High voltage automatic power factor correction/reactive power compensation systems are used everywhere that motors are still directly operated without power electronics, or other consumers with a low inductive cosφ place strain on the grid with reactive power in addition to their active-power requirements. Local supply of this reactive power by means of compensation systems relieves the burden on the supply grid and reduces losses.

High voltage reactive power compensator SVG STATCOM is a voltage regulating device. It is based on a power electronics voltage source converter (VSC) and can act as either a source or sink of reactive AC power. It is a member of the flexible AC transmission systems (FACTS) family which detects and instantly compensates for voltage fluctuations or flicker, as well as controls power factor.