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Due to the presence of large number of reactive power compensators at different voltage levels in a typical industrial network, many combinations of the settings of compensators are possible, all of which are not appropriate in terms of harmonic conditions in the network. Thus, it is rather hard for an operator to make an optimal decision how to operate and predict all of the potentially dangerous situations. The most dangerous resonance conditions are those which occur in the vicinity of the harmonic components present in the network. For save and reliable operation it is thus necessary to prevent such conditions from happening. In this paper a concept of virtual compensator is proposed, addressing the above issues of reactive power compensation in industrial networks. An algorithm is introduced, which resolves alternatives for each operating point and provides to the operator the optimal combination of setting to be implemented. The effectiveness of the proposed algorithm is demonstrated on the realistic industrial network model by means of simulation.

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