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This paper presents a new optimization method for reactive power planning of subtransmission network under normal operating conditions. The planning problem is divided into a master problem and two subproblems. The master problem is to determine yearly investment in reactive power compensation devices for expected load growth over a planning horizon. The subproblems are to determine the optimal operation of power system under normal conditions. The master problem is reduced to a yearly Hamiltonian minimization problem, thereby reducing the dimensionality of optimization algorithm. Two subproblems, P-optimization and Q-optimization, both minimize the fuel requirement using a unified approach.
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Lee et al. (1986) studied this question.
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