Optimum Power Flow with Respect to the Capacitor Location and Size in Distribution Network

In the past few decades, there has been increasing recognition of the importance of optimum power flow (OPF) studies in the context of economic analyses of power systems. There is a need for power system development to maximize efficiency by emphasizing cost and power losses for smart grids to operate effectively in the current situation. This study aims to develop an optimal capacitor bank allocation schedule that minimizes power losses in the distribution networks under equality constraints. This will be achieved by integrating the loss factor and voltage stability into a new approach to determine where the capacitor banks should be located. It aims to reduce the operating costs of power systems and maximize efficiency by applying an optimization model for economic dispatch, which considers distributed power generation and demand response. The NSGA-II optimization algorithm was used in this study to determine the optimal size and location of the capacitor bank. A NSGA-II solves this problem by minimizing cost and power losses while determining the best operating strategy. We used an IEEE 26-bus distribution system to test the proposed method with every possible generation change. Comparing the power flow analysis with/without capacitor optimization showed that the operation optimization model of OPF with NSGA-II can reduce operation costs and improve the power system.