As distribution systems continue to expand, they face challenges such as increased system losses and inadequate voltage regulation. To address these issues, shunt capacitors are being deployed in distribution networks. These capacitors offer reactive power compensation, enhance power factor, improve voltage profiles, promote system stability, and significantly reduce losses. However, determining the appropriate capacitor sizes and their optimal placements requires careful consideration of both technical and economic factors. The nonlinear nature of optimal capacitor placement and sizing, leveraging optimization techniques becomes crucial in identifying the best locations and values for capacitors. This paper demonstrates the effective utilization of Particle Swarm Optimization (PSO) and Real Coded Genetic Algorithm (RCGA) optimization techniques for capacitor placement and selection. The optimization techniques are applied to a 33-bus IEEE standard radial distribution system, to reduce the real power loss and to improve the voltage profile considering both constant and variable loads. Both PSO and RCGA algorithms identify suitable locations for the placement of capacitors for reactive power compensation within the distribution system. By optimizing the objective function associated with capacitor placement costs and maximizing annual cost savings, the PSO and RCGA techniques yield promising results. After implementing the optimal capacitor placements at the identified candidate nodes, a significant reduction in losses within the radial distribution system is observed. Moreover, the cost savings achieved through optimal placement and sizing are substantial.
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