Optimal placement of phase shifters to minimize power system losses

A method to find the optimal location of a phase shifting transformer in a power system to minimize the power loss is presented. For all possible locations of the phase shifter, the derivative of the power loss with respect to the phase shift angle is calculated. It is assumed that the greatest slope indicates the location to which the power loss is most sensitive. The well-known 5-bus system of Stagg and A1-Abiad is used to verify the theory. The computational requirements are little more that one Newton-Raphson iteration.