Calculating costs of non-active power flow in distribution networks

The paper deals with the problem of cost calculation of reactive power flow. Reduction of distribution losses needs installation of compensating devices to reduce the flow of reactive power and harmonic currents. It leads to the installation of expensive compensating devices the cost of which has to reflect the negative impact of harmonics on distribution networks. The paper considers an application of an adjusted power factor as the most promising solution to the determination of costs of reactive power supply