AbstractThis paper proposes a novel shunt capacitor (SC) based voltage stability method for a power system operation. The integration of distributed generators e.g. wind and PV powers to the grid, and fluctuations nature of load power cause the attention of voltage stability management for a power system operation and planning. The SC based proposed method improves the voltage stability by using the flow of active and reactive powers in the transmission line. The Voltagestability index (VSI) is utilized for the voltage stability analysis. The SC is installed at the load bus so that it can inject a proper amount of reactive power for ensuring the voltage stability of power system. The proposed method is investigated in the IEEE-14 bus test system. Simulation results are compared with the non-SC based method. Extensive simulation analyses have been done by the MATLAB/Simulink software.