The effects of shunt compensation on power system transmission stability and modern approach of the reactive power control scheme have been investigated in this paper. Reactive power compensation is realized in shunt connection with two components: thyristor controlled reactor (TCR) and thyristor switched capacitor (TSC). A special attention has been given in the following paragraphs to a modern control approach for power system stability enhancement which uses fuzzy logic. In the final part of the paper the modern control block scheme of static VAR compensator for reactive power in transmission systems is presented
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