Loss Minimization and Load Balancing
in a Distribution Network
Integration consideration of loss minimization and load balancing for a distribution
management system in South Korea.
B.N.Ha, S.W.Lee, N.H.Cho, W.Namkoong, J.W.Yoon
Distribution automation research group
Korea Electric Power Corporation (KEPCO)
Daejeon, South Korea
Bnha123@naver.com
Abstract—All distribution network in South Korea are
operated by Distribution Management System (DMS) of KEPCO.
The DMS is configured by communication infrastructures,
automatic switches, reclosers, and tie-switches on a radial system.
Change of a tie-switch location determining a loss and a load
capacity of each feeder can take an operational efficiency such as
an economic advantage by loss minimization and load balancing
in distribution automation system. Because customers’ load
patterns in a distribution network are different by time, region,
seasons, and special events. Loss minimization and load
balancing are considered by each but they were not considered
together because their numerical unit criteria are different.
Therefore, this paper proposes an algorithm in order to consider
loss minimization and load balancing together. The proposed
algorithm is verified by practical distribution networks of Jeju in
South Korea.
Keywords—Distribution automation system, Distribution
Management System, Loss minimization, Load balancing,
Distribution network, DAS, DMS
I. INTRODUCTION
Almost of all distribution networks in South Korea are
operated by Distribution Management System (DMS) in 41
Distribution Control Centers (DCCs) to control 85,000
automated switches in 2013. Distribution automation project
was started at 2001 in Korea and the half of feeder switches
such as reclosers, pad-mounted switchgears, pad-mounted
breakers and load break switches were monitored and remote
controlled on communication network[1]. DMS has basic
function of remote monitoring, remote control, remote setting
and remote analog data acquisition and advanced functions
such as Fault Location Isolation and Service Restoration
(FLISR), protection coordination, load flow, feeder
reconfiguration for loss minimization and load balancing,
Integrated Volt/Var Control (IVVC), short fault calculation,
loop current calculation and etc.
A distribution network configuration is determined by
sections and links depending on locations remote controlled
switches. Korea Electric Power Cooperation (KEPCO)’s DMS
978-1-4799-7736-9/15/$31.00 ©2015 IEEE
I.H.Lim
System Software Research Group
Leading Solution Industrial Systems (LSIS)
Anyang, South Korea
ihlim@lsis.com
configuration criterion is six sections and three links on each
feeder[2]. The sections are configured by closed automatic
switches and reclosers; and the links are organized by opened
automatic switches that are called by ‘tie-switch’.
Load pattern in a distribution network is indicated
differently by time, regions, seasons, and special events. Thus,
change of tie-switch location depending on load pattern would
increase operational efficiency of DMS at viewpoint of loss
minimization and load balancing.
About the loss minimization and load balancing, previous
researches were loss minimization considering of distributed
generation[3], fast reconfiguration[4], with guaranteed error
bound[5], allowing for balanced and unbalanced distribution
system[6]; and load balancing by virtual moving tie-switch[7],
phase identification system[8], with loop power controllers
considering photovoltaic generation[9], critical cross-
examination on load balancing transformer[10],
reconfiguration in LV and MV distribution network[11], G-
nets inference mechanism[12], immune algorithm to optimal
switching operation[13]. They published various advanced
studies but integration consideration of loss minimization and
load balancing depending on tie-switch location were not.
Therefore, this paper proposes an algorithm to consider loss
minimization and load balancing together in distribution
network. In addition, this paper introduces KEPCO’s DMS in
South Korea and the proposed algorithm-based operational
experiences.
This paper organized as Section 2 introduces distribution
management system in South Korea, Section 3 proposes
integration consideration algorithm of loss minimization and
load balancing, and Section 4 presents experiences to apply the
proposed algorithm to Jeju in South Korea.
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 II. INTRODUCTION OF DMS IN SOUTH KOREA
A. Components
Components of KEPCO DMS in order to operation
distribution systems are basically automatic switches with
feeder remote terminal unit (FRTU) and circuit breaker with
recloser on distribution lines. They provide field state
information and accomplish open/close remotely.
In addition, various components such as a load tap changer
in a distribution substation, voltage regulator, power condenser,
fuse, sectionalizer, distributed generators, and manual devices
depending are organized by necessities in a DMS.
D. Operation
Goals of distribution automation are quick service
restoration through remote monitoring and control, and optimal
operation of distribution network by using the acquisition data.
The optimal operation of distribution networks includes
accurate calculation and management of the section loads, to
increase the network efficiently by increasing the feeder load
rate in normal condition, and to optimize the coordination
between the protection devices in emergency condition. Fig. 2
indicates on a process of fault section detection for service
restoration in DMS.

B. Network Configurations
KEPCO’s DMS is operated by radial configuration which
is one-way current. KEPCO has a guideline for feeder
configuration with six sections and three links on each feeder
as Fig. 1. Each feeder can supply 10MVA in normal condition
and 14MVA in emergency condition against feeder fault for
three hours.
Fig. 2. Fault section detection in DMS.

Accurate calculation of the section loads is essential to

increase the distribution networks efficiently, and the section
load management program which produces section loads in
distribution automation system is the core to function all other
application programs satisfactorily. It is an independent
program in the DMS server, and runs by timer interruption on
the scheduled time once every day.

Fig. 1. Six sections and three links of DMS in South Korea.

Normal open switch is defined as a tie switch that can be

connected to the other feeders and each feeder should have
three tie switches for load transfer to linked feeder. A section
switch is defined as normal close switch that divides the loads
on distribution feeder and it is recommended by organizing six
switches for each feeder.

C. Communication infrastructure
Major components of the DMS are the DMS master station,
FRTU, communication media and remote controlled switches.
A single local DMS in Korea consists of approximately 200 to
1000 FRTUs depending on the geographic size. The
Fig. 3. Relationship of section load management in DMS.
distribution communication network in Korea is currently
constructed using various communication media and DMS acquires and stores current data periodically from
technology; and a major physical communication type is FRTUs. The section load management application processes
optical fiber[14]. In addition to these power system the stored data and calculates time-based peak load and
components, information infrastructure is necessary to average load. In addition, these data are offered to other
exchange data between them. applications which are shown in Fig. 3.
The current data of automatic switches are stored in
database accumulatively and the section load is calculated by

115
difference between incoming and outgoing current on each n -1
Pi 2 + Qi2
section. The DMS collects the currents from FRTUs at several L p = å ri (1)
times per hour and stores average and maximum data for i =0 Vi 2
hourly data. The DMS creates daily section load using the
hourly data and the section load is calculated by using daily here,
data during a week. These section loads are displayed on Man Pi, Qi : real and reactive power of ith bus
and Machine Interface(MMI) screen of DMS automatically and
all application programs solve optimization problems by these Vi : ith bus voltage
data. Figure 4 shows the flowchart of section load management ri : line resistance between ith and (i+1)th bus
program.
Start
n : total number of branches

Connect DBMS
This will be an objective function Lp of network
Create Data Manager
reconfiguration for loss minimization. For the loss calculation
of distribution feeder in DMS, network information should be
inputted to database. It includes the unit impedance for each
Search the network
line types, load currents and line lengths for each section. DMS
uses basic loss calculation formula, i2r, assuming that the load
Read D/L information
is equally distributed in a section. Equation (2) is used for the
No
Yes
loss calculation in DMS.
Check network error Complete for all D/L ?
Error 2
Normal
n -1
ì (I + I i +1 ) ü (2)
Losstotal = å í 1 ý ´ Di ´ ri ´ 3
Search automated switch i =0 î 2 þ
Delete Data Manager
where,
Acquire Load current
Di : Section distance
Stand by 24hr
Calculate Section load ri : Unit impedance of a distribution line
To fit the constraint of feeder conductor capacity, an
No outgoing current should be smaller than allowable current of
Section load=0?
conductor. And the bus voltage should be higher than low limit
Yes
for the voltage drop constraint.
Estimate Section Load
The network reconfiguration for optimal operation is a
combinatorial optimization problem since the solution involves
Compute Section Load
the consideration of all possible spanning trees. But this
method is impossible to implement to a real DMS because it
Save to DBMS & Data Manager takes too much time to solve the problem.
This paper employs an expended tie-switch moving
Fig. 4. Flowchart of section load management application. algorithm. By using this algorithm, total minimum value of
objective function at all possible combinations is able to be
III. LOSS MINIMIZATION AND LOAD BALANCING WITH obtained. The proposed algorithm searches all possible
INTEGRATION CONSIDERATIONS combinations for a specific normally open switch in a feeder so
that the objective function reaches to minimum by moving the
A. Loss minimization switch back and forth.
In distribution network with open loop configuration, a The optimal position of several pairs of tie-switches is
reconfiguration for loss minimization is to decide the positions obtained by objective function. One tie-switch has one pair of
of normal open point switches, which can minimize the feeders and direct path between feeders. In case of moving tie-
distribution losses within the feeder capacity limit and voltage switch along the direct path, radial distribution system remains.
drop limit constraints retaining a radial of the feeder. This tie-switch movement algorithm finds optimal tie-
22.9kV distribution system in Korea can supply 10MVA in switch location by moving tie-switch one by one along the
normal condition and 14MVA for emergency condition; and its direct path for remaining radial distribution system.
maximum voltage drop limit is 10 %. For loss reduction, an There is normal open switch which linked with two feeders.
objective is to minimize the total i2r losses in the network In case of moving the normal open switch in the direct path on
which can be calculated as follows (1). between feeders, variation of sum loss can be increased or
decreased because the outgoing current of two feeders should
be changed but sum of current at two feeders is not changed.

116
 After that, another normal open switch is selected and loss
is calculated repeatedly by same method. If it changes location
of normal open switch and it won't be decreased anymore
more; and loss of the distribution network would be minimum
value.
Above issue of current transition is directly related to
connection with loss transition issue and equation (3) shows
lose variation. Fig. 5 shows process of normal open switch
exchange method.
B. Load balancing
As mentioned loss minimization as above, the load
balancing issue can be achieved to change a location of normal
open switch in linked two feeders. Objective function of the
proposed algorithm chooses an optimal tie-switch location. To
achieve load balancing is calculated as equation (4), (5), (6),
and (7).
J 1 = wTR J TR + w FDR J FDR (4)

DL = å Ri I m (2 I i - I m ) - å Ri I m (2 I i + I m ) (3) 1 NTR
iÎS1 iÎS 2
J TR = å (M TRavr - M TRi )2
N TR TRi =1
(5)

where, N FDR
1 2
∆L : Loss variation J FDR =
N FDR
å (M
FDRi =1
FDRavr - M FDRi ) (6)

S1 : Output to section of normal open switch from D/L 1

M avr =
(M i + M i +1 + K + M n -1 + M n ) (7)
S2 : Output to section of normal open switch from D/L 2
n
Im : Current of moving area
where,
Ii : Maximum current before it move.
JTR : Function objective for load balancing of transformer
Ri : Resistance of D/L
JFDR : Function objective for load balancing of feeder
Start
MTRavr : Average capacity of transformer
Calculate margin
capacity of feeders and MTri : Present enough capacity of ith transformer
main transformers

Make the combination MFDRavr : Average capacity of feeder

from all normal open
switch lists MFDRi : Present enough capacity of ith feeder
Calculate present
objective function

Decide procedure to The process makes a list of normal open switching order
combination of normal and a direct path by two feeders that are linked through a
open switches normal open switch. It moves sequentially normal open switch
Calculate loss location in order to make balanced loading rate in two feeders.
minimization objective The load balancing rate is calculated by equation (8).
function by order

Calculate loss
Feeder and M.Tr minimization objective
Yes n
capacity has over function by next step FAvr - Fi
limitation? å 2
No LBR = i =1
´ 100% (8)
Modify the new
n
combination of normal
open switch position on
where,
Does it decrease bigger reduction side
more than previous Yes LBR : Load balancing rate
lose minimization
objective function? Favr : Load rate average of all feeders
Doesn't objective No
function decrease Fi : Load rate of ith feeder
No any more?

Does it check the Yes Yes

all Combination? If the load balancing rate is not improved anymore, it finds
Provide optimal location next switch among a list and repeats the processes. If the result
No of normal open switch is not improved anymore by calculating cases against the other
Calculate loss normal open switches in the list. By the processes, optimal tie-
minimizaton objective switch locations for load balancing are determined. Fig.6
End
function by moving
next order shows flowchart of load balancing of distribution networks.

Fig. 5. Process of normal open switch exchange for loss minimization

117
 Start Start

Calculate the margin

capacity of feeder
and M.Tr
Make the combination
from all normal open
switch lists

Calculate present
objective function

Decide the order

for calculation
from the combination
Calculate load balancing
objective function
by order
Calculate load balancing
Feeder capacity has Yes
the limit over?
No
Does it decrease
more than previous Yes
load balancing
objective function?
No
Calculate LB objective
objective function by
next order
Modify the new
combination of normal
open type switch on
bigger reduction side
Doesn't objective
No
function decrease
any more
Make the combination
of normal open switch
location to the lower
weight factor
Select next order of
combination to normal
function and LM open switch location
objective function
No
Yes
Change previous
No
location of normal open
switch

Does it check the all Yes Yes Yes

Combination? Change present location
Provide optimal load of normal open switch
balancing and location
No of normal open switch

Calculate load balancing

objective function by End Provide optimal location
moving next order of normal open switch

Fig. 6. Flowchart of load balancing on distribution networks

End
C. Integration consideration algorithm Fig. 7. Flowchart of integration processing about loss minimization and load
This paper proposes load balancing and loss minimization balancing
each by determining tie-switch location. But, it can come out
the proposed load balancing algorithm differs with loss J - JU (9)
minimization. An operator may want a solution to satisfy two J=
J N - JU
objective functions at the same time. It would create
economical effect through efficient distribution network
operation. In addition, optimal tie-switch location regards the
JU is defined utopia point, JN is defined nadir point. Utopia
lowest operation expense. Therefore, a weight factor is
point can get by optimization process result of load balancing
employed for each economical effect of loss minimization and
and loss minimization. Applied algorithm in this study moves
load balancing.
to direction that objective function decreases. Therefore, it is
Results of load balancing and loss minimization have defined primitive system state as nadir point. Equation (10) is
different standard unit. Therefore, it needs to normalize the defined as it applied objective function to load balancing and
function objective for reflected weight coefficient. Equation (9) loss minimization.
is defined normalization of objective function. U U
J Load - J Load J Loss - J Loss
J = w Load N U
+ w Loss N U
(10)
J Load - J Load J Loss - J Loss

118
 where,
ωLoad: Economic weight factor of load balancing(LB)
ωLoss: Economic weight factor of loss minimization(LM)
JNLoad: Objective function of LB in primitive status
JULoad: Objective function of LB in optimal status
JNLoss: Objective function of LM in primitive status
JULoss: Objective function of LM in optimal staus
The economic weight factor would be the different value
according to each country’s condition but ωLoad is bigger than
ωLoss in general. Fig. 7 shows a flowchart of integration
processing about loss minimization and load balancing
When applied two algorithms to decide each economic
weight, it might be gotten the economic effect, when it
compares the method to apply loss minimization before and
after. The distribution network loss will be decreased over 5 %
at the medium voltage networks in Korea.
If we use this algorithm, load balancing has economic effect
that heighten feeder average load rate from 72% to 85%. When
we consider the economic effect in Korea case, we have a
reference value of 0.09 loss minimization weight factor and
0.91 load balancing weight factor in Korea
IV. CASE STUDY
KEPCO has 41 DCCs(Distribution control center) and
85,000 remote controlled switches. DMS commands
measurement of current to automation switch of distribution
feeder periodically and measured current is stored to database.
Application program produces the section load by each section
using stored data. Also, it multiplies per unit impedance that is
inputted in each section and calculates power loss. If it adds
power loss by section, it calculates total power loss of
distribution network.
It calculates position of optimal normal open switch, and
makes the switching order of automated switches for loss
minimization and load balancing. The operator operates
optimal distribution network by controlling automated switches
through remote control. When we consider only loss
minimization not load balancing, Fig. 8 shows the result of loss
minimization with 16.4% loss reduction as same as load
balancing rate with 15.7% improvement from 5.165 to 4.114.
In Jeju DCC with eight 154/22.9kV substations and 73
distribution feeders with 22.9kV, feeder optimization results
are as below.
l Considering of only loss reduction : loss 16.4% down,
load balancing rate 15.7% up (from 5.165.29 to 4.356)
l Considering of only load balancing : loss 9.7% down,
load balancing rate 21.3% up(from 5.165 to 4.065)
119
l Considering of loss 50% and load 50% : loss 10.3%
down and load balancing rate 20.3% up(from 5.165 to
4.114)
Fig. 8. Results to apply the proposed algorithm in KEPCO’s DMS
V. CONCLUSION
An algorithm determining optimal normal open switches of
DMS was proposed for optimal distribution network operation
to realize loss minimization and load balancing together. The
proposed algorithm is applied and employed on KEPCO’s
DMS from 2010. Application result to apply the proposed
algorithm is presented as the case study and KEPCO is
gathering operation data by the proposed algorithm.
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