Capacitor placement for conservative voltage reduction on distribution feeders

This paper proposes a strategy for placing capacitors at multiple locations on a distribution feeder to allow: i) deeper levels of substation voltage reduction for peak load reduction, ii) power factor correction, and iii) power loss reduction. By reducing peak demand, a utility can avoid paying high prices when purchasing power or it may sell excess generation at high prices. By minimizing system losses, savings are obtained through reduced demand and energy charges. Besides a positive economic response, load reduction associated with improved power factor at the substation has a beneficial effect on voltage stability by increasing the system stability limit margin.