Modular capacitors (5-50kvar) are directly installed at the load end (e., in farmers' distribution boxes, next to workshop motors, or inside pump station control cabinets) and connected in parallel with loads. In such problem, an objective function which is usually defined based on power losses and capacitor installation costs should be minimised subject to operational. This location should be used for the motor loads with high inertia, where disconnecting the motor with the power capacitor bank can turn the motor into a self excited generator, motors that are jogged, plugged or reversed, motors that start frequently, multi-speed motors, starters that disconnect. Abstract Utilizing capacitor banks in order for local compensation of loads reac-tive power is common in distribution networks. Using capacitors has positive effects on networks such as power and energy loss reduction, voltage deviation and net-work harmonic reduction as well as improvement in. Reactive power compensation in low-voltage distribution networks is centered on capacitors, mainly divided into two types with significant differences in applicable scenarios and effects: 1. Centralized Capacitor Compensation on the Load Side of Distribution Transformers It uses cabinet-type. The placement of capacitors is one of the most important methods to achieve loss reduction and enhance the voltage characteristics of distribution systems.