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Discrete Optimization for Reactive Power Planning 167

               nodes are installed with reactive power compensation equipment, but each node has a small
               compensation, is likely to occur. The reason is that only the most promising integer
               variable can be processed once in the calculation procedure of the original algorithm,
               adding or deducting the integer by 1, then solving LP to make the problem feasible. Such a
               calculation procedure may lead to a small amount of reactive power investment on
               each adjacent node. The need for increasing the fixed cost without connection to the
               equipment capacity at the location of new installed reactive equipment leads to an
               increment of total cost.

               An improved algorithm is proposed in this section by changing two integers at the same time to
               overcome the deficiencies of the original algorithm.

               One of the integers is added by 1 or 2, whereas another integer is deducted, until the
               latter becomes zero. In other words, when the integer-feasible solution has been solved
               with the original algorithm, two nonzero integer variables will be comprehensively
               considered and selected. If the problem is still feasible based upon the procedure previously
               mentioned, and the objective function value decreases, this pair of integer variables will be used
               to replace the original pair of integer solutions. This will continue until a new integer pair
               cannot be obtained. From the perspective of system operation, it is workable to add reactive
               power compensation equipment to one of two adjacent nodes, yet reduce reactive power
               compensation equipment from another node, and this won’t lead to problem infeasibility.
               However, reduction of a new reactive power node will help cut the fixed cost, so as to avoid
               installing a small number of reactive power compensation equipment at adjacent nodes at the
               same time.

               The principle of the improved integer solution algorithm is to reduce the number of nodes
               for the newly installed reactive power compensation equipment, replacing a pair of
               nonzero integers with one nonzero integer and one zero integer. The detailed steps are
               given as follows:

                   Substep 1: Express the feasible solution obtained in Step 4 as:
                                                  ∗     ∗  ∗   ∗
                                                 Z ¼ X , Y , Wð  Þ                           (6.15)
                   Substep 2: Stochastically select a pair of nonzero integer variables y u ∗ and y s ∗ from node u
                   and s, and adjust the number of capacitor banks installed at the two nodes, then recalculate
                   the new investment cost; if the cost is reduced, they will be taken as a new pair of
                   changeable integers, then go to the next step. Otherwise, it means that present integer
                   solutions cannot be further improved, and the calculation terminates.
                   Substep 3: Make the new integer variable vector Y n by increasing one of the integers,
                   y u ∗, by 1 or 2, and decreasing another integer y s ∗ by 1, then readjust the fixed cost vector W*
                   to satisfy Eq. (6.14). For example, if y s ∗¼1, then let y s ∗¼0,  w s ∗¼0. Thus, the fixed cost at
                   node s becomes zero.
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