Just to put my two cents worth in, my understanding is:
1. The problem is due to the inductive kick back when the current is interrupted extremely quickly. V = L x di/dt When an air breaker is opened, there is an arc and the effective di/dt is much slower than with a vacuum bottle.
2. If the current can be diverted as the bottle opens, then the di/dt is reduced and the magnitude of the voltage is also reduced.
3. If capacitors are used, then it is important that there is no additional impedance in series with them as this will reduce their effectiveness if the current through them changes.
4. The location of the capacitors can be sited anywhere along the current path from the contactor to the motor, so it can be at the contactor end or at the motor end or half way between. If the capacitors are located at the motor end of the current path, then the interruption of the current flow in the feeder cable between the motor and the contactor will result in a voltage transient at the contactor end relative to the motor end.
5. The issue of additional series impedance only applies to the distance between the existing current path and the capacitors etc. If the capacitors are mounted in a separate enclosure and there is a cable between the motor terminal box and the capacitors, there is an additional impedance. If the main cable routes through the capacitor box on the way to the motor and connects directly to the capacitors on the way through, this will work MUCH better.
6. There are many rules that are applied to situations such as this because it is the easy way to ensure that a working compromise is achieved. This thread illustrates what can happen if you say that it is permissible to site the capacitors away from the current path. - make a simple rule that can not be misinterpreted and stick to it and there will not be problems. This does not always mean that it is the best or the only solution.
Many of these fast switching situations only make sense to engineers experienced in working with High Frequency energy. RF engineering. This is particularly true in the EMC field where a conductor has inductance as well as capacitance and resistance.
If you connect your surge protection at the motor terminals, you will not go wrong, therefore that is a good rule to apply.
If you connect your surge protection so that it is on the current path, it will also work. If you connect your surge protection so that it connects to the current path but at a distance, it will not be nearly as effective.
Best regards,
Mark Empson
L M Photonics Ltd