A large‐scale solar photovoltaic system (LSS PV) aims to reduce the gap as Malaysia plans to shift electricity generation from conventional sources like fossil fuels to renewable energy sources. The government plans to increase renewable energy to 20% of the generation mix by 2025. The first and second round of Malaysia's LSS programme has 958 MW of PV projects to be realized by 2020. The third round of the LSS program goes for an aggregate capacity of 500 MW. Being an intermittent source of energy, the major complication is with grid integration of the LSS PV system into the national power grid. This research aims to identify an optimum power system management scheme for LSS in Malaysia to stabilize voltage fluctuations by utilizing IEEE bus configuration. The simulation and planning of network type is based on PSS/E and PVSyst. The expected outcome of this research is to develop a solution for LSS grid integration with minimal loss in the system and in accordance with electricity standards as per Malaysian grid code. Additionally, the harmony of incorporating power electronic devices for reactive power compensation is tested. This work can be stated as a reference model for utility provider in other countries having similar network and grid configuration.