In this work, a mathematical model called optimization by swarm of particles (PSO), was implemented to optimally solve the location and sizing of capacitor banks in a micro-grid of electrical distribution. The proposed method is based on particle swarm optimization (PSO) and the solution will be obtained with dynamic programming, implementing an algorithm that will be developed entirely in MATLAB. The algorithm calculates the optimal solution satisfying the necessary requirements to guarantee the operation of the electrical system. As a case study, a model of a micro-grid which is typically of 5 bars will be used. However, the algorithm was implemented in a general way and it can respond correctly to multi-bar systems. As a final analysis we made a comparison of the system data without compensating and the compensated system data, highlighting an improvement in the voltage profiles, minimization of the …