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- In this paper, conventional reacitve power compensation is defined and instantaneous real power control concept for shunt converters is proposed.This equipment incorporates the compensation function of harmonics at the distribution line by nonliear load. These methodologies are applied to IEEE 13 bus distribution system with the modeling of nonlinear load using EMTDC/PSCAD package. Simulation with EMTDC results presented to confirm that the new approach has better performance than those obtained by controllers based on traditional concepts of reactive power compensation.