Reactive power compensation is an important problem in electrical distribution systems, involving the sizing and location of capacitors (sources of reactive power). The installation of capacitors also contributes to releasing system capacity and improving voltage level. A multi-objective simulated annealing approach to provide decision support in this problem is presented. This approach is able to compute a set of well-distributed and diversified solutions underlying distinct trade-offs, even for a challenging network. The characterization of the non-dominated front is relevant information for aiding planning engineers to select satisfactory compromise solutions (compensation schemes) to improve the network operation conditions.