1

VAR Flow Control for Grid Capacity

Optimization
Y.O. Al-Rasheedi, IEEE, Saudi Aramco, Dhahran, Saudi Arabia, Yousef.Rasheedi@aramco.com


Abstract — Increase or decrease in the reactive power (VAR) the mentioned additional power, which will be reflected as an
load requirements on any bus leads to voltage fluctuations at that additional cost.
bus. Therefore, VAR flow control is very crucial for the integrity
of power systems as it may lead to voltage instability or severe What makes this situation worse is when you have a normally
circulating current. The circulating current in the power systems
closed substation configuration (double ended switchgear) or
will cause system stresses and will reduce the generator’s
capacity. Therefore, a quick automated control system is needed small generation plants connected in parallel, as shown in
to continually regulate the VAR flow. This can be done through Figures 1 and 2.
the VAR control system in either the generator or the
transformer; however, a very sophisticated control system is
needed for coordination between them. In this paper we will
share our experience in deploying an advanced technique to
coordinate between all VAR systems to stabilize the voltage and
minimize the circuiting current. We utilized the existing
Distributed Control System (DCS) infrastructure, in one of the
local industrial plants, to automate the VAR regulation without
adding any additional components. The new logic detects any
voltage instability or any circulating current and selects the most
appropriate VAR system, whether it is a generator VAR or a
transformer VAR, to correct the VAR flow. At the end, the
voltage will be fixed. In this paper we will describe how this
package works, the system logics, and the system operations.
Figure 1: Parallel transformers configuration. [1]

Index Terms — circulating current, coordination between

generators and transformers AVR systems, Distributed Control
System (DCS), energy monitoring, generator capacity,
optimization techniques for efficient energy consumption, power
systems integrity, real-time systems, reactive power, voltage
fluctuations, VAR flow control.

I. INTRODUCTION
Recently, power plants in the utilities and the industrial
facilities, pay considerable attention in managing the voltage
levels as well as the reactive power in both the transmission
and the distribution levels. Loads with high capacitance and
inductance, e.g., electric motors, put additional stress on the
grid. The reactive nature of these loads makes them draw more
current than comparable resistive loads, e.g., lighting systems,
would draw considering the same quantity of real power
transferred. This extra current will result in heating of the
electric network components such as the power transformer,
and may result in reducing its service lifetime. Moreover,
uncorrected reactive power will create voltage stability issues.
It will also drive the electric network components (such as
cables, transformers, and generators) to be oversized to carry
Figure 2: Parallel generators configuration.
The current may circulate, due to voltage difference, between
the closed tie buses in the double ended switchgear and also
within the interconnected parallel substations. In the most
elementary form, current will flow out of one bus, through the
paralleling bus and into the second bus. It does not flow into
the load, but stresses the network. This current, called
“Circulating Current,” is in addition to the normal line current
supplied to the connected load.
This circulating current will reduce the capacity of the
generators and also will create fluctuation in the network

voltage. In brief, circulating current is a harmful phenomenon
that needs to be eliminated.
Circulating current can be eliminated by ensuring that the
generators fulfill the VAR requirements of their buses, and the
transformers connected to the same bus to have the same tap
changer position for similar transformers, and near tap for
different transformers. Subsequently, as the loads change, the
generator and transformer On Load Tap Changer (OLTC) also
will change, again initiating the circulating current. Therefore,
an adaptive real-time control system is needed to re-tune the
VAR controllers whenever loads change.
II. CIRCULATING CURRENT IN PARALLEL TRANSFORMERS
The substation configuration differs from one location to
another based on the connected load criticality. For very
critical loads, usually the substation configuration is double
ended with closed tie as a minimum. In this configuration there
will be more than one transformer in parallel operations at the
same bus. In this case, the transformer with the higher tap
position, usually, will have a higher no load voltage at the Low
Voltage side than the other transformer with the lower tap
position. This imbalance in tap positions will cause a flow of
circulating current through these transformers, as the current
will flow from the transformer with higher voltage to the one
with lower voltage. This is not the only cause of the circulating
current, the other one is the manufacturing characteristic of the
parallel transformers. In some cases, the parallel transformer’s
parameters are not equivalent (for example, the impedance and
number of taps) supplied within different batches or by
different suppliers.
A. Calculating the Circulating Current in Parallel
Transformers
When transformers are operating in parallel, the electric
current carried by each transformer is inversely proportional to
its internal impedance, as in Figure 3. This can be calculated
as in equation (1).
Source Load
Figure 3: Current flow in transformers at parallel operation. [2]
%R1 = %Z1 / √[(X/R1)2 + 1)]
%X1 = %R1 x (X/R1)
%R2 = %Z2 / √[(X/R2)2 + 1)]
2
%X2 = %R2 x (X/R2)
Let %e = difference in voltage ratio expressed in percentage.
k = kVA1/ kVA2
%IC = %e*100 /[√ (%R1+k%R2)2 + (%Z1+k%Z2)2] (1) [2]
Where,
I1 = load current from transformer No. 1
I2 = load current from transformer No. 2
IL = I1 + I2 = load current
Z1 = Impedance of transformer No. 1
Z2 = Impedance of transformer No. 2
R1 = Resistance of transformer No. 1
R2 = Resistance of transformer No. 2
X1 = Reactance of transformer No. 1
X2 = Reactance of transformer No. 2
X/R1= Reactance of transformer No. 1
X/R2= Reactance of transformer No. 2
IC= Circulating current
B. Accepted Circulating Current Level
Generally speaking, when transformers are operated in
parallel, the total circulating current shall not exceed 10% of
the rated current of the lowest kVA rated transformer. For
transformers with different parameters, there will be a
circulating current. Consequently, it can be minimized by
making the tap position, in all parallel transformers, equivalent
or at least very close to each other.
III. GENERATOR CAPACITY LIMITATION
Circulating current could also occur as a result of the
generator’s internal voltage differences. This would take place
only if there is more than one generator working in parallel at
the same time. Accordingly, circulating current will stress the
electrical network components and will overheat the
transformers and cables. Also, it will limit the generator
capability. The generator will be producing extra current,
which is not received or consumed by any load. This current
eventually will be circulating in the network doing no work but
overheating the components of the electric system. The
situation is worse when you have more than one power station
feeding series of loads with close tie configurations (same
bus). The reactive current will be circulating between the
power stations. Eventually, if this reactive power was not
corrected it could make the network voltage difficult to be
stabilized.
A. Parallel Operations of Generators
In a petrochemical complex, power system reliability is crucial
and power interruptions cannot be tolerated. Therefore, in
some cases a robust power generation stations is built. These
generation stations contain parallel generators feeding their

own loads and are interconnected through closed tie
substations or breaker and half configuration.
Each power station has to satisfy the VAR demand on its
connected loads and minimize VAR flow from the other
generation stations. Subsequently, the problem when there is
no coordination between the generators at the interconnected
power stations, which leads to circulating current. Therefore,
the generator’s ability of producing active power will be
affected.
B. Generator Capability Curve
The capability curve of a typical generator is shown in Figure
4. Real power (MW) is plotted as the X-axis and the reactive
power (MVAR) is plotted as the Y-axis. The area under the
curve is the safe working area for the generator. It is obvious
that the more VAR the generator produces, the less W it safely
can produce. In other words, extra reactive will limit the real
power that the generator can produce.
Figure 4: Generator capability curve, (MW) is plotted as X-axis and the
reactive power (VAR) is plotted as Y-axis. [6]
IV. GRID CAPACITY OPTIMIZATION
Whenever load conditions change, the VAR demand will also
be changed. This will cause circulating current again and will
cause voltage fluctuation. This is a dynamic phenomenon that
needs ongoing monitoring and correction. Therefore, there is a
need of an automated system to advise and direct the
equipment settings to optimize the circulating current or to
adjust the voltage in the network. One way is to make the
Distributed Control System (DCS) do VAR/voltage control
through controlling the generator excitation and the
transformer’s OLTC. This can be done by building control
logic to sense the voltage difference and find the circulating
current for corrective action. Doing so will enhance the
electric network by coordinating between all VARs and all tab
changers for better control, which will advance the plant’s
electric network making it a “Smart Grid”, see figure #5.
This paper will describe how the DCS system can be used as a
smart grid to enhance the voltage of the system and to
minimize the circulating current without the need of an
3
additional generator master unit or load follower panel for the
transformers.
The control logic contains:
A. VAR Control for Generators
B. VAR Control for Transformers OLTC
Figure 5: Smart grid hardware.
V. VAR CONTROL FOR GENERATORS
Adding or removing loads from buses could lead to an
increase or decrease in the reactive power requirement of a
generation bus leading to fluctuations in the voltages of those
buses. The generator’s bus voltage is maintained by the action
of the AVR’s; however, if two machines are parallel, the VAR
action of these machines could lead to circulating current if no
coordination system is available, where one of them will have
high excitation and the other could have a low one. Our
objective is to have the existing DCS coordinate the AVR
action of all generators to minimize the circulating current.
This will ensure that the amount of VAR produced is equal to
the amount being consumed so that the bus voltage remains
steady and have VAR sharing between the generators at the
same bus. This control philosophy redistributes the VAR in the
system once the VAR triggered. The action will be done in
milliseconds to correct any unbalance in the VAR. This can be
achieved by having the DCS issue a raise and then lower
pulses to the exciters of the generators.
A. Generators VAR Control Methodology
How can we estimate the needed VAR amount or how can we
know the new settings of VAR? This can be done by building
a code (Generator VAR control logic), which will calculate
optimal set-points so that the VAR load is met. Moreover, this
logic will identify the closest generator to act for VAR
compensation and then other generators will support if needed.
That is, each generator will try to reduce the VAR flowing into
 4

its own bus. If not, then other generators will act to help, if not,
then the OLTC will take action to adjust the power flow to the
network.

Before moving to the logic, it is critical to identify the T1= time for first
requirements, namely: generator to act.

T2= Time for the other

1. Power flow meters at each bus: generators to act.
a. Current transformer
b. Voltage transformer T3= time when generator
2. AVR link with the DCS to raise or lower the VAR. package terminated and
OLTC package started.
3. Feedback from the AVR.
4. I/O cards.
5. Transducers.

B. System Logics

The control logic can be summarized as shown in flowchart

(1). Note the following advantages of this logic:

1. The system will only operate if the bus voltage is not

within the dead-band point. The dead-band will be set by
the user V min ≤ V≤ Vmax.
2. Eventually the reactive power will be controlled and there
will be limited amount of circulating current.
3. The DCS will make sure the generators at the same bus
will have almost the same VAR contribution to the
network.
4. The logic will make sure that the generator capability
curve is not violated.
5. Any internal fault will be detected by the logic.
6. If the system becomes islanded the logic will be
terminated.

C. System Operations

First, the automation will not be allowed until the system

operator put the generator in remote operation by selecting the
local/remote key to the remote position. Then, he also needs to
allow the logic from the DCS by putting the generator on auto
mode. The operator can select which generator is to be set on
auto, and to be controlled from that logic, Figure 6. If any
deficiency is found in this logic, the DCS will change all the
generators to manual operation. When a generator is in auto
mode, it tries to satisfy all VAR demand on the outgoing
feeders of that bus. In this way, the generator will try to meet
all outgoing VAR demand of its own generation bus, and
reduce the import from another generation bus. The total VAR
of all feeders needs to be equal to the generator’s VAR. If not,
then the closest generator will try to help and so on. The logic
will have to check the buses’ voltage and make sure they are
within the limits. Also, there should be no circulating current.
Flowchart 1: Generator VAR control logic.
 5

The VAR set-point of each generator, which is in auto-mode,

is calculated by the following formula:

Generator set-point = (controllable MVAR) * (Generator

Maximum MVAR/Total Controllable Max MVAR) (2) [6]

Where;

 Controllable MVAR = MVAR that the auto-mode generator

must make to meet the load and minimize the tie-line
error.
 Generator MVAR = maximum MVAR that the generator
can produce.
 Total Controllable generator max MVAR = total of the
maximum MVAR of the generators that are in auto-mode.

The logic also will set the tie line VAR exchange based on the
user setting.

As stated, if the generators cannot control the VAR then the

logic will try the transformer OLTC.
Figure 7: Transformer OLTC control faceplate.

Transformer tap changing logic is only used when necessary.

For the majority of the time it is anticipated that the tap
position on the transformers should not have to be modified.
A. Transformers OLTC VAR Control Methodology

Transformer OLTC control ensures that the voltages of the

buses downstream of the transformers are kept within limits.
Changing tap settings will change the VAR imported from the
grid into these generation buses, and will affect the VAR flow
into the buses connected to generators.

Before moving to the logic, what does this control logic need?
It needs:

1. Power flow meters at each bus:

a. Current transformer
b. Voltage transformer
2. OLTC link with the DCS to raise or lower the Tap position.
3. Feedback from the OLTC.
4. I/O cards.
5. Transducers.

Figure 6: Generator VAR control faceplate.

VI. VAR CONTROL FOR TRANSFORMERS OLTC
The generator VAR and the VAR balancing logic are the
primary means of controlling the bus voltage. Subsequently, if
the bus voltage goes outside the allowable operating range and
remains there for a period of time (1 or 2 minutes) the tap
position on the transformers will be adjusted to improve the
bus voltage, Figure 7.
B. System Logics
The control logic can be summarized as in flowchart (2).
Note the following advantages of this logic:
1. The system will only operate if the bus voltage is not
within the dead-band point and after time T3.
2. The logic will make sure that the transformers at the same
bus will have almost the same tap position.
3. By this there will be no circulating current.
4. Any internal fault will be detected by the logic.
5. If the system is islanded, the logic will be terminated.

T1= time for first
generator to act.
T2= Time for the other
generators to act.
T3= time when generator
package terminated and
OLTC package started.
Flowchart 2: Generator VAR control logic.
C. System Operations
As in the generator logic, the automation will not be allowed
until the system operator puts the OLTC selector switch in
remote operation. Then, he also needs to allow the logic from
the DCS by putting the OLTC to auto mode. The operator can
select which transformer OLTC to be in auto mode to be
controlled from that logic. If any deficiency is found in this
logic the DCS will change all the OLTC to manual operation.
When an OLTC is in auto mode, it tries to satisfy all VAR of
the bus after some time when the generation can’t do it. The
logic also will have to check the buses’ voltage and make sure
6
that the transformer’s tap position for the normally closed bus
are the same so there should be no circulating current.
VII. DISCUSSION AND CONCLUSION
This package was completed and tested using all credible
scenarios, utilizing the vendor’s real time simulator. The
package performance was satisfactory. The controller acted
exactly as intended in Flowchart 1 and 2 and the circulating
current was maintained below 10%.
In conclusion, PLC based systems like the DCS, is a good
choice to automate petrochemical plant electrical systems and
achieve VAR control. This is building on the existing DCS
infrastructure and its flexibility for modeling, building the
logic and the Graphical User Interface capability. This made
implementing this smart grid easy at the DCS; however, there
are a number of requirements for better VAR control. This
includes having fast, two-way digital telecommunications
through the DCS, AVR, OLTC and the smart meters for
system monitoring, analysis and control. On the other hand,
interfacing between these different systems is considered to be
a major challenge.
The fact is that, optimized VAR flow improves power factor
and can result in substantial savings in cost of energy and
infrastructure utilization. Optimized voltage improves power
quality by preventing over/under voltage conditions and by
achieving flatter voltage profile throughout the circuits.
VIII. REFERENCES
[1] E. Tom Jauch, “Advanced Transformer Paralleling,” Beckwith Electric
Co.
[2] Ed Zientek, “Loading Considerations when Paralleling Transformers,”
Square D Engineering Services, 2011, AT322.
[3] Tim Taylor, Marina Ohrn “Network Management for Smart Grids,”
ABB, 2009.
[4] T. Xu and P.C. Taylor “Voltage Control Techniques for Electrical
Distribution Networks, Including Distributed Generation,” The
International Federation of Automatic Control Seoul, Korea, 2008.
[5] Jonathan Hiscock, Nick Hiscock and Alan Kennedy, “Advanced
Voltage Control for Networks with Distributed Generation,” C I R E D
19th International Conference on Electricity Distribution Vienna, 2007.
[6] MVAR System design package.
IX. BIOGRAPHIES
Yousef O. Al-Rasheedi received his B.S. and M.S. degree in
Electrical Engineering from King Fahd University in Dhahran,
Saudi Arabia in 2006 and in 2014, respectively. Yousef joined
Saudi Aramco in 2006; working for the Abqaiq Plants
Operation Department as a Technical Support Engineer. Then,
in 2012, he transferred to the Consulting Services Department.
Yousef has a deep interest in control systems, power system
operation and maintenance.