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Conservation voltage reduction (CVR) is a strategy that tries to save energy consumption by managing consumers' voltage. On the other hand, enhancing reactive power compensation in the power system gives rise to CVR implementation more effectively. This paper addresses how the power system planner could encourage investment to establish the above‐mentioned topics. Here, a model for encouraging industrial loads to dynamically invest in implementing the CVR strategy over the planning horizon is presented. To make CVR implementation more efficient, investment in upgrading plug‐in electric vehicles (PEVs) chargers to be utilized as reactive power compensators is also considered. Industrial loads benefit from saving in their electricity bills and incentive payments that might be paid by utilities (if necessary). The objective function of the proposed planning model is to maximize the energy‐saving of industrial loads and to minimize incentive payment by electric utilities over the planning horizon. This objective is achieved subject to that the investment plan is economically feasible. Moreover, power system operation constraints in the planning horizon based on AC power flow equations and voltage‐dependent load models are considered. The proposed planning problem is modelled as a non‐linear optimization problem that can be solved by off‐the‐shelf software, for example, GAMS. The proposed model is applied to the Ontario transmission system. The numerical results show the proposed model's effectiveness in designing an investment plan for industrial loads to implement the CVR strategy and upgrade PEVs' chargers. Here, a model for encouraging industrial loads to dynamically invest in implementing the conservation voltage reduction (CVR) strategy over the planning horizon is presented. To make CVR implementation more efficient, investment in upgrading plug‐in electric vehicles (PEVs) chargers to be utilized as reactive power compensators is also considered. The objective function of the proposed planning model is to maximize the energy‐saving of industrial loads and to minimize incentive payment by electric utilities over the planning horizon. This objective is achieved subject to the fact that the investment plan is economically feasible. Moreover, power system operation constraints in the planning horizon based on AC power flow equations and voltage‐dependent load models are considered. [ABSTRACT FROM AUTHOR]