This research article discusses and examines the voltage sag and power quality issues in distribution networks with D-STATCOM. Power quality issues are examined under various system conditions. Load voltage v/s current characteristics of a nonlinear load is widely used in metal processing industries i.e. ARC Furnace, which is having Non-Linearity in the Load characteristics, is developed in MATLAB environment & recorded using Scopes. The reactive power control with D-STATCOM is applied to enhance the voltage profile and thus the power quality at the load point bus. The significant improvement in voltage and THD calculated by FFT analysis are improved as per IEEE standard.
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