Journal of Applied Science and Engineering, Vol. 20, No. 1, pp. 21-30 (2017) DOI: 10.6180/jase.2017.20.1.03 Energy Loss Reduction in a 20-kV Distribution Network Considering Available Budget Mehdi Izadi1* and Farzad Razavi2 1 Young Researchers and Elite Club, Qazvin Branch, Islamic Azad University, Qazvin, Iran 2 Faculty of Electrical and Biomedical Engineering Qazvin Branch, Islamic Azad University, Qazvin, Iran Abstract The present paper is a report on a study which tried to determine the best way of allocating the budget available to the Qazvin Electric Distribution Company in Iran in order to optimally decrease energy loss in an affiliated distribution network. Five methods of loss reduction were compared in terms of the degree of loss reduction and cost-effectiveness. The budget to be assigned to each method was determined. The results show that the budget should only be appropriated to capacitor placement, replacement of dilapidated conductors, and load imbalance adjustment, in that order. Key Words: Available Budget, Loss Reduction, Load Imbalance Adjustment, Capacitor Placement, Dilapidated Conductors 1. Introduction Preservation of energy is very important from the point of view of environmental issues, high fossil fuel prices, formation of private power utilities, and the cost of developing power plants. It follows that loss of electrical energy generated for sale would mean many charges on power utilities and the industry. This has led many governments to considerably invest in reducing energy loss. Various approaches have been used in the past few decades for reducing loss. Study [1] summarizes a list of such methods at the distribution level: + Reconductoring in primary and secondary feeders + Reconfiguring feeders + Using high-efficiency distribution transformers + Reducing secondary network length by adding and optimally placing distribution transformers + Using distributed generation + Placing subtransmission substations near load centers + Load balancing *Corresponding author. E-mail: [email protected] + Improving load factor + Improving voltage profile. Loss stems from, among other things, load imbalance, reactive power, dilapidated transformers, dilapidated conductors, and weak connections. Adjusting load imbalance will decrease loss in the lines and transformers. Optimally placing a capacitor in a network improves power factor and reduces reactive power. Replacing overworked and dilapidated transformers reduces copper and iron loss. Dilapidated cables and conductors should be replaced as their increased resistance results in energy loss. And finally, correcting the connections weakened over time will reduce line resistance and energy loss. A review of previous studies on loss reduction follows. Study [2] tried to reduce loss by removing load imbalance. Study [3] used evolutionary fuzzy programming algorithm and dynamic information structure to optimally place capacitors in a 69-bus radial distribution system. Genetic Algorithm (GA) was used by [1] for capacitor placement in a 69-bus system. Study [4] placed capacitors using the particle swarm optimization (PSO) algorithm. 22 Mehdi Izadi and Farzad Razavi Study [5] found that loss in a transformer decreases if the transformer works at half the nominal load and if harmonics filters are installed. The algorithm proposed in [6] for reducing network loss and determining the optimum conductor for a radial distribution network drew upon a new load flow. Study [7] studied the impact of fixing weak connections on loss reduction in Hormozgan power network in Iran regarding the relevant operating costs. This study is innovative in the following ways; first of all determining the efficiency of different methods of loss reduction in Sharif-Abad’s 20-kV feeder will be considered and then tries to evaluate methods of loss reduction on the basis of the available budget. However, these studies that were mentioned in advance did not pay serious, if any, attention to the expenses involved in the method they employed. The present research attempts to evaluate several ways of reducing energy loss in the 20-kV distribution network of SharifAbad, which is part of the Qazvin Electrical Distribution Company in Iran, in terms of the operating costs involved, method efficiency, and the available budget. For this purpose, we first measured energy loss at the peak hour of the period spanning annual. Then, energy loss for the period under study was calculated. Having the data for power loss and energy loss, we obtained the loss factor of the network for the year-long period. The objective functions used in the research was then minimized using the Genetic Algorithm. 2. Model Formulation It is worth noting that the authors of [8] did not have any idea about power loss at peak and the energy loss in the year under study and thus did not know the loss factor. For this reason, they considered the loss factor in the feeder under investigation to be 0.52 on the basis of the loss factor in the adjacent feeders in Qazvin Electrical Distribution Company. However, in the present research, the loss factor was calculated to be 0.4047. Another point that makes the current work different from [8] is that the main objective here is budget allocation. 2.1 Fixing Load Imbalance Fixing load imbalance requires that the current of each phase be close to the average current of the three phases. Load imbalance was adjusted as described below [8]: + The percentage of imbalance was determined for each phase (Eq. (1)). + A certain percentage (from 0 to 100) was randomly assigned to each load by means of GA. + The cost of imbalance adjustment for each phase equals the integral of the area under the curve of the A/x graph in the interval [anew, aold]. + The cost of imbalance adjustment for each load is equal to the sum of the costs related to imbalance adjustment for the three phases. The total cost of imbalance adjustment is equal to the sum of the costs associated with imbalance adjustment for all the loads in the feeder at issue (Eq. (2)). (1) where Ip (A) is the phase current, and Iave (A) is the average of the three phase currents. (2) where Cimbalance is the cost of adjusting imbalance ($). A is a constant set at $70 according to our empirical work. aold-p-i is the old percentage of load imbalance for the pth phase of the ith load. anew-i is the new percentage of load imbalance for the ith load. The cost of reducing load imbalance from 60% to 50% is less than the cost associated with decreasing imbalance from 30% to 20% (Figure 1). Figure 2 is the flowchart related to fixing load imbalance. 2.2 Capacitor Placement Capacitors were placed considering the following [8]: + Capacitors were only placed where loads were. + Loads were adjusted before capacitor placement. + Use was made of 12.5-kvar capacitors. GA determined the number of capacitors. + A gene was considered for each load. + The total number of capacitors multiplied by the price Energy Loss Reduction in a 20-kV Distribution Network Considering Available Budget 23 phase angle between the current and voltage after the installing capacitor. Given that the transformer operates at its nominal apparent power, then Pmax = 504 kW, cos f1 = 0.8, and tan f1 = 0.75. As this work aims to increase the power factor from 0.8 to 0.955, the capacitor to be installed in the feeder will have a maximum capacity of 222 kvar. The cost of capacitor placement for the whole network is obtained from Eq. (4). Additionally, the cost of capacitor placement for each bus and the variable cost of placing capacitors for each bus are calculated from Eqs. (5) and (6), respectively. Figure 1. The A/x diagram. (4) where Ccap: the cost of capacitor placement ($). Ccap-i: cost of placing capacitors on the ith bus ($). (5) where Ccap-fixd-i fixed cost of placing capacitors on the ith bus ($). Ccap-variable-i variable cost of placing capacitors on the ith bus ($). (6) th where ncap: number of capacitors on the i bus. pcap: price of each capacitor ($/unit). Figure 2. The flowchart of fixing load imbalance. of each capacitor and the fixed costs related to capacitor placement were added up in the objective function. + Fixed costs in this study were of three types: (a) 1-6 steps; (b) 7-12 steps; and (c) 13-18 steps. The maximum number of steps was determined by the transformer with the highest capacity (Eq. (3)). (3) where Qc: is the capacity of the installed capacitor (kvar). Q1: reactive power before installing the capacitor (kvar). Q2: reactive power after installing the capacitor (kvar). P: active power (kW). f1: phase angle between the current and voltage before the installing capacitor. f2: 2.3 Replacing Dilapidated Transformers Dilapidated transformers were replaced with the following in mind [8]: + The transformers used in the feeder under study had the apparent power values of 25, 50, 100, 200, 250, 315, 500, and 630 kVA. + A gene was considered for each transformer. + If a transformer is replaced, its copper and iron losses decrease by 20%, according to Qazvin Electrical Distribution Company. + The costs involved in replacing all transformers were added up to obtain the total cost of transformer replacement. The cost of transformer replacement is the sum of all the expenses associated with replacing the transformers, as determined by GA. 24 Mehdi Izadi and Farzad Razavi 2.4 Replacing Dilapidated Lines Dilapidated lines were replaced on the basis of the following [8]: + A gene was considered for each line. + If a line is replaced, its resistance decreases by 10%, according to Qazvin Electrical Distribution Company. + The costs associated with replacing all dilapidated lines were added up to obtain the total cost of line replacement. The cost of conductor replacement is the sum of all the expenses associated with replacing the conductors, as determined by GA. 2.5 Correcting Weak Connections Weak connections in the network were corrected in the following way [8]: + The length of the lines connecting buses was calculated using computer software. + It was assumed that there was a connection at each end of each line. + A connection was added if the line connecting every two buses was longer than 480 m. + A gene was considered for each connection. + The assumed number of connections is for singlewire lines only. For three-wire lines, the number should be multiplied by three. + If a weak connection is corrected, line resistance decreases by 0.001 ohms, according to Qazvin Electrical Distribution Company. + In order to calculate the total cost of correcting weak connections, the operating costs associated with correcting each connection was multiplied by the total number of connections (Eq. (7)). (7) where Cconnection: the cost of correcting weak connections ($). nconnection: the total number of weak connections. pconnection: the cost of fixing each weak connection ($/unit). 2.6 The Benefit Obtained from Loss Reduction The benefit to be obtained from reducing power loss is calculated using Eq. (8). (8) where Bloss_reduction : the benefit resulting from loss reduction ($). Ploss-after: loss after the application of the methods (kW). Ploss-before : loss before the application of the methods (kW). T: the period, in hours, for which energy loss was calculated. This covered the full length of a year (8760 hours). LSF: loss factor. penerge: price of energy ($/unit) [8]. 2.7 Objective Function without Considering the Budget The objective function without considering the budget was calculated from Eq. (9): (9) where OF1: objective function regardless of the budget ($). Cimbalance: the cost of adjusting imbalance ($). Ccap: the cost of placing capacitors ($). Ctrans: the cost of replacing transformers ($). Cline: the cost of replacing conductors ($). Cconnection: the cost of correcting weak connections ($). Bloss_reduction : the benefit resulting from loss reduction ($) [8]. The flowchart of OF1 is portrayed in Figure 3. 3. New Method: Budget Allocation The objective function defined above (OF1) can be rewritten as Eq. (10) below: OF1 = a + b (10) where OF1: objective function regardless of the budget ($). a: The total cost associated with employing loss reduction methods ($). b: The benefit resulting from loss reduction ($). Since loss before the reduction methods were employed is less than post-reduction loss, b is always a negative value. However, this objective function needs to be modified because the present research aims to determine how much of the budget available to the company under study should be allocated to each method of reducing loss and also because the entire budget considered for loss reduc- Energy Loss Reduction in a 20-kV Distribution Network Considering Available Budget Figure 3. The flowchart of the OF1 for each iteration. tion is expected to be spent. The procedure used to reduce loss considering available budget is as follows: First, the amount of the budget considered for loss reduction is given to the software, which calculates the total cost associated with each method of reducing. The objective function is optimized when the cost is equal to the available budget. The proposed objective function is presented as Eq. (11) below. 25 Figure 4. This Feeder is radial and it fed from 63 to 20 substation. Type of loads of this feeder are: agricultural, domestic and commercial. Figure 5 is the expanding of marked area in Figure 4. In Figure 5 electrical tower and lines are clarified and information mentioned. Information and description of equipment of this feeder given in Tables 1 to 5 are as following: + Information about transformers (apparent power and number) + Information about lines (length and types of conductors, resistance, reactance and weight) + Operating costs of equipment and services Table 1 presents different levels of apparent power as used in the network under study and the number of transformers or each level. There are nine agricultural transformers in this feeder. Table 2 gives the number of transformers associated with different levels of apparent power used in the network. The specifications of this feeder can be seen in Tables 3 and 4. (11) where n: available budget. a: all the costs associated with power loss. b: the benefit to be obtained from loss reduction. b: a very large constant (e.g., 1010). OF2: the objective function for the available budget. An important consideration in this objective function is that the available budget must be less than the total cost of fully implementing all the methods of loss reduction (n £ a). Figure 4. The schematic representation of Sharif-Abad Feeder. 4. Simulation 4.1 Case Study The distribution network studied in this research was the 20-kV Feeder of Sharif-Abad in northwestern Iran. The schematic represenation of this feeder is given in Figure 5. The enlargement of the area marked in Figure 4. 26 Mehdi Izadi and Farzad Razavi Table 5 summarizes the operating costs of the methods applied to the network under discussion. 4.2 Software DIgSILENT Power Factory 13.2 was used to develop the proposed algorithm for the objective functions and to analyze the system. This application can calculate load flow, short-circuit level, active losses of the netTable 1. Levels of apparent power and the number of associated transformers Apparent power (kVA) 25 50 100 200 250 315 500 630 Number of associated transformers 1 1 8 6 6 4 1 1 Table 2. The number of agricultural transformers associated with levels of apparent power Level of apparent power (kVA) 100 200 Number of associated transformers 6 3 Table 3. A sample of the length of line between every two terminals Terminals i - j T59-T60 T60-T61 T62-T63 T64-T65 T65-T66 T66-T67 T67-T68 T68-T69 T69-T70 T70-T71 T71-T72 T72-T73 T73-T74 T74-T75 T75-T76 T76-T77 Length (km) 0.046580 0.042101 0.081154 0.052930 0.054265 0.058357 0.068757 0.073169 0.062034 0.036182 0.034367 0.063003 0.024233 0.061842 0.073207 0.065371 work, and the network parameters. The main feature of DIgSILENT is DPL (DIgSILENT Programming Language), which simplifies the application of the proposed method. The objective functions were optimized using GA on MATLAB R2008a Software. A text file connected the two applications. 4.3 Proposed Algorithm In the proposed algorithm, GA determines the following for each load: + The percentage of imbalance, which is a number from 0 to 100. + The quantity of 12.5-kvar capacitors, which is a number from 0 to 18. + In addition, each transformer, line, and loose connection is assigned a value of either 0 or 1, denoting the necessity (1) or lack thereof (0) of fixing/replacement. The above-mentioned are only done if constraints are not violated. The details of the proposed method are given below: (1) DIgSILENT writes the zero in the text file to flag the beginning of the initial calculation. Detecting this flag, GA will not begin the associated program. Table 4. Conductor types Type 1 2 Resistance (W/km) Reactance (W/km) Weight (kg/km) 0.2712 0.4545 0.2464 0.2664 450 255 Table 5. Operational costs Equipment and services Capacitor 12.5 kvar Fixed cost 1 Fixed cost 2 Fixed cost 3 Trans 25 kVA Trans 50 kVA Trans 100 kVA Trans 200 kVA Trans 250 kVA Trans 315 kVA Trans 500 kVA Trans 630 kVA Conductor type1 Conductor type2 Energy Cost 136.550 ($/unit) 100 ($/unit) 200 ($/unit) 300 ($/unit) 2266.938 ($/unit) 2707.938 ($/unit) 3688.177 ($/unit) 5602.810 ($/unit) 5792.808 ($/unit) 6863.947 ($/unit) 10352.565 ($/unit) 11970.326 ($/unit) 4.092 ($/kg) 4.246 ($/kg) 0.180 ($/kWh) Energy Loss Reduction in a 20-kV Distribution Network Considering Available Budget (2) 1 ù é ú ê nvars ú ê ê nvars - imbalance ú DIgSILENT writes the matrix ê ú in nvars - cap ú ê ê population_ sizeú ê Generation ú û ë the text file. The first row is the flag which shows the program must begin its operation. When the flag is set to 1, GA must run. nvars, nvars-imbalance, and nvars-cap respectively identify the total number of the genes within the chromosome, those related to load imbalance, and those associate with the capacitors. (3) GA writes the matrix [2 B1…BnC1…Cn T1…TnL1… Lm X1…Xk] in the text file. In this matrix, B1,…, Bn are the new percentages of imbalance for each load, C1,…, Cn are the number of 12.5-kvar capacitors for each load, T1,…, Tn are the values of 0 or 1 related to each transformer, L1,…, Lm are the values of 0 or 1 associated with each line, X1…Xk are the values of 0 or 1 pertinent to the loose connections of each line, and Flag 2 indicates that DIgSILENT must restart its operation. (4) Upon seeing Flag 2 at the beginning of the text file, DIgSILENT commences operation and calculates the OF using the chromosome given in that file. The application, then, inserts in the text file Flag 3 and the é 3 ù quantity of the OF in the form of a matrix ê ú, ëOF û where Flag 3 is an indicator of the temporary termination of the operation of DIgSILENT and the restart of the operation of the GA. (5) If the maximum number of iterations is not reached, the process described above reverts to stage 3. Otherwise, the process goes on to stage 6 below. (6) The GA is finished, so it inserts Flag 4 in the text file, denoting the end of the process. (7) Upon seeing Flag 4 in the text file, DIgSILENT realizes that the process is over. gard to attendant costs: (1) Adjusting load imbalance (2) Placing capacitors (3) Replacing transformers (4) Replacing line conductors (5) Correcting weak connections (6) All the above carried out together without regard to the available budget (7) All the above carried out together with regard to the available budget 5.1 Adjusting Load Imbalance Table 6 summarizes the results of adjusting load imbalance in transformers. Power loss was 129.389 kW after load imbalance was corrected, indicating a drop of 13.14 kW, which equals 10.16% of the total loss of the network. The cost of balancing all the loads was obtained from Eq. (2). The quantity of phase current R was 1.5 times as large as that of the average current. The quantities of phase currents S and T were respectively 0.8 and 0.7 times those of the average current. Phase current R was 50% more than the average current. Phase currents S and T were 20% and 30% less than the average current, respectively. Now, by reducing the surplus of phase current R to 30%, we can reduce the deficit of phase currents S and T to 10% and 20%, respectively, at a cost of $112.7. The loss reduction thus obtained will be 21 MWh, and the resultant benefit will be $3700 a year. 5.2 Placing Capacitors Unless load imbalance had been adjusted, capacitors could not be placed. Hence, loss should have a different amount before capacitor placement than before the deployment of any of the other methods. The results of allocating capacitors in the network are given in Table 7. Different capacitors were placed at different busses Table 6. Fixing load imbalance Item 5. Results and Discussion In this research, loss factor was considered to be 0.4047, and the following items were calculated with re- 27 Loss after run Loss reduction Cost Benefit |OF1| Quantity 129.389 kW 013.140 kW $1234.419 $8453.307 $7218.888 28 Mehdi Izadi and Farzad Razavi Table 7. Capacitor allocation Item Loss before run Loss after run Loss reduction Cost Benefit |OF1| Quantity 135.719 kW 112.783 kW 22.936 kW $12677.8 $14755.802 $2078.002 as follows: + 12.5-kvar capacitors at busses T18, T28, T36. + 25-kvar capacitors at busses T2, T4, T10, T20, T50. + 37.5-kvar capacitors at busses T26, T30, T40, T46, T48, T54. + 50-kvar capacitors at bus T22. + 62.5-kvar capacitors at bus T14. + 75-kvar capacitors at busses T38, T44, T56. + 87.5-kvar capacitors at bus T24. + 137.5-kvar capacitors at bus T52. Before capacitor installation and at the peak moment, the apparent power input was 4368.262 kVA, the reactive power input was 2143.851 kvar, and power loss was 135.719 kW. After placing capacitors and at the peak moment, the apparent power input was 3973.889 kVA, the reactive power input was 1216.810 kvar, and power loss was 112.783 kW. This shows that the apparent power input was reduced by 394.373 kVA (equal to 9.03%), the reactive power input by 927.041 kvar (or 43.24%), and power loss by 22.936 kW (i.e., 16.90%). The total capacity of all the capacitors added to the network under investigation was 950 kvar at the peak moment of the year. Capacitor installation increased the usable capacity of the network by 394.373 kVA (equal to 9.03%) at the peak moment of the year. 5.3 Replacing Transformers Zero transformers had to be changed. This finding can be explained as follows: There were 28 transformers in the feeder studied in this research. The loss of the transformers consists of copper and iron loss. At the peak moment of the year, the total loss of all the transformers was 31 kW, with the total iron loss being 19 kW, and the total copper loss being 12 kW. The total loss of all the transformers was equal to 54.82% of the total loss of the network. Iron loss was 60.29% of the total loss of the transformers and 33.05% of the total loss of the network. Copper loss was amounted to 39.71% of the total loss of the transformers and 21.77% of the total loss of the network. Replacing dilapidated transformers will reduce the total loss of transformers by 20%. That is to say, a reduction of 55.4 MWh will bring the total loss of transformers to 221.6 MWh. It follows that the total loss of the network will reduce by 10.96%. Given that the benefit of loss reduction resulting from replacing dilapidated transformers will be $7523 a year, and that replacing all the transformers will cost $152633, the benefit to be obtained from replacing dilapidated transformers will be not be significant. 5.4 Replacing Line Conductors The total loss of lines was 228.30 MWh, equaling 45.18% of the total loss of the network. Replacing the dilapidated conductors of a line diminishes its resistance by 10%. This correspondingly reduces the loss of the lines as loss is positively related to resistance. Thus, replacing all dilapidated conductors will result in a reduction of about 4.52% in the total loss of the network. Loss will be reduced by 22.83 MWh. The benefit to be obtained will be $4109.4 a year. Replacing all the conductors will be approximately $114000 given that all the lines in the network are about 19 km in length. In consequence, the benefit to be obtained from replacing dilapidated conductors will be insignificant. Table 8 summarizes the results of line conductor replacement. 5.5 Correcting Weak Connections Weak connections should not be corrected. The explanation is as follows: As mentioned above, the resistance of a weak connection in the network under study was 0.0001 ohm. The Table 8. Replacing line conductors Item Loss after run Loss reduction Cost Benefit |OF1| Quantity 142.234 kW 0.295 kW $166.089 $189.787 $23.698 Energy Loss Reduction in a 20-kV Distribution Network Considering Available Budget resistance of the weak connections in a 0.480-km line was 0.0003 ohm. The resistance of a 0.480-km line was found to be 0.11904 ohm. The resistance emanating from weak connections is equal to 0.08% of the total resistance of the line. Fixing weak connections in a line will cost $1.406. The benefit to be obtained from fixing weak connections seems trivial in comparison with the costs involved. 5.6 All the Methods Applied Simultaneously Different capacitors were installed at different busses as follows: + 12.5-kvar capacitors at busses T4, T54. + 37.5-kvar capacitors at busses T20, T38, T40, T48. + 50-kvar capacitors at busses T8, T16, T26, T30, T44. + 62.5-kvar capacitors at busses T14, T56. + 75-kvar capacitors at busses T32, T50. + 100-kvar capacitors at buss T10. + 50-kvar capacitors at busses T8, T16, T26, T30, T44. + 112.5-kvar capacitors at bus T46. + 137.5-kvar capacitors at bus T52. Table 9 presents the results of simultaneous application of all the five methods of loss reduction, only placing capacitors and fixing load imbalance seem cost-effective. More specifically, simultaneously applying all the methods reduces power loss by 18.10%, with the ratio of benefit to cost being 47 to 40. The total capacity of the capacitors added to the network was 1050 kvar. 5.7 Prioritizing Methods of Loss Reduction According to the Degree of Reduction and the Amount of Available Budget Tables 10 and 11 summarizes the ratio of benefit to cost and percentage of loss reduction, respectively. The best method of loss reduction will be fixing load imbalance providing that the decision is based on the bene- fit-cost ratio. However, if the percentage of loss reduction forms the basis of the decision, capacitor placement will be the best method. As the budget available to Qazvin Electrical Distribution Company (n) was $19000, running OF2 gave the results presented in Table 12. All the five methods were concurrently used to reduce loss in the network. According to the results, only adjusting load imbalance, placing capacitors, and replacing dilapidated conductors are advisable considering the available budget. In addition, a comparison of Tables 9 and 12 reveals that running OF1 showed capacitor placement and load imbalance adjustment to be the best of the five alternative methods. Running OF2 showed that replacing dilapidated conductors can be a good alternative as well. The difference lies in the fact that OF2 was run with a $19,000 budget in mind. From Table 12, it can be seen that 2.95% of the available budget should be allocated to adjusting load imbalance, 76.59% to placing capacitors, and 20.46% to replacing dilapidated conductors. 6. Conclusions This study proposed a way for allocating the budget Table 10. Cost-benefit ratio Method Benefit-cost ratio Fixing load imbalance Placing capacitors Replacing line conductors 6.85 1.16 1.14 Table 11. Percentage of loss reduction Method Percentage of loss reduction Fixing load imbalance Placing capacitors Replacing line conductors Table 9. All the methods applied simultaneously Table 12. The results of running OF2 Item Item Loss after run Loss reduction Cost Benefit |OF1| Cost of Fixing load imbalance Quantity 116.734 kW 025.795 kW $14008.043 $16460.424 $2452.3810 $437.84300 29 09.22 16.09 00.21 Loss after run Amount of loss reduction |OF2| = |Benefit| Cost of adjusting load imbalance Cost of placing capacitors Cost of replacing dilapidated conductors Quantity 109.622 kW 030.907 kW $19722.453 $560.21780 $14552.950 $3886.8322 30 Mehdi Izadi and Farzad Razavi available to the Qazvin Electric Distribution Company to different approaches to loss reduction in an attempt to obtain maximum loss reduction. For this purpose, an actual feeder was subjected to five methods of reducing loss. These methods were studied in terms of the degree of loss reduction brought about and the amount of costs involved. Then, the budget to be assigned to each method was determined using the proposed objective function. The results showed the available budget should be assigned to capacitor placement, replacement of dilapidated conductors, and load imbalance adjustment in that order. This finding can help power utilities better allocate their loss reduction budget. A limitation of the present research is that only the five methods discussed were applicable to the network under study. Thus, it seems advisable to evaluate some other methods. Finally, when the model is put into operation, load imbalance adjustment should always be performed prior to capacitor placement. No particular order is needed for the other methods of loss reduction. References [1] Haghifam, M. R. and Malik, O. 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