The best size and spacing of substations is that which results in the least annual cost of the sum of fixed charges on substations and feeders, operation and maintenance, and losses.
Increasing the number of substations for a given load density tends to increase total cost. However, increasing the number of substations reduces the cost of feeders and feeder losses. Clearly then, the least total annual cost is a function of substation and feeder cost, capacity of feeder and load density
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