In distributed power system, the unbalanced operating mode, high harmonics, negative sequence components and variation of true power components in the neutral wire, which are caused by the nonlinear or unbalanced loads. It can introduce additional power transmission losses.There are many researches show that various methods for solving this issue, however most of them use compensating devices on all three-phase of bus. This paper presents a new method for minimization of unbalanced operating mode and optimal location of reactive power compensating devices in three-phase power systems, without attention to the mode of each separate phase. The method focuses on reducing the number of reactive power compensating devices at each distributed bus.
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