Optimal allocation of static VAR compensator by a hybrid algorithm

Flexible AC transmission system (FACTS) devices are gaining popularity in electrical transmission networks for the last few years due to their ability to improve a system's performance without restructuring or expanding the existing network. But, placing the FACTS device at any arbitrary location in the network may not be optimally beneficial. Also, judging the optimally beneficial location of these devices becomes necessary prior to investment owing to their high expense of installation and maintenance. In this paper, a novel hybrid algorithm combining Cuckoo Search Algorithm (CSA) and Chemical Reaction Optimization (CRO) is proposed to solve the problem of optimally allocating a static VAR compensator (SVC) for the standard IEEE 14-bus, 30-bus and 57-bus transmission systems under heavily loaded condition. The optimal allocation of SVC is done by considering technical aspects like voltage stability, power generation minimization and line loss reduction and also by considering commercial facets like savings on annual cost of power generation and return-on-investment (ROI) time period for the expenditure incurred on the SVC. The ROI calculation is a novel addition to the problem formulation which adds a practical outlook to the feasibility of investment. Thus, a holistic approach is followed for determining the optimal location of the SVC in the power network and the results validate the superior performance of the proposed algorithm.