This paper introduces a method of determining the minimum amount of sh
unt reactive power (VAr) support which indirectly maximizes the real p
ower transfer before voltage collapse is encountered. Using a relaxati
on strategy that operates with a predictor-corrector/optimization sche
me, a voltage stability index that serves as an indirect measure to th
e closeness of reaching the steady state voltage stability limits is o
btained. Sensitivity information that identifies weak buses is also av
ailable for locating effective VAr injection sites.