Abstract: The 10 kV distribution network generally only implements reactive power compensation at the low-voltage side of the distribution transformer. Therefore, a large number of distribution transformers cannot compensate for their own reactive power, and coupled with the inductive reactive power generated by the self-induction and mutual induction of the lines themselves, the demand for reactive power compensation in the 10 kV lines is limited, resulting in a significant reactive power gap. In addition, due to the unreasonable planning of the early power grid structure, coupled with seasonal and temporary loads, the demand for reactive power in the lines also varies greatly. The traditional fixed compensation mode adopted by 10 kV pole-mounted capacitors cannot meet the frequently changing demand for reactive power, and there are technical difficulties such as "overcompensation when put into use and insufficient compensation when not put into use". This article analyzes the loss reduction of the target line and implements a reactive power compensation scheme for intelligent capacitors on 10 kV lines to solve the problems of insufficient reactive power compensation and voltage fluctuation in the power grid, so that the power quality and grid loss of the 10 kV distribution network can reach the optimal state.