This paper presents the research of an electric arc furnace classified into 2 part. The first is analysis of the impact of the electric arc furnace which is a harmonic source. It is caused by a disturbance in a system with nonlinear characteristics of the arcs is caused due to an electric arc furnace. Ripple voltage measurement relies on replication of Novel Arc Furnace model by using PSCAD/EMTDC help in the analysis, which is used as a guide to study the function of this furnace and how to fix the problem by installing the Static Var Compensate the system of industrial steel production. Measurement results signal that causes the ripple voltage signal changes in a small range, and the signal is reduced in the system. The second, presented to enhance energy efficiency by experimental melting steel to find the amount of heat loss through the wall furnace. Loss of heat from burning. Loss of heat from the stove to heat all the losses in energy homeostasis, a smelting process is controlled by the temperature of the steel which is poured from the furnace to the crucible and steel to reduce heat loss is reduced by approximately 2.89 kW, the resulting analysis and experiments to improve the energy of electric arc furnaces, this paper can increase energy efficiency by approximately 99.56 %.