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This paper reports the development of an analytical method to determine the best capacitor locations, reactive compensation level, and yearly loss reductions under a wide range of annual reactive load conditions for use in distribution system design. The results show that, not only is more than 80 percent yearly loss reduction possible with non-switched capacitor banks, but also optimum reacttve-compensation level and maximum yearly loss reduction can be expressed in a simple mathematical equation.
Young-Sang Bae (Sat,) studied this question.