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<p>In this paper, a novel analytical technique is proposed for optimal allocation of shunt capacitor bank in radial distribution system. An objective function is formulated to determine the optimal size, number and location of capacitor bank for real &amp; reactive power loss reduction, voltage profile enhancement and annual cost saving. A new constant, Power Voltage Sensitivity Constant (PVSC), has been proposed here. The value of PVSC constant decides the candidate bus location and size. The achievability of the proposed method has been demonstrated on IEEE-69 bus and real distribution system of Jamawaramgarh, Jaipur city. The obtained results are compared with latest optimization techniques to show the effectiveness and robustness of the proposed technique.</p>

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