With rapid development of the national economy and the sustaining improvement of load densities

the electric power loss of medium voltage distribution network is also gradually increasing. How to reduce effectively electric power loss during transmission period

namely

energy conservation and loss reduction

have become a problem to be solved. In this paper

a new type of reactive power optimization and the coordination control equipment at distribution area is designed through the study of medium and low voltage reactive power compensation optimal scheme

and the result of the new equipment is verified. The energy conservation and loss reduction result of the equipment is verified further by way of case analysis and efficiency analysis of energy conservation modification pilot project in Shandong distribution network.