500MW is a big complex, even for a complete steel production plant. Is it a USX site?
Mind you a large Hot strip mills may have 120MW of connected plant.
Compensation is available and is usually applied at various levels close to the offending plant, because the distribution system is complex and users have feeders at various levels. A simple single all encompassing compensation is rarely the answer.
Arc furnaces almost invariable need VAR compensation and static compensators are common place. In the USA there are numerous vendors in this market, so a quick search and you find them easy enough.
Very large reversing mills often get overlooked. The main drive technology will influence the type of compensator.
The MVARs on each pass are a function of the speed as the piece gets rolled. (unless it is a VSI, but this unlikely in USA, normally DC)
Cycloconvertors are notorious for producing flicker from interharmonics and sub-harmonics. These are difficult to filter. Very fast static compensators are available from some manufacturers. The clever ones even have a fibre optic link from the torque control output of the drive straight into the phase control of the static compensator. The response is incredible and gives good compensation.
Some large, high prodcution, cold mills also need compensation as the VARs drawn at threading speeds is large compared to normal rolling speeds.
Process lines can be easier as the power flows are usually more continuous. However, depending on the type of process these may also need compensation, perhaps switched VAR compensation.
I suggest that a total study of the system is carried out and each plant is assessed with measurements.
The big vendors of steel rolling/production equipment such as SIEMENS, ABB, GE or ALSTOM all will have offerering that can help you.