Minimizing Cost and Power loss by Optimal

Placement of Capacitor using ETAP

Pravin Chopade' and Dr.Marwan Bikdash
Computational Science and Engineering Department ,Department of Electrical and Computer Engineering
North Carolina A & T State University
Greensboro, USA
Email: bikdash@ncat.edu.pravinvchopade@gmail.com
(LAuthor is doing Ph.D. at NCA T, USA and Assc. Professor at Bharati Vidyapeeth Deemed University College of Engineering Pune.INDIA)

Abstract-Loads in a power distribution system network
mostly inductive and lead to poor power factor. In order to utilize
tbe generated power optimaUy it is necessary to maintain close-
to-unity power factor. Power factor correction is possible by
introducing the capacitive loads in the circuit, as to nullify the
effect of inductive loading. Due to simplicity of analysis of radial
distribution systems, most previous work (I) studied the effect of
nonlinear and capacitive loads on the optimal solution of the
Capacitor Placement Problem (CPP) for radial distribution
systems only. In this paper, we study optimal capacitor placement
on interconnected distribution systems in the presence
nonlinear loads. The placement problem is solved using Genetic
Algorithms (GA) as implemented in the ETAP Power station
software. Results (power losses, operating voltages and annual
benefits) are analyzed. Computational results show
harmonic components affect optimal capacitor placement in all
system configurations. If all loads were linear, interconnected
and loop system configurations offer lower power losses and
better operating conditions than the radial system configuration.
Keywords- Optimal placement of capacitors, Reactive
ETAP Software.
L INTRODUCTION
The leading current provided by a capacitor can effectively
cancel the lagging current demanded by reactive load
components. Power factor is defined as the ratio of real power
(kW) to total power (kV A). When the distribution system's
reactive load can be canceled by a capacitor placed at the
reactive load center, the entire power delivery system will be
relieved of KVAR, originally supplied from the power
supplier's generator. This makes the full capacity of the
generator available to serve real power loads [1]. If a capacitor
is connected to the distribution system either too far ahead of or
too far beyond the system's inductive load center, the capacitor
still provides reactive loading relief, but the system will not
gain the full advantages of voltage and loss improvement
which would be afforded by proper capacitor placement [2].
Electric power is supplied to final users by means of Medium
Voltage (MY) or Low Voltage (LV) distribution systems, their
structures and schemes can differ significantly according to
loads location. Overhead lines with short interconnection
capabilities are mostly employed in rural areas, whilst cables
with a great number of lateral connections for alternative
are supplies are widespread used in urban areas [3]. Most power
distribution systems are designed to be radial, using only one
path between each customer and the substation. If power
flowing away from the substation to the consumer is
interrupted, complete loss of power to the consumer will follow
[4]. The predominance of radial distribution is due to two
overwhelming advantages: it is much less costly than the other
two alternatives (loop and interconnected systems) and it is
much simpler in planning, design, and operation. An alternative
of to purely radial feeder design is a loop system, which has two
paths between the power sources (substations, service
transformers) and each customer [5]. Equipment is sized and
each loop is designed so that service can be maintained under a
that
single fault. In terms of complexity, a loop feeder system is
only slightly more complicated than a radial system [6]. Power
usually flows out from both sides toward the middle, and in all
cases can take only one of two routes. Voltage drop, sizing, and
protection are only slightly more complicated than for radial
POII/Cr, systems. Interconnected distribution systems are the most
complicated and costly but they are the most reliable method
of distributing electric power. An interconnected distribution
system involves multiple paths between all points in the
network and provide continuity of service (reliability) far
beyond that of radial and loop designs. Interconnected
distribution systems are more expensive than radial distribution
systems, but not greatly so in dense urban applications, where
the load density is very high and the distribution must be
underground. Given that repairs and maintenance are difficult
because of traffic and congestion, interconnected systems may
cost little more than loop systems.
Interconnected systems require little more conductor
capacity than a loop system. The loop configuration required
"double capacity" everywhere to provide increased reliability.
Interconnected systems are generally no worse and often need
considerably less capacity and cost, if that are well designed.
The solution procedures of the Capacitor Placement Problem
(CPP) start with performing a load flow analysis to analyze the
steady-state performance of the power system prior to capacitor
placement and after capacitor placement and to study the
effects of changes in capacitor sizes and locations [7].

978-1-4244-9592-4/11/$25.00 © 2011 IEEE 26

 -,

Load and power flow direction are easy to establish in a reducing the generator's capacity to produce reef' power.
radial distribution system, and voltage profiles can be designations.
determined with a good degree of accuracy without resorting to
exotic calculation methods; equipment capacity requirements III. PROBLEM FORMULATION

can be ascertained exactly; capacitors can be sized, located, and

set using relatively simple procedures (simple compared to The current in branch (i,k) connecting buses i and k is given
those required for similar applications to non-radial (loop and by[I,2,4,12]
interconnected) system designs [8]. Due to the simplicity of
analysis of radial distribution systems, all previous work L, = Pit - JQik
studied the effect of nonlinear loads on optimal solution ofCPP (1)
on only radial distribution systems [9]. Vi
The study of the optimal placement and sizing of fixed where
capacitor banks placed on distorted interconnected distribution lik = Current through branch (i, k).
systems using Genetic Algorithms (GA) as used in ETAP
Software [10] is presented in this paper. Results (power losses, ?ik = Total real power flow in the branch (i, k).
operating conditions and .annual benefits) are compared with Qik = Total reactive power flow in the branch ( i, k).
that obtained from radial and loop distribution systems. The
radial, loop and interconnected distribution systems models are Vi = Voltage at node i.
obtained by suitably simplification of a typical Power grid. The The Total Power Loss in the transmission lines is :
Commercial package ETAP 7.1 program is also used for
n
. harmonic load flow analysis [10]. ,,- 2
TPL = L.,;I I'k 1 R'k
Computational results obtained showed that harmonic ik;1
component distortion affects the optimal capacitor placement in
all system configurations. When all loads were assumed to be where
linear, interconnected and loop system configurations offer the n = Current through branch (i f1
lowest power losses and best operating conditions rather than
the radial system configuration. Radial system configuration Rik = Resistance of branch Ci f1
offers the best annual benefits due to capacitor placement. In a
distorted networks, the interconnected system configuratior A branch curr nt has two component": e,rtive (l ) and
offers lower power losses, best operating conditions, and best reactive ( l ' ).The total loss associated with the active and
annual benefits due to capacitor placement. reactive components of a branch current can be written as

II. CAPACITOR BASED POWER FACTOR CORRECTION n

~,r(1I""'"

As a rural power distribution system load grows, the system

power factor usually declines. Load growth and a decrease in
power factor lead to [ 3, 5]
I.Voltage regulation problems;
2. Increased system losses;
3. Power factor penalties in wholesale power contracts;
and
4. Reduced system capacity.
In addition to improving the system Power Factor,
capacitors also provide some voltage drop correction. A
capacitor's leading current cause a voltage rise on the system.
But care must be exercised as not to cause too much voltage
rise or provide too much leading current. Distribution
capacitors can also reduce system line losses, as long as the
system power factor is not forced into a leading mode. Properly
placed and sized capacitors can usually reduce system line
losses sufficiently to justify the cost of their installation [I, II].
BuLk power facilities have to use some of their capacity to
carry the inductive kVAR current to the distribution system.
The resultant reactive current flow produces losses on the bulk
facilities as wel!, introducing unnecessary costs. Generators
provide the reactive needs of distribution plant inductive loads
ik=1
and
n
TPLr = LI I~ 12Rik
ik;1
The loss TPL" associated with the active component of
branch current cannot be minimized for a single - source radial
network because all active power must be supplied by the
source at the root bus. However, supplying part of the reactive
power demands locally, the loss TPLr associated with the
reactive components of branch currents can be minimized.
The capacitor draws a reactive current I, and for a radial
network it changes only the reactive component of current of
branch set c. The current of other branches is unaffected by the
capacitor. Thus the new reactive current of the (i,k)'h branch is
given by
(2)
where

27
 3

..7D =
1, if branch (i R) E a IV. CAPACITOR LOCATION
ik

0, otherwise. Maximum benefits are obtained by locating the capacitors

as near the inductive reactance kV AR loads as possible and by
Here I,~ is the reactive current of branch in the original system matching the magnitude of the inductive reactance kV AR
obtained from the load flow solution. The loss TPLrcom requirement. Practical considerations of economics and
associated with the reactive component of branch current in the availability of a limited number of standard kV AR sizes
compensated system (when the capacitor is connected) can be necessitate that capacitors be clustered near load centers.
written as Computer modeling or rigorous evaluation of considerable load
metering data are absolutely necessary to make the proper
n

TPL~om= L U;;' + Dik1c)2 Rik (3)

capacitor placement decision and keep line losses as low as
possible. The loss reduction benefits possible with capacitor
ik=1 use can be significant enough to economically justify feeder
The loss saving T LS is the difference between equation (2) metering or a large share of SCAD A system costs.
and (3) and is given by . A textbook solution [I] assume a uniform distribution of
TLs = TPLr- TPLrcom consumers, and suggests that as the distance from the
substation increases, the number of consumers per main line
n n mile of feeder increases.
= LU;;')2 Rik - L U,~+ DikIi~)2 Rik
To obtain maximum benefits in voltage improvement and
ik=1 ik=1
reduction of loss on such a line, a permanently connected
n _:::: ':Cfixed)_capllcilor bank should be located at a.distance from the
=L
ik=1
(2DikI,: + DikI/}Rik --- ---substation which is 1/2 to 2/3 of the total length of theIine."
This location method is used strictly as a "Rule of Thumb"
because few rural circuits contain such uniformly distributed
The capacitor current Ie that provides maximum loss saving
loads.
can be obtained from dS/d1e= 0
Thus, the following method is better suited for locating
"
L
(DiJ:~ +DikI~)Rik =0
capacitors: Use a computer model of electric system and allow
the computer program to place the capacitors on the system in
ik=1
blocks of the largest size that can be used to limit the voltage
Thus the capacitor current form loss saving is given by changes to 3 volts per switched bank.

-L I;;' Rik Computer models calculate proper capacitor placement by

trying the smallest size capacitor a system uses in each line
I = ikea
section of every feeder and calculating the total circuit losses.
c L.J H,k
'" In this way, the computer selects the line secuon with the
ik ea
lowest net losses and then places subsequent additional
The corresponding capacitor size is capacitors in the same manner. The individual effect on feeder
losses is tabulated for each capacitor placed, with each
Q =V I subsequent unit having less benefit. At some point at less than
c me
unity power factor, an additional capacitor offers little
where additional benefit, and adding more actually increases losses.
Qc = Capacitor size in KV AR Capacitors should be located so as to reduce feeder losses as
much as economically practical. The first capacitor placed
Vm = Voltage magnitude of bus' m' in volts provides the most improvement per unit cost because it is
Ie = Capacitor current in amps usually a fixed capacitor and it increases power factor the most.
Each subsequent unit is less economically practical [13).
The corresponding susceptance is

I
S =-.£..
V. OPTIMAL CAPACITOR PLACEMENT (OCp) USING
V
m ETA?: SYSTEM DESIGN WITH ETAP.

The proposed technique can also be repeatedlyemployed to ETAP PowerStation [10) is a fully graphical power systems
further optimizing saving of cost of energy by identifying analysis program. ET AP PowerStation uses genetic algorithm
sequence of buses to be compensated for further loss reduction technique for optimal capacitor placement.
by optimal placement of capacitor.

28
 '\m.t
4

h£T~~t. FJ:~'ie. lP.~ ' . Uhf -~~!j

D •.ro; Ai

D
l,I;1lW 1~1/7!:I "'~, l:ilflO ~v. f;!~ Yo'l
f\~","" &:0: ~'f" ro Ltl.1, 4[) W\~A W-\'.\ •••• flX(] Ij'j,l

Figure .1: Typical Single line diagram of Power Grid on ETAl>.

Most power systems that operate at a lagging power factor ~.' The objeetive of optimal capacitor placement is to
due to loads and delivery apparatus (lines and transformers) are minimize the cost of the system. The cost includes four parts:
inductive in nature. Therefore, power systems require
1. fixed capacitor installation cost: $ 4369.75 /year
additional VAR flow. This results in reduced system capacity,
increased losses and decreased voltage [2, 10J. 2. capacitor purchase cost: $ 1860 US/year
To place shunt capacitors in power systems, the following 3. capacitor bank operating cost (maintenance and
tasks are to be performed: depreciation) : $3588.24/year
I. Determine the bank size in KV AR 4. cost of real power losses: 7.56c1KWh
2. Determine the connection location
The main constraints for capacitor placement are
3. Determine a control method
4. D--'p.--,"n.! ~? cor.'1ero':T\"'! ~-pe ( r r-/' '.

2. To ensure that, all voltage magnitudes of load

Minimizing the cost while determining the capacitor size
and location mathematically is an optimization problem.
Therefore, we should employ an optimization approach. The
ET AP Optima! Capacitor Placement (OCP) module is a
powerful simulation tool that is specifically designed for this
application. The OCP module helps to place capacitors for
voltage support and power factor correction while minimizing
total cost. The advanced graphical interface gives the flexibility
to control the capacitor placement process and allows to view
the results graphically. The precise calculation approach
automatically determines the best location and bank sizes. In
addition, it reports the branch capacity release and the savings
during the planning period due to VAR loss reduction.
OCP uses the present worth method to perform alternative
comparisons. It considers initial installation and operating
costs, which include maintenance, depreciation, and loss
reduction savings. It also provides interest rate and inflation
consideration.
(PQ) buses should be within the lower and upper
bars;
3. To ensure that power factor (PF) should be greater
than a threshold. It may be a maximum power
factor bar.
The constraints are the power flow equations.
VI. NUMLRICAL CALCULATIONS
The distribution network models are obtained by suitably
simplification of a typical Power grid [3]. The Single line
diagram of the network simulated in ETAP is shown in Figure
1 and the system data as follows:
Larger interconnected two 132 kV HV networks with the
same short circuit power MV Asc of 6000 MVA; Two HV /MV
substations, comprising eaeh a 132 kV HV busbar, a 132/20 kV
40 MV A transformer and a 20 kY MY busbar; A feeder,
subdivided in three line sections (LOI, Ll2 and L23) of 3 km
each with % positive sequence impedance (l00 MY A base)
R=5. 17, X=4.23, Z=6.68.A series of further passive overhead
,

29
 ,

feeders; Link lines between various ••4eeder (Lml and Table 2 : Values of Capacitor before and after OCP for radial, loop and
interconnected distribution systems for Test Case.
Lm2);Configuration switches (S I, S2, S3, S4, S5 and S6).
Table 1 shows the system load data The GA optimization Variable After OCP for Test Case
method was applied to the test system- for three different Radial Loop Interconnec ted
network configurations: QCI(kVAR) 4050 3600 3900
QCz(kVAR) 3900 4050 4050
l. Radial configuration (SI, S2, S3, S4, S5, S6 all QC3(kVAR) 4050 3900 3600
open); QC4(kVAR) 1500 1800 3600
2. Loop configuration (Slopen, S2 open, S3 closed, Qcs(kVAR) 3300 2400 3300
S4 closed, S5 closed and S6 closed); QC6(kVAR) 1650 2700 2100
QC7(kVAR) 3450 3300 3450
3. Interconnected configuration (S 1closed, S2c1osed,
Qcg(kVAR) 750 3300 2400
S3 open, S4 open, S5 open and S6 open)
QC<J(kVAR) 3450 3450 2400
QCIOkVAR) 1800 2400 1200
Table I: Test system load data QCII(kVAR) 2250 2550 2100
QcdkVAR) 2700 1650 2250
Bus Load(80% Motor, 20 % static Total capacitor(kV AR) 32850 35100 34350
No. MW MVAR
I 5.25 5.356
-- - 2 5.25 ~- 5.356
-.c -
-- - .-
--
_
-
"~.
e- ·5~.356
.--. ~--- , -
- 3 5.25 - - .. Tab1e\-:" Cmnpariso'R-:'-ofresultso"efore and after OC~ for radial, Ioop and -~~ .
4 4..5 - 2.18 - - interconnected distribution systems for Test case - -
. 2.18 - -
-- ~
5 4.5 Min Min voltage (pu) before OCP Min voltage (pu) after OCP
6 4.5 2.18 voltage
0.91 - 0.91484 0.92671 0.96535 0.97364 0.97521
(pu)
7 4.5 2.18
Max Max voltage (pu) before OCP Max voltage (pu) after OCP
8 4.5 2.18 voltage
0.95516 0.95516 0.94462 0.98778 0.98860 0.98554
9 4.5 2.18 (pu)
10 4.5 2.18 Power Power losses (kW) Power losses (kW)
4.5 losses before OCP after OCP
11 2.18 (kW) 1211.1 1206.5
1244.1 812.8 795.7 796.8
12 4.5 2.18
Cap. ------ ----- ----- 6142.8 6301.65 6156.9
Cost
Commercially-available capacitor sizes with real ($/year)
costs/kv t\. were used in the analysis. It was c~::i~~d hat th Total Total Cost Total Cost
I C051 ($,yearj ~~~u~"VCr' I \. c.. ;
largest capacitor size Qcmaxshould not exceed the total reactive ($/year) 209008 203464 202692 142685 139904 . 139952
load, i.e., 35688 kVAR. The yearly costs of capacitor sizes as Benefits Benefits Benefits
described in [4]. ($/year) ($/ycar) before OCP ($/yea r) a fter OCP
- - - 66323 63560 62740
The Optimum shunt capacitor sizes have been evaluated for
the test case where all loads arc assumed to be linear and Kp
was selected to be $168IkW. The voltage limits on the rms
voltages were selected as V min= 0.95pu, and V m.:>.,=
1.05, for test
case and V min= 0.93 pu, and V m,,=1.05 pu.
r·~·--···---··-·----·--···-··--·-·····-····-··~····-·· ..-.-----,-, "'-~"'" ....•.... _---------- ---_ .._------,
I
1
Table 2 shows the values of capacitors for radial, loop and
interconnected distribution systems and Table 3 shows
I

I
I
1
i4W

120<) .--.- i
-..

-,
iI
!;
comparison of power loss and voltages before and after OCP I p
0
s
woo !
for radial, loop and interconnected distribution systems for Test SCQ
I
I
o s
M 600 - O?ow~rIOl;~5 inMW ~iQre I
Case. This table shows significant use of OCP with respect to w e OCP (for Test ca

~'"'I
w 400
saving $/year. e s
r 100 _.- - 1-
• Power I05S€3 in I

Figure 3 shows Power losses before and after Capacitor

placement and Figure 4 shows total cost $/year before and after
i
n
. 0 L-.

1 1 3
L
OCPlior Test ca.

I. Radial Sjsiom
2. Loop Sj>lBm
t
capacitor placement. i
3.lrnerrOllllected
I syste.. Case,
Plots of Comparison for Power losses and Total cost I
($/year) before and after OCP.
Figure 3: Power losses before and after OCP

.
30
 6

2 soooo capacitors as near the inductive reactance kV AR loads

as possible.
2:00000 ----j

s 5. Limited number of standard kVAR sizes necessitate

c I lSOCOO
I that capacitors be clustered near load centers.
y
0

• • 10‫סס‬00
1
;
o To~;;1cesr (She';.r) befor~ oo
I;",T«< Coo., ACKNOWLEDGMENT
t • • Total Ct':-ti$/ye~ri stter OCP
5‫סס‬00 jforTe.rtC-ase) The authors gratefully acknowledge Mr.D.M. Tagare,
l. Ratial SYStem
Managing Director, Madhav Capacitors Ltd. Pune, India for his
!.l.nop~1{'m contribution for providing data on Reactive Power
llnSi!.Jtord1eCr~l S.\-"STiWI
Management for effect of variation of switched capacitor bank
L. .._._ __ .__ _ _ ..__._._._ ............
_._-_ .._ - _.-.._,j
on daily power load. The Authors are greatly thankful to
Dr. Ajit D. Kelkar, Director Computational Science and
Figure4: Total Cost ($fYear)before andafterOCP
Engineering Department, North. Carolina A & T State
University, Greensboro, USA and the Management of Bharati
Vidyapeeth Pune, Bharati Vidyapeeth Deemed University
VII. CONCLUSIONS Pune, Dr. Anand R. Bhalerao, Principal, Bharati Vidyapeeth
The study of the optimal capacitor placement on Deemed University College of Engineering, Pune,INDIA , for
interconnected distribution systems in the presence of nonlinear their support.
loads using ET AP is presented in this paper. Results (power
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~ ,

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determined.
2. The algorithm finds out the proper location of the
capacitor.
3. The results are encouraging with reference to the
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increasing the feeder capacity.
4. Maximum benefits are obtained by selecting
optimum size of the capacitor and by locating the
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31