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The main purpose of this thesis is the study and implementation of a Static VAR Compensator (SVC) for distributed VAR control by changing the firing angle of thyristor. The SVC gives us two key benefits of power factor correction; one is decreased power costs and increased system capacity.  The SVC consists of two types of branches – a TSC and a TCR branch. The expected quick rate of return of installation costs is attributed to the SVC’s low initial cost and its ability to reduce tariffs for reactive power consumption. It is the latest technology of power electronic switching devices in the fields of electric power transmission systems with controlling the voltage and power flow. Again, the static VAR compensators are being increasingly applied in electric transmission systems economically to improve the post-disturbance recovery voltages that can lead to system instability. It is used to improve the problem of voltage regulation in the transmission system. Static VAR Compensator (SVC) is shunt connected FACTS device which can be utilized for the purpose of reactive power compensation. This technology (SVC) removes the use of bulky, slow operating circuit breakers, and uses highly sophisticated semiconductor devices such as Thyristors. Modelling and simulation of Static VAR Compensator (SVC) for power system stability enhancement and improvement of power transfer capability have been presented in this paper.