Reduction in power loss while maintaining the acceptable voltage profile has become a challenge for distribution system operators due to expanded living standards. Properly sized shunt capacitors (SCs) allocated at suitable locations of the distribution system can enhance its performance by tackling the power quality issues and foster multiple technical and economic benefits. Most of the existing research work in this domain is accomplished at fixed loading conditions without incorporating purchasing, installation, operation and degradation costs of the SCs. In this work, an intelligent metaheuristic polar bear optimization algorithm (PBOA) is applied to solve the optimal capacitor placement and sizing problem in the radial distribution system (RDS) at various loading conditions. By formulating multiple objective functions for the annual operating cost (AOC), this work incorporates the cost of real power loss ( $$ P_{\text{loss}} $$ ) and various costs associated with SCs. The proposed technique is tested on various IEEE standard bus systems under different loading conditions. The proposed PBOA reduces AOC and $$ P_{\text{loss}} $$ of RDS while maintaining tolerable voltages at systems’ buses. The reductions of 51%, 35%, 26% and 53% in $$ P_{\text{loss}} $$ are observed for IEEE standard 15-, 33-, 34- and 85-bus systems, respectively, at 100% loading from their uncompensated cases. Similarly, reductions in AOCs for the same systems at 100% loading are 32%, 25%, 16% and 45%, respectively. These results prove superiority of proposed method over recent state-of-the-art algorithmic approaches. The results of this work can be useful for distribution system operators in achieving reliable and efficient operation of the power grid.
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