An efficient greedy approach for reactive compensation on large-scale distribution systems

This paper presents a new fast and efficient heuristic algorithm to explore the optimal number, locations and sizing of shunt capacitors in radial distribution systems under varying load conditions. Unlike the conventional objective function, a new constraint objective cost function has been formulated to maximize the net annual saving by maximizing the saving in the cost of annual energy loss and optimizing the annual investment on shunt capacitors while improving the system node voltage profile. A two-stage algorithm is proposed to determine the optimal installed capacity and optimal control settings of the shunt capacitors of the distribution system. The proposed method is tested on medium and large-scale distribution systems. The effectiveness of the proposed methodology is indicated by higher saving in the annual energy loss, improved system node voltage profile, lower investment on capacitive compensation, better allocation of fixed and switched shunt capacitor ratings and increased net annual saving.