Paper accepted for presentation at 2003 IEEE Bologna PowerTech Conference, June 23-26, Bologna, Italy

CAPACITOR PLACEMENT IN
DISTRIBUTION SYSTEMS, A NEW
FORMULATION
M. H. Shwehdi, A. Mantawi ,S. Selim, A. AkShehri, KFUPM and G. K. A!-Bassam, Saudi Aramco

Abstraa- Two formulations of Capacitor Placement Problem

(CPP) are presented. One is based on eapscitorsnosses cost
balance. The other is based on comprehensive cost evaluation of
network performance post CP. GA based program is
implemented to solve CPP. Proposed solution technique is
tested on 69411s system reported in literature. In addition,
impact of capaeitor installation on fault level and network
resonance is investigated.

I&
Term-Capacitor Placement, Capacitor Compensated
Distribution Lines, Power System Economics, Genetic
Algorithm,
1. NOMENCLATURE

ACEPS: annual conserved energy, real ($pcEAR)

ACEQ$: annual conserved energy, reactive ($NEAR)
BRFC: benefits, released feeder capacity ($/YEAR)
BRGC : benefits, released generation capacity ($NEAR)
BRSC: benefits, released substation capacity ($NEAR)
BRTC: benefits, released transmission Capacity ($/YEAR)
IP: Investment Period (Years)
LD: Load Duration (HoursNear)
SCC: Short Circuit Current (kA)
11. INTRODUCTION

OWER transmitted to the user is composed of two parts:

real power (that is responsible for rotating equipment or
producing heat) and reactive power (also referred to as
magnetizing power) that is responsible for establishing the
magnetic flux in magnetic induction equipment (such as in the
core of a transformer or the air gap between stator and rotor of
motors and generators). The physical limit of transmission and
distribution equipment is associated with the total power (real
and reactive) flowing through the electrical system. This
physical limit is commonly referred to as thermal capacity of
the system. Many electrical equipment are rated by their
complex power (for example transformers, bus bars in
switchgears, generators). However, the work generated is only
associated with real power (although magnetizing power is
required to transfer power across space). Furthermore, not all
power is utilized, as some is lost as heat in the system's
resistance and inductance. Another constraint imposed on the
transmission & distribution equipment is voltage drop

attributed to the resistive/inductive nature of the system and

load.
One method of releasing thermal capacity, reducing losses and
improving voltage levels at equipment terminals is through the
installation of capacitors. However, capacitor cost should be
accurately calculated and weighted against not only the
reduction in losses, but also against other factors related to the
system performance (benefits from improvements and penalties
from deteriorations) and should include all direct as well as
indirect cost of the capacitor. Moreover, impact of the
capacitor installation on increasing the short circuit rating of
the system will have to be considered to determine the need for
new distribution equipment and hence reduction in the
expected revenue from installing the capacitor. In addition,
effect of capacitors on increasing resonance in the system
should also be investigated. Furthermore, performance
improvements such as release of thermal capacity in
generation, distribution and transmission equipment, as well as
benefits from reduction in voltage drop should all be included.
On the other hand, capacitor cost does not include equipment
cost only. Rather, it includes cost of installation, maintenance
as well as cost of space occupied by the equipment. The latter
is of particular importance since, in distribution systems in
particular, space is at premium.
In order to give full insight into CPP, proposed solution and
results reached, investigation carried by authors is presented
in five sections. Section I11 provides a comprehensive
definition of the CPP. Section 1V formulates the objectives
functions to be used in the solution of the CPP problem. In
Section V, the system used to tests the proposed solution is
presented together with the results generated. Section VI
presents the analysis and the results conducted to investigate
the impact of the addition of capacitors on the system short
circuit current and resonance.

IU CAPACITOR PLACEMENT PROBLEM

A. Definition
CPP is defined as follows: Given an electric network with
predefined permissible locations for capacitor installations and
with defined performance characteristics, load diversity and
growth rate, what are the sizes and locations of capacitors that
can be installed to result in net positive revenue to the

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electrical utility?
B. General Solution Algorithm

The solution algorithm forthe capacitor Placement Problem has

the following general structure:
IModeling of Network
2Calcualtion of network performance (precapacitors, at each
load level)
3-Initialization of capacitors (locations and sizes)
Kalculation of network performance (post-capacitors,
objective function)
5Comparison of system performance (pre- and posG
capacitors)
&Alteration of capacitors attributes (locations, sizes or
switching times, collectively or individually) to increase the
difference in favor of an increase in the objective function
value
7Aepetition of steps 4, 5
6 until a convergence criteria is
satisfied (mismatch between network performance in two
consecutive iterations is less than a pre-set minimum or total
number of iterations is exeeded).

C. Differences in Methods
Implementation of the solution algorithm varies in the
following forms:

lRepresentation

ofthe objective function (where one or

of the rewards, penalties or constraints are ignored for either
perceived insignificant contib,,tion or lack of theoretical
formulation to
or to improve convergence rate and
reduce execution time).
2Contrihuters to cost/benefit elements of
function
3Mathematical representation of network (constant
impedance, constant load, three phase, single phase)
4Initial capacitor attributes (locations and sizes, pre-set or free
location policy )
5-Types of capacitors (switched, fixed)
Wptimization method for altering capacitors attributes
7Criteria for stopping the search

D. Simplifying Assumptions
In their effort to simplify the solution to the CPP, early pioneers
of the CPP have either ignored some of the terms in the
objective function or made assumptions that simplified the
formulation of the problem and the solution thereof. For
instance, early papers assumed a uniformly distributed load
along radial feeders. This configuration greatly simplified the
problem where it was converted to a calculus problem with
closed form solutions developed based on the gradient of the
objective function. However, error has resulted when this
assumption was applied to nonqadial feeders with non-uniform

load distribution [SI. More recent formulations of the CPP make

this assumption unnecessary.
Furthermore, many of the CP t(:chniques assumed constant
voltage profile along the feeder. This allows for development
of closed form eauations for c;alculation of loss reduction
without the need to execute load Ilow calculations for every set
of proposed capacitor attributes (sizes and locations). Since
the reactive power output from a capacitor is dependent on the
square ofthe voltage, assuming a constant voltage system will
lead to incorrect calculation of the system performance (which
will eventually lead to selection of the wrong solution to the
CPP [6]).
Moreover, capacitor sizes were commonly treated as
continuous variables when they are in fact discrete and the
cost thereof is controlled by two t:lements, fixed value for each
unit and a variable
based on the VAR rating,
The capacitorsizes were then rounded to the nearest standard
sizes upon completion ofthe prol,lem solution.
worse, in
the majority of the literature, cap.acitor cost is treated as linear
function
no offset. This meSIIISthe
of two 3oo-kvAR
hanks is the same as the cost of a single 600 kVAR bank. This
formulation would almost always bias a solution toward
placement of several hanks as opposed to a smaller number of
larger banks L61.
In addition, a radial feeder with no laterals is also used in much
of the literature. This is done becmse it is much more difficult
to derive equations for power losses
laterals are
considered. [61. Finally, in the rnethods that apply switched
capacitors, the solution algorithm assumed that relative
positions of the switched and Fixed capacitors are known,
Assumption has also been made to the relative switching times
Of

the switched capacitors

f61.

IV.I11 CPP SOLUTIOk FORMULATION

A. Objective Function
Two main formulations of the obj'ective function were reported
in the literature. The first is hasecl on cost (and not saving) as
shown in (I). The second is based on savings resulting from
cost reduction from decreased losses taking into consideration
capacitor cost as shown in (2).
Fitness-l= System Losses +Capac:itor Cost

(1)

Fitness-2 =Cost of Loss Reducticsn - Capacitor Cost

(2)

Where Cost of Loss Reduction =(Original -Modified) System

Power Losses Cost.
The new formulation presented hy the authors (referred to as
Fitness-3) eliminates the need for all the above simplifications

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and assumptions, more accurately reflects the net revenue from

the solution and is based on comprehensive cost evaluation of
network performance pre- and post- capacitor placement.
Fitness-3 =Net Revenue =Benefits- Cost

(3)

Benefits = Demand Reduction +Energy Reduction

Demand Reduction = BRGC+BRTC+BRSC+BWC

Figure1 Program Flow Chart

Energy Reduction = ACEP$+ACEQ$

Cost = Direct Cost + Indirect Cost
(3 ,contd.)

=( TotalCapacitor-Cost +Total-Switchgear_Cost )flP

Subject to the following performance constraints

Power Mismatch < pre-set accuracy
Vmin < =V < =Vmax (3 contd.)

System Resonance :PostCapacitor <=Pre-Capacitor

System Maximum SCC Post-Capacitor < =Pre-Capacitor
1-Read Data

5d
Scale Bus Data based on load level

ZCalculate Fitness of the

3.2-Crossover

I ) GA Structure & Coding:

Each proposed solution to the CPP is represented by two
genes. The first is referred to as LOCATIONSTRING and
defines which locations, of the permissible list, vi11 have a
capacitor in the respective GA iteration being considered. The
length of the gene is equivalent to the total number of allowed
locations in the system (Figure-2a). The second gene
represents the sizes of the capacitor in the allowed locations
and is referred to as SOLUTlON (Figure-Zb). Both the
LOCATIONSTRING and the SOLUTION genes are made of
chromosomes. Each chromosome represents one of the
allowed locations. Both the LOCATIONSTRING gene and the
SOLUTION gene have the same locations correspondence and
are arranged in ascending bus order from left to right.

LOCATION
BINARY
VALUE
STATUS

Set iteration =1

E, Optimization
A program was written to implement the solution of the CPP
based on use of GA as an optimization technique (see Fig-I for
the flow chart). Two strings were used, one for the location of
the capacitor and the other for the sizes of the capacitors. In
addition, 4 decision-levels were used to execute mutation on
the binary coded genes.

e,
Iteratlo"=
Iteration+l

3.4-Record Best Solution

of the iteration

LOCATION
BINARY
VALUE
SIZE(KVAR)

I1
I

I ON

1
o

12

13

In

I1

I OFF

I ON

2
n

3
i

c
&Find best
solution

f
. I . . . . . . . "

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may be generated because of the unused bits in the code).

On the other hand, due to the infinite number of capacitors

available for use with possible combinations of fixed and
switched capacitors, the size ofthe SOLUTION chromosome is
not restricted.

2) Crossover:
The crossover is not restricted to a whole chromosome.
Instead, a chromsome could be cut in half to allow for the
reproduction to occur.
3) Mutation:
Mutation is performed based on four random decisions. First, a
random number is generated to indicate whether the gene is to
be processed for mutation or not. This number is checked
against a predefined probability of mutation. After ruling that
the gene is to be mutated, another random number is generated
that represents the total number of chromosome bits that are
candidates for mutation in this gene. These hits are not
necessaily in the same gene chromosome or in sequence. We
have yet to decide which exact bit locations are to be mutated
in the gene. For this, another string of random numbers is
generated that represents the exact locations of the bits to be
mutated. Now, havng decided which gene is to be mutated,
total number of mutations per gene, locations of the bits to be
mutated, the final random decision is to check the probability
of mutating that particular bit. For this, another random number
is generated. With all the above probabilities stored in a look
up table, the full gene bit locations are scanned and mutated
by switching ones to zeros and zeros to ones.
4) Convergence:
There is no rule for convergence. Basically, the GA algorithm is
repeated for a predetermined number of maximum iterations. A
possibility that was considered and abandoned is the
comparison between the previous and current best solutions
where the program is to be terminated when the difference is
equal to, or less than, a certain limit. However, this criterion
could lead to premature convergence to a non-optimal solution
in a flat or semi-flat portion of the search space. Hence,
decision was made to proceed with the GA iterations
regardless of the relative differences between values.

5) Solution Update:
The population was updated at the end of each iteration with
results from reproduction and mutation. In order to preserve
high fitness genes, certain percentage of the population best
solutions are rolled to the next generation without
reproduction, crossover, or mutation.
V. TEST SYSTEM, CASES & RESULTS
A. Test System
An anempt was made to test the program and fitness function

developed in this research to validate the methodology used in

the GA algorithm and the various power system analysis
routines Itilized. A complete thorough search was made for
actual, published practical system data. Few of the selected 85
references contained partial data of systems that were used by
previous authors for validation of their methods. The only
paper which was found to contain complete system data is
authored by Mast E. Baron, Felix F. Wu [I]. This system was
used for validating the proposed CA algorithm, fitness
function and program. The selected system is radial in nature
but with many sublaterals that make it a mderately complex
system suitable for investigation.
B. Cases
The capacitor placement problem was solved (on the selected
test system) using several combinations of the fitness
functions presented. In addition, the solutions reported in
References [I] and [2] where used to calculate the revenues
and the results were compared with the solutions generated in
the cases investigated (see TABLE I for a listing ofthe cases).
I ) Loss Reduction:
This is a modification of Fitness1 where it was converted to a
savings function and called FimessZ. The annual cost of
power losses of the modified sysl.em was subtracted from that
of the base system and the results were reduced by
subtracting the aaouaLcapacitor cost. Complete gene
crossover was selected for the CA algorithm. The capacitor
locations were initialized to the mme locations in [I] and [Zj
and were modified in CA using the LOCATIONSTRING.
Mutation was applied using four decision levels to both
SOLUTION gene as well as LOCATIONSTRING gene.

2) Comprehensive Revenue:
Fitness -3 was applied to the Test System. Complete gene
crossover was selected for the GA algorithm. The capacitor
locations were initialized to the same locations in [I] and [J
and were modified in the CA algorithm using the
LOCATIONSTRING gene. Mutalion was applied using the
four decision levels to both the SCILUTION gene as well as the
LOCATIONSTRING gene.
3) Hybrid:
In this case, Fitness-2 was used in the CA algorithm but the
revenue was calculated based ori Fitness-3. This is similar to
CASBl but with the decision to install the capacitors made
based on the revenue calculated by Fitness-3. Results.
4) Location Control:
Using Fitness2 for the GA algoritlun, the LOCATIONSTRMG
process of gene location manipulation has been deactivated
(CASWa). The Location String process was then activated
(CASWb).

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C. Results:
It is clear that solving the CPP using Fitness-2 as the objective
function results tangible loss reduction, however, the
calculated revenue is not encouraging.
Moreover, using Fitness-3 independently to solve the CPP will
give a false indication of high revenue since losses in the
system increased rather than decreased. This is due to the
marginal contribution of the cost of real power loss reduction
in the comprehensive revenue calculations (proposed in
Fitness-3) compared to the benefits from reducing the reactive
power, which, hy virtue of addition of capacitors, have
increased considerably. This result should not lead the
reviewer to conclude that Fitness-3 incorrectly calculates
revenues. Rather, the conclusion should be Fitness-3 is
suitable for reflection of the true revenue from capacitor
placement but should not be used for the selection of
capacitor.
TABLE I

deactivated LOCATIONSTRING cases indicate similar Fitness

2 revenues are generated regardless of the LOCATIONSTRING
process (similar loss reduction results were obtained in both
cases). However, the number of capacitors for each load level
has differed.

VI. CP IMPACT ON SHORT CIRCUIT CURRENT

The impact of capacitor placement on short circuit current in
the system was investigated through calculation of the
maximum symmebical *phase
fault on all Test System
buses pre and post capacitor installation. Results found
indicate minor changes in the fault current at all buses. See Fig.
3% 3h & 3c for comparison between base and modified network
symmetrical three phase faults at load levels 1,2 8 3 ,
respectively.

W. CP IMF'ACT ON RESONANCE FREQUENCY

CASES hVESTICATEOUSING T H E 6 9 BUS SYSTEM M[I]

The impact of the capacitor placement solution on the system

resonance was investigated through verification of the
changes in the driving point impedance ofthe system at every
bus for a selected number of harmonic orders (1"to 15h, odd).
Results obtained from the pre- and post- capacitor placement
systems were compared and indicate positive impact on the
system (system's driving point impedance has increased in
magnitude at every bus for every harmonic order investigated).
See Fig. 4% 4b and 4c for the 3d, 5* and ?' harmonic
investigations, respectively.

VIII W CONCLUSION
It has been demonstrated that use of loss reduction alone to
calculate revenue from CP will result much smaller values
compared to using a comprehensive benefits-cost analysis.
Furthermore, the results presented demonstrated that use of a
LOCATIONSTRING has no significant impact on loss
reduction achieved from CP, although it leads to different
capacitor arrangement among the permissible locations.

Where : F: Fitness ;N/A Not Applicable ;C/O Cross Over ;

All: All locations ; Single: Single Location
This is further illustrated by the results of CASB3 which
indicate that combining Fitness-2 with Fitness-3 lead to real
power loss reduction as well as increase in the net revenue
from capacitor placement.
Comparison of the results in both the activated and the

The research also arrived at the fact that the CP has marginal
negative impact on some buses with respect to symmetrical
three-phase fault current. However, CP has positive impact on
the system resonance in odd harmonics 1 to 1 5 .

IX ACKNOWLEDGMENT
The authors would like to acknowledge King Fahd
University of Petroleum and Minerals and Saudi Aramco Oil
for the technical and logistics SupPO*.

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X. REFERENCES
[I]

Mast E. Baron, Felix F. Wu, Optimal Capacitor Placement on

Radial Distribution Systems, IEEE Transactions on Power
Delivery, Vo1.4, No.1, January, 1989, pp 725734

[2] T. Ghose, S . K.Goswami, S . K. Basu, *EnergyLoss Reduction in

Distribution System by Capacitor Placement Through Combined
GASA Technique, IEEE, 1998, pp 502-505.
[3] Goner], Turan , Electric Power Distribution System Engineering,
McGrawHill Inc., 1986
[4] Wilson, R.C., Bloomquist, W.C., Capacitors for Industry, General
Electric Company, John Wiley & Sons, Inc., New York, 1950.
[5] Power System Analysis, Hadi Sadat, The McGraw Hill Companies,
1999

[6] Richardson

& Means Estimating

Engineering Services Inc. 1993

Handbook,

Richardson

BIOGRAPHIES

M. H. Shwehdi (S74, M85, SM 90) received the B. SC. degree from

University of Tripoli, Libya in 1972. He obtained the M. Sc. Degree
from the University of Southern California and Ph.D. degree from
Mississippi State University in 1975 and 1985 respectively all in
electrical engineering. He was a consultant to A.B. Chance Company,
and Flmd Engineering. Dr. Shwehdi held teaching positions with the
University of MissouriColumbia, Texas A & I University, University of
Florida and Penn. State University from 1991-1993. At present he is
associate professor with the King Fahd University of Petroleum &
Minerals (KFUPM), Saudi Arabia. His research interest includes, power
system analysis, Power Quality & Harmonics, overvoltages analysis on
Power Systems, Transmission and Distribution Systems. Dr. Shwehdi is
active in IEEE activities both locally and nationally. He is listed as a
distinguished leclurer with the DLP of the IEEEPES DLP upon the
Board selection, was named and awarded the 2001 IEEEPES outstanding
chapter engineer,. He was named and awarded the 1999 IEEE WO for
standard award, the GCC-CERE 1998 best applied research award,
IEEEiIAS Outstanding Supervisor for Student Research 1989, 1990, and
the IEEE outstanding student advisor in 1990. He is the IEEEPES Saudi
Arabia chapter chairman since 1999.
Ghsssao K. AI-Bassam is a Saudi national originating from Makkah in
the Hijaz region. He has graduated from King Fahad University of
Petroleum & Minerals on July 7, 1992 with BSc. in Electrical
Engineering. He has received His Royal Hines Prince Mohammad Bin
Fahad Award for Education Excellence in 1993. He is an employee of
Saudi Aramco Oil Company and h c t i o n as a Project Engineer on
Offshore Projects. His work experience included 230 kV hansmission
line to Ras Tanura Refinery (1995), Berri field Supervisory Control and
Data Acquisition System upgrade (l996), Abu Safah Control System
Upgrade (2000) and Marjan Offshore Facilities Upgrade (2001). He
completed a one-year training assignment in Honeywell Industrial
Automation & Control in Phoenix, Arizona in 1998 and was received
Key Contributor A w d in 1998 for work performed on Pennsylvania
Power control system modification. He has written many technical
reports and has published papers in engineering conferences and IEEE
Transactions.

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Figure 4a
CP IMPACT ON HARMONIC RESONANCE

0.01200

0.00800

HI

0.00000
Elm

Figure 4b
CP IMPACT ON HARMONIC RESONANCE

is

0.02000
I

%'E

0.01500

zs:

:a =
5:

a 1

0.01000
0.00500

0.0w00

Figure 4c
CP IMPACT ON HARMONIC RESONANCE

15g

85 E
as:

0.02000
0.01500

8; 2

0.01wo

Z
IB

0.00500

az

HI

0.00000
B"*

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