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Discrete Optimization for Reactive Power Planning 175

               The idea of considering a discrete variable under a multistate situation is to transform reactive
               power optimization into complicated multistate discrete reactive power optimization. The key
               to this section is to present a pragmatic algorithm to solve multistate discrete reactive
               power optimization. Multistate as mentioned in this section includes: normal state, transmission
               line failure, transformer failure, and generator failure.
               To consider multistate problems, Literature [30] proposed a direct energy decomposition
               method. To apply the algorithm to multistate discrete reactive power optimization, the number
               of capacitor banks at the location of reactive power compensation equipment is treated as the
               energy for each state. If the value of the energy is fixed, the whole multistate discrete reactive
               power optimization may be decomposed into several mutually independent subproblems,
               because multistate discrete reactive power optimizations have a special structure, that is,
               diagonal block structure. Thus, these subproblems may be solved separately. By coordinating
               results from these subproblems, the minimum reactive power investment cost of the entire
               problem can be found. The coordination process is actually to comprehensively consider the
               infeasibility of each state, and install the reactive power compensation equipment at nodes
               where the infeasibility of all states can be minimized.
               According to traditional multistate reactive power optimization, reactive power optimization
               under each single state will be calculated separately. The maximum reactive power
               compensation equipment number of nodes under a respective single state will be taken as the
               reactive power configuration of the node. This method only considers optimization of a single
               state and ignores the mutual effect of reactive power configuration under all states. This might
               not be economically efficient, because it may deploy newly installed reactive power
               compensation equipment at adjacent nodes or many nodes. Even if the total reactive power
               compensation capacity keeps still, the method may also increase fixed capital cost of new
               reactive power compensation equipment, in turn, increasing total investment.

               The proposed algorithm fully takes into consideration the mutual support role of reactive power
               under multiple states. The proposed integer improvement procedure for multistate conditions
               can help new reactive power meet the requirements of each state to the largest extent, and
               comprehensively and optimally balance under single state to achieve the overall optimum of all
               states. As for this, new reactive power compensation equipment will be centrally allocated to
               make the total investment less than the conservative investment results obtained by separately
               calculating each single state. In addition, compared with a single-state calculation
               procedure, the calculation procedure for multistate reactive power optimization developed
               with the algorithm will not lead to more workload of calculation.

               In the previous chapter, only the normal state in a power system is considered. VAR planning,
               without considering possible changes in the system configuration, may not be realistic. There
               might exist a minimum VAR equipment installation that can correct unacceptable voltage
               profiles during anticipated normal and contingency states in power systems. The contingencies
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