Due to increased demand of electrical energy and also importance of power quality in distribution system, the reactive power and power quality compensation is needed in today power systems. Reactive power can cause abnormality in power quality which may harm sensitive loads. One of the most harmful equipment in distribution system is arc furnace. This device widely used in melting steels. They need huge amount of reactive power and also cause approximately all of power quality disturbances like harmonics, flicker, unbalancy, transients, sag, swell. Therefor compensating both reactive power and power quality is very important in distribution system contains arc furnace. One of the most common and effective devices for this aim is using Static Var Compensators (SVC). In this paper design of elements and control strategy for a SVC which is used in a real steel factory in IRAN is proposed to compensate both reactive power and power quality simultaneously. Simulation results in PSCAD/EMTDC and experimental results are compared and show the effectiveness of the method.
