A procedure for solving the power capacitor placement problem is presented. The objective is to determine the minimum investment required to satisfy suitable reactive constraints. Due to the discrete nature of reactive compensation devices, optimal capacitor placement leads to a nonlinear programming problem with mixed (discrete and continuous) variables. It is solved with an iterative algorithm based on successive linearizations of the original nonlinear model. The mixed integer linear programming problem to be solved at each iteration of the procedure is tackled by applying both a deterministic method (branch and bound) and genetic algorithm techniques. A hybrid procedure, aiming to exploit the best features of both algorithms is also considered. The proposed procedures are tested and compared with reference to a small CIGRE system and two actual networks derived from the Italian transmission and distribution system.
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