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In this paper, the optimal sizing of fixed capacitor banks problem in a distorted interconnected distribution system is formulated and solved by a Genetic Algorithm (GA) solution technique to minimize the cost of power production and capacitor banks under the constraints include voltage limits , sizes of installed capacitors and Total Harmonic Distortion (THD), the algorithm is applied on IEEE 30-bus test system and the results are given for different cases: Light and heavy harmonic cases. Computer simulation shows that the harmonic components affect the optimal capacitor sizing
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