Sensitivity-based Methodology for the Capacitor Placement Problem in Radial Distribution Systems

One of the distribution company's commitments is to provide outstanding customer service. Hence, new capacitors are installed as a preventive/remedial option to improve voltage profile, minimize system losses, and release system capacity. A capacitor placement methodology based on sensitivity linear factors of distribution losses with respect to derivation-connected capacitor compensators is proposed in this paper. The methodology identifies the best size and location for every capacitor bank to be placed in the distribution system considering technical and economical aspects. For practical purposes only commercial banks are considered. Two cases of study are presented and compared with results report in literature.