The capacitor placement (replacement) problem for radial distribution netwo
rks determines capacitor types, sizes, locations and control schemes. Optim
al capacitor placement is a hard combinatorial problem that can be formulat
ed as a mixed integer nonlinear program. Since this is a NP complete proble
m (Non Polynomial time) the solution approach uses a combinatorial search a
lgorithm. The paper proposes a hybrid method drawn upon the Tabu Search app
roach, extended with features taken from other combinatorial approaches suc
h as genetic algorithms and simulated annealing, and from practical heurist
ic approaches. The proposed method has been tested in a range of networks a
vailable in the literature with superior results regarding both quality and
cost of solutions.