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Optimal Capacitor Placement Example

1. Open the example OCPExample2

2. Design loading occurs 55% of the time


3. Maximum loading (110% of Design loading) occurs 25% of the time
4. Minimum loading (90% of Design loading) occurs 20% of the time
5. Average energy cost is 0.06$/kWh
6. Interest rate is 4%
7. Planning period is 10 years
8. 4.16 kV capacitors: 200 kvar banks

Purchase cost is 20$/kvar


Installation cost is 1,200$
Operating cost is 200$/year.bank
9. 13.8 kV capacitors: 300 kvar banks

Purchase cost 25$/kvar


Installation cost is $1,600
Operating cost is 300$/year.bank
The objective of this exercise is to make all system bus voltages greater than 98% and less than
102%, while maximizing the benefits of capacitor installation, by adding capacitors to any bus
with a nominal voltage of either 4.16kV or 13.8kV.

ETAP Workshop Notes

1996-2009 Operation Technology, Inc.

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Optimal Capacitor Placement Example

Capacitor Placement Results:


Bus ID
Bus2
Bus3
Bus4
Bus5
Bus6
Bus7
Bus8
Bus9
Bus10

Nominal
kV
13.8
13.8
13.8
13.8
13.8
4.16
4.16
4.16
4.16

Total System Losses


@ Max Loading (kW)

Number of Capacitor Banks Installed


Original
Intuitive
OCP
System
Method
Method
0
0
0
0
2
3
0
4
10
0
6
1
0
4
4
0
0
0
0
1
4
0
2
3
0
2
0
616.3

443.1

431.7

Compare OCP result with Intuitive result:

One Time Cost: 20$*200*2 + 25$*300*2 - 1,200$ = 21,800$ more.

Operating Cost each year: 200$*2 + 300$*2 = 1,000$ more.

Lost Reduction saving each year = (443.1-431.7)*8760*0.06$ = 5,991.84$.

Profit each year: $5,991.84$ - 1,000$ = 4,991.84$

Break-even point is less than 5 years.

ETAP Workshop Notes

1996-2009 Operation Technology, Inc.

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