Optimal Capacitor Allocation in a Distribution System Considering Operation Costs

This paper proposes the planning method for capacitor installation in a distribution system to reduce the installation costs and minimize the loss of electrical energy. The expected lifetime of devices with moving parts depends on the total number of operations, which affects the replacement period and replacement decisions for aging equipment under a limited budget. In this paper, the expected device lifetimes are included in the formulation, and the optimal operation status of the devices is determined using a genetic algorithm. The optimal numbers and locations for capacitor installation are determined based on the optimal operation status. Simulation results in a 69-bus distribution system show that the proposed technique performs better than conventional methods.