Electrical loads both generate and absorb reactive power. Since the transmitted load varies considerably from one hour to another, the reactive power balance in a grid varies as well. The result can be unacceptable voltage amplitude variations, a voltage depression, or even a voltage collapse. A rapidly operating Static Var Compensator (SVC) can continuously provide the reactive power required to control dynamic voltage swings under various system conditions and thereby improve the power system transmission and distribution performance. Installing an SVC at one or more suitable points in the network can increase transfer capability and reduce losses while maintaining a smooth voltage profile under different network conditions. In addition, an SVC can mitigate active power oscillations through voltage amplitude modulation.