Reactive Power Compensation

of Distribution Systems with

Shunt Capacitors
Dr. Sanjib Ganguly
Associate Professor, Department of EEE,
IIT Guwahati (Email: sganguly@[Link] )
2 What is reactive power compensation?

 Reactive power compensation is an approach

to locally supply the reactive power demand to
the consumer. This results in:
 Reduction of power loss
 Improvement of bus voltage profile
 power factor correction

This is also called volt/var control…

3 Different reactive power compensation
techniques for distribution networks

 Capacitor

 Synchronous condenser

 Custom power devices

 Distributed generation units

4 Shunt Capacitor placement

 Shunt capacitors, that is, capacitors connected in parallel with

lines, are used extensively in distribution systems.

 Shunt capacitors modify the characteristic of an inductive load

by drawing a leading current.

 With shunt capacitor placement to a feeder, the magnitude of

the source current can be reduced, the power factor can be
improved, and consequently the voltage drop between the
sending end and the load is also reduced.
5 Phasor diagram for a feeder section
with and without capacitor placement
6 Voltage drop computation with capacitor
placement
 Voltage drop in feeders, or in short transmission lines,
with lagging power factor can be approximated as:

𝑉𝐷 = 𝐼𝑅 𝑅 + 𝐼𝑋 𝑋𝐿

where,
R is the total resistance of the feeder circuit, Ω
XL is the total inductive reactance of the feeder circuit, Ω
IR is the real power (or in-phase) component of the current, A
IX is the reactive power (or out-of-phase) component of the current lagging the
voltage by 90°, A
7 Capacitor placement for the power
factor correction: Power Triangle
 by adding the capacitors, the reactive
power component Q of the apparent
power S of the load can be reduced or
totally suppressed.
 Assume that a load is supplied with a
real power P, lagging reactive power
Q1, and apparent power S1 at a lagging
power factor of
𝑃 𝑃
𝑐𝑜𝑠𝜃1 = = 2
𝑆1 (𝑃 + 𝑄12 )1/2
8 Capacitor placement for the power
factor correction: Power Triangle
 When a shunt capacitor of Qc kVA is
installed at the load, the power factor can
be improved from cos θ1 to cos θ2, where,

𝑃 𝑃 𝑃
cos 𝜃2 = = 2 2 = 2
𝑆2 (𝑃 + 𝑄2 )1/2 [𝑃 + (𝑄1 − 𝑄𝑐)2 ]1/2
9 Power factor correction
 It gives a multiplier to determine the kVAr requirement. It is
based on the following formula:
1 1
𝑄 = 𝑃 𝑡𝑎𝑛𝜃𝑜𝑟𝑖𝑔 − 𝑡𝑎𝑛𝜃𝑛𝑒𝑤 = 𝑃 2 −1− 2 −1
𝑃𝐹𝑜𝑟𝑖𝑔 𝑃𝐹𝑛𝑒𝑤

where,
 Q is the required compensation in kVAr
 P is the real power kW
 PForig is the original power factor
 PFnew is the desired power factor
10 Illustrative example of the effect of
reactive power on power factor

Ref. T. Gonen. Electric Power Distribution System Engineering

11 Illustrative example of the effect of reactive
power on power factor

Ref. T. Gonen. Electric Power Distribution System Engineering

12 Concepts of leading and lagging
power factor
 The concept of “lagging” and “leading” power factors
depends on the directions of the flows of real and reactive
powers.
 For a given load, the power factor is lagging if the load
consumes reactive power. It is leading if the load supplies
reactive power.
 An induction motor has a lagging power factor, since it
consumes reactive power from the source to meet its
magnetizing requirements. But a capacitor (or an overexcited
synchronous motor) supplies reactive power and thus has a
leading power factor,
13 Economy in power factor correction:
Concept of economic power factor
 Since the capacitor can compensate the reactive current
drawn by the load, it results in a reduced total current, which
in turn causes less power losses.
 Thus, the power factor correction produces economic
savings in capital expenditures and fuel expenses through a
release of kilovolt-amp capacity.
 The economic power factor is the point at which the
economic benefits of adding shunt capacitors just equal the
cost of the capacitors.
14 Example…
 Assume that a substation supplies three
different kinds of loads, i.e., incandescent
lights, induction motors, and synchronous
motors, as shown in Figure. Based on the
given data in Figure, determine the
following:
 a. The apparent, real, and kVArs of each
load
 b. The total apparent, real, and reactive
powers of the power that should be
supplied by the substation
 c. The total power factor of the substation
Ref. T. Gonen. Electric Power Distribution System Engineering
15 Solution…

 Since incandescent lights are basically a unity power factor

load, hence, 𝑆1 =𝑃1 = 100 kW and reactive power Q1=0.

 For induction motor loads operating power factor of 0.85

lagging, 𝑆2 =300 kVA
Real power consumption P2=300x0.85=255 kW

 For synchronous motor load, the apparent power S3=200 kVA.

Thus, the real power consumption, P3 = (200 kVA)cos𝜃
= 200 x 0.8=160 kW
16 Solution…
 Reactive power consumption (Q2) of the induction motor

load is, 𝑄2 = (300)2 −(255)2 = 90,000 − 65,025 ≅ 158 kVAr

 Reactive power consumption (Q3) of the synchronous

motors is 𝑄3 = − (200 𝑘𝑉𝐴)2 −(160 𝑘𝑊)2

= − 40,000 − 25,600
= − 14,400
= −120 𝑘𝑉𝐴𝑟
17 Solution…

At the substation, the total real power consumption is

𝑃𝑡𝑜𝑡𝑎𝑙 = 𝑃1 + 𝑃2 + 𝑃3
= 100 + 255 + 160
= 515 kW

Total Reactive power consumption is: 𝑄𝑡𝑜𝑡𝑎𝑙 = 𝑄1 + 𝑄2 + 𝑄3

= 0 + 158 − 120
= 38 kVAr
Reactive power
• Induction motor load required = 158 kVAr
• Synchronous motor supplied = 120 kVAr
• Substation must supply = 38 kVAr
18 Solution…

The kVA of the substation is 𝑆𝑡𝑜𝑡𝑎𝑙 = 2

𝑃𝑡𝑜𝑡 2
+ 𝑄𝑡𝑜𝑡

= 5152 + 382
= 266,669
= 516.4 kVA
The power factor of the substation is,

515 𝑘𝑊
=
516.4 𝑘𝑉𝐴

= 0.997 𝑙𝑎𝑔𝑔𝑖𝑛𝑔
19 Example…
 A synchronous generator is rated 1250 kVA. It is operating at
a rated load of 1250 kVA at 0.85 power factor lagging. An
additional load of 150 kW at 0.85 power factor is to be
added. Determine the value of capacitors needed in order
not to overload the generator.

Solution:
 The generator provides real power 𝑃 = 1250 × 0.85 = 1062.5 kW
 The generator provides reactive power 𝑄 = 12502 − 1062.52 =
658.48 kVAr
 Solution…
20
 With an additional load of 150 kW, the generator needs to supply
𝑃𝑛𝑒𝑤 = 1062.5 + 150 = 1212.5 kW
 Since the generator is rated 1250 kVA, with the additional load it
can provide 𝑄𝑛𝑒𝑤 = 12502 − 1212.52 = 303.88 kVAr
 The additional load demands the reactive power of 𝑄𝑎𝑑𝑑 =
150 2
− 1502 = 92.96 kVAr
0.85

 The total reactive power demand is 𝑄𝑑 = 𝑄 + 𝑄𝑎𝑑𝑑 = 658.48 +

92.96 = 751.44 kVAr
 However, the generator can only provide 303.88 kVAr
 Therefore, the capacitor rating should be 𝑄𝑐 = 751.44 − 303.88 =
447.56 kVAr
21 Exercise 1…

 Assume that a load consumes 80 kW and 60 kVAr lagging. It is

required that its power factor is to be improved to 0.9 using
capacitor bank so that the real power consumption of the load
remains same. Determine the size of the capacitor bank.
22 Computerized method to determine
the economic power factor
 Firstly, a load flow digital computer program can be
employed to determine the kVA, kV, and kVAr at annual
peak level for the whole system.
 Shunt capacitors are applied to a particular bus for
correcting to an initial power factor, for example, 0.8.
 Then, a load flow run is performed to determine the total
system losses.
 Additional capacitors are applied to the bus to increase the
power factor by 0.01, and another load flow run is made.
 This process of iteration is repeated until the power factor
becomes unity.
23 Computerized method to determine
the economic power factor
 After determining the economic power factor,
the additional capacitor size required can be
calculated as:
∆𝑄𝑐 = 𝑃𝑃𝐾 (tan ∅ − tan 𝜃)
Where
ΔQc is the required capacitor size, kVAr
PPK is the system demand at annual peak, kW
tanφ is the tangent of original power factor angle
tanθ is the tangent of economic power factor angle
24
Effect of Capacitor placement on the voltage
profile of distribution feeder line at rated load
25
Effect of Capacitor placement on the voltage
profile of distribution feeder line at light load
26 Effect of Capacitor placement on the
voltage profile of distribution feeder line

 If only fixed-type capacitors are installed, there will be

voltage rise problem during light load conditions.

 Therefore, some of the capacitors are installed as switched

capacitor banks so they can be switched off during light-
load conditions.

 Thus, the fixed capacitors are sized so that their presence

would not cause voltage rise at light loading.
27 Switched capacitor bank

 However, in
practice, the number
of steps or blocks is
selected to be much
less than the ones
shown in the figure
due to the additional
expenses involved in
the installation of the
required switchgear
and control
equipment.
28 Capacitor sizing

 Many utilities apply the following rule of thumb to determine

the size of the switched capacitors:

𝑘𝑉𝐴𝑟 𝑓𝑟𝑜𝑚 (𝑠𝑤𝑖𝑡𝑐ℎ𝑒𝑑 + 𝑓𝑖𝑥𝑒𝑑) 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑜𝑟𝑠

≥ 0.70
𝑘𝑉𝐴𝑟 𝑜𝑓 𝑝𝑒𝑎𝑘 𝑟𝑒𝑎𝑐𝑡𝑖𝑣𝑒 𝑓𝑒𝑒𝑑𝑒𝑟 𝑙𝑜𝑎𝑑

Some utilities use the following rule of thumb: The total amount of
fixed and switched capacitors for a feeder is the amount necessary to
raise the receiving-end feeder voltage to maximum at 50% of the
peak feeder load.
Ref. T. Gonen. Electric Power Distribution System Engineering
29 Economic benefits of capacitor placement
for distribution networks
 Released distribution substation capacity
 Reduced energy losses
 Reduced voltage drop and consequently improved
voltage regulation
 Released capacity of feeder and associated apparatus
 Postponement or elimination of capital expenditure due to
system improvements and/or expansions
 Revenue increase due to voltage improvements
30 Total financial benefits of capacitor
placement
 Therefore, the total benefits due to the installation of
capacitor banks can be summarized as:
∆$ = 𝐷𝑒𝑚𝑎𝑛𝑑 𝑟𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 + 𝐸𝑛𝑒𝑟𝑔𝑦 𝑟𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 + (𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒)

= ∆$𝐺 + ∆$ 𝑇 + ∆$𝑆 + ∆$𝐹 + ∆$𝐴𝐶𝐸 + ∆$𝐵𝐸𝐶

∆$𝐺 is the released generation capacity beyond maximum generation capacity at

original power factor, kVA
∆$ 𝑇 is the released transmission capacity beyond maximum transmission capacity at
original power factor, kVA
∆$𝑆 is the released distribution substation capacity beyond maximum substation capacity
at original power factor, kVA
∆$𝐹 is the annual benefits due to released feeder capacity, $/year
31 Analytical method to determine the
optimum location for capacitor
 A realistic representation of a feeder that contains a number of
line segments with a combination of concentrated (or lumped-
sum) and uniformly distributed loads is considered.
 Each line segment represents a part of the feeder between
sectionalizing devices, voltage regulators, and other points of
significance.
 For the sake of convenience, the load or line current and the
resulting power loss can be assumed to have two components,
namely, (1) those due to the in-phase or active component of
current and (2) those due to the out-of-phase or reactive
component of current.
32 Analytical method to determine the
optimum location for capacitor
33 Analytical method to determine the
optimum location for capacitor
 Assume that the power losses are caused by a lagging line
current I flowing through the circuit resistance R. Therefore,
it can be shown that:
𝐼 2 𝑅 = (𝐼 cos ∅)2 𝑅 + (𝐼 sin ∅)2 𝑅

 After adding a shunt capacitor with current Ic, the resultants

are a new line current I1 and a new power loss. Hence,
𝐼12 𝑅 = (𝐼 cos ∅)2 𝑅 + (𝐼 sin ∅ − 𝐼𝑐)2 𝑅
34 Analytical method to determine the
optimum location for capacitor
 Therefore, the loss reduction as a result of the
capacitor addition can be found as:
∆𝑃𝐿𝑆 = 𝐼2 𝑅 − 𝐼12 𝑅
∆𝑃𝐿𝑆 = 2 𝐼 sin ∅ 𝐼𝐶 𝑅 − 𝐼𝐶2 𝑅

 Thus, only the out-of-phase or reactive component of line

current, that is, I sin θ, should be taken into account for
power loss reduction as a result of a capacitor addition.
35 Analytical method to determine the
optimum location for capacitor
 Assume that the length of a feeder segment is 1.0
pu length, as shown in Figure. The current profile of
the line current at any given point on the feeder is
a function of the distance of that point from the
beginning of the feeder. Therefore, the differential
power loss of a dx differential segment located at
a distance x can be expressed as:
d𝑃𝐿𝑆 = 3[𝐼1 − 𝐼1 − 𝐼2 𝑥]2 𝑅𝑑𝑥
36 Analytical method to determine the
optimum location for capacitor
 Therefore, the total power loss of the feeder can be found
1.0 1.0
as: 𝑃𝐿𝑆 = 𝑥=0 𝑑𝑃𝐿𝑆 = 3 𝑥=0 𝐼1 − 𝐼1 − 𝐼2 𝑥 2 𝑅𝑑𝑥
= 𝐼12 + 𝐼1 𝐼2 + 𝐼22 𝑅
where,
 𝑃𝐿𝑆 is the total I2R loss of the feeder before adding the capacitor
 I1 is the reactive current at the beginning of the feeder segment
 I2 is the reactive current at the end of the feeder segment
 R is the total resistance of the feeder segment
 X is the per unit distance from the beginning of the feeder segment
 Analytical method for capacitor
37
placement: Single capacitor bank
38 Analytical method for capacitor
placement: Single capacitor bank
 The insertion of one capacitor bank on the primary feeder
causes a break in the continuity of the reactive load profile,
modifies the reactive current profile, and consequently reduces
the loss, as shown in Figure.
 Therefore, the loss equation after adding one capacitor bank
can be found as before:
𝑥1 1.0
′
𝑃𝐿𝑆 =3 𝐼1 − 𝐼1 − 𝐼2 𝑥 − 𝐼𝑐 2 𝑅𝑑𝑥 + 3 𝐼1 − 𝐼1 − 𝐼2 𝑥 2 𝑅𝑑𝑥
𝑥=0 𝑥=𝑥1
′
𝑃𝐿𝑆 = (𝐼12 + 𝐼1 𝐼2 + 𝐼22 ) + 3𝑥1[ 𝑥1 − 2 𝐼1 𝐼𝑐 − 𝑥1𝐼2 𝐼𝑐 + 𝐼𝑐2 ]𝑅
39 Analytical method for capacitor
placement: Single capacitor bank
 Thus, the per unit power loss reduction as a result of adding
one capacitor bank can be found from:
′
𝑃𝐿𝑆 − 𝑃𝐿𝑆
Δ𝑃𝐿𝑆 =
𝑃𝐿𝑆
−3𝑥1[ 𝑥1 − 2 𝐼1 𝐼𝑐 − 𝑥1𝐼2 𝐼𝑐 + 𝐼𝑐2 ]𝑅
Δ𝑃𝐿𝑆 =
𝐼12 + 𝐼1 𝐼2 + 𝐼22 𝑅
2
3𝑥1 𝐼𝑐 𝐼2 𝐼𝑐 𝐼𝑐
Δ𝑃𝐿𝑆 = 2
2 − 𝑥1 + 𝑥1 −
1 + 𝐼2 /𝐼1 ) + (𝐼2 /𝐼1 𝐼1 𝐼1 𝐼1 𝐼1
40 Analytical method for capacitor
placement: Single capacitor bank
 If c is defined as the ratio of the capacitive kVA (kVA) of the
capacitor bank to the total reactive load, that is,
𝑘𝑉𝐴 𝑜𝑓 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑜𝑟 𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑒𝑑 𝐼𝑐
𝑐= , then 𝑐 =
𝑇𝑜𝑡𝑎𝑙 𝑟𝑒𝑎𝑐𝑡𝑖𝑣𝑒 𝑙𝑜𝑎𝑑 𝐼1

 If λ is defined as the ratio of the reactive current at the end of

the line segment to the reactive current at the beginning of the
line segment, that is,
𝐼2
𝜆=
𝑅𝑒𝑎𝑐𝑡𝑖𝑣𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑙𝑖𝑛𝑒 𝑠𝑒𝑔𝑚𝑒𝑛𝑡
, then 𝜆 =
𝑅𝑒𝑎𝑐𝑡𝑖𝑣𝑒 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑡 𝑡ℎ𝑒 𝑏𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑜𝑓 𝑙𝑖𝑛𝑒 𝑠𝑒𝑔𝑚𝑒𝑛𝑡 𝐼1
41 Analytical method for capacitor
placement: Single capacitor bank
 Therefore, the per unit power loss reduction can be found as:
3𝑐𝑥1
Δ𝑃𝐿𝑆 = 2 − 𝑥1 + 𝜆𝑥1 − 𝑐
1+𝜆+𝜆2

 where x1 is the per unit distance of the capacitor-bank location

from the beginning of the feeder segment (between 0 and 1.0 p.u.).
1
If α is defined as the reciprocal of 1+𝜆+𝜆2, that is, 𝛼 =
1+𝜆+𝜆2

Δ𝑃𝐿𝑆 = 3𝛼𝑐𝑥1 2 − 𝑥1 + 𝜆𝑥1 − 𝑐

42 Analytical method for capacitor
placement: Single capacitor bank

Loss reduction as a
function of the
capacitor-bank location
and capacitor
compensation ratio
for a line segment with
uniformly distributed
loads (λ = 0).
43
Analytical method for capacitor
placement: Single capacitor bank

Loss reduction as a function of

the capacitor-bank location
and capacitor compensation
ratio for a line segment with a
combination of concentrated
and uniformly distributed loads
(λ = 1/4).
44 Analytical method for capacitor
placement: Single capacitor bank

Loss reduction as a function

of the capacitor-bank
location and capacitor
compensation ratio
for a line segment with a
combination of
concentrated and uniformly
distributed loads (λ = 1/2).
45 Analytical method for capacitor
placement: Single capacitor bank

Loss reduction as a function

of the capacitor-bank
location and capacitor
compensation ratio
for a line segment with a
combination of concentrated
and uniformly distributed
loads (λ = 3/4).
46 Analytical method for capacitor
placement: Single capacitor bank

Loss reduction as a function

of the capacitor-bank
location and capacitor
compensation ratio
for a line segment with
concentrated loads (λ = 1).
47 Analytical method for capacitor
placement: Single capacitor bank
Optimum Location and Optimum Loss Reduction
Capacitor Bank rating, p.u Optimum Location, p.u Optimum Loss reduction, %
0.0 1.0 0
0.1 0.95 27
0.2 0.90 49
0.3 0.85 65
0.4 0.80 77
0.5 0.75 84
0.6 0.70 88
0.7 0.65 89
0.8 0.60 86
0.9 0.55 82
1.0 0.50 75
48 Analytical method for capacitor
placement: Two capacitor banks
 Let us assume that, two capacitor banks of same size are
located at distances of x1 and x2 from the substation. The
power loss reduction will be,
𝑥1 𝑥2
=3 𝐼
𝑥=0 1
− 𝐼1 − 𝐼2 𝑥 − 2𝐼𝑐 2 𝑅𝑑𝑥 + 3 𝐼
𝑥1 1
− 𝐼1 − 𝐼2 𝑥 − 𝐼𝑐 2 𝑅𝑑𝑥 +
1
3 𝐼
𝑥2 1
− 𝐼1 − 𝐼2 𝑥 − 𝐼𝑐 2 𝑅𝑑𝑥

= 3𝛼𝑐𝑥1 2 − 𝑥1 + 𝜆𝑥1 − 3𝑐 + 3𝛼𝑐𝑥2 2 − 𝑥2 + 𝜆𝑥2 − 𝑐

49 Analytical method for capacitor
placement: Three capacitor banks
 For two capacitor banks of same size are located at
distances of x1, x2, x3 from the substation. The power loss
reduction will be,
= 3𝛼𝑐𝑥1 2 − 𝑥1 + 𝜆𝑥1 − 5𝑐 + 3𝛼𝑐𝑥2 [ 2 − 𝑥2 +
50 Analytical method for capacitor
placement: n capacitor banks
 For n capacitor banks of same size are located at
distances of x1, x2,…, xn from the substation. The power
loss reduction will be,
= 3𝛼𝑐 𝑛𝑖=1 𝑥𝑖 2 − 𝑥𝑖 + 𝜆𝑥𝑖 − (2𝑖 − 1)𝑐
 The optimum locations for the capacitor banks can be
obtained by taking first order derivative with respect to xi
and equates it with zero. This yields,
1 𝑐 2𝑖 − 1
𝑥𝑖 𝑜𝑝𝑡𝑖𝑚𝑎𝑙 = −
1−𝜆 2 1−𝜆
51 Analytical method for capacitor
placement: n capacitor banks
The optimal loss reduction with n-capacitor banks will
be,
𝑛 1 2𝑖−1 𝑖 2𝑐 2 1 𝑐2 𝑖𝑐 2
= 3𝛼𝑐 𝑖=1 1−𝜆 −𝑐 + − −
1−𝜆 1−𝜆 4 1−𝜆 1−𝜆
 With algebraic reduction, we get the expression for
the optimal power loss reduction,
3𝛼𝑐 𝑐 2 𝑛(4𝑛2 −1)
= 𝑛− 𝑐𝑛2 +
1−𝜆 12
 Analytical method for capacitor
52
placement: n=1
 For n=1, we get the power loss reduction expression
3𝛼 𝑐 3
as,Δ𝑃𝐿𝑆 =
1−𝜆
[c − 𝑐 2 + ]
4
 Differentiating with respect to c and by equating it to zero,
2 2 1
we get the optimal value of 𝑐 = and 𝑥1 =
3 3 1−𝜆
3𝛼 8 8 𝛼
 The power loss reduction will be Δ𝑃𝐿𝑆 = =
1−𝜆 27 9 1−𝜆
 For 𝜆 = 0, i.e., uniformly distributed load, the power loss
8
reduction will be Δ𝑃𝐿𝑆 = p.u., for the capacitor placed at
9
2 2 𝟐
𝑥1 = p.u. distance with 𝑐 = p.u. size. This is well used ( )
3 3 𝟑
thumb-rule for capacitor placement.
53 Reference

 T. Gonen. Electric Power Distribution

System Engineering; CRC Press, 3rd Edition,
2014.
54

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