This paper presents the proper design and selection of power circuit and control parameters of VSI based DSTATCOM for compensation of reactive power in a radial distribution systems, feeding power to crucial loads of an industrial, commercial and residential systems. The study of radial distribution system is analyzed in terms of electrical power system of institute, power consumption pattern and tariff related issues. Some conclusions were made to improve the system performance in terms of

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... r factor and reduction in tariff. The DSTATCOM performance depends on the calculation of the reference source currents that generate the gating pulses of the VSI.