Working in a 0.4kv low voltage network,the new generation reactive compensation installation is effective,energy-saving,harmonic restrained and can raise power factor,replacing the traditional reactive compensation installation,which is made up of intelligent reactive compensation controller,fuse,capacitor switch,filter reactor and power capacitor.It is designed to address the problems like high harmonic content in power grid and malfunction of regular intelligent capacitor,It can fulfill reactive compensation,improve power factor,as well as eliminate the impact caused by corresponding number of harmonic on the system and improve power quality.