The mathematical model used in this paper is not only the traditional node voltage equation but also the introduction of the branch current equation when research the power system reactive power optimization, and so establishes a mathematical model of hybrid power network node voltages and branch currents. The state variables in this model are the node voltages and branch currents, the network flow is explicitly expressed, and they play a key role for the simplification of the solving model. Solving the model will be broken down into two sub-problems, one is a network loss minimization objective augmented Lagrange function, forming the Kuhn-Tucker conditions, and the other is a linear equation. IEEE 30-bus system example shows that the complexity and high dimension of the model solution have been significantly improved, the solving process becomes easier, and the solution is close to the global optimal solution. Compared with traditional optimal power flow algorithm, this algorithm can improve the computational efficiency of reactive power optimization.