security and economics of power system. This paper uses improved particle swarm optimization(PSO) algorithm to reactive power optimization in Baogang grid in order to solve the problem of Baogang gird. Based on the PSO, we introduce the inertia factor and construct the discrete position set and the discrete speed set, express the discrete variables accurately.The experimental results show that after the present method's calculation on Baogang reactive power optimization, the voltage quality and distribution of reactive power optimization has been improved. Line loss also has been reduced. All of these fully proved that this method is really useful and practically significance.
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