING OPERATION COSTS 467
solution minimized only the power losses with fixed installation [2] J. J. Grainger and S. H. Lee, “Optimum size and location of shunt ca-
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[11] K. Iba, H. Suzuki, K. I. Suzuki, and K. Suzuki, “Practical reactive
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tion that included the number of operations with the other costs ming,” IEEE Trans. Power Syst., vol. 3, no. 2, pp. 558–566, May 1988.
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[15] J. C. Carlisle and A. A. El-Keib, “A graph search algorithm for optimal
This paper proposed a planning method for capacitor alloca- placement of fixed and switched capacitors on radial distribution sys-
tion in a distribution system considering the change in the annu- tems,” IEEE Trans. Power Del., vol. 15, no. 1, pp. 423–428, Jan. 2000.
[16] T. Gomez, I. J. Perez-Arriaga, J. Lumbreras, and V. M. Parra, “A se-
alized device installation costs. The annualized costs are related curity-constrained decomposition approach to optimal reactive power
to the lifetime of devices, which is related to the number of oper- planning,” IEEE Trans. Power Syst., vol. 6, no. 3, pp. 1069–1076, Aug.
ations. The relationship between the number of operations and 1991.
[17] H. D. Chiang, J. C. Wang, O. Cockings, and H. D. Shin, “Optimal
the expected lifetime was formulated, and the total annualized capacitor placements in distribution systems. I. A new formulation
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[18] C. Hsiao-Dong, W. Jin-Cheng, T. Jianzhong, and G. Darling, “Op-
solution for costs was determined using a GA. timal capacitor placement, replacement and control in large-scale un-
The proposed method was applied to a 69-bus radial distribu- balanced distribution systems: Modeling and a new formulation,” IEEE
tion system with an ULTC transformer, and the result was com- Trans. Power Syst., vol. 10, no. 1, pp. 356–362, Feb. 1995.
[19] L. L. Lai and J. T. Ma, “Application of evolutionary programming to
pared to that of the conventional method in which the lifetime of reactive power planning-comparison with nonlinear programming ap-
devices is not considered. The results show that the annualized proach,” IEEE Trans. Power Syst., vol. 12, no. 1, pp. 198–206, Feb.
costs were lower with the capacitor allocation determined by the 1997.
[20] K. N. Miu, H. D. Chiang, and G. Darling, “Capacitor placement,
proposed method. The aging of equipment with moving parts replacement and control in large-scale distribution systems by a
can be reduced and replacement deferred, so that the proposed GA-based two-stage algorithm,” IEEE Trans. Power Syst., vol. 12, no.
method will be an effective tool for distribution system planning 3, pp. 1160–1166, Aug. 1997.
[21] M. Delfanti, G. P. Granelli, P. Marannino, and M. Montagna, “Optimal
and design under limited budget constraints. The formulation of capacitor placement using deterministic and genetic algorithms,” IEEE
the annualized installation cost can be applied to other capacitor Trans. Power Syst., vol. 15, no. 3, pp. 1041–1046, Aug. 2000.
allocation methods to make those solutions more realistic. [22] G. Levitin, A. Kalyuzhny, A. Shenkman, and M. Chertkov, “Optimal
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and a fast energy loss computation technique,” IEEE Trans. Power Del.,
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468 IEEE TRANSACTIONS ON POWER SYSTEMS, VOL. 24, NO. 1, FEBRUARY 2009
[24] B. Venkatesh and R. Ranjan, “Fuzzy EP algorithm and dynamic Jin-Man Sohn received the B.S., M.S., and Ph.D. degrees from Seoul National
data structure for optimal capacitor allocation in radial distribution University, Seoul, Korea, in 1994, 1996, and 2006, respectively.
systems,” Proc. Inst. Elect. Eng., Gen., Transm., Distrib., vol. 153, no. He worked at Hyundai Engineering Co., Ltd. and Hyundai Engineering and
1, pp. 80–88, Jan. 2006. Construction Co., Ltd. from 1996 to 2000 and was a Researcher at the Korea
[25] D. E. Goldberg, Genetic Algorithms in Search, Optimization and Ma- Electrical Engineering and Science Research Institute from 2000 to 2003. He
chine Learning. Reading, MA: Addison-Wesley, 1989. is currently a Senior Research Engineer at LS Industrial Systems Co., Ltd. His
[26] A. J. Urdaneta, J. F. Gomez, E. Sorrentino, L. Flores, and R. Diaz, “A research interests include the reliability and power quality in distribution net-
hybrid genetic algorithm for optimal reactive power planning based works and IT applications to energy management systems.
upon successive linear programming,” IEEE Trans. Power Syst., vol.
14, no. 4, pp. 1292–1298, Nov. 1999.
[27] K. Y. Lee, X. Bai, and Y. M. Park, “Optimization method for reactive
power planning by using a modified simple genetic algorithm,” IEEE Jong-Keun Park (SM’98) was born in YuSeong, Korea, on October 21, 1952.
Trans. Power Syst., vol. 10, no. 4, pp. 1843–1850, Nov. 1995. He received the B.S. degree in electrical engineering from Seoul National Uni-
[28] K. Y. Lee and F. F. Yang, “Optimal reactive power planning using evo- versity, Seoul, Korea, in 1973 and the M.S. and Ph.D. degrees in electrical engi-
lutionary algorithms: A comparative study for evolutionary program- neering from the University of Tokyo, Tokyo, Japan, in 1979 and 1982, respec-
ming, evolutionary strategy, genetic algorithm, and linear program- tively.
ming,” IEEE Trans. Power Syst., vol. 13, no. 1, pp. 101–108, Feb. 1998. He worked as a Researcher at the Toshiba Heavy Apparatus Laboratory in
[29] B. Das, “Reactive power compensation for radial distribution net- 1982. He was a Visiting Professor with the Technology and Policy Program
works using genetic algorithm,” Elect. Power Energy Syst., vol. 24, and Laboratory for Electromagnetic and Electronic Systems, Massachusetts In-
pp. 573–581, 2002. stitute of Technology, Cambridge, in 1992. He is currently a Professor in the
[30] F. Alvarado, B. Borissov, L. D. Kirsch, and L. R. Christensen, Reac- School of Electrical Engineering, Seoul National University.
tive Power as an Identifiable Ancillary Service, Transmission Admin- Dr. Park is a Senior Member of the Japan Institute of Electrical Engineers
istrator of Alberta, Ltd., 2003. (JIEE). In addition, he is presently acting as a Fellow of the Institution of Elec-
[31] H. K. Kim, Power Systems Laboratory, KEPRI, private communica- trical Engineers (IEE) and is a Life Member of the Korean Institute of Electrical
tion, Apr. 2007. Engineers (KIEE) and the Korean representative of the study committee SC5
“Electricity Markets and Regulation” in CIGRE.
Jong-Young Park received the B.S., M.S., and Ph.D. degrees from Seoul Na-
tional University, Seoul, Korea, in 1999, 2001, and 2007, respectively.
Currently, he is a Senior Researcher at the Korea Electrotechnology Research
Institute (KERI). His research interests include the control of reactive power, IT
applications to energy management systems, and the application of the super-
conducting fault current limiter in power systems.
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