Practical Capacitor Placement Strategy for Loss Minimisation in Low‐Voltage Distribution Networks

ABSTRACT Due to long supply lines, dispersed consumers, and a high proportion of inductive motor loads, severe line loss issues may occur in rural low‐voltage distribution networks (LVDNs). Passive capacitors offer a cost‐effective solution for reactive power compensation. Existing literature has proposed numerous line loss compensation strategies based on passive capacitors, yet most involve complex calculations that hinder widespread adoption and large‐scale implementation. In practice, distribution network operators often face limited theoretical expertise, constrained budgets, and a vast number of lines requiring compensation. Thus, a critical challenge lies in determining the placement of capacitors in a simple and effective manner. To address this gap, the paper proposes a practical capacitor placement strategy specifically for line loss reduction in LVDNs. Leveraging real‐time data from consumer metering systems, it calculates active and reactive power distributions under various capacitor placement scenarios. An optimisation problem is then formulated and solved under two input modes with the objective of minimising total line loss, ultimately identifying the optimal set of capacitor installation locations. The proposed strategy is computationally efficient, low‐cost, and practical for implementation. Case validation conducted on a real fish and crab farming distribution network demonstrates significant line loss reduction, confirming the strategy's effectiveness.