The present work focuses on the formulation of an optimization algorithm based on Ant Colony Search (ACS) technique operational from a Blackfin DSP microcontroller platform. This intelligent algorithm enables switching of appropriate Shunt Capacitor Banks (SCBs) in installations of bulk consumers of electricity to improve their power factor. The application is mainly targeted on cold storages, rolling mills, traction substation and steel plants in India, where SCBs are installed over a long period in an unplanned manner. Unawareness of the impact of energy savings coupled with the fiscal incapability of these users make them unable to install costly power electronic devices for p.f. control ACS based embedded controller is sensitive to unpredictable load changes and selective capacitors switching cause optimal VAR control with minimum stress to the system. Employing the distributed computational model based on ACS becomes an ideal tool for the combinatorial optimization problem to select a best combination within a bank of varying sizes and varying status signifying dynamically changing search space. This low cost device will reduce the penalty billing of consumers by improving the p.f. and improved metered reading. The use of this device will lead to permeation of technology to the strata which needs it most making energy management possible without any human intervention.