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This research represents the optimal capacitor placement on medium voltage (MV) distribution system with distributed generation (DG) connection applied particle swarm optimization (PSO) algorithm. This paper purposes to reduction losses in system and minimize expense of the installation shunt capacitors. Loss sensitivity factor is utilized for selection applicant bus and the optimal bus and size for installed capacitor is applied particle swarm optimization (PSO) algorithm. Case studies consist of the consideration fixed and switched type of capacitor in case with/without DG connect to the real power distribution of Savannakhet province. The simulation of study and the proposed method are employed through DIgSILENT PowerFactory and MATLAB software. The result of the study demonstrates that the proposed method can be reduced power losses and improved the bus voltage because of the decreasing current flow through the distribution network from installing capacitor banks for compensated reactive power.
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