Övik Energi Nät has an agreement with Vattenfall where Övik Energi Nät is entitled to a certain amount of generation of reactive power and a certain amount of consumption of reactive power. This agreement applies to two distribution stations located on each side of the city.This report will propose ways of how and where it is suitably to install phase compensation equipment in Övik Energis Nät, to correct the occasions when it overleaps the maximum peak allowed of reactive power.The report will also point out problems that can appear with connecting a capacitor battery and how to avoid these problems.There is a generator that generates an effect of 5 MVAr (capacitive) and at the times when the generator is not operating the reactive power overleaps the maximum peak allowed. With this knowledge there is a belief that a capacitor battery with 5 MVAr would be suitable to install to compensate when the reactive power overleaps the maximum peak allowed.