For reactive resources to be most effective, where should they be located?

Reactive resources, such as capacitor banks and synchronous condensers, are most effective when located close to load areas. This proximity allows them to better provide reactive power support, which is essential for maintaining voltage levels and improving power factor near consumption points.

When reactive resources are situated near load centers, they can respond quickly to voltage fluctuations caused by changes in demand or the operational status of nearby equipment. This local support minimizes the transmission losses associated with delivering reactive power from distant generation sources.

Furthermore, by being in close proximity to load areas, reactive resources can enhance overall system stability and reliability, contributing to improved power quality for end users. Such placement plays a critical role in addressing voltage drops and ensuring that consumers receive a stable supply of electricity.

In contrast, while options mentioning placement at substations or evenly across the grid may provide some benefits, they do not prioritize the direct relationship between reactive support and load demands as effectively as placing resources directly by the load areas does. Therefore, being positioned close to where power is consumed maximizes the performance and utility of reactive resources.