Optimization of reactive power compensation in distribution networks

The optimal reactive-power compensation problem solving consists of finding the optimal combinations of the capacitors and their locations in a network in a way that technical requirements are satisfied and maximum economical effects are achieved. An approach to the optimal reactive-power compensation in distribution networks based on simulated annealing method and deterministic initialization is presented. The objective function considers the savings due to the energy losses and reduction of the peak load. The costs are divided into two categories: constant and variable depending on the capacitors size. The power summation method is used for calculation of the power flows and voltages. The method is applied on a test distribution network. By compensating the reactive power in distribution networks, several goals are achieved: voltages are increased to their nominal values, the network losses are decreased and power flows though interconnections are reduced.