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Reactive power management and voltage control are the two key facets of any electrical power system due to their support for reliability of the system. While managing reactive power and voltage during system operation, minimization of real power loss is also achieved. As reactive power doesn't travel far, the point of reactive power compensation must be carefully chosen to achieve the best effect of injected reactive power. This paper focuses on placement of reactive power compensator using "Centrality" measure, which is an index for identifying most important vertex within a graph. Earlier "Electrical centrality measures" were used for vulnerability analysis of electrical networks as well as analysis of blackouts and brownouts. The contributions of this paper are threefold. First, in this paper, a generalized methodology has been introduced for calculating "electrical centrality measures" based on graph theory. Next, the proposed centrality index has been used for identifying the location for reactive power compensation. Finally, the amount of reactive power required to maintain voltage profile throughout the system has been optimized. The proposed method is tested for multiple test systems of different sizes to demonstrate the applicability and usefulness of the proposed method. [ABSTRACT FROM AUTHOR]

Deregulation and privatization of power market worldwide has forced to identify the different ancillary services and the service providers so that all the services can be priced properly. Active power loss is a component that can never be avoided and constitutes a considerable part of economy. Hence, identification of the sources of active power loss is very important. In deregulated power market bilateral power trading plays a very important role where the amount of power and the flow path between the transacting generators and loads are fixed beforehand. But the power flow rarely follows contracted path, it flows according to physical property of the network. Graph theory based loss allocation methods are based on power flow paths and hence are more reliable. But proper transaction based power flow is not available and it makes graph theory based loss allocation for bilateral market a complex task. Present paper applies diakoptics algorithm to find out the loop flows that is the deviation from contracted path for each bilateral transaction which in turn allows finding out the loss allocated to any transaction. Diakoptics is a general concept in which larger problems are solved by dividing the larger problem into smaller problems and then finding out the overall solution by considering the solutions of each smaller problem together. The proposed method is applied to different test systems and results are discussed in detail. [ABSTRACT FROM AUTHOR]