The distribution system in power system have high resistance to reactance ratio therefore it provides more power losses and voltage drop issues. Furthermore, the load used in distribution side is mostly of inductive in nature and gives reactive power losses. Therefore, an attempt is made to integrate shunt capacitor banks to improve reactive power losses and to maintain the voltage profile in the allowable limit. Moreover, the proposed model is tested on 11kV Hyderabad Electric Supply Corporation (HESCO) distribution feeder for analysis of reactive power. An artificial intelligence technique named as particle swarm optimization (PSO) is used to identify the optimal placement of shunt capacitor. The proposed method reduces more than 40 % power losses and gives better results in voltage profile (i.e. more than 0.95 p.u.) at all buses.
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