Enhancing Distribution Network Performance with Coordinated PV and D-STATCOM Compensation Under Fixed and Variable Reactive Power Modes

This paper addresses the optimal management of photovoltaic (PV) systems and distribution static synchronous compensators (D-STATCOMs) in modern electrical distribution networks. A mixed-integer nonlinear programming (MINLP) model is formulated which co-optimizes device placement, sizing, and multi-period dispatch to minimize the total annualized system costs while satisfying AC power flow and operational constraints. To solve this challenging problem, a decomposition methodology is proposed, wherein the binary location decisions for the PVs and D-STATCOMs are treated as predefined inputs, upon the basis of site selections commonly reported in the literature. With the integer variables fixed, the problem is reduced to a continuous nonlinear programming (NLP) subproblem for optimal capacity sizing and operational scheduling, which is solved using the interior point optimizer (IPOPT) via the Julia/JuMP environment. The core contribution of this work lies in its comprehensive demonstration of the economic superiority of variable reactive power injection over conventional fixed compensation schemes. Through numerical validation on standard 33- and 69-bus test systems, it is shown that a variable D-STATCOM operation yields substantial and consistent economic gains. Compared to optimized fixed-injection solutions, variable injection provides additional annual savings averaging USD 120,516 (33-bus feeder) and USD 125,620 (69-bus grid), corresponding to a further 3.4% reduction in total costs. These benefits prove robust across different device location sets identified by various metaheuristic algorithms, and they scale effectively to larger network topologies. The results demonstrate that transitioning to variable power injection is not merely an incremental improvement but a fundamental advancement for achieving techno-economic optimality in distribution system planning. The proposed methodology provides utilities with a computationally efficient framework for determining near-optimal PV and D-STATCOM management strategies by first fixing deployment locations based on established planning insights and then rigorously optimizing sizing and dispatch, in order to maximize economic returns while ensuring reliable network operation.