In the current scenario, integration of renewables, growth of non-linear industrial and commercial loads results in various power quality issues. Among commercial utilities connected to the grid, hospital-operated loads include sensitive, linear, non-linear, and unbalanced loads. These loads are diverse as well as prioritized, which also causes major power quality issues in the local distribution system. Due to its widespread divergence, it leads to harmonic injection and reactive power imbalance. Distribution Static Compensator (DSTATCOM) is proposed as a solution for harmonic mitigation, load balancing, reactive power imbalances, and neutral current compensation. The present work utilizes Interval Type-2 Fuzzy Logic Controller (IT2FLC) with Recursive Least Square (RLS) filter for generating switching pulses for IGBT switches in the DSTATCOM to improve power quality in the Local Distribution Grid. The proposed approach also shows superior performance over Type 1 fuzzy logic controller and Conventional PI controller in mitigating harmonics. For effective realization, the proposed system is simulated using MATLAB software.INDEX TERMS Local distribution grid, DSTATCOM, Interval type 2 fuzzy logic controller, power quality, and Recursive least square filter.

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