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This paper investigates the enhancement in voltage stability margin as well as the improvement in power transfer capability of transmission line in a power system with the incorporation of Static Synchronous Compensation (STATCOM).The essential features of FACTS controllers and their potential to improve system stability is the prime concern for effective & economic operation of the power system. The location and feedback signals used for design of FACTS-based damping controllers were discussed. The coordination problem among different control schemes was also considered. Performance comparison of different FACTS controllers has been reviewed. The likely future direction of FACTS technology was discussed. In addition, utility experience and major real-world installations and semiconductor technology development have been summarized. A brief review of FACTS applications to optimal power flow and deregulated electricity market has been presented.
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