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This paper presents an application of the sequential quadratic programming method to find the optimal sizing of shunt capacitors and/or passive filters for maximizing the net present value resulting from energy-loss reduction while taking investment cost into account and complying with the IEEE-519 standard. The proposed methodology allows the simultaneous solving for fixed and switched volt ampere reactive (VAr) compensators by considering a characteristic load variation curve for each linear and nonlinear load.
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Abril et al. (2003) studied this question.
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