Loss minimization techniques for optimal operation and planning of distribution systems: A review of different methodologies

In an electrical power system, the generated power is transferred through a high voltage transmission system, and it reaches the low voltage consumers at the distribution side. In a distribution system, (IR)-R-2 loss is very high compared with the transmission system due to high RX ratio, high current, and low voltage. It is a known fact that the economic enticement of distribution companies (DISCOMs) is to minimize losses in their networks. In general, this enticement is the difference in cost obtained between real and standard losses. Thus, when real losses are more than the standard losses, the DISCOMs are penalized economically, or when the opposite occurs, they earn a profit. Hence, loss minimization problem in distribution systems is a well-suitable researched topic for researchers. Various approaches are investigated and implemented to solve the loss minimization problem in the past. However, these are different from each other by choice of loss minimization tool, problem formulation, methods employed, and the solution obtained. Several methods exist for loss minimization like capacitor allocation, network reconfiguration, distributed generation (DG) allocation, feeder grading, high voltage distribution system, etc. The present article gives a literature review, general background, and comparative exposition of the most often used techniques: (a) network reconfiguration, (b) capacitor allocation, (c) DG allocation, and (d) DSTATCOM allocation for loss minimization in distribution system and its combination versions for achieving maximum potential benefits are (e) simultaneous reconfiguration and capacitor allocation, (f) simultaneous reconfiguration and DG allocation, (g) simultaneous DG and DSTATCOM allocation, and (h) simultaneous reconfiguration, capacitor, and DG allocation based on several published articles. This will make the literature easy to new researchers working in this area.