Optimal capacitor placement problem is one of the important power system optimization problems.In A.C circuits the reactive flow in the system causes three effects..
(i) Bus Voltage drops.
(ii) Transmission loss increase
(iii) Low Power factor.
Though the D.C System has so many advantages the A.C system is simply preferred because it is its easily transmittable.'The electrical power is generated ,transmitted ,distributed ans utilized in A.C only.The A.C system has the reactive elements which consume the reactive power.
D.C system is perfect because it does nor have reactive element..If A.C system is made as having less reactive elements its performance will be like D.C system..From the circuit theory it is known that the induction and capacitive reactive element have opposite characteristics .
The above video will refresh your understanding about capaciotrs and Inductors.
In the next part we will see formulation of optimal capacior problem.