Voltage instability and increased power loss on transmission lines are major challenges in power transmission due to ever increasing load growth. This work investigates the effect of Static Synchronous Compensator (STATCOM) to mitigate power losses and enhance the voltage stability of a transmission system. STATCOM, a shunt-connected power electronic device, operate as a Voltage Source Converter (VSC) to improve power transfer capacity of transmission lines by injecting a set of three-phase

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... nced sinusoidal current with controllable magnitude and phase angle into the transmission lines to regulate the line voltage and compensate for reactive power at the Point of Common Coupling (PCC). To validate the capacity of STATCOM in this light, a modified model of IEEE 14 bus test system was simulated using DIgSILENT PowerFactory v15. Four different load profiles were included by increasing the base load in a step of 10%. In each case, power flow was run with and without STATCOM incorporated in the network with a view to determine the impact of STATCOM on bus voltage and transmission line losses. The simulation results are obtained were recorded and analyzed. It is noted that there was sufficient improvement in the new voltage profile obtained for the weak buses of the system, the active and reactive power losses were mitigated by 17.73% and 24.80% respectively when STATCOM was incorporated at normal load. The results showed that STATCOM could give quick voltage support to reduce the likelihood of voltage collapse and mitigate power losses along the transmission lines. Reduction of reactive power losses along the lines is higher than the active power losses resulting in the improvement of the voltage profile as the device is connected to the system.