STATCOM is a FACTS device is a reactive shunt
compensator with a DC capacitor used for shunt reactive
power compensation. This device senses the AC system
voltage (grid voltage) and compensate for the voltage
difference across the coupling transformer connecting it to the
AC system. If the output voltage is greater than the AC
voltage, it supplies reactive power to the AC system and if the
output voltage is less than the AC voltage, it absorbs reactive
power from the AC system [1]. The operating principle of
STATCOM is the reactive power compensation where the
reactive power and voltage magnitude of the system can be
adjusted such as shown in Fig.2. The reactive power is
distributed in the power system by the converter control [2]-[3]