Abstract: The rapid development of the high-power electronics industry has made Flexible AC Transmission System (FACTS) devices viable and attractive for utility applications. FACTS devices have been shown to be effective in controlling power flow and damping power system oscillations. In recent years, new types of FACTS devices have been investigated that may be used to increase power system operation flexibility and controllability, to enhance system stability and to achieve better utilization of existing power systems. The Static Synchronous Compensator (STATCOM) is one of the most important FACTS devices and it is based on the principle that a voltage-source inverter generates a controllable AC voltage source behind a transformer-leakage reactance so that the voltage difference across the reactance produces active and reactive power exchange between the STATCOM and the transmission network. This paper proposes a case study to improve the voltage profile of power system by incorporating STATCOM. In this study we are considering a standard 5-bus network and IEEE 30-bus network for the analysis. We are mainly focusing on finding out the best location for inserting STATCOMS in the system, so that the optimal power flow is obtained which in turn increases the stability of the system. Power flow equations are solved using Newton Raphson’s algorithm and the simulation studies are implemented in MATLAB. Also FVSI method of line stability indication is also used for weakest bus prediction. The results of the network with and without STATCOM are compared in terms of voltages and the line losses in the transmission lines to analyze the performance of STATCOM.

Keywords: Statcom, Fvsi, Voltage Stability Indices, Optimal Power Flow.