A flexible alternating current transmission system (FACTS) is a system composed of static equipment used for the alternating current (AC) transmission of electrical energy. It is meant to enhance controllability and increase power transfer capability of the network. It is generally a power electronics-based system. FACTS is defined by the Institute of Electrical and Electronics Engineers (IEEE) as "a power electronic based system and other static equipment that provide control of one or more AC transmission system parameters to enhance controllability and increase power transfer capability". According to Siemens, "FACTS Increase the reliability of AC grids and reduce power delivery costs. They improve transmission quality and efficiency of power transmission by supplying inductive or reactive power to grid. In shunt compensation, power system is connected in shunt (parallel) with the FACTS. It works as a controllable current source. Shunt compensation is of two types: Shunt capacitive compensation This method is used to improve the power factor. Whenever an inductive load is connected to the transmission line, power factor lags because of lagging load current. To compensate, a shunt capacitor is connected which draws the current leading the source voltage. The net result is improvement in power factor. Shunt inductive compensation This method is used either when charging the transmission line, or, when there is very low load at the receiving end. Due to very low, or no load – very low current flows through the transmission line. Shunt capacitance in the transmission line causes voltage amplification (Ferranti effect). The receiving end voltage may become double the sending end voltage (generally in case of very long transmission lines). To compensate, shunt inductors are connected across the transmission line. The power transfer capability is thereby increased depending upon the power equation where is the power angle. In the case of a no-loss line, voltage magnitude at the receiving end is the same as voltage magnitude at the sending end: Vs = Vr = V.

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Related concepts (3)
Power factor
In electrical engineering, the power factor of an AC power system is defined as the ratio of the real power absorbed by the load to the apparent power flowing in the circuit. Real power is the average of the instantaneous product of voltage and current and represents the capacity of the electricity for performing work. Apparent power is the product of RMS current and voltage.
High-voltage direct current
A high-voltage direct current (HVDC) electric power transmission system (also called a power superhighway or an electrical superhighway) uses direct current (DC) for electric power transmission, in contrast with the more common alternating current (AC) transmission systems. Most HVDC links use voltages between 100 kV and 800 kV. However, a 1,100 kV link in China was completed in 2019 over a distance of with a power capacity of 12 GW. With this dimension, intercontinental connections become possible which could help to deal with the fluctuations of wind power and photovoltaics.
Electric power transmission
Electric power transmission is the bulk movement of electrical energy from a generating site, such as a power plant, to an electrical substation. The interconnected lines that facilitate this movement form a transmission network. This is distinct from the local wiring between high-voltage substations and customers, which is typically referred to as electric power distribution. The combined transmission and distribution network is part of electricity delivery, known as the electrical grid.

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