With the flow of time, the load patterns in electricity markets are changing rapidly in world-wide. The power engineers are becoming more vigilant to provide an uninterrupted power supply at any loading conditions. This article proposes a unique planning strategy of reactive power (VAr) considering static load model in power transmission systems. The active and/ or reactive power oriented exponential load model for static load is considered during the study of load flow solution. The power losses from load flow solution is measured and minimized through the proper placement of compensation devices. Series and shunt type FACTS (flexible ac transmission system) devices are used in order to compensate the flow of reactive power. Also, the separate and collective effects of active and reactive power exponents on load flow study are included during total operating cost (TOC) calculation of the system. The TOC is formulated empirically by adding different cost components such as cost owing to real power loss, VAr generation cost component, compensation device cost components and line charging cost. To validate the impetus of the proposed model, IEEE 14, IEEE 39 and IEEE 118 bus transmission systems are considered in this research work.
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