SUMMARY
In this paper, a concept of voltage in-stability in a microgrid which is a power quality issue and the voltage stability improvement using static synchronous compensator (STATCOM) are discussed. The microgrid system in this chapter has a Alternating Current (AC) bus and Direct Current (DC) bus, interconnected together with a tie line DC–AC converter. AC bus of the microgrid is designed to operate in synchronism with the utility grid. During the islanded mode of operation, i.e. when the power is absent in the utility grid, the AC bus voltage would fluctuates due to variation of reactive power of load on the Microgrid. Hence it is necessary to regulate the AC bus voltage. A static synchronous compensator (STATCOM) would be a better solution for compensation of reactive power and minimize voltage fluctuations on AC bus of the microgrid. STATCOM is a power electronic device that is used for regulating the voltages and the reactive power in the system. The performance of STATCOM in microgrid system is simulated using MATLAB/SIMULINK and observed for different type of power generating system under balanced and unbalanced loads.