A review of meta-heuristic algorithms for reactive power planning problem <s> Analytical approaches <s> The paper presents an integrated framework to analyze the issues of reactive power planning along with reactive power pricing. The planning problem involves optimal placement and sizing of capacitors in a network such that operating and investment costs are minimum. A simple bus-wise cost-benefit analysis (CBA) scheme is proposed which involves solving a modified optimal power flow problem (OPF) iteratively. The proposed CBA incorporates detailed hourly loading conditions at a bus and achieves a fairly accurate estimate of the benefits from capacitor placement. The formulation is directly handled by the well known MINOS code and is solved efficiently. It obviates the need to introduce integer variables and is thus suitable for large system applications. A two-part reactive power spot-pricing scheme is formulated, by which the investment and operational costs can be recovered by the utility. The proposed reactive power price has two parts-a fixed part to account for the investment costs of new capacitor at a bus and a variable spot price to account for the operating costs incurred in supplying the additional reactive power from generating units. <s> BIB001 </s> A review of meta-heuristic algorithms for reactive power planning problem <s> Analytical approaches <s> Abstract It is generally accepted that reactive power (or Var) compensation will bring benefits for utilities and industrial customers by providing local voltage and power factor support. However, there is a lack of a systematic approach to quantitatively identify the economic benefit. In addition, with the deregulation and restructuring, it is important to indicate the amount of benefit that each market participant may potentially receive given the right price signals. If such information can be easily obtained and presented, it will be more convenient for decision-markers to determine the cost benefit sharing of installing a Var compensator. This vision of this paper is to lay out a possible method for quantitatively evaluating the benefits from local reactive power compensation. The approach is to quantify the benefits into several categories such as reduced losses, shifting reactive power flow to real power flow, and increased transfer. The calculation of these benefits are illustrated with a simple two-bus power system model and then presented with a more complicated model using Optimal Power Flow to calculate the benefits. Simulation on the more complex system is conducted with seven buses in two areas. The simulation results show that the possible economic benefits can be significant,more » if compared with capacity payments to central generators or payment of power factor penalties applied by utilities. The potential economic value of local Var compensation may give various parties in electricity supply, delivery and end-use consumption a better understanding of the Var benefits to assist their cost-benefit analysis for Var compensation installation. Sensitivity analysis is also provided to illustrate that the benefits may not be monotonically increasing. Also, this paper suggests that the future reactive power market should consider local Var providers or other way to encourage load Var capability, since local Var benefit is significant.« less <s> BIB002
Analytical approaches are very important to understand the different effects and benefits of the location and size of reactive power sources BIB001  BIB002 . The issues of RPP have been analyzed with reactive power pricing in BIB001 where a trade-off between the transmission loss and installation cost of new capacitors has been executed incorporating detailed hourly loading conditions. In  , three economic benefits with assumption of a constant VAR injection and a fixed location have been analyzed. These benefits include reducing losses, shifting reactive power flow to real power flow, and increasing the transfer capability. The economic benefits have been updated by executing a set of optimal power flow (OPF) runs. Also, the reactive market-based of economic dispatch has been addressed in BIB002 . However, the benefits to the utilities from the allocation, installation, and operation of VAR compensators have not been discussed. Analytical approaches lend a lot of information and clear vision about the economic and technical benefits under different scenarios. They are quite helpful to design future framework of reactive power management and pricing for different players in the deregulated environment. On the other hand, they are time-consuming and may not be suitable for medium and large-scale power systems. Analytical approaches are as accurate as the model developed. They are based on its corresponding OPF which has been usually solved using nonlinear algorithms such as Modular Incore Nonlinear Optimization System (MINOS) BIB001  BIB002 using General Algebraic Modeling Systems (GAMS) procedures  .