JPS_V3_N1_RP2 R. SivaSubramanyam Reddy T. Gowri Manohar Journal on Power Systems Engineering 2322–0376 3 1 17 22 Power Flows, Voltage Collapse Predictive Index (VCPI), (Flexible Alternating Current Transmission System) FACTS, STATCOM The modern power system is becoming more complex due to change in the system configuration day to day, to meet the increasing demand in electrical energy, by installation of new generating units and interconnection of transmission lines and extra high voltage tie lines etc. The ever growing load demand in the power system witnesses a gradual decrease in the system voltage profile. It is precisely the inability of the system to generate the required reactive power that propounds the cause of voltage collapse. The recent development in power electronics is the introduction of flexible AC transmission system (FACTS), which can facilitate the control of power flow and increase the power transfer, to be more flexible, secure and economical by controlling various electrical parameters of transmission circuits. To generate the required reactive power of the load and to improve voltage profile of the system, shunt compensation to the system is required. Shunt Facts controllers like SVC , STATCOM have the ability to provide the mentioned requirements of the power system. In this paper an algorithm is formulated to model and place the STATCOM in two test cases which is approved by IEEE such as IEEE30 bus, and IEEE57 bus. The formulated algorithm is tested on the two IEEE test cases such as IEEE 30bus and IEEE 57bus and the results are discussed. February – April 2015 Copyright © 2015 i-manager publications. All rights reserved. i-manager Publications http://www.imanagerpublications.com/Article.aspx?ArticleId=3355