Monenco Iran recently signed a contract of "Consultancy Services for Purchasing and Installation of Capacitor Banks". The client is Tehran Regional Electricity Company (TREC). Existence of R-L loads in each network improves reactive power consumption, which increases system power loss. Therefore, more power generation is needed to be transited to loads through the Grid. Subsequently, capacitor banks are used to produce required reactive power, located in the vicinity of loads, which is a proper solution for the mentioned condition. Since Tavanir Co. requires to improve the performance of the grid, this project was defined for procurement of 500 MVAR capacitor bank and installation on 32 substations.