A Novel Optimal Shunt Capacitors Placement and Sizing Technique for Cost Minimization

The installation of shunt capacitors in radial distribution systems leads to reduced branch power flows, branch currents, branch power losses and voltage drops. Consequently, this results in improved voltage profiles and voltage stability margins. However, for efficient attainment of the stated benefits, the shunt capacitors ought to be installed in an optimal manner, that is, optimally sized shunt capacitors need to be installed at the optimum buses of an electrical system. This article proposes a novel approach for optimizing the placement and sizing of shunt capacitors in radial distribution systems with a focus on minimizing the cost of active power losses and shunt capacitors’ purchase, installation, operation and maintenance. To reduce the search space, hence the computation time, the prroposed approach starts the search process by arranging the buses of the radial distribution system under consideration in pairs. Thereafter, these pairs influence each other to determine the optimum total number of buses to be compensated. The proposed approach was tested on the 34- and 85-bus radial distribution systems and when the simulation results were compared with those obtained by other approaches, it was established that the developed approach was a better option because it gave the least cost.