INTRODUCTION 1.1 Introduction The fuel cell, wind turbines, hydrogen turbines and photovoltaic arrays are environmental friendly. This type of generations rapidly increasing around the world because they can increasing the demand of electric power and to decrease the greenhouse gases. In this electrical power generation plants having outstanding advance power electronics and energy storage devices for transient back up have accelerated penetration of the distribution generation system. The electrochemical device is called fuel cell it is convert chemical energy to electric energy. However, batteries need to be placed in parallel or series with the fuel cell as a temporary energy storage elements to support start up or sudden load variations why because the fuel cell cannot respond sudden load changes. A fuel cell by definition is an electrical cell, which unlike storage cells can be continuously fed with a fuel so that the electrical power output is sustained indefinitely (Connihan,1981). They convert hydrogen, or hydrogen-containing fuels, directly into electrical energy plus heat through the electrochemical reaction of hydrogen and oxygen into water. The process is that of electrolysis in reverse. In the summer peak period the load balance is critical, because of over loading problem at this time by usage of air condition is more. Loading balance is also important for both schedule outages and service restoration after fault isolation to perform load transfer between distribution feeders. The load varies from time to time in the feeder, it will make it very difficult to find the desired load balance by using network configuration in system planning stage. The renewable distributed generation like wind power, fuel cell power and photovoltaic power being installed in distribution feeders, the injection of intermittent power generation more of challenge to achieve load balance of distribution system. Considerable efforts have been proposed in the previous works to solve the loading balance of distribution systems. The distribution static compensator (DSTATCOM) was considered for compensation of loading unbalance caused by stochastic load demand in distribution systems.