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Purpose

The purpose of this paper is to deal with a new dispatching and optimization of reactive power sources in power systems.

Design/methodology/approach

The methodology is first based on an optimal movement of existing reactive sources as a first phase, then an optimal investment in a second phase and finally a combination of the two previous phases as the third one. The methodology showed also the advantage of a two‐levels procedure, considering an initial minimal compensation before minimizing the active losses. The solution of the global non‐linear problem is performed using the projected and augmented Lagrange method associated with the reduced gradient and the DFP methods.

Findings

In waiting for new investment programs which are planned for limited periods, the study presents an alternative of optimizing the reactive power compensation by a movement of the power sources or some of them, satisfying all system constraints and minimizing also the active power losses.

Originality/value

The planners and operators are able to decide what cases are to be considered for reactive power dispatch; the proposed program gives a proposal solution to almost all changes that can occur to the power system (incident, contingency, load variation, development).

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