Abstract
One of the concerns of power system planners is the problem of optimum cost of generation as well as loss minimization on the grid system. This issue can be addressed in a number of ways; one of such ways is the use of reactive power support (shunt capacitor compensation). This paper used the method of shunt capacitor placement for cost and transmission loss minimization on Nigerian power grid system which is a 24-bus, 330kV network interconnecting four thermal generating stations (Sapele, Delta, Afam and Egbin) and three hydro stations to various load points. Simulation in MATLAB was performed on the Nigerian 330kV transmission grid system. The technique employed was based on the optimal power flow formulations using Newton-Raphson iterative method for the load flow analysis of the grid system. The results show that when shunt capacitor was employed as the inequality constraints on the power system, there is a reduction in the total cost of generation accompanied with reduction in the total system losses with a significant improvement in the system voltage profile.
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