This paper presents the analysis of controlling the real and reactive power of distribution network by considering the effect of super conducting magnetic energy storage and enhancement in the superconducting energy storage technologies, Which leads to good performance/rapid response to power system network compared to other storage technologies such as capacitor, BES(Battery Energy storage), fly wheel, pumped storage etc. This paper furnishes the performance comparison between the SMES (Super Conducting Magnetic Energy Storage) & Capacitor in the distribution network. This paper is to introduce the SMES model and scheme to control the active and reactive powers. Capacitor (APFCR) can only inject reactive power to the network but SMES can inject both real and reactive power with rapid response. The effect of SMES & Capacitor on network is demonstrated with the help of MATLAB simulations. SMES is designed to control the VA, VAR (Power factor) and to improve the transient stability of Electrical distribution system. Modern power systems strongly depend on stabilizing devices to have reliable and stable operation. SMES will provide sufficient damping in the system, during the transient period following a system disturbance, such as line switching, load changes and fault clearance.