Optimal Placement of Power Factor Correction Capacitors Considering Transient Switching Events and Load Uncertainty

Power factor correction projects are required to supply reactive power locally to power system loads. The main advantage for the consumer is reducing the electricity bill, which factors in reactive demand. Other advantages can also result from these projects, including voltage regulation at local buses, energy loss minimization in the transmission lines and increased system capacity to add additional load. These advantages will be maximized by optimally allocating the power factor correction devices to reduce the bill. With these great advantages, consideration needs to be given to several technical issues, including resonance and switching transient associated with capacitor installations. The latter is investigated in this paper in the context of a planning horizon of 20 years. The objective function is to implement the lowest cost option that meets both the energy loss minimization and voltage regulation requirements. A new factor is considered during placement: the effect of transient switching events when energizing and deenergizing capacitor banks.