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The jist of the techniques assume a lossless network and thus for : 1. circulating real power flows only occur for any device that alters the angles (phase shifting transformers UPFC etc) and 2. for circulating VAR flows only occurs for branches which have voltage regulating equipment

1) Preal flows occur from lower angle to higher angle signals a possible circulating flow 2) Pimag flows occur from Lower voltage to higher voltage signals possible VAr flows