Capacitors aid in minimizing losses and helps in reducing operating expenses. Capacitors should be placed where the reactive power demand is more as capacitors generate reactive power and helps to maintain the voltage. Basically reactive power demand will be more at load side of the power system, hence capacitors should be placed as close as possible to load. In specific, capacitor banks should be placed where the low voltage problem occurs.Shunt capacitors are series capacitors are employed in power system for different purposes