Electricity company of Indonesia (PLN) has an energy policy to provide equitable service that are evenly distributed, affordable, and can supplying the needs of people. For that purpose the power losses on the network must be reduce so energy isn’t much wasted. This research is intenden to analyze how the role of bank capacitor for reduce losses on distribution network. This research located at 150 kV Pasar Kemis Subtation , Jl. Pasir Awi, Ps. Kemis, PasarKemis, Tangerang, Banten on Desember 2016. This research was conducted using ETAP 12.06.0. Etap is very helpful in the process of analyzing the role of bank capacitor in the grid sistem. In this research has increased un derstanding of the use and optimization of bank capacitor on a distribution network system. Addition of bank capacitor makes losses on network decreased from 24 kVA to 0 kVA, and its make the value of cos phi increase from 0,86 to 0,98. Addition of capacitor bank make the voltage quality better.