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This can be solved with dynamic model SWSHNT2.

1. Model the capacitor as a switched shunt in load flow with Vhi=1.05 and Vlo=0.96.
2. Use dynamic model SWSHNT2 with all CONs = 0 and ICON(M+1)=99. Any wanted intentional time delay for switching the capacaitor on or off may be given in PT1 and PT2.

The capacitor will now be automatically switched on when the bus voltage goes under 0.95 pu and switched off when the bus voltage goes above 1.05 pu.