The study of shunt connected FACTS devices is a connected field with the problem of reactive power compensation and better mitigation of transmission related problems in today’s world. In this paper we study the shunt operation of FACTS controller, the STATCOM, and how it helps in the better utilization of a network operating under normal conditions. First we carry out a literature review of many papers related to FACTS and STATCOM, along with reactive power control. Then we look at the various devices being used for both series and shunt compensation. The study of STATCOM and its principles of operation and control, including phase angle control and PWM techniques, are carried out. We also delve into the load flow equations which are necessary for any power system solution and carry out a comprehensive study of the Newton Raphson method of load flow. Apart from this, we also carry out a study of the transient stability of power systems, and how it is useful in determining the behavior of the system under a fault. As an example, a six bus system is studied using the load flow equations and solving them. First this is done without the STATCOM and then the STATCOM is implemented and the characteristics of the rotor angle graph along with faults at various buses are seen. In this thesis, it is tried to show the application of STATCOM to a bus system and its effect on the voltage and angle of the buses. Next the graphs depicting the implemented STATCOM bus are analyzed and it is shown that the plots of the rotor angles show a changed characteristic under the influence of the STATCOM
