Metodology for Capacitor Placement in Distribution Systems using Linear Sensitivity Factors

This paper proposes a capacitor placement methodology based on sensitivity linear factors of distribution losses with respect to derivation-connected capacitor compensators. The methodology identifies the best size and location for every capacitor bank to be placed in the distribution network considering technical and economical issues. A compensation action is technically accepted when it reduces losses and improves voltage profiles. In order to reduce the search space of feasible solutions and to use real banks capacities, only commercial bank sizes are considered. To evaluate the different alternatives from the economical viewpoint, the net present value is applied. Two examples with different distribution systems reported in the literature are presented in order to illustrate the proposed methodology application.