A power distribution system for providing a desired value of voltage regulation is presented. The system includes at least one power source, at least one sink, a distribution feeder configured to couple the at least one power source to the at least one sink. The system includes a plurality of modular voltage regulation units coupled to the distribution feeder, where each of the plurality of modular voltage regulation units includes a transformer including a primary winding having a first end and a second end and a secondary winding having a first end and a second end; and at least one switch coupled to the primary winding of the transformer, where the first end of the secondary winding is coupled to at least one of the first and second ends of the primary winding via the at least one switch. A method of operating a power distribution system is also presented.