Reactive Power Compensation on Distribution Feeders

J.C. Carlisle A.A. El-Keib Department of Electrical Engineering University of Alabama Tuscaloosa. A1 35487-0286

D. Boyd K. Nolan Alabama Power Company Birmingham, A1 35291-0715

Abstract
Optimal sizing and placement of shunt capacitors on distribution feeders has received considerable attention from researchers for many years. This paper provides an analysis of several of the general solution methods found in the literature. The validity of certain simplifying assumptions are addressed and additional insights are provided.

1. Introduction
It is widely recognized that placement of shunt capacitors on an electric distribution system can lead to a reduction in power losses. Increased competition in the industry has created a renewed interest in improving efficiency by reducing these losses. This paper provides a description of the problem and discusses general solution techniques proposed in the literature. It is recommended that the readers of this paper refer to the companion paper [11 for an extensive list of references.

LP = reduction in power losses LE = reduction in energy losses C C ~ = cost of ithcapacitor nc = number of capacitors installed n = number of busses on system Kp, K, = constants to convert power and energy losses to dollars = voltage at bus k V, V-, Vm& = minimum and maximum allowable voltages
It should be noted chat some formulations of the problem may include additional benefits of reactive compensation in (1). Additional constraints such as limits on line loading may also be included.

3. Complexity of the problem

The general capacitor placement problem is quite complex due to a number of factors: 1. The problem formulation itself may change from one feeder to the next. The objective function of (1) consists of two terms which give savings due to placement of capacitors. The term containing LP gives dollar savings due to a reduction in losses at peak load. A loss reduction allows the utility to delay investment in additional generating plants, transmission lines, substations, etc. Thc term containing LE gives dollar savings as a result of decreasing energy losses over time, reducing fuel costs to the utility. Both of these terms should almost always be included as part of the objective function. However, some researchers have included additional terms in order to account for other benefits of reactive compensation, as dictated by their particular circumstances. For example, for a feeder loaded at or near capacity with an expected load growth, there is some benefit to decreasing the peak power losses, if this reduction allows the existing feeder to serve the new load. This represents additional savings. A

2. Problem formulation
The problem, in general, is to determine the optimal number. location, sizes, and switching times for capacitors to be installed on a distribution feeder in order to obtain maximum cost savings while maintaining acceptable operating conditions. The problem can be expressed as follows:

max

s = K,LP+K,LE -C C C ,
1=1

nc

(1)

s. t. VlOW 5 v, 5 v,,,
where
S

k = 1, ..., n

=savings

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0-8186-7873-9/97 $10.00 0 1997 IEEE

benefit of this type, since it is directly related to peak power losses, could possibly be accounted for by increasing Kp for this particular feeder. Of course this would assume the peak power losses are reduced by at least a certain amount, which introduces an additional constraint. 2. Although it is not obvious from (l), the objective function and constraints are non-linear. When LP and LE are expressed in terms of the decision variables (capacitor sizes, locations, and switching times), the non-linearity becomes apparent. The exact expressions for LP and LE depend upon the particular assumptions made, such as constant voltage along the feeder, a single radial path, etc. These assumptions are essential to develop closed-form expressions for LP and LE. Capacitor costs are not, in general, linear functions of size, making the last term of the objective function also non-linear. 3. The loads along the feeder vary with time and there is typically limited load data available. 4. Capacitors are available only in discrete sizes. 5 . There may be certain locations where it is not desirable to add a capacitor. These locations may be inaccessible or the installation of a capacitor might cause interference with communication circuits. In the case of switched capacitors, it is desirable to keep the number of switching operations below a certain amount in order to reduce maintenance on switching equipment.

Capacitor sizes are commonly treated as continuous variables, when they are in fact discrete. The capacitor sizes are then rounded to the nearest standard sizes upon completion of the problem. In the majority of the literature, capacitor costs are treated as linear functions with no offset. This means the cost of two 300 kVAR banks is exactly the same as the cost of a single 600 kVAR bank. This formulation would almost always bias a solution toward placement of several smaller banks as opposed to a small number of large banks. A better formulation might be to approximate the cost as a fixed charge per bank along with an incremental cost per kVAR. This would not drastically complicate the problem and is a much more realistic model of cost when compared to typical costs in Table 1. This would also help to determine the number of capacitors to be placed, something that many of the existing algorithms cannot do. The fixed charge would be higher for switched banks than fixed banks, with the incremental charge for both types of banks equal.

size of capacitor (kvar) 300

450

4. Assumptions
Due to the complexity of the problem, the proposed solution methods introduce simplifying assumptions. A discussion of these assumptions follows. The early papers assumed a uniformly distributed load along the feeder. This was thought to be a good model for the small distribution transformers located along the feeder and greatly simplified the problem. However, errors can result when this assumption is applied to typical real feeders [2,3].More recent formulations [4,5] make this assumption unnecessary. Many of the capacitor placement techniques assume constant voltage profile along the feeder. This allows the development of equations for calculation of loss reduction, otherwise load flow solutions are necessary. The output of a capacitor is dependent on the square of the voltage and the load may also be voltage dependent, based on the load model used. Even so, a constant voltage is a reasonable assumption for the purpose of this problem. This is particularly true when the capacitor size is to be rounded to the nearest available size anyway. The wide manufacturing tolerance of capacitors may also suggest that an exact solution is impossible.

600 900

cost of fixed capacitor $3700 $4050 $4100

cost of switched capacitor

$4700

$9000 $9600

II

A radial feeder with no laterals is also used in much of the literature. This is done because it is much more difficult to derive equations for LP and LE when laterals are considered. Of the methods which apply switched capacitors, the solution approach may assume that the relative positions of the switched and fixed capacitors are known. Assumptions may also be made as to the relative switching times of the switched capacitors. These assumptions are necessary to determine equations showing the effect of any one capacitor on losses.

5. Solution methods
Many methods have been suggested for solving the capacitor placement problem. Several of these methods use operations research techniques. Other methods solve for the optimal solution by simply using the necessary conditions. Heuristic methods and near-global optimization techniques such as simulated annealing, tabu search, and genetic algorithms have also been suggested as possible approaches to solving the problem. Recently, artificial intelligence based methods have also been

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investigated. Following is a discussion of some of the proposed solution approaches.

will converge. Even if convergence is obtained, it is very likely that the solution is only a local optimal, dependent on the starting solution used.

5.1 Explicit enumeration

5.3 Heuristic approaches

Capacitors are available only in a finite number of sizes, and only a certain number of locations are available for adding capacitors (assuming capacitors will only be added at load points). It is theoretically possible to evaluate all possible combinations of sizes and locations to determine the optimal. However, even with a small number of capacitor sizes, the number of combinations becomes excessively large except for feeders with a very small number of busses [6]. When the capacitor switching times are considered, the number of combinations which must be tested again increases. Simplifying assumptions are needed to express LP and LE explicitly as a function of the decision variables. Otherwise it would be necessary to run a load flow study to determine losses. In order to determine energy loss reduction, load flow analysis must be performed for lfferent load levels. Therefore, enumeration of all possibilities is not practical, even if computing speeds increase by orders of magnitude and expressions for LP and LE are used. Heuristic approaches are based on intuitive trial and error. They are similar to the explicit enumeration techniques described earlier, except that instead of evaluating all possible combinations, a set of rules is used to guide the process. Kaplan [6] presents a heuristic approach which first determines the best locations and types (fixed or switched) for the smallest available standard capacitor size. After placement of these initial capacitors, an attempt is made to improve savings by the addition of larger banks or by combination of smaller banks into larger units. Shao, Rao, and Zhang in [7] propose a solution approach that is based on a heuristic graph search method using an evaluation function. It uses the power loss sensitivity vector to guide the search procedure. It is to be noted here that the appropriate choice of heuristic rules is crucial for a successful implementation of an expert system-based solution approach of any problem.

5.2 Non-linear programming approaches

5.4 Near-global optimization techniques

The cost function (1) is constructed using the proper expressions for LP, LE, and capacitor cost. One approach solves the unconstrained optimization problem [4,5]. The optimal solution is determined using the necessary conditions for optimality with respect to each of the decision variables. These conditions are also sufficient for each subproblem, but the overall solution may result in only a local optimum. Other approaches solve the problem as a constrained non-linear programming problem. Most algorithms begin by finding an initial solution which, depending on the algorithm, may need to be a feasible solution. The method then proceeds by determining a direction in which to move in order to improve the objective function and/or make the solution feasible. This direction may be determined by the gradient of the objective function with respect to each direction (decision variable) or by actually
evaluating the effect of a move in each direction. After a

In recent years, near-global optimization techniques such as simulated annealing and genetic algorithms have received widespread attention as possible solutions to many engineering problems. The genetic algorithm [8-101 is a biological analogy in which a pool of trial solutions is evolved toward the optimal solution. The approach is attractive because of the ease of implementation. Differentiability of the objective function is not required, so the discrete nature of the capacitor sizes and costs can be easily incorporated. Instead of using a set of rules to guide the search for an optimal solution, new trial solutions are generated based on the fimess of previously tested solutions. The genetic algorithm starts with a pool of binary strings. Each of these strings represents a possible complete solution. For example, in the capacitor
placement problem, each string would contain the

direction is determined, it is necessary to decide how much the solution must move in that particular direction (step size). The process is repeated until the optimal solution is reached. These approaches are computationally intensive and the availability of any particular algorithm to arrive at the global (absolute) optimal solution is suspect. Also, it is difficult, if not impossible, to prove that some algorithms

capacitor size at each bus along with the switching time. A decoding function is used to determine the values for the decision variables from this binary string and the objective function is evaluated. Based on this evaluation, and whether the solution is feasible, a value of fitness is then assigned to the string. Once all strings are evaluated, they are mated, based on their fitness, resulting in a new generation of solutions. Each of the offspring is a

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combination of the parents, with the idea being that the new solutions will be better than the previous solutions and after an adequate number of generations, the optimal solution will evolve. The algorithms allow for the possibility of mutation, where an offspring is not an exact combination of the parents, as well as the possibility that crossover does not occur and the offspring are identical to the parents. This keeps diversity from completely disappearing from the solution, possibly preventing convergence to a local optimal solution. As pointed out by [9], there are several control parameters which must be determined when using genetic algorithms. Some of these parameters are population size, number of generations allowed, probability of mutation, and probability of crossover. There is also a selection pressure which must be determined. This determines how the fitness assigned to a string relates to the value returned by evaluation of the objective function. Although the authors found good results, much more work is needed to determine whether the genetic algorithm is well suited to this problem. Determination of appropriate control parameters and selection pressure for compensation of a particular feeder may prove as difficult as the original problem. If these parameters are sensitive to the feeder configuration, it may be impossible to determine adequate values. Simulated annealing has also been proposed as a possible solution method [ 11- 131. This technique is based on an analogy to the annealing process of materials science. The idea is that the system to be optimized starts at a high temperature and is slowly cooled, resulting in a solution which converges to the global optimal solution. This slow cooling process allows the solution to escape from any local optimal solution which may be encountered in search of the global solution. The process begins with an initial solution, which could be arbitrarily chosen or otherwise determined. A new trial solution is then generated by perturbing the current solution and the objective value is evaluated using the new solution. If this solution is an improvement, it is selected. If the move is detrimental (the objective value is actually worsened), the solution may still be accepted, depending on the value of the objective function and the solution temperature. A higher temperature results in a greater probability that a detrimental move is accepted. As the solution process continues, the temperature is slowly lowered so there is a lower and lower probability of accepting detrimental moves and the solution will converge to an optimal. This method, similar to the genetic algorithm, contains
control parameters which must be determined in order to

necessary to determine the cooling schedule which is comprised of the initial temperature and the rate at which the temperature is to be lowered. This cooling rate could be a constant or dependent on the progress of the solution procedure [ 111. Once again, it appears much more work is needed to determine the appropriateness of this optimization procedure to the capacitor problem. A third global optimization technique which has been proposed for capacitor placement is the Tabu Search (TS) algorithm [14]. This algorithm biases the search toward solutions with better objective values while still allowing detrimental moves under certain conditions to avoid being trapped at a local optimal. The algorithm starts with an initial solution. Neighboring solutions are evaluated and the one which most improves the objective function is chosen. If there are no neighboring solutions which improve the value of the objective function, the one which least degrades the value is chosen. The tabu list is a list of solutions attempted just prior to the current solution. A move to these solutions is not permitted (i.e. it is tabu), except in certain instances. A frequency counter is used to count the number of times a solution is visited. This counter forces the procedure to visit different solution neighborhoods. Like the other global optimization techniques, certain parameters must be determined for the Tabu Search. The parameters here are the length of the tabu list, the conditions for which a tabu move is accepted, and the effect of the frequency counters on the search.

5.5 Neural networks

Artificial Neural Networks (ANN), have received widespread attention and their application to solve the capacitor problem was investigated [15,16]. A key issue in using ANNs is the proper selection of the training data set that adequately covers the operating space of the distribution system of interest.

5.6 Dynamic Programming

Dynamic Programming (DP) has been used to solve the capacitor placement problem. The DP approach divides the problem into stages, each composed of a number of states. A single decision is to be made at each stage. For the capacitor problem, the stages correspond to load busses and the states correspond to the capacitive current flowing into the bus. This approach suffers from the curse of dimensionality.

obtain a satisfactory solution in a reasonable amount of time. For the simulated annealing algorithm, it is

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6. General comments
When solving the problem using the necessary conditions [5], several important points should be noted: 1. When calculating capacitor locations knowing their sizes, two (or more) capacitors may be placed at the same location. This must be taken into account when the iterative procedure between the two subproblems is being performed to determine both sizes and locations. If not, a singular matrix will result and the process will terminate prematurely. This can be handled by temporarily assigning one of these capacitors a size of zero and deleting a row and column from the matrix to solve for the other sizes. When solving for locations, the capacitor with a value of zero will likely be moved, so the required number of capacitors is achieved in the final result. 2. The examples with K, >O show a change only in size of the capacitor nearest the substation. This will be true if locations are fixed. However, as pointed out by Grainger and Lee, when solving for sizes and locations iteratively, this may not hold. When testing on various feeders, we saw that as K, was increased, the size of the capacitor nearest the substation would change to a point, but greater increases in K, could result in completely different optimal locations and sizes. The important point here is that it is not possible to locate and size capacitors while ignoring costs, and then adjust sizes based on cost, without allowing the locations to change. 3. The optimal solution obtained by the iterative procedure is dependent on the starting locations chosen. This is pointed out in [2]. Because of the computational effort required for most feeders, it is not practical to enumerate all local optimals and then choose the best. However, for illustrative purposes, solutions were obtained for Example 4 of [4] using every possible set of starting locations as the number of capacitors was varied from one to nine (with nine corresponding to a capacitor at every bus). The number of local optimal solutions and the range in savings is presented in Table 2. Table 2 Test results
I
I I

For the case of 3 capacitors, the local optimal solution corresponding to the global optimal was found with exactly half of the possible starting locations. For the other number of capacitors, the probability of finding the global optimal from any particular optimal solution was somewhat lower. This is not meant to imply any general result, since it is most likely a function of feeder configuratiodloading, cost coefficients, etc. Another interesting item to note from Table 2 is the increase in savings as the number of capacitors increases. As noted earlier, this is to be expected since the capacitor cost function is linear with no fixed charge per bank. Although it would be possible to limit the number of capacitors based on a minimum incremental savings, as suggested by many authors, this particular solution methodology could easily incorporate a fxed charge per bank in order to determine this number. 4. When testing using the methods and examples of [2], which includes switched capacitors, we found the initial value of switching time did not affect the solution. 5. In [17-191 the method of [4] is extended to include laterals. Each lateral is treated as a separate feeder for reactive compensation. Once compensation on each lateral has been determined, the main feeder compensation is determined by adding an equivalent reactive load based on the lateral loads and capacitors. It is important to note that an accurate representation of the lateral loads and capacitors must allow the capacitor outputs to remain constant while the load changes over time. 6. In [17,18], a voltage-dependent model is used to determine a near-optimal solution of capacitor size and location, disregarding capacitor cost. A load flow is then used to adjust sizes for the optimal solution, still without any regard to capacitor cost. As discussed earlier, capacitor costs can have an effect on location of capacitors, as well as sizes.

7. Other issues
There are many other issues which should be addressed when placing capacitors on distribution systems. A brief discussion of some of the issues follows.
1. Distribution systems are generally unbalanced. It

seems impractical to install capacitors of different sizes on each phase. If capacitors are sized and located based on a balanced system, the solution could be suboptimal when applied to the unbalanced system. 2. Most solution algorithms size both fxed and switched capacitors based on peak load. The sizes of the capacitors may cause voltage problems during light load conditions. One approach that avoids this problem is to

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size the fmed capacitors for base load and the switched capacitors for the time-varying portion of the load. 3. When solving the capacitor placement problem, it is almost always assumed the loads are varying conformally, usually because no better data exists. When capacitors already exist on a feeder, they should be handled carefully since their output will not vary over time in the same manner as the load. 4. The effects of capacitor switching as relates to potential overvoltages at customer buses should be investigated and solutions to control transients need to be identified.

8. Conclusion
The capacitor placement problem is quite complex. Researchers have used a wide variety of methods in an attempt to solve the problem. Representative approaches were discussed in this paper and issues of concern have been addressed. At this time, none of the existing algorithms are general enough, nor can they guarantee acheiving the optimal solution. Perhaps a good quality (local optimal) solution is the best that can be expected.

References
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