Optimal location for shunt connected reactive power compensation

Flexible AC Transmission Systems (FACTS) have been used to improve voltage stability and to increase Total Transfer Capability (TTC) of transmission systems. Shunt injected reactive power compensation such as Mechanically Switched Capacitors (MSC), Static VAr Compensators (SVC) and Static Synchronous Compensators (STATCOM) are widely used as practical and cost effective solutions to improve transmission line performance. This paper illustrates a new approach to determine optimal location for VAr shunt compensation as a measure to maintain system voltages within acceptable levels which leads to losses reduction, increased system utilization and improved stability. This paper introduces a new method to determine optimal location for shunt compensator devices considering both economic and security aspects. The Kundur two area test system is used to evaluate and validate the new algorithm using NEPLAN power system analysis tool. The results show the effectiveness of the new method to determine the optimal location for shunt VAr compensation.