Optimizing capacitor banks management in distribution networks, with large presence of distributed generation

An ever increasing integration of Distributed Generation (DG) in Distribution Networks (DN) has triggered the imbalance between reactive power generated by DG and reactive power demanded by the same grid. This together with the new rules defined by the Portuguese system regulator (costumers´ power factor improvement, different DG reactive power generation limits, and the change of reactive power integration period from monthly to daily) set the need for a new model of reactive power management in networks with a high penetration of DG. This paper presents a model for optimizing the DN management of capacitor banks installed in HV/MV substations. The objective function aims to minimise Power Factor penalties at the EHV/HV substations and DN losses, considering demand tracking, capacitor banks availability, network topology and distributed generation.